Introduction: Managing Periodic and Advance Tax Payments
In the Georgian tax system, although major taxes (VAT, Income Tax) are monthly, there are periodic and so-called "current tax payments" (advance payments) whose proper management is critical for business cash flow. "Quarterly Tax Payments" is a broad term encompassing obligations such as current property tax payments, current profit tax payments (for sectors not yet on the Estonian model, e.g., banks, insurance), and specific sectoral fees. Many businesses make the mistake of not planning for these large payments and face financial problems at the end of the year or on specific dates (June 15, July 15, etc.). This service ensures the planning and administration of exactly such irregular but mandatory taxes.
What Does This Service Cover?
The service focuses on long-term tax planning and fulfillment of periodic obligations. Specialists offer:
- Property Tax Current Payments: Calculation of enterprise property tax and management of the payment schedule for current payments/advances (based on the previous year's tax amount).
- Profit Tax Current Payments: Calculation of advance payments and timely transfer to the budget for entities operating under the old regime.
- Quarterly Review: Revision of tax liabilities at the end of each quarter to ensure that monthly declarations were submitted correctly.
- Land Tax Administration: Calculation and payment of tax on non-agricultural and agricultural land (deadline November 15).
- Tax Reconciliation: Periodic reconciliation of settlements with the budget (monitoring the tax card) to identify overpayments or arrears.
Common Situations and Scenarios
It is common for a company to forget to pay the current property tax payment (mandatory by June 15) because the declaration is filed only once a year. As a result, the company accrues penalties. A second scenario involves businesses with seasonal income (e.g., agribusiness); they need to plan taxes so that the payment obligation coincides with cash inflows. Also, companies working under the "Estonian Model" often conduct a quarterly audit or review to ensure that operations were taxed correctly when distributing dividends or incurring expenses (non-economic expenses).
Georgian Legal Framework
The obligation for current payments is defined by the Tax Code of Georgia. Specifically, Article 155 regulates current profit tax payments (for the old regime), while Article 205 concerns the rule for paying property tax. According to the Code, an enterprise is obliged to pay property tax in the form of current payments no later than June 15, considering the amount of tax for the previous tax year. Violation of these deadlines results in the accrual of a penalty of 0.05% of the principal amount for each overdue day. Also important is Article 154 regarding withholding tax at the source of payment, which also requires periodic control.
Process: How is Management Conducted?
At the beginning of the year, the specialist creates a "tax calendar" for your company. They analyze the previous year's declarations and calculate estimated current payments. Before a specific date approaches (e.g., June 15, November 15), the accountant informs you of the amount to be paid. Additionally, a detailed analysis of the RS.ge personal tax card is conducted quarterly to rule out systemic errors or misunderstandings (for example, money deducted by mistake or transferred to the wrong code).
Why Choose a Specialist on Legal.ge?
On Legal.ge, you will find tax consultants who are focused not only on mechanically filling out declarations but also on tax planning. Our specialists will help you avoid unexpected tax burdens and penalties. Professional management of periodic taxes is a guarantee that your business will constantly be in the "green zone" in relations with the Revenue Service.
Updated: ...