In a world where citizenship is considered to be a commodity, and everyone’s looking for various ways to protect their investments and pay less income tax as much as possible. After all, some governments ask to pay an unreasonably high amount of income tax.
While we understand that governments are actually trying to generate revenue by taxes businesses, there comes a point where you just have to draw the line. After all, as an entrepreneur, you’re not just concerned about making money. You’re also interested in ways of developing and expanding your business and investments.
Unreasonably high taxes make it very difficult to remain motivated and develop your business further. It can even chip away from any research and development plans you have, and that can actually hurt you in the long run.
After all, in order to succeed, you must ensure that you’re always at your best, that you’re rolling out your A-game so that you may compete with rivals not just in your country but also globally.
There’s no point in being left behind because you were born in a country with a bad tax policy. You can now benefit from sourcing your income from countries with great tax policies, and you can accomplish this pretty easily as well.
There are certain countries in the world that understand the importance of low-income tax and have created various policies that cater to them.
If you want to pay less income tax, then you’re at the right place. In this blog post, we’re going to introduce the country of Georgia and how you can benefit from a 1% income tax policy even if you’re not a citizen of Georgia.
So, if you want to learn more about how you can pay less income tax in Georgia, keep reading this blog post.
Income Tax Policies In Western Countries
If you’re in search of countries where you may pay less income tax, then you’ll have to move away from the western world. We don’t mean that you have to physically move away, although there are plenty of options available for you if you’re interested in immigrating for lower tax purposes.
Western countries and even emerging markets like Brazil and India have very bad income tax policies. For instance, Germany has one of the highest income taxes in the world.
It follows a progressive tax system which means that the tax percentage increases with your income. This applies to business and personal income tax as well, and this can substantially increase depending on where you’re married, single, have children, and have one or more businesses as well.
But Germany’s not the only one with such a tax policy. Belgium, Lithuania, Denmark, and others follow closely as well.
To put things into perspective, we’ve compiled a list of countries with their income tax percentages so you can see what’s happening yourself:
Belgium- 25%
Brazil- 27.5%
Canada- 15%
Denmark- 12.11%
Germany- 14%
India- 15%
Lithuania- 20%
Mexico- 35%
Poland- 17%
Slovenia- 16%
Switzerland- 40%
The Netherlands- 37.35%
Turkey- 15%
United Kingdom- 20%
United States- 10%
Do note that all of these countries have a progressive tax system which means that this is the bare minimum tax you have to pay. As your income rises above certain brackets, you have to pay more and more taxes.
Yes, it’s crazy, isn’t it?
Think about how much money you’re paying in taxes in these countries. And as we’ve mentioned, this is for singular income taxes only. Some of these countries increase their taxes depending on your family size, your marital status as well as how many businesses you own.
These are not good places for an entrepreneur. If you do the math, you’re probably wasting more money paying tax. This money could be spent elsewhere. As a business owner, you’re probably well aware of this. But you can’t evade taxes; everyone has to pay that.
No one wants to be caught paying fines for evading taxes because that is a completely different avenue that can lead to jail time in some countries as well. There’s no point in tainting your pristine reputation by falling into that trap.
However, you can source income elsewhere, which will allow you to pay less income tax so that you can use the remaining money for other expenses. Sounds great, doesn’t it? We think so too.
That is why we strongly recommend paying income tax in Georgia and benefiting from their 1% income tax. Yes, if you decide to register your business in Georgia, you can pay 1% tax. It sounds like a dream, but it’s true!
What Makes Georgia Different?
It might seem as though we’re just constantly naming Georgia for no reason, but once you actually find out about it, you’ll understand why we- and so many other entrepreneurs- prefer Georgia. In fact, Nomad Capitalist is based in Georgia itself!
Georgia has extremely business-friendly laws, from their tax policies to their employment and bookkeeping benefits. There are plenty of reasons why you should register your company and pay income tax in Georgia.
First of all, Georgian authorities understand various entrepreneurial ventures and businesses quite well. While some countries have a hard time managing e-commerce businesses and may even incorrectly tax you due to their lack of understanding, Georgia is progressively above the fold when it comes to these things.
It offers various benefits to you as well. You don’t need to be in Georgia to get your business registered- you can do it through someone as well. We’ll talk about this in detail later.
There is no such thing as bureaucracy, long lines, and unnecessary paperwork and delays brought about by these things. If you’re someone who’s always busy, you can easily get your company registered and start paying taxes in Georgia in just a few days.
