Tax Code of Georgia

Law of Georgia

Tax Code of Georgia

Article 1. Scope of Regulation of the Tax Code of Georgia🔗

This Code, in accordance with the Constitution of Georgia, determines the general principles of the formation and functioning of the tax system of Georgia, the legal status of the taxpayer and the authorized body, the types of tax offences, liability for violation of the tax legislation of Georgia, the procedure and conditions for appealing against unlawful actions of the authorized body and its officials, the procedure for resolving tax disputes, and regulates legal relations related to the performance of tax obligations.

2012 of Georgia

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 2. Tax Legislation of Georgia🔗

1. The tax legislation of Georgia consists of the Constitution of Georgia, international treaties and agreements, this Code and subordinate normative acts adopted in accordance with them.

2. For taxation by taxes, the tax legislation of Georgia in force on the day of the emergence of the tax obligation shall apply.

3. The Government of Georgia and the Minister of Finance of Georgia, for the purpose of enforcing this Code, adopt/issue subordinate normative acts.

4. (Removed – 26.12.2013, No. 1886).

5. The Head of the Legal Entity of Public Law – Revenue Service (hereinafter – Revenue Service) within the governance sphere of the Ministry of Finance of Georgia, for the purpose of enforcing the tax legislation of Georgia, issues orders, internal instructions and methodological guidelines on the application of the tax legislation of Georgia by the tax authorities.

6. When regulating tax relations, the terms and concepts of the legislation of Georgia used in this Code shall be applied with the meaning they have in the respective legislation, unless otherwise provided by this Code.

7. On a matter related to taxation by taxes, an international treaty ratified by the Parliament of Georgia and entered into force shall have superior legal force in relation to this Code.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Article 3. Determination of Time Limits🔗

1. A time limit established by this Code shall be determined by a specific calendar date or by a period of time calculated in years, months, days and/or by reference to a circumstance that must necessarily be established.

2. The calculation of a time limit established by this Code shall begin from the day following the performance of the respective action. A day may be a working or a calendar day. If not specified, a day is a calendar day. A working day coincides with a calendar day, except for Saturday, Sunday and a public holiday defined by the Organic Law of Georgia "Labour Code of Georgia", unless otherwise provided by the tax legislation of Georgia.

3. A time limit calculated in years shall end on the corresponding month and date of the last year of the time limit.

4. A time limit calculated in months shall end on the corresponding date of the last month of the time limit.

5. An action for the performance of which a time limit is established may be performed until the end of the last working day of this time limit, and if the action is performed by bank transfer, postal item and/or in electronic form − until 24 hours of the last day of this time limit.

6. If the last day for the performance of an action coincides with a non-working day, the time limit for the performance of the action shall be extended until the end of the next working day, and if the action is performed by bank transfer, postal item and/or in electronic form, the action may be performed until 24 hours of the next working day.

7. A calendar year is a period of time from 1 January to 31 December inclusive of one year, and for a newly registered taxpayer – from the date of registration to 31 December of the same year inclusive, unless otherwise provided by this Code.

8. A year (except a calendar year) is a period of time consisting of any continuous 12 calendar months.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Article 4. Limitation period🔗

1. The limitation period for the assessment of a tax amount to a taxpayer and for the submission of a tax claim concerning a tax obligation to the taxpayer shall be 3 years, unless otherwise provided by this Code.

2. The period defined by paragraph 1 of this Article shall be counted from the end of the calendar year in which the respective tax obligation arose.

3. The limitation period for the imposition on a taxpayer of a sanction provided for by this Code (except for penalty interest) and for the submission of the respective tax claim shall be 3 years, unless otherwise provided by this Code.

4. The period defined by paragraph 3 of this Article shall be counted:

a) from the end of the calendar year in which the tax offence was committed, except for the case provided for by subparagraph „b“ of this paragraph;

b) from the end of the calendar year in which the tax obligation arose, if the calculation of the amount of the sanction provided for by this Code is linked to the amount of the tax obligation.

5. The limitation period for a tax audit of a taxpayer shall be 3 years, unless otherwise provided by this Code.

6. The period defined by paragraph 5 of this Article shall be counted from the end of the calendar year corresponding to the period subject to audit.

7. The limitation periods provided for by paragraphs 1, 3 and 5 of this Article shall be extended by 1 year if less than 1 year remains before the expiry of these periods and the taxpayer has submitted to the tax authority a tax return for the respective period (including an amended return) or a taxpayer's claim.

8. The limitation period for the submission of a taxpayer's claim to the tax authority shall be 3 years, which shall be counted from the end of the calendar year in which the right to a refund of the amount of overpaid tax and/or sanction (including a customs sanction) arose.

9. The limitation period for the submission of an individual administrative-legal act on the application of a measure provided for by this Code to a taxpayer, a registration authority or a banking institution in order to ensure the enforcement of the taxpayer's tax debt shall be 3 years, which shall be counted from the end of the calendar year in which this debt arose.

10. In the cases provided for by paragraph 9 of this Article, the limitation period for the submission of an individual administrative-legal act shall be suspended:

a) from the entry into legal force of the ruling on declaring admissible the application on the person's insolvency and on opening the rehabilitation or bankruptcy regime until the completion of the respective regime, as well as during the period of validity of the rehabilitation plan;

b) (removed – 6 March 2024, No. 4056);

c) during the period of a tax dispute;

d) during the period of validity of a contract on the deferral of enforcement of a tax debt;

e) during the period of validity of a tax agreement act;

f) in the case provided for by subparagraph „a“ of paragraph 7 of Article 238 of this Code.

11. The limitation periods provided for by this Article shall not apply:

a) by the tax authority during the period of enforcement of a decision of a court/body hearing the dispute;

b) in connection with the submission by the tax authority to the court, on the basis of Article 246 of this Code, of an application for the recognition of a person as a bogus taxpayer and the application, in respect of the bogus taxpayer, of the measures provided for by this Code to secure the payment of the tax debt.

12. When a loss is carried forward for 3 years or more, the limitation period provided for by paragraphs 1, 3 and 5 of this Article in respect of the tax liabilities of the calendar year in which this loss arose, the amount of which is affected by the said loss, shall be extended and shall exceed the loss carry-forward period by 1 year. In this case, the limitation period shall be counted from the end of the calendar year in which the loss arose.

13. The limitation period provided for by paragraphs 1 and 3 of this Article for the submission of a tax claim to a taxpayer shall not be considered missed if the tax authority posted the relevant tax claim on the taxpayer's authorised user page before the expiry of the limitation period.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015

Law of Georgia of 1 May 2015 No. 3583 – website, 15.05.2015

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023

Law of Georgia of 6 March 2024 No. 4056 – website, 14.03.2024

Article 5. Principles of the tax legislation of Georgia🔗

1. A person shall be obliged to pay the national and local taxes imposed by this Code.

2. It shall be inadmissible to impose on anyone the obligation to pay a tax imposed in violation of this Code or not provided for by this Code, as well as to collect a tax earlier than the term established by this Code.

3. The representative body of a municipality shall have the right to introduce only the local taxes imposed by this Code.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020

Article 6. Concept and types of tax🔗

1. A tax is a compulsory, unconditional monetary contribution to the budget under this Code, paid by a taxpayer, arising from the compulsory, non-equivalent and gratuitous nature of the payment.

2. The types of tax are state and local taxes.

3. State taxes are taxes established by this Code, the payment of which is compulsory throughout the entire territory of Georgia.

4. A local tax is a tax established by this Code and introduced by a normative act of the representative body of a municipality − the Sakrebulo (within the limits of the marginal rates), the payment of which is compulsory within the administrative boundaries of the respective municipality.

5. State taxes include:

a) income tax;

b) profit tax;

c) value added tax (VAT);

d) excise;

e) import tax.

6. Local taxes include property tax.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Article 7. Establishment and introduction of a local tax, amendment of its payment conditions and abolition of a tax🔗

1. The representative body of a municipality is entitled to introduce a local tax established by this Code within the administrative boundaries of the municipality in the form of a uniform rate and/or within the administrative boundaries of that municipality according to individual sectors and/or types of activity, within the limits of the marginal rate established by this Code.

