Tax Incentives for International Company Status in Tbilisi, Georgia
Companies with International Company status in Georgia benefit from significant tax advantages compared to regular companies:
A regular LLC or JSC company pays the following taxes in Georgia: |
A company with International status (LLC or JSC) pays the following taxes: |
An IT company (LLC or JSC) with Virtual Zone status pays the following taxes: |
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Corporate income tax – 15% after the distribution of profits (if the profit is reinvested or remains on the company’s account, then the tax is 0%) 5% tax on dividends after the distribution of profits (if the profit is reinvested or remains on the company’s account, then the tax is 0%) 18% VAT (though if your customers are located outside Georgia, no VAT is paid on this transaction, and VAT is 0% for you) Personal income tax 20% – from the gross salary of employees. Paid by the company. 4% pension contribution – from the gross salary of employees who are residents of Georgia 1 % property tax |
Corporate income tax – 5% after the distribution of profits (if the profit is reinvested or remains on the company’s account, then the tax is 0%) 0% tax on dividends 0% VAT (though if your customers are located outside Georgia, no VAT is paid on this transaction, and VAT is 0% for you) Personal income tax 5% – from the gross salary of employees. Paid by the company. 4% pension contribution – from the gross salary of employees who are residents of Georgia 0 % property tax |
Corporate income tax 0% on profits from abroad (company must utilize Georgian-based employees with qualifications in the IT field) 5% tax on dividends (to avoid double taxation please check countries list of counrties that signed with Geoegia double taxation avoidance treaties) 0% VAT (though if your customers are located outside Georgia Personal income tax 20% – from the gross salary of employees. Paid by the company plus 2% and 2% pension contribution Up to 1 % property tax |
Summary of tax benefits of international company status:
- Enjoy a low 5% Profit Tax, significantly lower than the standard 15% Corporate Income Tax in Georgia. This tax is only levied at the time of distribution, allowing you to reinvest your profits without being taxed.
- Benefit from a 0% Dividends tax, eliminating the usual 5% tax on dividends.
- Experience a reduced 5% Tax withholding on employee income, down from the previous 20%. Additionally, as a Georgian legal resident, employees are subject to the standard 2%+2% pension contributions.
- Take advantage of a 0% Property tax (excluding land) on properties used for permitted activities of international companies. This means that if your property is intended for or used in the operations of your international business, you won't be subject to property taxes.
These favorable tax conditions in Georgia create a business-friendly environment, allowing you to maximize your profits and invest in the growth of your international company, IT or maritime, in Georgia.