Important reforms have been implemented in Georgian tax system in 2005. The number of taxes has been reduced from 21 to 6:

1.    Value Added Tax (from 20% has been reduced to 18%);

2.    Income Tax (20%);

3.    Profit Tax (corporate tax 20% has been reduced to 15%);

4.    Excise;

5.    Property Tax (1%);

6.    Customs Tax (0%, 5% or 12%). 

From January 1, 2011, "New Course for Fair, Simple and Reliable Tax System" entered into force (www.mof.gov.ge).

The new Tax Code is a unified document of the old tax and customs codes, offering low tax rates on existing few taxes, or total exemption. The new Tax Code aims to increase confidence towards the Georgian tax system, secure the protection of taxpayers' rights and facilitate a favorable environment for foreign investments.

Withholding taxes on interest and dividends will be annulled by 2014. Individuals will also benefit by 2014 from the gradually reduced personal income tax rate decreasing to 15%. Micro and Small Business status shall reduce overall administrative and tax burden on individual taxpayers.