2. A municipality shall, immediately upon publication, send information on the introduction of a local tax, the amendment of its payment conditions or the abolition of an introduced local tax, and a copy of the relevant normative act, to the Revenue Service and the respective tax authorities.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Article 7¹. Claims in respect of a payment account opened with a payment service provider🔗

1. In accordance with the Law of Georgia “On Payment Systems and Payment Services”, the provisions defined for a bank account with respect to a banking institution shall apply to the payment account of a taxpayer opened with a payment service provider registered in accordance with the Law of Georgia “On Payment Systems and Payment Services”, under Article 54, Article 71, subparagraphs “c” and “e” of the first paragraph of Article 238, paragraphs 7, 8, 10 and 11 of Article 241 and the first, 2nd and 4th paragraphs of Article 243, if it has included in the electronic money scheme a legal entity, as well as an individual entrepreneur registered in accordance with the legislation of Georgia and another organisational formation without the status of a legal entity, as a payer.

2. In the event of non-fulfilment by the payment service provider of the relevant obligation provided for by the first paragraph of this article, the liabilities defined by Article 283 of this Code shall apply to it accordingly.

3. For the purposes of the first paragraph of this article, the tax authority relies on the list of payment service providers published on the website of the National Bank of Georgia in accordance with paragraph 11² of Article 18 of the Law of Georgia “On Payment Systems and Payment Services”.

Law of Georgia of 9 September 2022 No. 1808 – website, 23.09.2022.

Article 8. Definition of Terms🔗

1. Non-depreciable fixed asset – a fixed asset that does not lose its value during operation.

2. Intangible asset – an identifiable non-monetary asset without physical form, which a person uses for the production of goods, the supply of goods/provision of services, leasing to another, and/or for administrative purposes. Intangible assets include: copyright, patent, trademark, goodwill, computer program, license, lease right, franchise, right to develop a deposit, special rights for import and export, and other similar intangible assets.

3. Indirect tax – a tax (value added tax, excise, import tax) that is imposed as a surcharge on the price of supplied (imported) goods and/or rendered services and that is paid by the consumer (importer) when purchasing (importing) goods and/or services at a price increased by this tax. The obligation to pay the indirect tax to the budget is borne by the supplier of goods (importer) and/or the service provider, which for the purposes of this Code is referred to as a taxpayer.

4. Non-resident – a person who is not a resident.

5. Recognized tax debt – a tax debt, if:

a) the basis for assessment is a tax declaration/customs declaration;

b) the person has missed the time limit established by this Code for appealing a tax claim submitted to him by the tax authority and/or a decision of the dispute resolution body;

c) for the purpose of reducing it, a tax agreement was concluded between the Revenue Service and the taxpayer;

d) a court judgment on the lawfulness of the assessment has entered into legal force;

e) the person, by written/electronic application, refuses to appeal the decision of the tax dispute resolution body;

f) the person has submitted to the tax authority, in accordance with the procedure established by the Minister of Finance of Georgia, a written application on refusal to appeal the tax claim.

6. Biological asset – an animal or a plant.

6¹. Agricultural activity – the activity provided for by International Accounting Standard 41.

6². Agricultural produce – produce obtained from agricultural activity. At the same time, a change of commodity code as a result of biological transformation, as well as obtaining produce from a biological asset (removal of produce or termination of the life process of the biological asset), shall not be considered industrial processing (change of commodity code) of agricultural produce.

6³. Agricultural cooperative – a legal entity that has been granted the status of an agricultural cooperative in accordance with the Law of Georgia "On Agricultural Cooperatives".

7. International Accounting Standards (hereinafter – IAS) – standards approved by the International Accounting Standards Committee and put into effect by a Resolution of the Accounting Standards Commission under the Parliament of Georgia.

8. Tax administration – a set of forms, methods and rules related to the calculation, payment and declaration of taxes, tax control, as well as registration, information and ensuring the fulfilment of tax obligations, which tax authorities implement in the process of enforcement of the tax legislation of Georgia.

