{"id":1008,"date":"2022-10-11T11:51:14","date_gmt":"2022-10-11T07:51:14","guid":{"rendered":"https:\/\/ants.ge\/?p=1008"},"modified":"2024-09-06T02:05:51","modified_gmt":"2024-09-05T22:05:51","slug":"witholding-income-tax-on-non-residents","status":"publish","type":"post","link":"https:\/\/ants.ge\/en\/witholding-income-tax-on-non-residents\/","title":{"rendered":"Witholding income tax on non-residents"},"content":{"rendered":"

When purchasing services from non-residents, or in plain language \u2013 from foreigners, purchased service is taxed with 10% income tax. In this article we will be answering frequently asked questions regarding this topic.<\/p>\n

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In which cases does a company pay non-residents income tax?<\/strong><\/p>\n

Non-residents income tax is paid if a company purchases services from foreigners. It does not matter whether services are purchased from an individual or a company. Tax rate is 10% (except for services purchased from an entity registered in preferential taxation countries, in which case tax rate becomes 15%). Non-residents income tax is calculated based on \u201cgross\u201d amount. For example, if an entity acquires services for 90 EURO, respective tax amount will equal 10 EURO (90 \/ 90% * 10%) rather than 9 EURO.<\/p>\n

Our company provides all relevant accounting services<\/a> related to non-residents withholding income tax.<\/p>\n

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In which cases can a company avoid paying non-residents income tax? <\/strong><\/p>\n

Georgia has signed \u201cdouble taxation avoidance treaty\u201d with number of counties. Services acquired from those countries, with which Georgia has signed the mentioned agreements, are not subject to non-resident income tax. Full list of such countries is available on the following webpage https:\/\/www.mof.ge\/en\/5128<\/a><\/p>\n

Company does not have to pay non-resident income tax, if both of the following criteria are satisfied:<\/p>\n