Georgia Tax Guide
How tax works in Georgia: the territorial system, 1% Small Business status, the 0% Virtual Zone for IT, and 15% corporate tax on distributed profit.
5 articles
Frequently Asked Questions
Does Georgia tax foreign income?
Under Georgia's territorial system, tax residents are generally taxed only on Georgian-source income. Most foreign-source income is outside the scope of Georgian tax. Confirm your specific case.
What is Small Business status in Georgia?
An Individual Entrepreneur with Small Business status pays 1% turnover tax up to 500,000 GEL per year (3% above the threshold), one of the lowest effective regimes available.
How does the Virtual Zone work for IT companies?
A Virtual Zone Person pays 0% corporate tax on profit from IT services exported outside Georgia and 0% VAT on those exports. Distributed profit is taxed at 5% dividend tax.
Do I pay Georgian VAT on services I buy from abroad?
Yes. Ads, hosting, software and freelance work bought from a supplier outside Georgia trigger reverse-charge VAT at 18%, declared monthly on rs.ge. A VAT-registered business deducts it in the same return, so it nets to zero; a business below the 100,000 GEL threshold has nothing to deduct against, so the 18% is a real cost. Position as of August 2026. Confirm current rules with the Revenue Service.
