Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
35 views2 pages

Georgia Economic and Tax Overview

Georgia has a population of 4.5 million with a GDP growth rate of 4.7% in 2018. The economy focuses on industries like manufacturing, trade, transport, and agriculture. Tbilisi is the capital city. Georgia has significant untapped hydroelectric potential and is surrounded by countries that import electricity. Georgia has a simple tax system with low and transparent taxes, including a flat personal income tax rate of 5% and no payroll, capital gains, or inheritance taxes. The country also has four free industrial zones that provide tax exemptions to encourage exports.

Uploaded by

Manish Bhansali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
35 views2 pages

Georgia Economic and Tax Overview

Georgia has a population of 4.5 million with a GDP growth rate of 4.7% in 2018. The economy focuses on industries like manufacturing, trade, transport, and agriculture. Tbilisi is the capital city. Georgia has significant untapped hydroelectric potential and is surrounded by countries that import electricity. Georgia has a simple tax system with low and transparent taxes, including a flat personal income tax rate of 5% and no payroll, capital gains, or inheritance taxes. The country also has four free industrial zones that provide tax exemptions to encourage exports.

Uploaded by

Manish Bhansali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Georgia Country Profile

Georgia at a glance:

 Population of 4.5 million with a growth rate of 0.6 % and located at the crossroads of the
continents of eastern Europe and western Asia
 Currency – Georgian Lari – 1 GEL = Rs. 24/-
 GDP Growth rate of 4.7% in 2018, GDP by Sector: Industry – 24.3%, Trade – 12.6%, Transport
& Communication – 9.6% and Agriculture – 8.1%
 Capital of Georgia - Tbilisi
 GDP per capita: US $ 4400 in 2018
 Huge untapped hydro resources – only 18% of the country’s hydro potential has been utilized
 Major industries in Georgia are ferroalloy and cement factories.
 Georgia is surrounded by Countries with either higher electricity generation cost (Armenia,
Azerbaijan) or electricity deficit (Russia & Turkey)

GDP, Electricity Demand Growth Rate & Inflation for last 5 years:

Year 2014 2015 2016 2017 2018


GDP Growth (%) 5.2 2.9 2.8 4.8 4.7
Inflation (%) 3.1 4 2.1 6 2.6

Georgia is a country with low tax rates and transparent tax system. Tax and customs
legislation is unified under one tax code and the collection of taxes and supervision of
the tax environment is provided by Georgia Revenue Service. All tax administration
procedures and customs clearances are online/web-based. There are only 6 flat taxes in
Georgia:
Only property tax is a local tax, all other taxes are national. Personal income tax for
interest, dividend and royalty is 5%. Georgia doesn’t have payroll, social security,
capital gains, wealth or inheritance tax. Furthermore, the Tax Code of Georgia gives an
opportunity to the companies to use accelerated depreciation on capital assets
(including full deduction during first year) and loss carry forward for corporate profit
tax purposes (10 years).
Georgia has Double Taxation Avoidance Treaties with 52 countries.
The Country doesn’t have restrictions on currency convertibility or repatriation of
capital & profit.

Free Industrial Zones


Currently four Free Industrial Zones (FIZs) operate in Georgia in the following cities:
Poti (sea port), Kutaisi (third largest city) and Tbilisi (capital city). Businesses
registered in Free Industrial Zones benefit from certain tax exemptions:
If a company produces goods for export in FIZ, it is exempt from all taxes except
Personal Income Tax (20%), which is paid from employees’ salaries.
If a company imports products from FIZ to other territory of Georgia, in addition to
Personal Income Tax, it has to pay VAT and 4% of revenue from national sales.
All Free Industrial Zones (FIZs) are operated by private companies and investor should
rent a space from FIZ operator:
 Poti FIZ is operated by Rakia Georgia FIZ LLC
 Kutaisi FIZ #1 is operated by Georgia International Holding (LLC Fresh
Georgia)
 Kutaisi FIZ #2 is operated by Hualing Group
Tbilisi FIZ is operated by Tbilisi Free Zone JSC (subsidiary of BitFury Group)

Internal Processing Customs Regime


According to Tax Code of Georgia, if a company produces goods intended for export
market, it can apply for a license about “Internal Processing
Regime” to the Ministry of Finance. This license will grant the
company a right to import raw materials without paying
import/customs tax and VAT on these materials. The Company
only has to present a bank warranty (amount of bank warranty is
sum of import tax and VAT). After the processing of goods, in
case the end product is exported, bank warranty is released. If
some of the end products will be sold in the territory of Georgia,
the company will have to pay import and VAT of raw materials
which were used to make those goods.

You might also like