Accounting and Taxation in Georgia

We provide accounting services and bookkeeping in English for LTD companies, IT virtual zone company and Free Trade companies based in Georgia.

Accounting services and bookkeeping price list

Accounting services and bookkeeping
Start up / small size company - non VAT payer	EURO 110 / monthly fee
Start up / small size company - VAT payer	EURO 140 / monthly fee

 
What is included:

1. Service is for small company who has only few employees (max. up to 5)
2. Using Bank transaction for the business activities
3. Monthly transaction is no more than 100

 

Taxation types in Georgia

There are common state and local taxes.

 

Common state taxes are:

Income tax -  For  Resident physical person,  who is actually in the territory of Georgia for 183 days or more during any continuous 12 calendar months. Individuals are nor required to fill income statement, but employer does, sends electronic monthly declarations to revenue service web page.

Revenue subject to taxes with the source of payment is taxable:
Salary - 20%
Dividends - 5%
Percent - 5%
Royalties - 20%
 
Income tax -  Non-resident natural person shall be taxed on the income derived from the source of Georgia
Dividends - 5%;
Interest - 5%;

Amounts paid to international communications telecommunication services by the enterprise, organization and / or entrepreneur natural person and for transportation of international transportation services - 10%;

Income from non-resident subcontractors in the implementation of oil and gas operations defined by the Law of Georgia on Oil and Gas "4%;
The amount of lease paid for a physical person – 20%;
Other funds, which are considered as income in Georgia - 10%.
Salary income – 20% (More then 90 days continuous 12 calendar months)

Liberated Income tax – Some hired; employed Individuals are free from income tax (veterans, a mother of many children, some disable person and etc)

Value Added Tax (VAT) – A person or company who is carrying out economic activity and the total amount exceeds 100,000 GEL during any continuous 12 calendar months, is required to register as VAT taxable

VAT rate is 18% of taxable turnover. 

Interesting thing is that at revenue service web-page company has, can say “virtual bank”, where can accumulate all paid VAT. This amount can use in future to pay VAT, Income Tax or any  tax according to Georgia law.   

Excise – Various and different, depends of product or activities
Import tax - Various and different, depends of product or activities

Local taxes are:
Property tax on Land, Building, Machine, Some technique, intangible property   

 

Employee issues in Georgia

Resident
Every resident who is 16 and more, can be employed. Every employee should have contract agreement, insurance is not obligatory (only when they work physically). 

Holidays – can get paid holidays 24 working days per year, +15 uncompensated holidays, also they can get day off after present medical documents. 

Payment and salary – It depends of person’s education, duties and responsibilities. Medium salary depends of business activities; it is 500-2500 GEL net per month. 

Non-Resident 
Individual person who lives in Georgian territory consecutively less than 183 days in a year is non-resident person. Non-resident person pays income tax 20% as a resident person , do not pays any special fees or payments, use same benefits as Georgians, but there are some exception according the business type (International transportation, gas and oil company’s employee and etc.) 

More information about Tax Law of Georgia and legal support of your lawyers you can find out here at Lawyers.ge.