To enhance Georgias Investment & Business Climate, the Government has dramatically overhauled its tax system since 2004. By implementing a liberal reform agenda, Georgia has simplified its processes and has reduced the number of taxes from 21 in 2004 to only 6 today (Income Tax; Corporate Profit Tax; VAT; Excise; Import Tax and Property Tax).
These improvements have made Georgia one of the most attractive tax regimes globally. In 2009, Forbes Magazine designated Georgia as the “4th Least Tax-Burdened Country”.
Currently, Georgia has established Double Taxation Treaties with 42 major trading partner countries and plans to finalize several more in 2013. Additional reforms are projected to decrease tax rates even further in the next few years.
In 2011, The government submitted to Parliament the constitutional Law on Economic Liberty (the Liberty Act). With the Liberty Act, no new taxes or tax rate increase is possible without a nationwide referendum.
» No payroll tax or social insurance tax
» Capital expenditure can be depreciated fully in the year it has been incurred of the operation and 10-year loss carry
forward is available
» No capital gains tax
» No wealth tax, inheritance tax or stamp duty
» Foreign-source income of individuals fully exempted
» Advance tax ruling is issued
» Tax audit can be conducted by private audit/consulting companies
For investors interested in locating their industrial operations in Georgia, there are Tax-Free Regimes available to take advantage of: