Tax Publications

The Georgian VAT system is largely harmonised with the principles established under the EU VAT Directive, ensuring alignment with international best practices and reinforcing the transparency of the Georgian tax framework. Value Added Tax (VAT) in Georgia is a consumption-based tax, meaning that taxation is linked to the place where goods or services are consumed […]

In 2017, Georgia introduced a fundamental reform of its corporate taxation system, departing from the traditional model of taxing annual net profits and adopting what is commonly referred to as the “Estonian model.” Under this regime, Corporate Income Tax (CIT) is no longer imposed on retained earnings but only on profit distributions and certain outflows

Withholding tax in Georgia is a core element of the Georgian tax system and plays a central role in ensuring efficient tax collection at the source of payment. Under the Tax Code of Georgia, withholding tax arises when an obligation exists to withhold tax at the moment income is paid. This mechanism applies to a

Georgia’s gambling taxation framework places significant emphasis on the citizenship of participants, particularly in the online gambling environment. While the general structure of gambling taxation applies uniformly across different types of activities, the Tax Code of Georgia introduces targeted incentives where foreign players are involved. These incentives operate on two levels: first, through personal income

For taxation purposes, the Tax Code differentiates between several types of gambling businesses. The income derived from organizing each type of gambling activity is subject to different taxation rules. Accordingly, it is important to distinguish each of the following: Taxation of Slot Salons and Online Gambling It is important to clarify what is meant by

In practice, the legal form of a transaction may not always reflect its true economic substance. While in civil law such inconsistencies may be addressed through the concept of fraudulent transactions, in taxation, the issue can be approached differently. Under the Georgian Tax Code, the Revenue Service is authorized to reclassify a transaction for tax

In Georgia’s fast-developing real estate sector, it is common for development companies and landowners to enter into complex contractual arrangements involving the exchange of land for completed residential or commercial spaces. While some transactions are structured as traditional sale-and-purchase agreements, barter arrangements are far more frequent in practice. Under such deals, the landowner transfers ownership

In Georgia, many business transactions, such as loans, advance payments, or capital contributions, are carried out in foreign currency. While this practice is common in international commerce, it carries specific tax implications that depend on how such operations are reflected and valued for Georgian tax purposes. Under the Tax Code of Georgia, any taxable transaction

The sale of a business in Georgia can take two main forms: selling the company’s shares or selling its business assets. While both options ultimately transfer ownership and control, they differ substantially in their tax implications. Georgian tax law provides distinct treatment for each transaction type, especially under Personal Income Tax (PIT), Corporate Income Tax

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