March 31 is the last day for filing the declaration and paying the tax on the property of the Companies.
Taxpayers:
- Companies (tax residents) registered under the laws of Georgia,
- Foreign companies/Individual entrepreneurs (non-residents) not registered in Georgia BUT having property in Georgia
Tax base: the average cost of the Company’s fixed assets – the property that the Company owns by right of ownership and which is used for business activities. The market value of the property is calculated according to the rules established in Article 202. Clause 41 of the Tax Code of Georgia (sum of book value at the beginning and at the end of the year/2)
Tax rate: no more than 1%
Features:
- for individual entrepreneurs who are residents of other countries:
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 companies with the status of “International Company”:
property tax (excluding land tax) is NOT payable if the property is used or intended to be used for business purposes
- for companies registered in a free industrial zone:
property in FIZ is NOT subject to property tax
Procedure for filing a declaration: electronically through the tax office of the taxpayer on rs.ge
Responsibility:
- for late filing of a tax return (including if the tax is NOT payable, BUT the tax office has a note about the need to file a property 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: a fine in the amount of 10% to 50% of the amount of tax not paid on time (in case of voluntary payment with 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 a declaration)
