Profit Tax in Georgia

Georgia revenue

Profit Tax

Profit tax payer is:

– Resident enterprise;

– Non-resident enterprise carrying out the business in Georgia through permanent institution and/or receiving income from the source of Georgia;

– Non-resident entity which is not a natural person carrying out the economic activity in Georgia and shall not ground its co-ownership according to 143 Article of Georgian Tax Code.

Partnership and other similar entities

Tax rate:
Taxable income of enterprise is taxed at 15 percent. Profits obtained by oil and gas operations a result of performance of “existing contracts” defined under the law of Georgia in Oil and Gas are taxed at 10 percent, if the contracts are signed before January 1, 1998.
Deadline for submission of the declaration: 
Before April 1 of year following the reporting year.
Within 15 days after making decision about liquidation at the time of liquidation of the enterprise.
Payment of taxes:
Until April 1 of the next year of accounting year;
Within 15 days after making decision about liquidation at the time of liquidation of the enterprise.
Current taxes shall be paid according to annual tax of the previous tax year in the following amount:
• No later than May 15 – 25%
• No later than July 15 – 25%
• No later than September 15 – 25%
• No later than December 15 – 25%
Income from a source of Georgia by a non-resident not belonging to a permanent establishment of non-resident being on tax registration in Georgia:

Tax rate: 
Non-resident legal entity is taxed at the income received from a source of Georgia at the following rate:
• Dividend 5%
• Rate 5%
• Moneys paid for international telecommunication services and international freight transport services 10%
• Income earned by non-resident subcontractors in oil and gas operations defined under the Law of Georgia on oil and gas 4%
• Other payments which are considered as an income from a source of Georgia under the Tax Code 10%
Deadline for submission of the declaration:
Until April 1 of the next year of accounting year, for the purposes of recalculating the withholding taxes (other than recipient of dividends and rates).
Payment of taxes: 
Upon payment of money (subject to withholding at a source of payment);

Partnership and other similar entities

Tax rate:
In accordance with Article 143 of the Tax Code, taxable profit (income) attributes to their owners (members) according to the share and shall be included in their gross income.
Deadline for submission of the declaration:
Until April 1 of the next year of accounting year – Declaration on distribution of profit (loss) received by partnership.
Payment of taxes: 
Taxable profit (income) attributes to their owners (members) according to the share and shall be included in their gross income.

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