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How to file a declaration and pay the tax

709
12/11/2023

Filing a tax return in Georgia is a mandatory requirement for conducting business. Tax returns are filed for all types of taxes in a company. The deadline for submission depends on the chosen legal form of the business and the tax system.

Types of declaration 

In Georgia, there are several types of tax returns, depending on the type of tax and the tax status of the company.

The main types of tax returns in Georgia include: 

Value Added Tax (VAT) 18%: VAT tax returns are filed monthly and contain information about purchases, sales, and other VAT-related operations.

Personal Income Tax (PIT) / Corporate Income Tax 20%: PIT returns are filed monthly for small business owners and annually for individuals and owners without small business status.

Profit Tax (Corporate Tax) 15%: Legal entities must file returns by the 15th of the month following the profit distribution.

Property Tax (not exceeding 1% of the value of the taxable property): Tax returns are filed annually.

Excise Tax: Paid by manufacturers, importers, and exporters of excisable goods. The tax rate depends on the product and is determined by the Tax Code. The declaration is filed no later than the 15th of the month following the tax period.

Dividend Tax 5%: Tax returns are filed by the 15th of the month following the reporting period.

What is the process of filing a declaration?

Any tax return is filed electronically on the Revenue Service website, rs.ge.

To file a return, one must log in to their account on the website and follow the link to the relevant declaration. In the window that opens, fill in all necessary fields, including the amount and date of money received, and information on tax deductions. After filling out, a field appears showing the tax amount to be paid. The declaration is then “sent”, followed by a notification of successful submission.

After filing the return, the tax must be paid through a bank, citing the registration number of the LLC or sole proprietorship.

Common mistakes in declarations

When filing tax returns independently on the portal rs.ge, business owners often make several common mistakes:

  • Incorrectly filled in information, including incorrect data on income, expenses, taxes, and other financial information.
  • Not utilizing all available tax deductions and benefits. It is essential to thoroughly study the possibilities of one's tax status in the Georgian Tax Code to avoid unnecessary tax payments.
  • Not adhering to submission deadlines, which can lead to fines and other sanctions.
  • Lack of supporting documents, which may be required during tax audits.

To avoid these errors, carefully study the instructions for filling out declarations or seek advice from professionals in taxation.

Fine for failure to submit a tax return 

The penalty for non-submission of a declaration for a legal entity in Georgia is 100 Lari per declaration. For late payment of taxes, the business owner will be charged a penalty of 0.05% per day of the amount of tax not paid on time. For non-payment of tax within up to 2 months, the taxpayer is obliged to pay a fine of 5% of the unpaid tax amount. If the delay is more than 2 months, the fine is 10% of the unpaid tax amount.

We strongly advise clients to file zero declarations with our assistance if there is insufficient information about the company's financial movements, and then adjust it later.

Conclusion

With the services of Jara Accounting specialists, you can be confident in the correct filing of your tax return. We help avoid potential fines and provide professional support in accounting. By consulting our experts, you will receive quality document processing and a guarantee of compliance with Georgian legislation. Trust the experience and knowledge of the Jara Accounting team.

Get consultation on filing your tax return from a Jara Accounting expert