Georgia

Overview

Last reviewed - 23 June 2020

Georgia is located between Asia and Europe and occupies a land area of 69,700 square kilometres, bordered by the Black Sea to the west, Turkey to the southwest, Azerbaijan to the east, Russia to the north, and Armenia to the south.

Georgia declared independence on 9 April 1991, following the dissolution of the Soviet Union. Georgia is divided into nine regions and two autonomous republics. The population of Georgia is estimated to be 3.7 million, 1.2 million of whom live in the capital city, Tbilisi. Georgian is the official language of Georgia, and it is spoken by 71% of the population. Georgia's currency is the lari (GEL).

Georgia is a democratic, semi-presidential republic with a President as its Head of State. In 2013, the second Presidential term for Mikheil Saakashvili expired, and a new President, Giorgi Margvelashvili, was sworn in on 17 November 2013. The latter was replaced by the first female president in Georgia's history on 28 November 2018.

Following the Rose Revolution of 2003, Georgia has undertaken a series of progressive reforms, including anti-corruption efforts, reforms of labour and tax codes, and improvements to the essential infrastructure of the country. The reforms to the Georgian economy have resulted in a great flow of foreign direct investment and positive gross domestic product (GDP) growth.

Georgia's main economic activities include agricultural cultivation of citrus fruits, tea, grapes, and hazelnuts. Georgia also has a manganese and copper mining industry. Industries present in Georgia include aircraft manufacturing, bottled water and wine production, chemicals, electric motors, electric welding equipment, fuel re-export, foundry equipment (automobiles, trucks, tractors), machine tools, machinery for food packing, tower cranes, wood products, steel, shoes, and textiles.

Georgia imports nearly all its natural gas and oil products. The largest energy producing source is hydropower. Currently, Georgia is privatising the energy sector. It is believed that long-term growth will stem from Georgia's role as a transit state for oil and gas pipelines. Three pipelines currently exist, the Baku-Supsa pipeline (GPC-Georgian Pipeline Company), the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, and the South Caucasus Pipeline (SCP) System.

PwC has been serving clients in Georgia since 1996 and opened an office in Tbilisi in July 2005 that now employs more than 100 professional staff. The client portfolio of the Georgian practice includes banks, large multinational organisations, donor-funded projects, and large Georgian enterprises.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

15

Corporate income tax (CIT) due dates
CIT return due date

CIT returns should be submitted on monthly basis by the 15th day following the month when the taxable transaction took place.

CIT final payment due date

CIT is due on a monthly basis by the 15th day following the month when the taxable transaction took place.

CIT estimated payment due dates

CIT is due on a monthly basis by the 15th day following the month when the taxable transaction took place.

Personal income tax (PIT) rates
Headline PIT rate (%)

20

Personal income tax (PIT) due dates
PIT return due date

31 March

PIT final payment due date

31 March

PIT estimated payment due dates

An entrepreneur individual has to make estimated payments of PIT amounts proportionally in four instalments (by 15 May, 15 July, 15 September, and 15 December).

Value-added tax (VAT) rates
Standard VAT rate (%)

18

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA;

Non-resident: 5 / 5 / 5

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

5

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.