About Tax Law in Tbilisi, Georgia
Tbilisi, the capital city of Georgia, along with the rest of the nation, has a developed and progressive tax system. The main legislative acts regulating the taxation system in Georgia are the Constitution of Georgia, the Tax Code of Georgia, and various international agreements. The key tax types include income tax, corporate profit tax, value-added tax (VAT), excise tax, import tax, property tax and local taxes. The country offers liberal tax regimes, transparent proceedings, and has a reputation for simplifying tax regulatory processes in recent years which may appeal businesses and individuals alike.
Why You May Need a Lawyer
Tax law can be complex and ever-changing. It's potentially easy to overlook important details and end up violating tax regulations, even unintentionally. Common scenarios when you might need a tax lawyer are: filing a complex tax return, starting a new business, buying or selling a business, dealing with foreign and international tax issues, preparing for an audit, or facing a criminal investigation by the Georgia Revenue Service.
Local Laws Overview
The main legislative act governing tax laws in Tbilisi is the Tax Code of Georgia. It embraces progressive and liberal tax regimes. For example, the corporate profit tax in Georgia stands at 15% which is one of the lowest in Europe. In addition, the Value Added Tax (VAT) rate is 18%. Moreover, tax exemptions are provided to Free Industrial Zones and to Virtual Zone Persons on some of their incomes. Other special tax benefits are provided to businesses operating in so-called touristic zones.
Frequently Asked Questions
1. How are taxes paid in Tbilisi, Georgia?
The tax payment process in Tbilisi is largely digitized. Taxpayers can calculate and pay their taxes online through the Revenue Service’s web portal.
2. What penalties exist for late tax payments?
Late payments are subject to penalties and interest, which starts accumulating from the day following the due date until the day of payment of the tax due.
3. Are there tax benefits for businesses in Tbilisi?
Yes, certain types of businesses (especially those in Free Industrial Zones and touristic zones) receive tax benefits and exemptions.
4. How are double tax treaties handled in Georgia?
Georgia has double tax treaties with several countries to avoid double-taxation of foreign entities operating in the country.
5. How can one appeal a tax decision in Georgia?
One has the right to appeal a tax decision to the Georgia Revenue Service, and if dissatisfied with the results, can further appeal to the Georgian courts.
Additional Resources
The Revenue Service of Georgia is the primary resource for tax-related matters in Georgia. For legal advice on Georgian tax laws, the Georgian Bar Association can provide contacts of experienced tax lawyers. For an insight on legislative acts related to taxation, the online version of the Tax Code of Georgia can be referred to.
Next Steps
If you need legal assistance in tax matters in Tbilisi, Georgia, consider consulting a tax attorney. Such a professional can help you navigate the intricate Georgian taxation system, provide timely advice on tax planning, and represent you effectively before tax authorities. Choose an expert who holds a strong background in Georgian tax law, and has a track record of successfully handling tax issues.
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