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flag Georgia Georgia: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The fiscal year is the calendar year.
Accounting Standards
IFRS, as promulgated by IASB (International Accounting Standards Board), has been translated and fully adopted and made mandatory as the only reporting standards in Georgia for a majority of enterprises (excluding sole entrepreneurs, small businesses and non-commercial legal entities).
Sole entrepreneurs, small businesses and non-commercial legal entities perform accounting and financial reporting following the simplified interim standards, approved by the parliamentary Accounting Commission.
Accounting Regulation Bodies
Ministry of Finance
Accounting Reports
A balance sheet, a profit and loss account, the notes.
Instead of the balance sheet and the statement of profit and losses, small enterprises may draw up an inventory list and profit-and-loss account in compliance with the tax legislation.
Publication Requirements
An enterprise shall publish information and facts, in particular the data of the Entrepreneur’s Register, the information concerning the voting shares and the partners' meetings.
Professional Accountancy Bodies
Association of Chartered Accountants and Auditors (in Georgian)
Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Deloitte, Ernst & Young, PricewaterhouseCoopers.
Further information on the website of the Association of Chartered Accountants and Auditors (in Georgian).
Accounting News
Ein News

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Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT) - Damatebuli Ghirebulebis Gadasakhadi (Local Name)
Tax Rate
18%
Reduced Tax Rate
Certain transactions are exempt or zero-rated. For more information consult the Worlwide VAT Tax Guide 2013.
Other Consumption Taxes
All information on excise taxes in Georgia is available on Informations on excise tax

Learn more about Service Providers in Georgia on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
15%
Tax Rate For Foreign Companies
18%
Capital Gains Taxation
Capital gains are taxable as business income at the regular corporate income tax rate.
Main Allowable Deductions and Tax Credits
Deductible expenses are as follows:
- interest (within limits);
- reserves of insurance funds;
- scientific research;
- depreciation of fixed assets;
- repairs;
- insurance costs;
- prospection and extraction of resources;
- depreciation of intangible assets;
- taxes and fines (within limits);
- expenses and losses on the sale of property.
Other Corporate Taxes
Real property tax, fee for the use of natural resources.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Georgia Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 5.0 28.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 280.0 260.0 175.0 207.0
Total Share of Taxes (% of Profit) 16.5 40.5 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Income Tax 20%
Allowable Deductions and Tax Credits
Expenses related to business activities are deductible for individual entrepreneurs. There are no personal deductions or allowances.
Special Expatriate Tax Regime
There is no special tax regime for expatriates.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the conventions signed
Withholding Taxes
Dividends: 3%, Interest: 5%, Royalties: 10%

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Sources of Fiscal Information

Tax Authorities
Revenue Service of the Ministry of Finance
Other Domestic Resources
Informations on taxation

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Learn more about Taxes and Accounting in Georgia on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The authority in charge of the protection of intellectual property in Georgia is the Sakpatenti (National Center for Intellectual Property).
Regional Organizations
Georgia is a signatory to the WIPO Treaty on copyright, and the Paris Convention on the Protection of Industrial Property.
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Law on Patents.
8 to 20 years after the registration of a patent. Patent Cooperation Treaty (PCT)
Trademark
 
Law on trademarks.
10 years after the registration of the trademark. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
Legislation on copyright and assimilated rights.
70 years after the death of the author.  
Copyright
 
Legislation on copyright and assimilated rights.
70 years after the death of the author. Berne convention For the Protection of Literary and Artistic Works
WIPO Copyright Treaty
Industrial Models
 
Law on Patents.
8 to 20 years after the registration of a patent.  

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Legal Framework

Independence of Justice
The judiciary is not fully independent, with courts influenced by pressure from the country's executive branch.
Equal Treatment of Nationals and Foreigners
Foreign nationals cannot expect a fair trial from the country's judicial system.
The Language of Justice
Georgian is the judicial language in the country; with Abkhaz being the judicial language in Abkhazia.
Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1995, which is based on a civil law system. Georgia accepts compulsory ICJ jurisdiction. Georgia is a member of the CIS (Commonwealth of Independent States).
Checking National Laws Online
Georgian legislation

Learn more about Lawyers and Legal in Georgia on Globaltrade.net, the Directory for International Trade Service Providers.

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Standards

National Standards Organizations
Georgian National Agency for Standards, Technical Regulations and Metrology, (in Georgian).
Integration in the International Standards Network
The GEOSTM  is a public corporation, and is a correspondent member of ISO and a member of the Euro-Asian Council for Standardization, Metrology and Certification (EASC).
Classification of Standards
For further information, consult the Georgian National Agency for Standards, Technical Regulations and Metrology (in Georgian).
Online Consultation of Standards
GEOSTM (in Georgian).
Certification Organizations
GEOSTM Georgian National Agency for Standards, Technical Regulations and Metrology.

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Business Practices

General Information
Kwintessential, Advice on how to negotiate in Georgia
Opening Hours and Days
Most companies open from Monday to Friday. Opening hours for shops and financial institutions are from 9 am to 6 pm, with a break at 1 pm.

Most retail outlets are open on Saturday between 9 am and 6 pm.

 

 

Public Holidays

New Year's Day 1 January
Orthodox Christmas 7 January
Orthodox Epiphany 19 January
Restoration Day 9 April
Orthodox Good Friday Variable
Orthodox Easter Monday Variable
Victory Day 9 May
Saint Andrew's Day 12 May
Independence Day 26 May
Assumption of Our Lady (Mariamoba) 28 August
Svetitskhovloba 14 October
Saint George's Day 23 November
 

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Last Updates: October 2014