Introduction In Georgia, the taxation of real estate sales follows a simple and transparent framework. Unlike many other jurisdictions, Georgia does not impose a separate capital gains tax. Instead, profits from the sale of assets are taxed as ordinary income under either the Corporate Income Tax (CIT) or Personal Income Tax (PIT) regime, depending on
Tax Obligations upon Sale of Residential Property Read More »
Labor safety regulations in Georgia have become a topic of active discussion, as the Georgian relevant state authority, Labor Inspection Office (“Labor Inspection”), regularly conducts inspections of Georgian legal entities to confirm that they comply with Georgian labor safety laws. The main legal act regulating this specific field is the Law of Georgia on Labor
Georgia offers one of the most tax-efficient frameworks in the region for structuring and managing investment funds. Owing to the rules outlined in the Tax Code of Georgia and the Law of Georgia on Investment Funds, both domestic and international investors can benefit from generous tax exemptions, clear pass-through treatment, and full relief on certain
How Investment Funds Are Taxed in Georgia: Exemptions, Dividends, and Capital Gains Read More »
Companies and organizations in Georgia must use electronic documents signed with a qualified electronic signature or stamp if they wish to submit electronic documents to administrative bodies. This process ensures secure, efficient, and verifiable communication between public and private entities. A qualified electronic signature offers several key advantages. It uniquely identifies the signatory, links them
Capital increases and reductions are common corporate transactions in Georgia. While these actions primarily reflect changes in a company’s equity structure, they also carry specific tax consequences. Understanding how capital contributions and withdrawals are treated under Georgian tax law is essential for both shareholders and businesses to remain compliant and avoid unexpected liabilities. Tax Consequences
Georgia has positioned itself as an appealing destination for globally mobile individuals, offering a unique route to tax residency designed specifically for High-Net-Worth Individuals (HNWIs). This program allows qualified applicants to obtain Georgian tax residency without meeting the usual physical presence requirement, making it an attractive option for investors, entrepreneurs, and affluent expatriates. General Rule
High Net Worth Individual (HNWI) Tax Residency in Georgia Read More »
What is Virtual Zone Person Status and Why is It So Beneficial? Georgia offers one of the most attractive tax regimes in the region for IT companies through its Virtual Zone Person (VZP) status. This designation grants qualifying tech companies a 0% corporate income tax rate on profits derived from the export of digital services
Virtual Zone Person Status in Georgia (0% Corporate Tax Regime) Read More »
Barter transactions remain a practical way for businesses and individuals to exchange goods or services without relying solely on cash payments. While they may appear simple, barter deals in Georgia carry important tax implications. Under Georgian tax law, a barter transaction is treated as both a sale and a purchase for each party involved. This
Investors purchase shares to earn a return on their investment. They expect regular dividends as profit. For many minority shareholders, dividends are the only income from specific business ventures. Minority shareholders hold little control over corporate decisions. Corporate directors and majority shareholders dominate the dividend process. They prepare annual accounts, call shareholder meetings, and decide
In today’s globalized economy, multinational enterprises often operate across several jurisdictions, engaging in cross-border transactions within their corporate groups. While these arrangements are a natural part of international business, they also create the risk of shifting profits to low-tax jurisdictions. Recognizing these risks, Georgia has developed a comprehensive transfer pricing (TP) framework that closely follows
Significance and Key Principles of Transfer Pricing Read More »