Georgia Corporate Income Tax

Corporate income tax — Estonian (distribution) model

• Estonian distribution model overview — Since 1 January 2017 Georgia taxes corporate profit only when it is distributed or deemed distributed (the Estonian model), so retained and reinvested profit is untaxed. The tax is computed monthly on distributions rather than on annual accounting profit.
• Standard corporate income tax rate — 15% percent (on distributed profit) (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/taxes-on-corporate-income)
• Tax base — Distributed profit, deemed distributions, non-business expenses, and free-of-charge supplies — retained/reinvested profit is not taxed (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/taxes-on-corporate-income)
• Computation on deemed distributions / non-business costs — 15% applied to the grossed-up value of the taxable amount (taxable base / 0.85) (Tax Code of Georgia)
• Rate for banks, credit unions, microfinance organisations and loan providers — 20% percent (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/taxes-on-corporate-income)
• Retained / reinvested profit — Not subject to corporate income tax until distributed (Tax Code of Georgia)
• Withholding tax on dividends to non-residents — 5% percent (subject to reduction or 0% under an applicable tax treaty) (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/withholding-taxes)
• Withholding tax on interest to non-residents — 5% percent (treaty relief may apply) (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/withholding-taxes)
• Withholding tax on royalties to non-residents — 5% percent (treaty relief may apply) (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/withholding-taxes)
• Withholding tax on interest/royalties/other income to black-listed (low-tax) jurisdictions — 15% percent (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/withholding-taxes)
• CIT (profit tax) filing and payment deadline — Monthly — by the 15th day of the month following the month in which the distribution/taxable transaction occurred (Tax Code of Georgia — https://taxsummaries.pwc.com/georgia/corporate/tax-administration)