Corporate Tax in Georgia: Pay 15% Only When Profit Leaves the Company

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You're weighing a Georgian company for your business, or you already run one. The headline rate looks simple, but the timing of the tax is what matters. After this guide, you'll know how much you really pay and which structure fits your plans.

Georgia corporate income tax in 2026: the key figures

Is this guide for you?

Read on if you…

• plan to run your business through a Georgian LLC;
• want to keep profit in a company and reinvest it;
• are comparing Georgia with other low-tax company locations.

Probably not your case if you…

• are a solo freelancer happy with 1% small business status as an individual entrepreneur;
• run a bank, insurer or other regulated financial business – your rules differ.

How does the Estonian model work in Georgia?

Since 2017, Georgia taxes companies when profit leaves the company, not when it's earned. That's called the Estonian model after the country that invented it.

Profit tax is due on four types of outflow:

1. Dividends paid to shareholders.
2. Expenses not related to economic activity – private costs paid by the company.
3. Free supply of goods, services or money.
4. Representation expenses above the allowed limit.

The tax is 15% of the grossed-up amount. So for every GEL 85 you pay out as a dividend, the company pays GEL 15. Profit earned before 2017 can be distributed without profit tax.

Good news: there are no loss carry-forward rules to track and no depreciation games. Tax follows cash leaving the company. What counts as a hidden payout is explained in business expenses in Georgia.

How much do you really pay on profit?

Here's the full path from company profit to your bank account.

Reinvest the profit instead, and the company pays nothing. That's the main attraction for growing businesses.

Compare this with 1% small business status for individual entrepreneurs. For a solo service business, 1% of turnover usually costs far less. An LLC makes sense when you need limited liability, partners, staff or retained profit. See legal forms of business in Georgia.

Which structure is right for what you do?

International Company status

This regime targets IT services and maritime transport. A qualifying company pays 5% profit tax and no tax on dividends. Its employees pay 5% income tax instead of 20%. You need at least two years of experience in the activity and real staff and premises in Georgia. Other levies, like property tax, are in specific taxes in Georgia.

A warning on management and control

Here's the catch. Many countries tax a company where it's actually managed. The bigger picture is in the Georgia tax landscape overview. If you run your Georgian LLC from your laptop in France, France may treat it as French-resident. Your presence abroad can also create a permanent establishment – a fixed place of business that gives another country taxing rights. Keep real decisions, the director and the paperwork in Georgia.

Need help choosing? See Heavnn business setup.

How do you file and pay corporate tax in Georgia?

1. Register the company at a Public Service Hall. Registration usually takes one working day.
2. Register for VAT if turnover passes GEL 100,000 in 12 months. The rate is 18%.
3. File a monthly profit tax return by the 15th of the next month, even when nothing is distributed.
4. Withhold 5% on dividends and 20% on salaries, and pay them by the 15th.
5. Submit annual financial statements to the accounting supervision service, depending on company size.

Non-resident shareholders may get a lower dividend rate under a tax treaty. Georgia has treaties with over 50 countries.

Common mistakes (and what they cost)

• Paying private costs through the company → taxed as a distribution at about 17.65%, plus penalties.
• Skipping monthly returns when there's no dividend → late-filing penalties pile up.
• Running the LLC from abroad → another country may tax all profit as its own.
• Choosing an LLC for a small solo business → you pay up to 19.25% instead of 1% of turnover.
• Assuming International Company status is automatic → without substance, you pay the full 15% plus 5%.

Frequently asked questions

What is the corporate tax rate in Georgia in 2026?

The corporate profit tax rate is 15%, charged only when profit is distributed. Retained profit isn't taxed. Dividends then carry a 5% withholding tax, giving a combined rate of about 19.25%. Banks, insurers and some financial companies follow a classic model at 20% on annual profit. International Companies pay 5%.

Is retained profit really tax-free in Georgia?

Yes. Under the Estonian model, profit kept in the company and reinvested isn't taxed. Tax is due only when profit leaves through dividends, non-business expenses, free supplies or excess representation costs. This lets growing companies reinvest every lari. You still need to file a monthly profit tax return.

How are dividends taxed in Georgia?

Dividends from a Georgian company carry a 5% withholding tax. For Georgian individuals it's a final tax. Non-resident shareholders may get a lower rate under a tax treaty. Dividends paid by an International Company are exempt. The company withholds the tax and pays it by the 15th of the following month.

Can a non-resident own a Georgian company?

Yes. Foreigners can own 100% of a Georgian LLC, with no minimum capital and no local partner. Registration takes about one day. The risk is tax, not law: if you manage the company from another country, that country may claim its profit. Real decisions should be made in Georgia.

What is International Company status in Georgia?

It's a special regime for IT and maritime companies. Qualifying companies pay 5% profit tax and no dividend tax, and their staff pay 5% income tax. You need at least two years of experience in the activity and real presence in Georgia. Status is granted by the Revenue Service on application.

Is an LLC better than small business status in Georgia?

For a solo freelancer, rarely. Small business status costs 1% of turnover, while an LLC paying out profit costs about 19.25%. An LLC wins when you need limited liability, partners, employees, turnover above GEL 500,000 or want to reinvest profit. Excluded activities also push some people towards an LLC.

Related guides

• Legal forms of business in Georgia
• Business expenses in Georgia
• Georgia tax landscape overview
• Tax incentives for expats and digital nomads in Georgia
• Corporate income taxes in Romania
• Corporate income taxes in Bulgaria
• All country tax guides

Sources

• Revenue Service of Georgia
• Legislative Herald of Georgia – Tax Code of Georgia
• Ministry of Finance of Georgia
• Public Service Hall of Georgia
• OECD – Tax
• PwC Worldwide Tax Summaries – Georgia

This guide is general information, not personalised tax advice. See how we research and review.