A tax decision taken early costs less than a tax dispute. We plan distributions, structure cross-border income and step in when the Revenue Service writes.
profit tax, charged only when profit is distributed
tax on dividends paid to individuals and non-residents
to appeal a Revenue Service decision once it is served
for the Revenue Service to issue an advance tax ruling
A tax lawyer structures transactions before they are taxed and defends the position afterwards. KNM Advisory advises companies, founders and foreign investors on profit distributions, preferential regimes, international tax and treaties, transfer pricing, customs and advance rulings, and represents them in audits and disputes before the Revenue Service, the Dispute Resolution Council and the courts. Our managing partner has advised more than 40 international companies on tax structuring.
Tax advice works best when it starts from the actual decision in front of you, not from a general review.
The appeal clock is already running. We assess the notice, file in time and represent you.
See the deadlinesProfit tax falls due when profit is distributed, and dividend tax follows. We plan the amount, timing and route before you pay.
Withholding tax, treaty relief, permanent establishment, transfer pricing and reverse-charge VAT on services from abroad.
Virtual Zone and International Company status can bring profit tax to 0% or 5%.
Compare the regimesSmall business status taxes income at 1% for individual entrepreneurs. We check whether your activity qualifies and when you leave the regime.
Customs classification and valuation, trade regulations and customs disputes.
Tax due diligence that finds hidden liabilities before they become yours, and protections in the purchase agreement.
Tax residency starts at 183 days in any continuous 12 months. We plan the move around your income sources.
Market entryCurrent as of October 2026. Georgia taxes company profit only when it is distributed, so reinvested profit stays untaxed.
On distributed profit. The taxable amount is the distribution divided by 0.85.
Withheld on dividends to individuals, non-profits and non-resident enterprises. Treaties may reduce it.
On salaries and most taxable personal income.
Registration is mandatory once taxable supplies pass GEL 100,000 in any 12 consecutive months.
Annual maximum rate for companies on the value of taxable property.
For individual entrepreneurs, with 3% on income above GEL 500,000.
Royalties 5%, other Georgian-source service fees 10%, and 15% to preferential tax jurisdictions.
Virtual Zone 0% and International Company 5% profit tax, on the conditions set by law.
A tax dispute has short, fixed deadlines at every stage. It starts with the Revenue Service, then moves to the Dispute Resolution Council at the Ministry of Finance or directly to court.
From the day the decision, audit report or tax notice is served on you.
If the Revenue Service decides against you, you choose the Dispute Resolution Council or a court.
If the Dispute Resolution Council decides against you, the next step is a court.
Failing to pursue the dispute within the time limit counts as acknowledging the overdue tax liability). If you received a notice, count your days first and call us second.
A clear position, the risk level, and what we recommend you do.
How much to distribute, when and through which entity, with the tax cost of each option laid out.
Certainty before you act. The Revenue Service issues a ruling within 90 days of the request.
Contracts, invoices and transfer pricing support assembled before anyone asks for them.
Audits, appeals and hearings before the Revenue Service, the Dispute Resolution Council and the courts.
Where the facts support it, a negotiated agreement with the Revenue Service to reduce tax arrears and related penalties.
We do not promise a tax outcome.
We promise you will know where you stand.
Your position, your risk and your deadline, in plain language.
Managing Partner
Leads the firm's Corporate, Tax, Litigation, Start-up and IP work. Member of the Georgian Bar Association, with a Master of Law and Business from Bucerius Law School in Hamburg and a Master of Business Law concentrating in Tax Law.
View profileGeorgia taxes profit only when it is distributed. The rate is 15%, and the taxable amount is the distribution divided by 0.85. Profit kept and reinvested in the company is not taxed until it is paid out, though certain payments and benefits are treated as distributions.
5%, withheld at source on dividends paid to individuals, non-commercial entities and non-resident enterprises. A double tax treaty may reduce it. Dividends between Georgian companies are generally not taxed at source.
30 days from service to appeal to the Revenue Service. If that decision goes against you, 20 days to appeal to the Dispute Resolution Council or a court, and a further 20 days to appeal a Council decision to court.
From the moment its taxable supplies exceed GEL 100,000 in any 12 consecutive calendar months. The VAT rate is 18%.
Yes. The Revenue Service can issue an advance tax ruling on a future or completed transaction within 90 days of your request. It applies only to the person it was issued to, and can be appealed to the Dispute Resolution Council.
An individual who actually stays in Georgia for 183 days or more in any continuous 12-month period ending in that tax year. Time spent in Georgia for treatment or leisure does not count, and special rules apply to some groups, so we check the facts for each case.
A tax agreement with the Revenue Service can reduce tax arrears or the related penalties and surcharges. Whether it is available depends on the case.
· Reviewed by: Nika Magedani, Managing Partner. This page is general information, not legal advice. Rates, deadlines and procedures change: please speak to us before relying on them for a decision.
Virtual Zone and International Company tax status, shareholders' agreements, T&Cs and investor relations.
ExploreM&A, governance, commercial contracts and employment for established companies.
ExploreCompany incorporation, bank accounts, acquisitions, Employer of Record, right to work and residence.
ExploreSend us the notice or the plan. We will tell you where you stand and what to do first.
Talk to a Tax Lawyer