9. Taxpayer identification number – a number assigned to a taxpayer in accordance with the legislation of Georgia.

10. Long-term contract – a contract for production, installation, construction or provision of services related to such activity, which was not completed in the calendar year in which the service provided for by the contract commenced, except for a contract that was completed within 6 months from the commencement of provision of the service provided for by the contract.

11. Shortage – a shortage of commodity-material assets and/or fixed assets revealed when comparing with the taxpayer's accounting records (including by means of inventory). With respect to such commodity-material assets whose storage is physically impossible (electric and thermal energy, gas and water), the shortage shall be deemed to be the difference between acquired (according to the document confirming acquisition) and sold (actually transferred from the taxpayer) commodity-material assets, if a debtor (reimbursing) and/or an appropriator cannot be identified. At the same time, the authorized body may establish a maximum limit amount of loss. In such a case, a loss exceeding this amount shall be deemed a shortage. In the case of marking/labelling of goods in non-material form in accordance with the procedure established by the tax legislation of Georgia, a loss revealed by the manufacturer in the process of production of such goods shall not be deemed a shortage.

12. Dividend – any income received by a shareholder/participant from shares or rights (interests), including income received in the form of interest from preferred shares, which is received as a result of distribution of profit and which a legal entity distributes to shareholders/participants in proportion to their shares/rights in the capital or without observing the proportion; in the case of a repo agreement, securities lending and financial pledge, the compensation amount received by the seller/lender from the buyer/borrower, which is the dividend actually received from the securities during the term of such transaction. At the same time, dividend does not include:

a) a payment/distribution made in monetary or in-kind form during the liquidation of a legal person or the redemption of a share/interest, which does not exceed the amount of the contribution made by the shareholder/partner to the capital (contributed and share premium);

b) a payment made to a shareholder/participant of a legal person by transferring into ownership a share/interest of the same legal person, except for the transfer of an equity security issued by a resident legal person through a public offering in Georgia and admitted to trading on an organized market recognized by the National Bank of Georgia.

13. (removed – 23 December 2017, No. 1935).

14. Compensation – property and/or benefit received by a person for the purpose of the supply of goods, the provision of services, or the reimbursement of expenses, losses or shortfalls.

15. Tangible asset – an asset that is not an intangible asset.

16. Family – a person, his/her spouse, minor child and stepchild, as well as a parent, child and stepchild permanently living with the person, sister, brother, grandmother, grandfather, grandchild, who maintain a common household. For the purposes of this Code, the taxpayer himself/herself unconditionally determines the circle of persons (from the above-mentioned persons) who permanently live with him/her and maintain a common household.

17. Partner – a partner, shareholder, limited partner, general partner, member of a cooperative in accordance with the Law of Georgia “On Entrepreneurs”.

18. Person – a natural person or legal person in accordance with the Civil Code of Georgia, an enterprise or organization in accordance with the Tax Code of Georgia.

19. Interest – any pre-declared (established) income received from any type of debt claim related to monetary investments or debt obligations (regardless of the existence of mortgage security and the method of its execution), including income received in the form of a discount. At the same time, for the purposes of this paragraph:

a) Debt obligations arising from the supply of goods and/or the provision of services, or obligations arising from a guarantee and suretyship and/or other similar transactions, shall not be classified as debt obligations;

b) Interest shall include:

b.a) (removed – 28 June 2023, No. 3350);

b.b) amounts payable related to credit (loan), deposit, savings deposit, bond;

b.c) income from government securities and bonds, including premiums and profits accrued thereon;

b.d) the portion of the difference between the supply price and the acquisition price of a debt security in the amount of interest accrued and unpaid on such security before the moment of supply;

b.e) the difference between the sale price of a debt security under a repo agreement and the pre-agreed price for the repurchase of such debt security or another equivalent debt security thereof;

b.f) the amount of remuneration received by the seller/lender from the buyer/borrower within the framework of a repo agreement, securities lending or financial pledge, which is interest accrued on the securities during the term of the said transaction and actually received by the buyer;

c) A fine for late payment or late delivery shall not be considered interest.

