Individual - Income determination

Last reviewed - 23 June 2020

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 the one having 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 the residential space to an organisation, legal entity or an individual for residential purposes, if the individual does not make deductions from this income.