The impact of international taxation on the Georgian economy

Abstract

Over the past decade, international tax reforms have significantly reshaped the global economic landscape, particularly for small open economies that rely heavily on foreign investment. Georgia is among the countries most affected by these changes. The implementation of the 15% global minimum tax, the BEPS standards, and stricter international transparency requirements have fundamentally altered the environment in which Georgia previously competed through low tax rates. This paper examines how these transformations influence Georgia’s economic dynamics, investment climate, and fiscal policy. The analysis draws on recent economic data, international assessments, and domestic structural characteristics. The paper concludes that Georgia must adjust its development model by reducing its dependence on tax-driven incentives and transitioning toward an economy built on knowledge, innovation, productivity, and human capital.