Taxes in Georgia is collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, corporate taxes and value added tax. On local level property taxes well as various fees are collected. There are 6 flat tax rates in Georgia - Corporate Profit Tax, Value Added Tax, Excise Tax, Personal Income Tax, Import Tax and Property Tax.
Personal Income tax in Georgia are collected at a flat rate of 20% on local-source income. Foreign-source personal income is tax-exempt. Personal Income Tax for interest, dividend and royalty is 5%.There are few allowances deductible.
Value-added tax (VAT) is collected at a flat rate of 18%.There is few exceptions granted, nearly all goods and services are subject to VAT. Medical care, exports and education are exempt from VAT. Regardless of turnover a taxpayer have to register for VAT if it produces or imports goods. Turnovers of less than 100,00 GEL is exempt.
Corporate taxes are levied at a flat rate of 15%, which was enacted in 2008. From 2017 onward, non-distributed profits are exempt from taxation. Very few deductions are accessible. This system was set up to attract foreign investment. Furthermore, excise taxes are on some luxury and environmentally damaging goods, such as gasoline. Customs apply to some imported goods, too. Only six different taxes apply.
Video Taxation in Georgia (country)
References
Source of the article : Wikipedia
0 Comments