Yes, that’s correct. You can register as a taxpayer in Georgia in under five working days. So, why not pack your bags and take a weeklong work vacation in Georgia? Not only will you be able to get your tax filed, but you can also enjoy the beautiful sights the country has to offer. It’s all very straightforward, and you can learn about the tax policy in detail below.
The 1% Income Tax Policy In Georgia
The 1% income tax policy in Georgia applies to everyone- this includes Georgian citizens, Georgian resident permit holders, as well as foreigners who may simply have a visa (if you require one to travel to Georgia) or not (if you don’t need one to enter Georgia).
In fact, it’s so easy to apply for this policy that you can simply head for the tax office from the airport in Tbilisi.
So, what do you do?
Steps To Be Taken
Well, for starters, you will have to register at the Registry of Georgia in Tbilisi as a “private individual entrepreneur.” While this might sound complicated, it is actually a very simple process. All you’ll need is your passport and 20 Georgian Laris, which is around 6 USD.
You can make an appointment online beforehand and arrive at the Registry at the given time. Simply head over to the website of the Registry of Georgia and fill in the form. You will need an address in Georgia which you can easily get by either the consent of an owner or under direct ownership yourself.
The forms for these are available at the Registry itself. After filing these documents and paying the application fee, you will be registered in one working day.
Once you are registered as a private individual entrepreneur, you can then go to the Revenue in Georgia. There’s a web portal available if you want to do this remotely though you can go there yourself as well.
You will have to fill a form to become a taxpayer and a form for your small business as well. In addition to this, you will have to pay 20 Georgian Laris again, and you will be registered in one working day.
After one working day, you will receive your certificate as a taxpayer, and your status will be activated from the next month only.
See, isn’t that simple? All it takes is two- maybe three- working days to get taxpayer status in Georgia. Once these steps are done, you can start benefiting from the 1% income tax policy.
Now, after you’re registered, you will have to file your income tax by the fifteenth of the next month. Don’t worry about it, though. The Revenue website is quite user-friendly, and you don’t need to learn a new language to file taxes on your own. There’s an English section for English speakers.
Eligibility For This Policy
Do note that in order to qualify for the 1% tax policy, you will have to ensure that your annual income does not exceed half a million Georgian Laris. This is approximately $158,000.
If your income exceeds this amount for one calendar year, you will have to pay 3% tax (which is still significantly lesser than many countries) for two calendar years, and after that, you will lose the private individual entrepreneur status for a small business altogether.
However, that’s not quite bad if you think about it. After all, paying 3% tax for two calendar years will also save you a lot of money.
Apart from this, you are not eligible for this 1% tax policy if you have an architectural firm, a tax consultancy, a law firm, or a staffing agency. Furthermore, if your company produces goods that come under excess taxes in Georgia, then you’re not eligible for this policy.
Generally, the 1% tax policy is available for everyone, and you don’t have to be a resident taxpayer in Georgia to register. So, if you’re eligible for this- we don’t see why you shouldn’t source your income from Georgia.
Employment Options
In addition to their lenient 1% tax policy, Georgia also has great employment tax options. You can hire someone in Georgia to take care of your business, and you don’t have to pay withholding taxes if you pay the person less than 6,000 Georgian Laris a year.
You can even register any contract workers you have as you don’t have to pay the normal 20% withholding tax for payrolls if you’re paying them less than the amount specified.
Conclusion- Get In Touch With Our Team Today!
As you can see, the government of Georgia has made it very easy for everyone to benefit from their 1% income tax policy. By following the steps above, you can easily file for taxes yourself without the involvement of any middleman.
Tax policies like these make it very easy for entrepreneurs and small business owners to not only register for tax collection, but such a policy can also be considered a motivation for some individuals.
After all, as an entrepreneur making under $158,000 a year, why would you want to pay 10 or 20% tax? That amount could be invested back into your business to further expand and develop it. The officials in Georgia seem to understand this predicament, so they’ve made it quite straightforward for anyone looking for a viable tax option that doesn’t seem to be unjust.
On the other hand, if your income is more than $158,000 a year and you’re making seven or eight figures, you can get in touch with our team at Nomad Capitalist. We’ve got plenty of opportunities that ensure that your income is managed properly and invested in places where you pay the least tax possible.
Furthermore, our CEO, Andrew Henderson, has extensive experience with international tax planning, strategic investment immigration, and other various ways in which you can benefit from being a global experience.
Get in touch with us today and begin planting flags for a better future for yourself and your business. Nomad Capitalist is here to provide you with opportunities to properly invest your money and go where you’re treated best!
