---
title: "Tax-Exempt Status"
url: "https://legal.ge/en/service/non-profit-and-ngo-law-en/tax-exempt-status-en"
field: "Non-Profit & NGO Law"
description: "Tax-exempt status: exempt incomes, donation deduction, VAT refund on grants and exempt imports under the Tax Code. Legal.ge."
reviewed: "2026-06-24"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Tax-Exempt Status

> Source: legal.ge, https://legal.ge/en/service/non-profit-and-ngo-law-en/tax-exempt-status-en

## Tax-Exempt Status — Five Directions of Benefit

A tax-benefits page gathers five directions of the Georgian Tax Code: beneficiary-side personal-income-tax exemptions (Article 82), donor-side deduction (Article 117), non-taxation of gratuitous supplies (Article 98³), VAT refund on grant-financed purchases (Article 181) and humanitarian-grant import exemption (Article 199). The principal caveat must be said at the outset: a non-commercial legal entity in Georgia has no general, unconditional exemption from profit tax — there is no American-style blanket entity exemption; the benefits are enumerated by transaction type, and the economic activity of a non-commercial entity remains taxable. Precisely this exactness is this page's value.

In planning terms, all five directions reduce to a single questionnaire: before a transaction is entered into, it must be determined which norm attaches — the recipient's exemption, the donor's deduction, non-taxation of a gratuitous supply, VAT refund or import exemption — and what documentary conditions accompany that norm. An incorrectly claimed benefit later surfaces as additional tax, and a missed one as a lost advantage; both risks are removed by advance analysis.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/non-profit-and-ngo-law-en/tax-exempt-status-en

### Is a non-commercial entity exempt?

As a rule no — only the listed gratuitous-supply cases.

### The deduction cap?

Up to 10 percent of remaining income.

### VAT refund deadline?

Within 3 months of the month of the operation.

### Exempt imports?

Humanitarian, grant-based and credit-financed with a 25-percent grant element.