Business Taxation in Georgia: Key Rates and Recommendations

In Georgia, business taxation is regulated by the Tax Code, which establishes both general rules and special tax regimes. It is important to know the main rates and conditions to properly conduct business and avoid financial risks.

The main tax for businesses is the corporate income tax. For residents and non-residents operating through a permanent establishment or receiving income in Georgia, the rate is 15%. Exceptions are provided for income from oil and gas operations under "existing contracts" defined by legislation since 1998, where the rate is reduced to 10%. Meanwhile, financial institutions are subject to a 20% rate.

Dividend taxation is also regulated—the rate is set at 5%. This is important for legal entities distributing profits among shareholders.

Microenterprises are exempt from income tax and corporate tax, but must submit tax declarations. Small businesses are taxed at a rate of 1% of income, which can increase to 3% if the income exceeds 500,000 GEL. From 2025, these conditions will change, raising the tax for businesses involved in wine or agrotourism whose incomes exceed 700,000 GEL.

Before choosing a tax regime for your business, we strongly recommend consulting with a specialist. At Finup, the registration procedure includes an audit of your project and the selection of the optimal tax regime, which will help avoid future expenses or difficulties with tax accounting. Contact us for professional assistance and confidence in the financial stability of your enterprise.