About income tax in Georgia in detail
Who is a payer of income tax
- A resident individual, that is, an individual who has actually been in Georgia for 183 days or more during any continuous 12 calendar month period;
- A non-resident individual receiving income from a payment source existing in Georgia.
What is the taxable income of a resident individual?
- Taxable income is the difference between income and expenses received during the calendar year.
What is taxable income for a non-resident individual?
Taxable income is the difference between gross income and expenses received in Georgia in connection with a permanent establishment during a calendar year.
The joint income of a non-resident individual that is not related to his or her permanent establishment is taxable at source without a deduction (expense deduction).
A non-resident individual who receives income from the sale of property shall pay income tax on the gross income received in Georgia during a calendar year, less the expenses incurred in earning such income during that period.
Income tax rates
Taxable income received by resident individuals who are not subject to taxation with an existing source of payment in Georgia is taxed at 20 percent.
Withholding income tax is taxable at source:
- Salary - 20%
- Dividends - 5%
- Interest - 5%
- Royalty - 20%
A non-resident individual is taxed on Georgian source income without deduction of source of payment at the following rates:
- Dividends - 5%; - Interest - 5%; - Amounts paid by an enterprise, organization and/or business entity for international telephone communication services and international delivery services - 10%;
- Income from non-resident subcontractors - 4% from non-resident subcontractors engaged in oil and gas operations under the Georgia Oil and Gas Law;
- Amount of rent paid to an individual - 5%; - Other amounts considered income earned in Georgia - 10%. - wages and salaries - 20%
Individual entrepreneurs engaged in business activities, at what rate should they pay current (prepaid) income taxes?
Entrepreneurs engaged in business activities are required to include the amounts of current payments to the budget for the annual tax for the last tax year in the following amount:
- No later than May 15 - 25%
- No later than July 15 - 25%
- No later than September 15 - 25%
- No later than December 15 - 25%.
When should I file and pay my tax return?
- The annual tax return is due by April 1 of the following year and must be paid within the same period;
- The deadline for filing the annual tax return is no later than 30 business days from the date of termination and is due and payable within the same period;
- The deadline for filing the income tax return is at the end of each reporting period, no later than the 15th day of the following month, and the payment is due upon payment.
What should we do when taxable income decreases from the previous year?
If the taxpayer's current tax is reduced from the expected taxable income (profits), including tax on a reduction of at least 50 percent, the reduction of the previous tax year income (profits), and to inform him of the current tax payments due before notification to the relevant tax authority, the taxpayer has the right to reduce or not pay current taxes
What type of income is exempt from income tax?
- Grant, state pensions, state compensation, bonuses, cumulative and refundable non-state pension plan pension payments made; stipend, allowance and lump sum payments are budgeted and/or money is taken from the reserve funds budget;
- Surplus received from a residential home (house), land assigned to it, for sale over 2 years;
- Surplus received from the sale of a car owned for more than 6 months after registration;
- Surplus received from the delivery of assets owned for more than 2 years if the asset was not used for business activities prior to disposal; In addition, the use of assets in business activities should not be considered after 2 years of delivery and/or ownership of securities/shares solely for the purpose of receiving dividends and interest;
- The value of property received as a gift or inheritance by heirs of the first and second line during the tax year;
- The value of property received as a gift, up to GEL 1000 during the tax year, excluding the value of property received by the employer from the employer.
What are the benefits of income tax?
Income tax is not levied on the following taxable income received by individuals during the calendar year, up to 3000 GEL:
- Persons with disabilities from childhood, as well as persons with severe and significant disabilities;
- Citizens of Georgia who participated in World War II and wars for the territorial integrity of Georgia;
- A person who holds the honorary title of "Mother of Cartwheel";
- A single mother;
- A person who gave birth to a child (within 1 year of adoption);
- The person who raised the child. In addition, income tax on taxable income up to GEL 3,000 during the calendar year is reduced by 50%;
- Taxable income earned by a major resident of a mountain region (depending on three or more children under the age of 18) in said region;
- One or two children residing in the highland region (dependents of one or two children under the age of 18) are taxable in the region.
How do I apply for the tax credit?
To apply for an exemption from tax, the employed person submits to the employer a certificate issued by the tax authority and a document confirming the exemption.
If there is more than one job, the source of the payment where the allowance will be distributed is determined by the employed person.
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Благодаря madloba.info за такую информативную статью! Теперь я чувствую себя готовым к планированию своей поездки в Грузию с более ясным пониманием налоговой ситуации там.
The article begins by explaining the basic principles of income tax in Georgia. It highlights the rates of taxation and the different tax steps, which allows readers to get a general idea about the taxation system in the country.
The author then proceeds to review the basic deductions and exemptions available to taxpayers in Georgia. This is important information that helps readers understand what options are available to reduce their tax burden and optimize their finances.
In addition, the article also details the tax filing procedure and the specifics of taxation for different categories of taxpayers. This allows readers to more fully understand the process and comply with the relevant requirements.
Especially valuable is the fact that the article also raises the important issue of the consequences of tax evasion. The author provides information on the penalties and fines that can arise in the event of a tax law violation. It is a reminder of the need to comply with tax obligations and reflects Georgia's desire for a fair and transparent tax system.
Overall, this article is a source of valuable information about income tax in Georgia. It helps readers better understand the basic aspects of taxation and a guide to tax compliance.