There are only six taxes in Georgia, of which five are nationwide, and one is a local tax. Nationwide taxes are: personal income tax, corporate income tax, value added tax, excise tax and import tax. Local tax is property tax. There are no inheritance, wealth, property transfer, social, branch remittance or other taxes imposed in Georgia. Georgia has favorable taxation regimes with low tax rates given in the table below.
From 1 January 2017 a new model of Corporate Income Tax was enacted in Georgia, which means that for Georgian entities and foreign entities doing business in Georgia by a permanent establishment the retained profit will no longer be taxable until they are distributed. The main purpose of the new model is to encourage domestic and foreign investments by taxing the businesses when they will extract the profits. Commercial banks, credit unions, insurance companies, microfinance organizations, and pawn shops will be switched to the new taxation regime after 1 January 2023 in Georgia.
According to the Tax Code of Georgia, “A person/entity, which carries out an economic activity and the total amount of VAT taxable transactions carried out in any continuous period up to 12 calendar months exceeds GEL 100 000”, shall apply for a VAT registration to Revenue Service under Ministry of Finance of Georgia. A person/entity can also perform voluntary VAT registration.