Register a Company in Georgia
by Expert Advisors

Georgia adopted the Estonian CIT model on 1 January 2017. Under this regime, a company's retained earnings are exempt from tax — CIT at 15% is only triggered upon profit distribution (dividends) or deemed distributions (non-business expenses, interest on loans to related parties). This means growing companies can reinvest all profits indefinitely at 0% tax. Note: banks, credit unions, and microfinance organisations are subject to a 20% CIT under a separate regime from 2023.

Georgia has concluded comprehensive double taxation avoidance agreements with over 58 countries including Germany, France, Netherlands, UAE, China, Turkey, UK, and most CIS states. These treaties reduce or eliminate withholding taxes on dividends, interest, and royalties paid to foreign shareholders — significantly reducing the tax burden on international business structures using Georgia as a holding or operational base.

Under Article 99 of the Tax Code of Georgia, IT companies registered as Virtual Zone Persons pay 0% CIT and 0% VAT on income derived from the supply of information technology services to persons outside Georgia. Dividends distributed by a VZP are exempt from withholding tax. To qualify, the company must be engaged in IT activities, registered with the Revenue Service of Georgia, and maintain documentary evidence of foreign-sourced IT income.

Individuals registered as IEs with annual turnover not exceeding 500,000 GEL (~$185,000) may qualify for Small Business Status — paying 1% tax on gross turnover. Revenue between 500,000 GEL and 1,500,000 GEL is taxed at 3%. This regime is particularly suitable for freelancers, consultants, coaches, and digital nomads. Approval is subject to Revenue Service assessment. Monthly declarations are due by the 15th of the following month via the rs.ge portal.

The standard VAT rate in Georgia is 18%. VAT registration with the Revenue Service is compulsory when annual taxable turnover exceeds 100,000 GEL (~$37,000). A 0% VAT rate applies to exports and international services. Virtual Zone companies and Free Industrial Zone enterprises are VAT-exempt on qualifying foreign-source revenues. Monthly VAT declarations are submitted via the rs.ge online portal by the 15th of the following month.

Georgian companies must submit monthly zero declarations to the Revenue Service even during periods of no activity — failure results in automatic penalties. Annual financial statements are filed with the National Statistics Office (Geostat). Companies with turnover above 1,500,000 GEL or assets above 5,000,000 GEL are subject to mandatory audit under Georgian Accounting Standards. The Revenue Service online portal (rs.ge) handles all tax filings electronically.