Paying Taxes in Georgia: Methods and Step-by-Step Guide
Georgia actively uses programs for attracting foreign investors for the development of business within the country. The absence of corruption, bureaucracy and the simplicity of the business registration procedure attracts entrepreneurs, and the ease of reporting emphasizes the advantages of doing business in Georgia.
Everyone who receives income from Georgian companies is obliged not only to keep records of income and expenses, but also to regularly submit tax reports. The rules that exist in Georgia for taxpayers will be discussed in this article.
Access to the taxpayer's personal account in Georgia
The convenience of doing business in Georgia ensures the absence of excessive bureaucracy and the availability of online services from all authorities. So the tax service accepts tax reporting through the personal accounts of taxpayers of Georgia. In order to comply with the Code and the legislation of Georgia, you will have to learn how to use it.
After the company is registered and the data is transferred to the Revenue Service, a link is sent to the email address specified in the Registry. When you click on it, online registration takes place in the Tax Office of the country. To confirm the identity, an SMS message is sent to the number of the owner of the company, which is also stored in the Registry. If the link has not arrived, you need to contact the operator of the Tax Service personally.
The personal account is maintained in Georgian and English. If necessary, foreign counterparties use the services of translators so that there are no problems when filling out the declaration and the taxpayer's personal card.
You can get the status of the Virtual Zone using the same username and password. The form is filled out on the website of the Ministry of Finance of Georgia.
To activate your personal account and send the first data to the Tax Service, first of all you need to fill out a personal card. At the same time, not only the type of activity, activity and address of the company are indicated, but also the declarations that will be submitted are listed, depending on the form of business and its status.
Payment of taxes via mobile banking
Pay taxes in Georgia simple and accessible from anywhere in the world where there is Internet. For some types of business in Georgia, it is enough to do just 10 steps through a certain application of the selected bank. At the same time, SMS confirmation is not used.
The ability to perform this procedure without wasting time and effort is considered one of the main advantages of the Georgian taxation system.
To pay taxes, you need to go to a mobile bank, for example, log into an individual account at TBC bank. Then open the tab “Payments and transfers” and make a payment to the state treasury. You need to enter the treasury code, the code and the name of the taxpayer and the amount of tax.
The deadline for paying taxes in Georgia
Depending on the form of business, the type of tax chosen, the payment period is calculated.
Value added tax must be paid by the 15th day of each month following the reporting one,property taxes – quarterly, despite the annual accrual. But income tax – every time when paying salaries to employees.
The periods of the tax return report also differ depending on the type of taxes. An annual reporting period is established for taxes on the property of individuals, on the property of legal entities and on the standard income tax from individuals. For all other taxes, in particular,+ for payroll income tax and small business tax in the amount of 1%, you need to fill out a tax return every month.
Pay attention to an important nuance — it is necessary to pay payroll tax on the day of the transfer of wages to employees, but it is allowed to file a declaration before the 15th of the next month. Annual tax returns must be submitted no later than April 1 of the following year.
How to pay taxes in Georgia for another
There is a possibility in Georgiapayment of taxes for third parties, including legal entities. In this case, the identification code of the person for whom the tax is paid is filled in at the bank.
The amount is credited to a personal account, and after the declaration it is debited. The tax is considered paid exactly after the write-off, and not at the time of receipt of funds to the account.
Errors in the calculation of taxes in Georgia
If errors are found in the tax return, it is recommended to correct it and send it again. The period must be specified the same, then the system will automatically recalculate the amount of tax and deduct it from the account.
If there were enough funds on the account to pay, the penalties will not drip. But if they were not enough, then after recalculation the correct amount of taxes and accrued penalties will be deducted.
Is it possible not to pay taxes in Georgia?
If the Georgian authorities discover that you are evading taxes, they will first seize the company's property and bank account. If the required amount is available on the settlement account, the tax will be deducted automatically and the case against you will stop. This is called forced payment of tax through bank collection.
When the company's bank account does not have the required amount to pay the tax debt, the arrest will continue until the funds are credited. Next, legal proceedings are underway, as a result of which the tax is reimbursed as a result of the sale of the company's property.
If the amount of debt exceeds one hundred thousand lari, then a criminal case is initiated against the director of the company. These are extreme measures that the Georgian government takes only after all of the above methods collection of taxes.
At the time of payment of taxes, all arrests and criminal cases, as well as administrative ones, are terminated.
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