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Georgia tax guide 2026

Georgian tax for companies: 0% kept, and what counts as taking money out

Updated 10 November 2026Tax Code as published October 2026About 10 minutes to read
The short answer

A Georgian company pays no profit tax on profit it keeps. When money leaves, it pays 15% on the payout divided by 0.85, and dividends carry 5% more.

A loan to you or a bill paid for you counts as a payout. The 1% rate is for individuals, not companies.

Check my payouts Best way to pay myself
Distribution tax 80.75% of each GEL of profit that reaches you as a dividend 15% profit tax on the grossed-up payout, then 5% withheld. Nothing while profit stays in the company.

A Georgian company pays no profit tax while it keeps its money, so the question is what counts as taking money out. Dividends do, but so do a loan to you, a bill paid for you and entertainment over a limit. Here's the list, the cash that reaches you by each route, and the statuses that change the numbers, from the Tax Code of Georgia as published in October 2026.

Key takeaways

  • Profit tax is 0% while profit stays in and 15% when it leaves, charged on the payout divided by 0.85.
  • Dividends then carry 5% withholding, so GEL 100 of profit reaches you as GEL 80.75.
  • A loan to the owner, or any non-resident, is taxed like a dividend.
  • International Company status cuts it to 5% and 0%, but only for IT and shipping.
  • The famous 1% rate is for individuals, not for a company.
  • A return is due by the 15th of each month money leaves.
Chapter 1

Georgian profit tax: what counts as taking money out

GEL 100,000 profitLLC
While kept in the companyGEL 0
Profit tax when paid outGEL 15,000
Dividend tax at 5%GEL 4,250
Reaches youGEL 80,750
Your own country may tax the dividend too. Where you live: pick it

Articles 97 and 98 of the Tax Code tax the payout divided by 0.85, and article 98(3)(g) treats a loan to you the same way. Entertainment over 1% of last year's income is caught as well. Put in what the company will pay out this year and see what each costs in profit tax.

GEL
GEL
GEL
1
Key takeaway

A loan to you or a bill paid for you is taxed like a dividend.

Chapter 2

Dividend, salary or International Company: what reaches you

government / agent / service
GEL

Salary is a deductible cost, so no profit tax; under the Tax Code 20% is withheld, 5% at an International Company. Pension contributions are left out. Your own country may tax what arrives.

2
Key takeaway

Dividend, salary or International Company: the cash that reaches you.

Chapter 3

International Company and Virtual Zone status in Georgia

123
International Company (art. 23)
  • 5% profit tax on payouts, 0% on dividends, 5% on salaries
  • IT and listed shipping services only
  • At least two years of experience, which a parent company can supply
Virtual Zone
  • No profit tax on IT services sold abroad
  • The software must be made in Georgia
  • Can't be combined with startup status

International Company status comes from article 23 of the Tax Code and the Government's ordinance on International Companies. Virtual Zone status comes from the Law on Information Technology Zones, which places the activity in the territory of Georgia.

3
Key takeaway

International Company is for IT and shipping; Virtual Zone for software made in Georgia.

Chapter 4

Georgia 1% tax: LLC or individual entrepreneur?

Moving to Georgia? The 1% Small Business status belongs to an individual entrepreneur, and excludes consulting. Compare it with an LLC paying out all its profit.

GEL
GEL

Articles 88 to 90 of the Tax Code set 1% of turnover up to GEL 500,000, and 3% from the month that limit is passed. The statute sets no residence condition.

4
Key takeaway

1% is for individual entrepreneurs, never for an LLC.

Chapter 5

Georgian company returns and deadlines

  1. By the 15th of each monthProfit tax and salary returnsFor the month before, with tax paid the same day, under article 153 of the Tax Code. A late return with no tax due isn't fined.
  2. By 1 OctoberFinancial statementsFiled through the SARAS portal, by size category.
  3. Every yearNothing at zero payoutsA company that pays nothing out owes no profit tax that year.

5
Key takeaway

A return by the 15th of every month money leaves.

Chapter 6

Georgia VAT for companies selling abroad

18%VAT, registration above GEL 100,000 of Georgian taxable supplies in 12 months
OutsideServices sold to foreign clients aren't Georgian supplies
Reverse chargeOn services bought from abroad, once registered
6
Key takeaway

18% VAT; services sold abroad fall outside it.

Chapter 7

Is Georgia a tax haven?

No. Georgia taxes payouts at 15% and has 58 tax treaties, though none with the US. It's on no EU or FATF list, and the OECD rated it largely compliant in 2024, as the Ministry of Finance reports. What makes it attractive is timing: tax falls when money leaves, not when it's earned.

7
Key takeaway

On no EU or FATF list; 58 tax treaties, none with the US.

Chapter 8

Georgian tax questions, answered

?!
What is the corporate tax rate in Georgia?
15% on distributed profit, calculated on the payout divided by 0.85, so about 17.65% of the cash paid out. Kept profit is not taxed.
What is the dividend tax in Georgia?
5% withheld on dividends to individuals and foreign companies, under article 130 of the Tax Code; 0% from an International Company.
Is a loan from my Georgian company taxed?
Yes. A loan to the owner, or to any non-resident, is treated as a distribution and taxed like one.
Can a Georgian LLC use the 1% tax?
No. Small Business status is for individual entrepreneurs, and consulting is excluded.
Who qualifies for International Company status?
Companies providing IT or listed shipping services, with at least two years of experience of their own or of a parent.
Does a Georgian company charge VAT to foreign clients?
No. Services sold to clients abroad are outside Georgian VAT.
Do you file the monthly returns?
Yes. Our Georgian company includes an accountant for the monthly returns and yearly statements. Every date and fine is on our Georgian annual fees and filings page. How the company's account is opened is in our Georgian bank account guide.

Changelog

  • 10 November 2026: first published.
  • 13 November 2026: official sources linked in the text.
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