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Tax Planning Advisory

Does Georgia have tax treaties to avoid double taxation?

Yes, Georgia has Double Taxation Treaties (DTTs) with over 55 countries. We analyze these treaties to optimize withholding taxes on dividends, interest, and royalties paid to foreign partners.

What is the "Estonian Model" of corporate taxation?

It means corporate profit is taxed (15%) only when distributed as dividends. Reinvested profit is tax-exempt. We help you structure your cash flow to maximize the benefits of this regime.

Can I get tax benefits for IT businesses in Georgia?

Yes, IT companies serving foreign clients can apply for "Virtual Zone" status (0% corporate tax) or "International Company" status (5% corporate tax, 5% wage tax). We assist with eligibility and registration.

Is tax planning relevant for property transactions?

Absolutely. The timing of a sale, the status of the seller (individual vs. company), and the holding period can significantly impact VAT and income tax liabilities. We advise on the most tax-efficient structure.

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Tax Planning Advisory is a personalized service tailored to the needs of a specific business or investor. Unlike general corporate planning, it focuses on a specific transaction or project. For example, entering a new market, acquiring assets, or selling a business (Exit Strategy). Simulating tax consequences before making such significant decisions is essential. Often, a small change in transaction structure can save millions of GEL. Advisory includes not only analyzing current legislation but also forecasting expected legislative changes.

Our service involves expert advice on tax issues. Specialists offer:

  • Analyzing tax effects of a specific transaction (e.g., buying/selling real estate);
  • Selecting the optimal entry structure for foreign investors in Georgia;
  • Tax Due Diligence before acquiring a business;
  • Tax planning for personal wealth management and inheritance (for individuals);
  • Assessing tax risks when launching a new product or service;
  • Preparing requests for Advance Tax Rulings from the tax authority.
This service gives you clarity and confidence when making financial decisions.

Tax advisory is critical in situations like a startup raising investment. The investor wants to know how their future Exit will be taxed. The right legal structure increases the company's attractiveness. Another example is an individual selling shares. If they held shares for more than 2 years, the gain might be exempt from income tax — a lawyer confirms the eligibility for this exemption. Also, in international trade, correctly choosing Incoterms conditions can change the place and time of VAT and import tax payments.

The legal framework relies on the "Tax Code of Georgia" and Public Rulings. Article 47 of the Tax Code is important, providing for the issuance of an Advance Ruling. This is a tool whereby the Revenue Service confirms the tax consequence of an operation in advance, eliminating future disputes. A lawyer helps you use this tool effectively.

The process begins with clarifying the client's goal. The lawyer prepares a memorandum outlining the pros and cons of different options from a tax perspective. In complex cases, the lawyer consults with the tax authority to align positions. With the help of a specialist on Legal.ge, you receive practical and actionable advice, not just theoretical explanations.

Legal.ge is a platform giving you access to independent tax advisors. Make informed decisions and manage your tax future with Legal.ge.

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