LumenIs interest on a Georgian bank deposit taxed?
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Under the Tax Code of Georgia, interest earned from a financial institution licensed under Georgian law is not taxed at source and is not included in the recipient's gross income, unless the recipient is itself a licensed financial institution. Other interest paid by a Georgian resident to an individual is taxed 5% at source, with no further tax.
Key facts
| What | The law says | Source |
|---|---|---|
| Interest from a licensed Georgian financial institution | Not taxed at source; not included in the recipient’s gross income (unless the recipient is a licensed financial institution) | Tax Code, art. 131(5) |
| Other interest paid by a Georgian resident to an individual | 5% withheld at source | Tax Code, art. 131(1) |
| After withholding | Not included in gross income; no further tax | Tax Code, art. 131(3) |
| Georgian government and National Bank debt securities | Interest exempt (also Deposit Insurance Agency and listed international financial institutions) | Tax Code, art. 82(1)(s) |
| Where interest comes from | Georgian-source when the payer is a Georgian resident (with permanent-establishment exceptions) | Tax Code, art. 104(1)(g) |
| Interest from abroad for a resident | A resident’s non-Georgian-source income is exempt | Tax Code, art. 82(1)(u) |
Deposits at Georgian banks
Article 131(5) of the Tax Code says interest earned from a financial institution licensed under Georgian law is not taxed at source, and the person earning it doesn’t include it in gross income. The only exception is when the recipient is itself a licensed financial institution. So for an individual, this interest isn’t taxed.
Other interest
Interest paid to an individual by a Georgian resident, or by a non-resident’s permanent establishment in Georgia, is taxed at source at 5% (art. 131(1)). Once taxed at source, it isn’t included in your gross income and isn’t taxed again (art. 131(3)).
Interest on Georgian government debt securities, on debt securities of the National Bank of Georgia, of the Deposit Insurance Agency, and of international financial institutions listed by the Government, is exempt (art. 82(1)(s)).
Related questions
- Interest from foreign banks: interest is Georgian-source when the payer is a Georgian resident (art. 104(1)(g)). Income of a resident that isn’t Georgian-source is exempt (art. 82(1)(u)).
Sources
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