British Business and Persons in Georgia
The taxation of companies, natural persons and investors who have moved from the United Kingdom to Georgia rests on the general foundations of the Georgian Tax Code, and its two central rules operate as for everyone else: the 183-day residency test and the credit of tax paid abroad. For the British side the calculation of precisely these two is especially topical: mobile professionals and managers from the United Kingdom often travel abroad, and accurate record-keeping of days of presence is the foundation of every decision.
Determining Residency and Counting Days
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. The time during which the person left Georgia specifically for medical treatment, rest, business travel or study also counts as presence. Not counted is the time of diplomatic-consular persons and their families, employees of international organizations, transit, and medical or holiday stays. Every day counts as a day of presence regardless of duration; status is determined separately for each tax period, and days counted in a previous period are not counted again. For a British person it is also relevant that where residency in no country is established, upon application to the tax authority a citizen of Georgia is deemed a resident — while a foreign citizen may be granted residency under the procedure established by the Minister of Finance.
The Credit and Treaty Relief
The link between profit paid by a British company in Georgia and tax paid in the United Kingdom is created by Article 124: an enterprise is entitled to credit profit tax paid outside Georgia for the corresponding year, by income from a non-Georgian source, up to the cap of what would have been charged in Georgia. For a non-resident, the use of treaty-based relief and the refund of tax paid in Georgia follow Article 125 and the procedure established by the Minister of Finance's order — at this stage documentary substantiation of residency and of payment abroad is decisive. A properly prepared package returns the overpaid tax; an incorrect one leads the claim to rejection.