This article outlines the rules for business expense reimbursement in Georgia, including mileage practices, documentation standards, tax treatment, and common reimbursable categories.
1. Mileage Reimbursement
Georgia does not have a government‑mandated mileage reimbursement rate.
Company‑Defined Mileage Rates
Employers may set any reasonable per‑kilometre rate in their internal policy.
Typical market practice:
USD 0.20 – 0.30 per km, depending on:
Vehicle type
Fuel costs
Business travel patterns
Mileage Reimbursement Requirements
Must be linked to genuine business travel
Should be supported by a mileage log recording:
Date
Route
Purpose
Distance travelled
Parking and tolls are reimbursed separately.
2. Parking, Tolls, and Road Costs
These are reimbursable when incurred for business reasons.
Documentation
Receipts required whenever available
If no receipt is issued (e.g., unmanned parking lots or electronic toll systems):
Bank card payment proof, or
Internal declaration (if allowed by employer policy)
Traffic fines or penalties are not reimbursable.
3. General Business Travel Requirements
Georgia imposes no legal caps on:
Travel days
Hotel rates
Daily reimbursement amounts
Mileage totals
Employers must:
Set their own internal travel budget rules
Ensure all travel is business‑related, reasonable, and necessary
4. Transportation Expense Rules
There are no government restrictions on allowable transportation types.
Reimbursable modes include:
Air travel
Train or rail
Long‑distance bus
Taxi
Ride‑hailing services (Bolt, Yandex, Uber)
Rental cars
Documentation
Receipts should be provided whenever possible.
Ride‑hailing apps generally issue digital receipts or screenshots, which are acceptable.
Rental cars require:
Rental agreement
Invoice
Fuel receipts (if employee pays directly)
5. Documentation Requirements for Non‑Taxable Reimbursement
To treat reimbursements as business-related and non‑taxable, Georgia generally requires a valid receipt or invoice showing:
Supplier name
Supplier Tax ID (if applicable)
Date
Amount paid
Description of goods or services
For small vendors (kiosks, small cafés, taxis, roadside purchases), handwritten receipts or simplified documents are acceptable.
Reimbursements without documentation may be:
Denied
Treated as taxable employee income
6. Tax-Free Reimbursable Expenses
The following are typically non‑taxable if reasonable, business-related, and properly documented:
Airfare, train, bus, taxi, ride‑hailing
Accommodation
Meals during business travel
Fuel (when fuel reimbursement policy applies)
Parking and tolls
Office supplies and consumables
Work-related equipment (small tools, peripherals)
Communication expenses:
SIM cards
Mobile data
Internet used for work
Client entertainment (with receipts and business justification)
7. Per Diem Allowances
Georgia does not set mandatory per diem rates for private‑sector employees.
Typical Company Per Diem Rates
GEL 30–50 per day for domestic travel
USD 50–80 per day for international travel
Tax Treatment
Per diems are generally non‑taxable when:
The employee is traveling for business, and
The travel occurs outside the normal work location
8. Entertainment, Gifts, and Team Events
Client Entertainment
Tax-free if:
Business-related
Reasonable
Supported by receipts and clear purpose
9. Non-Reimbursable or Taxable Personal Benefits
Typically taxable unless mandatory for work:
Gym memberships
Yoga, fitness, swimming
Therapy or wellness programs
Personal medical expenses (unless required by job duties)
Non-business expenses are treated as fringe benefits and subject to tax.
10. VAT Rules
VAT applies to vendor invoices (standard rate 18%)
VAT applies to the original supplier, not to reimbursement itself