How corporate tax works in Georgia
Georgia's standard corporate income tax rate is 15%, but the tax is triggered mainly on distributed profits and other deemed distributions rather than on retained earnings.
Taxable events include profit distributions, costs not related to economic activity, free-of-charge transfers and over-limit representative expenses.
Resident companies are taxed on worldwide income. Non-resident companies with a permanent establishment are taxed on Georgian-source income attributable to that PE.
Commercial banks, credit unions, microfinance organisations and loan providers are taxed at 20%. Georgia also has special exemptions for certain Georgian legal entities and free industrial zone or virtual zone activity.
Tax rates at a glance
- Standard corporate tax
- 15%Main rate
- Retained earnings
- 0%
- Banks, credit unions, microfinance organisations and loan providers
- 20%
- Dividend distribution
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesIT businessesRegional operatorsInvestors
Watch out for
- Georgia has no annual corporate tax on retained profits, but monthly filing still applies when there is a taxable event.
- Recent 2026 rules added reporting for international controlled transactions where the annual aggregate exceeds GEL 500,000.
- VAT, payroll pension contributions and transfer-pricing evidence still matter even when the headline corporate rate looks simple.
Frequently asked questions
Does Georgia tax retained profits?
No. Under the Estonian-style system, retained profits are not taxed until they are distributed or otherwise caught by a deemed-tax rule.
What is the Georgian corporate tax rate?
The standard rate is 15%, but banks, credit unions, microfinance organisations and loan providers pay 20%.
Is Georgia good for holding companies?
It can be, because foreign dividends received by Georgian companies are often not taxed at source and retained profits are deferred until distribution. The structure still needs treaty and substance checks.