Georgia Corporate Tax Calculator (Estonian Model) 🇬🇪
Compute corporate tax liabilities under Georgia's Estonian Model: 0% CIT on retained and reinvested business profits, 15/85 gross-up formula on dividend distributions, and 5% withholding tax in Lari (GEL ₾).
Net accounting profit earned by LLC (Ltd)
100% Tax-Free under Article 98^1
Withholding tax rate applies upon payout to shareholder
Estonian Model vs Standard Global Corporate Tax
| Tax Regime Element | Georgia (Estonian Model) | Traditional Global Regime | Statutory Advantage |
|---|---|---|---|
| Retained / Reinvested Profits | 0.0% Corporate Tax | 15% - 25% Annual Tax | 100% liquidity for business growth |
| Tax Timing | Only upon dividend distribution | Annual recurring whether distributed or not | Zero corporate tax during expansion years |
| Distribution Tax Formula | 15/85 Gross-up (17.65%) | Corporate tax + full dividend income tax | Predictable lump sum math |
| Dividend Withholding (WHT) | 5.0% for Individuals | 15% - 30% Withholding Tax | Very low personal withholding burden |
Frequently Asked Questions (FAQ) - Georgian Corporate Tax
How does the Estonian corporate tax model work in Georgia?
Under Article 98^1 of the Tax Code of Georgia, corporate income tax (CIT) is levied at 0% on retained or reinvested profits. Corporate tax is due only when profits are distributed to shareholders as dividends or used for non-business expenses.
What is the 15/85 gross-up formula for Georgian corporate tax?
When dividends are distributed, the taxable base is grossed up by dividing the net dividend amount by 0.85, on which 15% CIT is assessed (Net Dividend ÷ 0.85 × 15%, or 17.647% of the net distribution).
What is the dividend withholding tax (WHT) rate in Georgia?
A standard 5.0% dividend withholding tax applies when dividends are paid to individuals (both Georgian tax residents and non-residents) or foreign entities, unless reduced by a valid Double Taxation Treaty (DTT).
Are inter-company dividends between Georgian entities taxable?
No. Dividends distributed by a Georgian resident enterprise to another Georgian resident company are completely exempt from both CIT and 5% dividend withholding tax.
When must Georgian corporate tax returns be filed with RS.ge?
Unlike standard annual regimes, Georgian companies file monthly CIT returns with the Revenue Service (RS.ge) by the 15th of the month following any month in which a distribution or deemed dividend occurred.
Engr. Muhammad Shahzad
Verified Technical AuthorPrincipal Civil & Systems Software Engineer specializing in European fiscal architecture, Estonian-model distributed profit taxation, and RS.ge corporate compliance algorithms.
📊 Revenue Service of Georgia (RS.ge) & Pension Agency Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (GEL) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 ₾ |