Individual - Income determination

Last reviewed - 31 January 2024

The gross taxable income of a resident individual is any income received in the form of salary, from economic activity not related to employment, or from other activities.

Employment income

The following payments or benefits received from an employer would be treated as taxable income (not exhaustive):

  • Per-diems and accommodation expenses received in excess of norms established by Georgian Ministry of Finance.
  • Private use of the company's automobile where an employee is legally entitled (according to the employment agreement, charter, etc.) for such use (except for those having an electric engine).
  • When receiving loans at an interest rate lower than the rate established by the Finance Minister, the difference between the established and actual interest rates.
  • Goods or services sold or transferred free of charge by employer to employee.
  • Accommodation.
  • Assistance for education of an employee or their dependants (excluding training programs directly related to performance of the employee's duties).
  • Life and health insurance premiums.

Capital gains

The profit received from sale of a vehicle and an apartment (house) with attached land plot is subject to tax at a 5% rate.

Rental income

Personal income tax (PIT) at 5% is applicable to the rental income derived by an individual as a result of renting out residential space to an organisation, legal entity, or an individual for residential purposes if the individual does not make deductions from this income.

Starting from 1 January 2023 until 1 January 2026, income derived by an individual as a result of conducting economic activity classified by statistical classification of economic activities in the European Community under group 55.2 - Holiday and other short-stay accommodation is subject to fixed PIT rate if one:

  • applies to the tax office
  • is not voluntarily registered as a VAT payer, and
  • earned income from this activity not exceeding GEL 100,000 in any consecutive 12-months period.

A non-resident individual earning rental income from the person having no liability to act as a tax agent and withhold taxes is subject to PIT on the difference between the Georgian-source income earned during a calendar year and deductions related to the receipt of such income.