To ensure that you don’t miss any important information about taxes, you can check which types of taxes are valid in Georgia, including statewide and local taxes. The following are common state taxes:
A general-state tax is paid by individuals who receive income from sources in Georgia. Taxable income is generally taxed at a rate of 20%, except for certain types of taxable income, such as dividends, rates, and royalties. Residents receive royalties at a rate of 20%, while revenue from scrap and waste supply of ferrous and non-ferrous metals is taxed at 3%. The current taxes are payable to the sole proprietor by the annual tax of the previous reporting period, with 25% payable by May 15, July 15, September 15, and December 15.
All in all, income taxes rates include:
- Salary – 20%
- Dividends – 5%
- Rates – 5%
- Royalties – 20%
- Royalties received by resident natural persons at 20%
- Revenue from scrap and waste supply of ferrous and /or non-ferrous metals – by 3%.
A monthly tax is mandatory for a permanent establishment, except for commercial banks, credit connections, lenders, insurance, and microfinance organizations.
The profit tax is 15%, calculated by dividing the taxpayer’s expense by 0.85. Enterprises must file an income tax return with the tax authority monthly, no later than the 15th day of the reporting month, and pay the tax at the same time.
Value Added Tax (VAT):
- Paid by a registered or obliged VAT payer, the VAT is an indirect tax added to the price of goods and/or services rendered.
- The importer pays the VAT at the time of purchase, but the product supplier (importer) is obliged to pay the budget.
- The VAT taxpayer must submit a tax return to the taxing authority during the reporting period, no later than the 15th day of the following month, and pay it within the same deadline.
- Non-registered VAT payers must pay the VAT accrued no later than the 15th of each month, and imports of goods must be paid within 45 days of release.
Applied to alcoholic beverages, tobacco products (excluding tobacco raw materials), cars, motorcycles, petroleum gases, natural gas (except pipeline transport), petroleum products, petroleum distillates, painted petroleum products, biodiesel, pyrolysis liquid product, oils, other products of high-temperature distilled from coal resins, additives, solvents, antiseptics, lubricants and supplies, and fluids for use in electronic cigarettes.
Excise taxpayers should consider the following:
- Excise goods manufactured in the country
- Export/import of excise goods
- Supply of natural gas condensate and/or natural gas transportation
- Supply of petroleum products or motor vehicles specified in certain codes of the National Commodity Nomenclature for external economic activity
- International call termination services are received from a person on a mobile or fixed network.
Excise tax must be paid no later than the 15th day of the month following the reporting period of the taxable transaction.
The Import Tax Rates in Georgia are 5% and 12%. Each full and partial calendar month from the date of registration of goods temporarily imported into Georgia’s customs territory will be taxed at a rate of 3% of the sum that would have been paid on the day of temporary importation.
Local Taxes in Georgia Includes property tax, which is levied by the local government representative body at rates set by the country’s government.
Property tax is applied to :
- Owned real estate
- Yachts (boats),
- Helicopters and airplanes
- Motor vehicles
- Leased property from a non-resident
- And if an individual has economic activity, the assets, non-installed equipment, as well as leased property on its balance sheet is subject to property tax. The person must submit a declaration no later than November 1, and the tax is calculated based on the declaration.