Tax Law &
Fiscal Optimization.
Leverage Georgia’s competitive tax system, including the 'Estonian Model' and IT incentives, with confidence. Our tax attorneys protect your business against liability risks and aggressive enforcement, ensuring your structure is both profitable and fully compliant.
Fiscal Environment
The Reality of 0% Tax
Georgia operates on a distributed profit tax model, meaning corporate income tax (15%) is deferred until profits are distributed as dividends. If you reinvest profits into the business, you pay 0% corporate tax. This is a powerful tool for rapid growth, but it requires precise accounting and legal structuring to ensure expenses are not reclassified as "non-business related" by auditors.
Furthermore, the distinction between tax avoidance (legal) and tax evasion (illegal) is heavily policed. At Tbilisi Law, we design tax structures that are robust, defensible, and fully compliant with Georgian tax codes and international transfer pricing regulations.
Our Capabilities
Strategic Tax & Customs Solutions
Tax Structuring
Designing corporate structures that leverage the "Estonian Model." We advise on salary vs. dividend distribution and expense classification to maximize legal tax reduction.
Audit Defense
When the Revenue Service issues a fine or freezes accounts, we intervene. We handle administrative appeals and represent clients in tax disputes before the Ministry of Finance and courts.
IT & Virtual Zone
Acquiring "Virtual Zone Person" status for IT companies exporting services, granting 0% Corporate Income Tax. We handle certification and ongoing compliance requirements.
Double Taxation
Leveraging Georgia’s DTTs (Double Taxation Treaties) with over 50 countries. We obtain "Tax Residence Certificates" to ensure you don't pay tax on the same income twice.
Customs & Import
Navigating HS code classification, import VAT, and customs clearance procedures. We resolve disputes regarding the declared value of imported goods at the border.
VAT Compliance
Advisory on VAT registration thresholds (100,000 GEL) and "Reverse Charge" VAT on imported services. We prevent penalties associated with late declarations.
Knowledge Base
Taxation Questions
How does the 0% Corporate Tax work?
Under the "Estonian Model," companies in Georgia do not pay tax on profits earned. Tax is only triggered when you pay dividends to shareholders (15% Corporate Tax + 5% Dividend Tax). If you keep the money in the company or reinvest it, the tax is zero.
What is the tax rate for 1% Small Business status?
Individual Entrepreneurs with an annual turnover of less than 500,000 GEL can apply for Small Business Status. This reduces the income tax rate to just 1% of turnover. This is ideal for freelancers and solo consultants.
Are crypto assets taxed in Georgia?
Generally, Georgia is very crypto-friendly. Individuals are typically exempt from income tax on profits derived from selling cryptocurrency. However, corporate mining or trading activities require careful structuring to manage VAT and corporate tax implications.
Optimize Your Tax Burden.
Don't overpay. Ensure you are utilizing every legal tax incentive Georgia offers.