The United States–Georgia Income Tax Treaty is designed to prevent double taxation and foster trade and investment between the U.S. and Georgia. This treaty provides clear rules on how income, dividends, interest, royalties, and capital gains are taxed for individuals and businesses operating across both countries.

At Z Tax & Accounting, our international tax professionals help clients leverage the U.S.–Georgia Tax Treaty to minimize tax liabilities, ensure compliance with both U.S. and Georgian tax authorities, and optimize cross-border tax planning strategies.

Key Provisions of the U.S.–Georgia Tax Treaty

1. Elimination of Double Taxation
   The treaty allows taxpayers to claim foreign tax credits or exemptions to avoid being taxed twice on the same income. U.S. taxpayers can offset taxes paid to Georgia against their U.S. tax liability.
   
   

2. Residency and Tie-Breaker Rules
   Residency determines taxation rights. In cases of dual residency, tie-breaker rules consider permanent home, center of vital interests, habitual abode, and nationality.
   
   

3. Business Profits and Permanent Establishment (PE)
   Business profits are generally taxed only in the country where a Permanent Establishment exists, such as a branch, office, or factory. Income from a business without a PE in the other country is taxed solely in the country of residence.
   
   

4. Dividends, Interest, and Royalties
   
   

   • Dividends: Reduced withholding tax rates of 5%–15%, depending on ownership.
     
     

   • Interest: Often taxed at a reduced rate or exempt in the source country.
     
     

   • Royalties: Reduced or exempt rates encourage cross-border licensing and investment.
     
     

5. Employment Income and Personal Services
   Wages, salaries, and independent personal services are taxed in the country where services are performed, with exceptions for short-term presence or nonresident employers.
   
   

6. Pensions and Social Security Benefits
   Pension income is generally taxable only in the recipient’s country of residence. U.S. Social Security benefits paid to Georgian residents are typically taxable only in the U.S., under treaty rules.
   
   

7. Capital Gains
   Gains from the sale of property are generally taxed in the country of residence, except for real property or business assets connected to a Permanent Establishment.
   
   

8. Exchange of Information
   The treaty facilitates cooperation between the IRS and the Georgian Revenue Service, enabling information exchange to prevent tax evasion and ensure compliance.

Treaty Benefits for Individuals

• Avoid double taxation on wages, pensions, dividends, and investment income.
  
  

• Benefit from reduced withholding rates on cross-border payments.
  
  

• Clarify residency and taxation under treaty provisions.
  
  

• Access foreign tax credits and exemptions.
  
  

• Maintain compliance with both U.S. and Georgian authorities.
  
  

Treaty Benefits for Businesses

• Prevent double taxation on U.S.–Georgia operations.
  
  

• Reduce withholding taxes on dividends, interest, and royalties.
  
  

• Determine Permanent Establishment status to minimize exposure.
  
  

• Structure international business operations efficiently to maximize tax savings.
  
  

• Gain legal certainty for cross-border transactions.
  
  

Z Tax & Accounting – International Tax Experts

Z Tax & Accounting helps individuals and businesses apply the U.S.–Georgia Tax Treaty to optimize tax planning and compliance. Our services include:

• Treaty-based tax return preparation and compliance
  
  

• Cross-border income reporting and foreign tax credit optimization
  
  

• Residency and Permanent Establishment analysis
  
  

• Structuring international business operations for treaty benefits
  
  

• IRS representation for expatriates and foreign nationals
  
  

We ensure compliance while minimizing global tax liabilities.

Contact Z Tax & Accounting

For expert guidance on U.S.–Georgia tax treaty benefits, contact Z Tax & Accounting today. Our team helps you navigate international tax laws while maximizing treaty advantages.

📞 Phone:  (214)  699-4790
📍 Office: 600 E John Carpenter Freeway, Suite 268, Irving, TX 75062

Z Tax & Accounting — Trusted Experts in International and Cross-Border Taxation

The above Summary may not include specifics about individual taxpayer's specific situation and is for general information. Contact us directly to discuss your situation. The link to the actual Tax treaty is as under:

Georgia is one of the former Soviet Republics which are now covered by the treaty with the Commonwealth of Independent States (CIS), formerly known as the Union of Soviet Socialist Republics (USSR).

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  Income Tax TreatyPDF - 1973