South Ossetia Has Adopted a 12% Flat Tax

South Ossetia is an autonomous region in the South Caucasus, carved out of Georgia following military hostilities that ended in 2008.  Five countries recognize South Ossetia, which declared its independence in 1990.    Georgia considers South Ossetia to be under Russian occupation.

The tax rate for residents of South Ossetia is set at 12%.  (A higher rate of 30% applies to persons who are not residents of South Ossetia and Russia.)  Dividends are taxed at a lower rate of 6%.

The tax base is gross income minus the statutory monthly minimum wage and an allowance for children and dependents.