Management Theory and Studies for Rural Business and Infrastructure Development, Volume 38, Number 1

Tax burden for the companies in Georgia

Tamar Kbiladze


Optimally determined tax burden is very important issue for sustainable development of business and economics. The national authorities arise the question does tax burden should be equal for different size and type companies? The goal of the research was to propose methodology and evaluate existing tax burden in Georgia. Empirical investigation of heaviness and lightness of tax burden for the companies according to its types (large, medium, and small) and economic activities of enterprises has been performed. By offering new methodology for construction and calculation of optimal tax burden, the idea about depiction of economic, social and ecological conditions in one generalized indicator was elaborated. By investigating of empirical data of enterprises’ tax burden and by inquiries of entrepreneurs there were defined the conclusions that tax burden in Georgia is unequal by types of enterprises and by their activities, whereas according to tax code enterprises irrespective of their size and type of activities are paying the same interest rate taxes. Thus the obtained results could be useful for executive and legislative authorities of Georgia for transition from proportional taxation system to progressive taxation system, as well as for scientists and students of corresponding field.

JEL Codes: G28, H21, H25.

Keyword(s): decile inequality, proportional taxation system, progressive taxation system, tax burden, tax rate, types of enterprise activities

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.