Chinese Capital and Persons in Georgia's Tax Space
China is a significant trading partner of Georgia, and the activity of Chinese capital, enterprises and individuals in Georgia is subject to the general rules of the Georgian Tax Code. The core of the matter is twofold: who counts as a Georgian tax resident and how double taxation of the same income is avoided. Georgia and China have an agreement for the elimination of double taxation, and it is applied together with the rules established by the Tax Code — proper planning therefore requires both layers at once: internal rules and the agreement's conditions.
The 183-Day Residency Test
Article 34 of the Tax Code provides that a natural person is considered a resident of Georgia for the whole current tax year if he or she actually stays on the territory of Georgia for 183 days or more in any continuous 12-month period ending in that tax year. Time spent abroad from Georgia specifically for medical treatment, rest, business travel or study also counts as presence — Chinese managers and specialists cannot overlook this: a medical trip does not reduce the days. Not counted as presence is the time of persons with diplomatic or consular status and their families, employees of international organizations, transit movement and medical or holiday visits. Every day during which the person stayed in Georgia counts as a day of presence regardless of duration; residency status is determined separately for each tax period, and days counted in a previous period are not counted again in the next. The status of a non-resident belongs to everyone who is not a resident under this article.
Crediting Tax Paid in China
The principal instrument of relief from double taxation is Article 124: an enterprise is entitled to credit profit tax paid outside Georgia, for the corresponding tax year, against the tax paid in Georgia on that profit, with respect to income not received from a Georgian source. For an enterprise taxed on distribution of profit, the credit applies to the dividend paid. The important cap: the credited amount must not exceed the tax that would have been charged on that profit in Georgia under Georgian rules and rates — meaning the credit is not automatic and the computation requires precision.