Innovative startups will enjoy 10 years of tax benefits, including exemption from salaries for the first three years, 5% corporate tax rates for the next three years, and 10% for the final four years. R&D service providers will face 5% corporate tax rates.
Georgia has new tax incentives to support innovative startups, SMEs, and R&D service providers through recent amendments to the Tax Code and the Law on Innovations.
Law No. 5501-Iis and Law No. 719-IIMS-XIMP, which introduced these tax incentives, were published on 22 June 2025 and 24 June 2025, respectively.
Under these Laws, Innovative startups can enjoy these tax benefits for 10 years. For the first three years, salaries paid by the innovative startup (within government-set limits) will be exempt from individual income tax. In the next three years, a reduced 5% tax rate will apply to both individual income and corporate taxes. For the final four years, the personal and corporate tax rates will increase to 10%.
Meanwhile, R&D service providers will also benefit from the tax incentives. Salaries from an R&D service provider will be taxed at 5% individual income tax, while the company will pay a 5% corporate income tax.
These changes will take effect on 24 September 2025.
