A number of tax benefits to be extended until January 1, 2028

Several tax benefits established by Georgian tax legislation will be extended until January 1, 2028. These benefits concern individuals employed in the agricultural sector, income from securities received by local and foreign investors, non-stationary trade, taxation of real estate transfers, and more.

The government has submitted a draft amendment to the Tax Code to Parliament for expedited consideration. According to the draft:

Income from primary agricultural production: Individuals or enterprises employed in agriculture will be exempt from personal/income tax on income derived from the initial supply of agricultural products produced in Georgia, provided that the total income from such supply does not exceed GEL 200,000 per calendar year. In addition, the income tax benefit on salaries paid for work within this activity will also continue until January 1, 2028.

Resident legal entities and income from securities: The existing income tax benefit for resident legal entities will continue until January 1, 2028. Under this benefit, interest income from publicly offered debt securities issued in Georgia and admitted for trading on a market recognized by the National Bank of Georgia is not taxed.

Tobacco raw materials: Exemption from import duty on tobacco raw materials will continue until January 1, 2028.

Short-term rental of residential property: Individuals renting out their residential property for a short term will continue to be taxed under a fixed personal income tax, if they voluntarily are not registered as VAT payers and if the total amount of operations within any continuous 12 months does not exceed GEL 100,000.

Investment gold: The draft also provides for VAT exemption for the supply and import of investment gold until January 1, 2028.

Real estate and construction services: The VAT exemption for the supply of real estate, as well as for construction and installation services related to the supplied real estate provided by the supplier, will continue until January 1, 2028, if all conditions defined under Article 79 of the Civil Code are met.

VAT calculation on imported goods: The current method for calculating the taxable amount for VAT on imported goods will also remain in effect until January 1, 2028. This means that when calculating VAT, the customs value of the goods will be added to the import duties payable in Georgia, excluding VAT.