March 31 is the last day for filing an income tax return for Individual Entrepreneurs (in terms of income received from activities NOT classified as activities of a small business entity).
Taxpayer: An individual entrepreneur who has received income for the performance of work, the provision of services and the sale of goods in the territory of Georgia.
- The service/work is considered to be rendered/performed in the territory of Georgia, and the goods are sold in the territory of Georgia, if the Contractor/Seller is in the territory of Georgia at the time of the provision of the service/performance of the work/sale of the goods
- Citizenship, residence permit IP – do not matter
- Citizenship, place of residence/location and tax residence of the Customer – do not matter
- Source of payment (within Georgia or payment from abroad) – does NOT matter
Tax base: Taxable income received by an individual entrepreneur for work performed/services rendered/ goods sold, REDUCED by an economically justified expense.
- 20% of income received (base rate)
- 5% of rental income in case of renting out the premises for residential purposes PROVIDED if the Landlord is registered in the register of Landlords (no cost reduction)
- 5% of the income received from the sale of the vehicle
- 5% of income received in the form of interest on loans
- 20% of income in the form of royalties (for residents)
- 5% of royalty income (NON-residents)
- for persons who are NOT citizens and/or tax residents of Georgia:
- when determining the income to be declared and calculating the amount of tax to be paid, you should check the double taxation agreement between Georgia and the country of your citizenship and tax residence
- for individual entrepreneurs with the status of a small business entity:
- income received by an individual entrepreneur while carrying out activities within the framework of the status of a small business entity is not taken into account when submitting an annual income tax return of an individual entrepreneur
Procedure for filing a declaration: electronically through the tax office of the taxpayer on rs.ge
- for late submission of a tax return: a warning or a fine of 100 GEL
- for late payment of tax: penalties in the amount of 0.05% per day of the amount of tax not paid on time
- for non-payment of tax on time:
− if the delay period does not exceed 2 months – a fine in the amount of 5% of the amount of tax not paid on time,
− if the delay exceeds 2 months – a fine of 10% of the amount of tax not paid on time
In case of voluntary payment in violation of the deadline, the amount of the fine can be reduced by 2 times, provided that its payment occurs within 1 month from the date of filing the declaration.