Georgia is a small country between Eastern Europe and Western Asia. Thanks to borders of Russia, the Black Sea, Armenia, and Azerbaijan, it's easy to connect with other companies in the region....
Read MoreGeorgia is a small country between Eastern Europe and Western Asia. Thanks to borders of Russia, the Black Sea, Armenia, and Azerbaijan, it's easy to connect with other companies in the region. The capital city, Tbilisi, is also well-known for its diverse architecture and cobblestone streets that act as a maze throughout the town.
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Georgia is a small country between Eastern Europe and Western Asia. Thanks to borders of Russia, the Black Sea, Armenia, and Azerbaijan, it’s easy to connect with other companies in the region. The capital city, Tbilisi, is also well-known for its diverse architecture and cobblestone streets that act as a maze throughout the town.
If you’re planning an expansion to Georgia, you may wonder how to handle payroll on your own. While you can outsource with a local company, it’s better to set up your Georgia payroll through a global PEO such as Globalization Partners. When you choose to work with us, you can use our existing payroll, and we’ll also handle compliance on your behalf.
Georgia has state and local tax rules for both employers and employees. Employers must pay a 15% corporate profit tax rate as long as they are incorporated as a corporation. However, the country does not have any social security taxes. All employees must pay a 20% flat personal income tax. Any personal income from foreign sources is exempt from this tax. There’s an 18% VAT on most goods, with the exceptions of medical care and exports.
You have four major Georgia payroll options to choose from:
Before you can set up your Georgia payroll, you’ll need to have a subsidiary in the country. This entity will help you work legally, run payroll, hire employees, and give out compensation and benefits. Until you have a subsidiary, you can’t work in the country.
Globalization Partners eliminates the need to establish a subsidiary on your own. You can use our Georgia PEO to start working immediately without your own entity. Doing so will ensure that you can work in as little as a day or two and always stay compliant.
Entitlement and termination terms are essential to any employment relationship, especially when it comes to working abroad. We recommend including these terms in an employment contract before you set up your Georgia payroll. When the labor contract is terminated, you, as the employer, will need to make a final settlement with an employee no later than seven calendar days after the termination.
Globalization Partners is the global PEO you need on your team for a quick expansion. Contact us today to learn more about Georgia payroll outsourcing.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
