ZUSTI
Sign in Get started

Corporate tax and dividends

15% on distribution and 5% on the dividend – what the owner receives. Start from the figure you know.

₾
Everything that will leave the account: the dividend plus the 15% profit tax.

A Georgian company pays the 15% profit tax when it distributes profit, not when it earns it. That 15% is the company’s own tax and it does not settle the shareholder’s: a dividend reaching an individual has a further 5% withheld from it at source, whatever regime the distributed profit was taxed under. Paying an individual founder therefore costs about 19.25% of the pre-tax profit in total – 15% from the company, then 5% of what is left. Dividends paid to a Georgian company are the exception: nothing is withheld from them (Tax Code Art. 130).

Company pays out10,000.00 ₾
Owners receive8,075.00 ₾
Total tax1,925.00 ₾
Company pays out10,000.00 ₾ = 100%
Net received by shareholder 80.8% Total tax 5% 4.3% Total tax 15% 15.0%
Dividend declared8,500.00
Corporate income tax (15/85 of the dividend)+ 1,500.00
Cash the company needs10,000.00
Dividend declared8,500.00
− Dividend withholding 5%− 425.00
Net received by shareholder8,075.00
Total tax1,925.00
Effective rate19.25%
In ZUSTI

Paying a dividend in ZUSTI – the distribution entry, the 15% and the 5% in one document

Profit tax and withholding show in the tax position at once, ready for the return.

Start for free Request a demo 14-day free trial · no card needed

How it is calculated

1

Corporate tax 15% is added on top of the dividend – 15/85: 8,500.00 × 15/85 = 1,500.00

2

Dividend withholding 5% is withheld from an individual: 8,500.00 × 5% = 425.00

3

Received = dividend − 5%: 8,500.00 − 425.00 = 8,075.00; the company paid out 10,000.00

Standalone calculators – they do not create any accounting entries. Figures are estimates for guidance only, not tax or financial advice. Georgian rates effective 2025: income tax 20%, pension 2% + 2%, VAT 18%, corporate tax 15%. Verify against current law before relying on them.