The Essence of the Annual Tax Declaration of an Individual
The annual tax declaration is the report of an individual on the computation of a tax established by the Tax Code. Georgian tax legislation determines precisely who is obliged to file a declaration, within what deadlines and how errors in a declaration are corrected. This page explains these rules so that your reporting is timely and accurate and the consequences of late filing are avoided.
Who Must File the Annual Declaration
An income tax declaration is submitted to the tax authority by 1 April of the year following the reporting year by resident individuals whose income is not taxed in Georgia at the source of payment. The same deadline applies to enterprises and to nonresident individuals whose income from a source in Georgia is not taxed at the source. Special deadlines exist for special cases: an entrepreneur individual who ceases economic activity in Georgia files the declaration within 30 working days; a person in liquidation — within 5 working days from the registration of the start of the liquidation process; where a bankruptcy regime is opened, unfiled declarations are submitted within 15 days of the court ruling entering into legal force. A person who pays salaries monthly and withholds tax from them must submit, monthly and no later than the 15th day of the month following the reporting month, a declaration on the salary amounts paid and the tax withheld. An individual who is not obliged to file may nevertheless submit a declaration with a request for the recalculation and refund of tax — this is often the way to recover an overpaid amount.
The Formal Rules of the Declaration
In the tax declaration the total tax liability is computed in whole lari, and a liability below 1 lari is reduced to zero. The declaration may be submitted in person at the tax authority, by insured postal delivery or electronically. One rule is important: if a person does not submit a declaration, it is considered that a declaration with zero tax was submitted, and a declaration subsequently submitted for the same period is treated as late. The forms of the declaration and the rules for completing and electronic filing are determined by the Minister of Finance of Georgia.
Extension of the Deadline and Amendments
The deadline for the annual income tax declaration may be extended by 3 months if the person has paid the current payments for the period to be declared (or has no obligation to pay them) and applies in writing to the tax authority before the expiry of the deadline; the extension does not change the deadline for the payment of the tax. If an error that changes the tax liability is found in a submitted declaration, the person must make the corresponding amendment or addition. An amended declaration counts as originally filed if it is submitted before the expiry of the deadline; after the deadline it counts as a corrected declaration. Certain restrictions also exist: for a period or matter on which a tax audit is ongoing or must be conducted, filing a declaration is inadmissible during the period from the delivery of the relevant decision to the delivery of the tax demand.
The Special Rule for Property Received by Inheritance or Gift
Where heirs of the third and fourth line receive, during a tax year, property worth 150 000 GEL or more by gift or inheritance, the income tax becomes payable over 2 calendar years, and the filing and payment deadlines for this case are determined by the Minister of Finance of Georgia. In addition, before registering property the registering authority must inform the individual of the obligation to report and to pay the tax — information that is often decisive for timely reporting.
Frequently Asked Questions
Below are answers to the most frequent questions about the annual declaration.
What is the deadline for the annual declaration?
By 1 April of the year following the reporting year; in special cases — 30 working days from ceasing activity, 5 working days from liquidation, 15 days from the bankruptcy ruling.
Can the deadline be extended?
Yes — by 3 months, if the current payments have been paid or no such obligation exists and you apply to the authority in writing before the deadline; the payment deadline does not change.
What happens if I do not file?
You are deemed to have submitted a declaration with zero tax, and a later declaration for the same period is treated as late — with the consequences the law provides for delay.
How do I correct an error in the declaration?
If the error changes the tax liability, an amendment or addition is made; a correction filed before the deadline counts as the original filing.
How We Help on Legal.ge
The specialists of Legal.ge assist in preparing and submitting the annual declaration: we determine whether you are obliged to file, compute the tax, plan the deadlines and, where necessary, correct a declaration already submitted. Contact us — timely and accurate reporting is the most reliable way to avoid penalties.