Veterans Benefits — the Tax Overlay and the Boundaries of the Statute
Veteran status is reflected in the Georgian Tax Code in several directions, and this page explains precisely that tax overlay: which incomes are exempt from personal income tax and which relationships count as charitable activity. We also state the boundaries honestly: the core veteran regime — the grant of status, pensions, utility and transport privileges — is defined by separate legislation and lies outside the Tax Code. What is explained here is what the Tax Code establishes — Articles 82, 10 and 30.
Article 82 — Exemption of Veterans' Income
The second part of Article 82 defines the circle of persons whose taxable income received during a calendar year, up to 3 000 GEL, is not taxed with personal income tax. This circle includes, first of all, a veteran of the Second World War, a veteran of fighting for Georgia's territorial integrity, freedom and independence, and a veteran of combat on the territory of other states who is a citizen of Georgia. The exemption means that from the annual taxable income of these categories, an amount of up to 3 000 GEL is excluded from the base. The same part provides for other categories, but the veterans' qualification is fixed exactly by these three wordings. In addition, the first part of the article generally exempts received grants, the state pension, state compensation and state scholarships — a norm that applies to a veteran like any other recipient.
Charitable Benefits — the Subparagraphs of the First Part of Article 82
Veteran support programmes are often delivered through the non-commercial sector, and the Code answers this with separate exemptions. Under the corresponding subparagraphs of the first part of Article 82, exempt from personal income tax are a benefit received from a non-commercial legal entity founded by the state within the framework of charitable activity, and a benefit received from a charitable organization for financing the costs of treatment or medical services. Practically this means: where a veteran's treatment cost is covered by a charitable programme, that amount does not enter income and is not taxed. What is decisive for the recipient is the status of the payer — a state-founded non-commercial legal entity or a charitable organization — and the purpose of the payment.