What is the income tax rate in Georgia?

The standard income tax rate in Georgia is 20% (Tax Code of Georgia, Article 82). However, Micro Business (0%) and Small Business (1-3%) statuses offer lower rates for qualifying businesses.

How does the Estonian tax model work for Georgian LLCs?

Georgian LLCs use the Estonian model: retained earnings are taxed at 0%. Only distributed profits are taxed at 15% corporate income tax (Tax Code Art. 97), plus 5% dividend withholding tax (Art. 130).

What is the Virtual Zone tax rate for IT companies in Georgia?

Virtual Zone IT companies pay 0% corporate income tax and 0% VAT on income from foreign clients. Income from Georgian clients is taxed at 15%. Employee salaries are still subject to 20% income tax. Ministry of Finance approval is required.

What is the VAT rate in Georgia?

The VAT rate in Georgia is 18% (Tax Code Art. 159). VAT registration is mandatory when turnover exceeds 100,000 GEL in any rolling 12-month period. B2B services to non-residents do not count toward this threshold.

Georgia Tax 2026Calculator

Calculate your taxes in Georgia based on verified 2025/2026 Georgian tax law. Supports Micro Business, Small Business, Individual Entrepreneur, LLC (Estonian Model), Virtual Zone IT, and Employment.

1 · Select Your Tax Regime

2 · Enter Financial Data

Annual Turnover (GEL)

Business Type

VAT Registered

USD Exchange Rate

1 USD =GEL

3 · Projected Results

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Enter your financial data to see projected tax results.

How Georgian Business Taxes Work

Understanding how Georgian business taxes work is crucial for entrepreneurs, digital nomads, and IT companies looking to operate in or from Georgia. The country offers one of the most attractive and straightforward tax systems globally, but navigating the nuances of the Georgia tax calculator regimes can significantly impact your bottom line. Georgia's corporate tax system operates on the Estonian model, meaning that corporate income tax (15%) is only applied when profits are distributed to shareholders as dividends. Reinvested profits are subject to a 0% tax rate, allowing businesses to grow and scale without the immediate burden of corporate taxation.

For individual entrepreneurs and freelancers, the Small Business Status is highly beneficial. By registering under this regime, individuals with an annual turnover of up to 500,000 GEL pay merely 1% tax on their gross revenue. This is a game-changer for service providers and IT contractors. However, it is essential to monitor your turnover, as exceeding the 500,000 GEL threshold increases the tax rate to 3% on the excess amount. For those just starting out, the Micro Business Status offers a 0% tax rate on incomes up to 30,000 GEL, provided no employees are hired.

IT companies can benefit immensely from the Virtual Zone Person (VZP) or International Company Status (ICS). A Virtual Zone company enjoys a 0% corporate income tax rate and 0% VAT on IT services exported outside of Georgia, making it a powerful hub for tech enterprises. However, proving economic substance in Georgia is increasingly strictly audited by the Georgia Revenue Service in 2026.

Whether you are a solo freelancer calculating your net income or a growing software firm planning dividend distributions, utilizing a verified <strong>Georgia tax calculator</strong> ensures you are making informed decisions. For more detailed insights, read our comprehensive guide on the Georgia Tax Calculator 2026.