| Georgia income tax Georgia has a 20% flat personal income tax decreasing to 15% by 2012
Other Information
- Carry back of losses for individual entrepreneurs 0 years
- Carry forward of losses for individual entrepreneurs 5 years
Allowable deductions and tax credit Deductible expenses are as follows:
- interest (within limits)
- reserves of insurance funds
- scientific research
- depreciation of fixed assets
- repairs
- insurance costs
- prospection and extraction of resources
- depreciation of intangible assets
- taxes and fines (within limits)
- expenses and losses on the sale of property
Georgia Corporate income taxGeorgia Corporate income tax is 15%
Main allowable deductions and tax credit Deductible expenses are as follows:
- interest (within limits)
- reserves of insurance funds
- scientific research
- depreciation of fixed assets
- repairs
- insurance costs
- prospection and extraction of resources
- depreciation of intangible assets
- taxes and fines (within limits)
- expenses and losses on the sale of property
Withholding tax for companies and individuals
Dividends paid to individuals and non-residents: 5%
Dividends paid to resident companies 0%
Dividends paid on publicly-traded equity securities having free float in excess of 25%: 0%
Dividends paid by International Financial Company: 0%
Interest paid: 7.5%
Interest paid to resident banks: 0%
Interest paid by licensed financial institutes: 2009 – 0%
Interest paid on publicly-traded debt securities having free float in excess of 25%: 0%
Royalties paid for patents, know-how, etc: 10%
Management fees paid: 10%
Payment of income from international transport or international communications: 4%
Insurance premiums paid: 0%
Payment of income from oil and gas operations: 4%
Payments of other Georgia-source income of foreign companies not connected to their permanent establishments in Georgia: 10%
Other Taxes in GeorgiaValue added tax: 0% or 18%
Excise tax: Varies
Customs tax: 0%, 5% or 12%
Property tax – corporate: Up to 1%
Property tax – individual: Varies
Other Information
Carry back of losses: 0 years
Carry forward of losses: 5 years
Specific Tax Rates for a Free Industrial ZoneCorporate income tax for international companies*: 0%
Value added tax on supplies within Free Industrial Zone: 0%
Customs tax on goods produced in a Free Industrial Zone: 0%
Property tax (corporate and individual): 0%
* A company registered as an international company and operating in a Free Industrial Zone
Other Notes
- 5% interest income and dividend tax rates decreasing to 0% by 2012
- 1% (max) property tax on the self-assessed value of property
- 0% dividend income tax on dividends from publicly-traded equities from 1 January 2009
- 0% tax on interest income from bank deposits and publicly-traded debt securities (from 1 January 2009)
- 0% capital gains tax
- 0% social insurance or similar taxes
- 0% inheritance tax
- 0% wealth tax
- 0% stamp duty or other transaction-based taxes or levies
Free Industrial Zone:
- 0% VAT
- 0% customs tax
- 0% property tax
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