Europe, Middle East and Africa Tax Facts 2012 - Crowe Horwath ...

GEORGIA
INCOME TAX RATES 2012
Individuals
Taxable Income (GEL) Tax Rate (%)
Income of Micro Business Exempt
Income of Small Business 3 or 5
Other Income 20
Status of Micro Business can be assigned to an individual who conducts economic
activities independently without hiring employees; receives annual gross income up to
GEL 30 000; maintains inventory balance up to GEL 45 000; undertakes activities that
are not banned for Micro Business as defi ned by the Government. (1USD=1.65GEL).
Status of Small Business can be assigned to an individual entrepreneur who receives
annual gross income from economic activities up to GEL 100 000; maintains an
inventory balance up to GEL 150 000; is not a registered VAT payer; undertakes
activities that are not banned for Small Business as defi ned by the Government; uses
a cash machine and has not been penalized for not using the latter more than 3 times
during a calendar year.
Companies
Taxable Income (GEL) Tax Rate (%)
All income 15
VALUE ADDED TAX (VAT)
VAT rate is 18% for all taxable transactions and imports unless a specifi c provision
allows an exemption. Transactions exempted include the following: Conduct of fi nancial
operations and/or supply of fi nancial services; Import and/or supply of goods and
services under the Law of Georgia on Oil and Gas; Supply of educational and medical
services and other.
CAPITAL GAINS TAX (CGT)
Not applicable.
LOSSES
Losses can be carried forward for up to 5 years against future profi ts. Further, a taxpayer
can elect a 10-year loss carry forward period. In the latter case, the statute of limitation
is 11 years. A 10-year carry forward period can still be changed to a 5-year carry forward
period when the losses carried forward are used up. No carry back is allowed.
TREATY NETWORK
35 countries.
WITHHOLDING TAX
Dividends: 5%
Interest: 5%
Royalties: paid to resident individuals 20%
CONTACT:
Temuri Partskhaladze
gacc@caucasus.net
Georgian Audit and Consulting Company (GACC)
Room 29, 47 Kostava str.
Tbilisi 0179
Georgia
Tel: + 995 32 984039 Fax: +995 99 501370
www.gacc.com.ge
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Europe, Middle East and Africa Tax Facts 2012
Last updated: May 2012