# On Double Taxation Agreements and Georgia's 1% tax **URL:** \ **Category:** Tax and legal\ **Tags:** tax, georgia\ **Created:** [December 20, 2021, 7:43pm UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806 "2021-12-20T19:43:06Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![a16aedf3cd0797d08d96](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/a/b3f665/32.png) [@a16aedf3cd0797d08d96](https://community.nomadgate.com/u/a16aedf3cd0797d08d96)\ **Post date:** [December 20, 2021, 7:43pm UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806/1 "2021-12-20T19:43:06Z")
Hello, A question for those who know a bit more about tax laws. If you’re a national and fiscal resident of a country that has an agreement to avoid double taxation with Georgia, does registering as an individual entrepreneur in Georgia and paying their 1% tax automatically mean you don’t have to pay tax in your country? ---
**Author:** ![f9c7f743aeb0883e648c](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/f/f14d63/32.png) [@f9c7f743aeb0883e648c](https://community.nomadgate.com/u/f9c7f743aeb0883e648c)\ **Post date:** [December 20, 2021, 9:05pm UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806/2 "2021-12-20T21:05:44Z")
I don’t know about Georgia specifically. But in general the double taxation treaties would not enable this type of abuse of the tax system. Double taxation treaties are meant to provide that you would not be taxed in Georgia at 20% and also in France at 30% for a total of 50%. In the case of Georgia 1% tax, you would pay 1% to Georgia but still have to pay 29% to France, for a total of 30%. ---
**Author:** ![a16aedf3cd0797d08d96](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/a/b3f665/32.png) [@a16aedf3cd0797d08d96](https://community.nomadgate.com/u/a16aedf3cd0797d08d96)\ **Post date:** [December 20, 2021, 10:14pm UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806/3 "2021-12-20T22:14:15Z")
That makes sense. So in order to legally pay the 1% tax only in that scenario, you’d have to stop being a tax resident of France and become a tax resident of Georgia (and meet all the requirements for that), right? ---
**Author:** ![f9c7f743aeb0883e648c](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/f/f14d63/32.png) [@f9c7f743aeb0883e648c](https://community.nomadgate.com/u/f9c7f743aeb0883e648c)\ **Post date:** [December 20, 2021, 10:25pm UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806/4 "2021-12-20T22:25:29Z")
essentially that is correct but obviously a lot of nuances and caveats. ---
**Author:** ![e873eba7862db331fd05](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/e/ba8739/32.png) [@e873eba7862db331fd05](https://community.nomadgate.com/u/e873eba7862db331fd05)\ **Post date:** [December 21, 2021, 12:30am UTC](https://community.nomadgate.com/t/on-double-taxation-agreements-and-georgias-1-tax/44806/5 "2021-12-21T00:30:00Z")
Be glad you aren’t American. Americans owe taxes to the USA no matter where they are tax residents. Some taxes like the NIIT aren’t covered by double tax treaties, so pay and pay again. Even if you avoid paying the IRS, you’ll still have to fill out extremely elaborate paperwork every year. If you make a mistake on your FATCA or FBAR filing, you’ll owe up to 300% of your assets (not just income) in penalties. But the mystery remains: why are people lining up to renounce citizenship from the A#1 best country on Earth? They tell us every day on the teevee that all foreigners would die happy if they could even just glimpse our border wall for an instant, and I know that wedding party guests are filled with pride to die for democracy when they are vaporized by predator drones.