What is supply of goods?

Transfer of the right to dispose of material property, including lease/leasing with buyout and commission transfers.

Which transfers are excluded?

Transfer of all assets or an independently functioning division to another taxable person, contribution into capital, and transfers within a reorganization.

Why is a share sale exempt?

A share is a financial instrument and its circulation is a financial operation exempt from the tax without the right of credit.

When is disposal profit taxed?

At the moment of distribution as a dividend; reinvested profit is not taxed until distribution.

Asset Sale Tax Optimization in Georgia

The Tax Calculation of an Asset Sale

Tax optimization of an asset sale in Georgia is a calculation under the Tax Code: the supply of an asset enters the net of value added tax, while securities operations are exempt financial operations; profit tax applies to the enterprise's base, but under the distribution model the timing of taxation is deferred to the moment of payout. One must not rely on the foreign-law doctrine of a going-concern transfer relief: the list of exempt operations is closed by the Code, and argumentation must proceed from that list. This page covers the asset-disposal side of the calculation.