20. Resident – a resident natural person or a resident legal entity (a Georgian enterprise or a Georgian organization).

21. Royalty:

a) fee for the right to use subsoil in the process of extraction of minerals and processing of technogenic formations;

b) income received for the use of copyright, software, patent, drawing, model, trademark or other intellectual property, or for the transfer of the right to use to another person;

c) income received for the use of industrial, commercial or scientific-research equipment, or for the transfer of the right to use to another person;

d) income received for the use of know-how;

e) income received for the use of a cinematographic film, video film, sound recording or other means of recording, or for the transfer of the right to use to another person;

f) income received for the use of a secret formula or process, as well as information containing industrial, commercial or scientific experience, or for the transfer of the right to use to another person;

g) income received for the provision of technical assistance in connection with the rights provided for by this paragraph, or by waiving the use of these rights.

22. Accounting documentation – primary documents (including primary tax documents), accounting registers and other documents on the basis of which objects of taxation by taxes, objects related to taxation are determined and tax liabilities are established.

23. Tax arrears – the difference between the amount of taxes and/or sanctions (including customs sanctions) unpaid by the taxpayer within the established period and the amount of overpaid taxes and/or sanctions (including customs sanctions).

24. Commodity Nomenclature of Foreign Economic Activity – a system of commodity classification codes adopted in accordance with the International Convention on the Harmonized Commodity Description and Coding System.

25. International carriage – any carriage by motor vehicle, railway transport vehicle, sea transport vehicle, inland waterway transport vehicle or aircraft of passengers, goods (including mail) between two points located in different states, one of which is Georgia. At the same time, international carriage shall not include:

a) carriage performed only between points located outside the borders of Georgia or only between points located within the borders of Georgia;

b) movement of goods by pipeline and power transmission line.

26. Share premium – the difference between the amount received or receivable by an enterprise from the initial placement of shares and the total nominal value of these shares, as well as the excess of the value of a non-monetary contribution over the agreed amount during the establishment of a business company.

27. Profit received from a person engaged in the gambling business – income determined by the positive difference between the amount and/or value of the thing received and staked by an individual (player) from gambling and profitable games on one ticket, token, coin and/or other means.

28. Commodity-material assets – raw materials, materials, semi-finished products, spare parts, packaging and finished products (goods) used by a person in the ordinary course of economic activity in accordance with IAS.

29. Bad debt – a claim or part thereof recognized by a taxpayer as a result of the sale of goods and/or services or advance payment within the scope of the foregoing, the payment term of which has expired and which was not repaid by the end of the current tax year, and at the same time, one of the following documents exists:

a) a court/arbitration judgment that has entered into legal force on refusal to satisfy the claim;

b) a certificate issued by the enforcement body on the creditor's non-receipt or partial receipt of the amount due as a result of submitting the writ of execution for enforcement;

c) a court ruling that has entered into legal force on declaring admissible the application for insolvency in respect of the relevant person and on opening the rehabilitation or bankruptcy regime, if the creditor's claim was not recognized by the judge;

d) a certificate from the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities on cancellation of registration or a death certificate.

30. Property – all things and intangible property benefits that persons can acquire, possess, dispose of and use without restriction.

31. Fixed asset – a tangible asset that a person uses for the production of goods, supply of goods/provision of services, transfer under lease (including leasing) and/or for administrative purposes and whose useful life is more than one year.

32. Fixed asset repair costs – costs that increase the initial (original, normative) productivity of a fixed asset (including modification (reconstruction) of elements of buildings and structures for the purpose of extending their useful service life and to ensure an increase in their productivity; improvement of parts of machinery and equipment to ensure an increase in their productivity and introduction of new production processes), except for current operating expenses incurred for the purpose of restoring or maintaining the initial productivity of a fixed asset.

33. Representation expense – expenses incurred by a person within the scope of economic activity, which include:

a) expenses envisaged for events held in the name of a person (presentations, receptions) (juices, mineral waters, soft drinks, tea, coffee, breakfast, lunch, dinner, banquet);

b) expenses for excursion and cultural-entertainment events;

c) expenses for the purchase of souvenirs;

d) expenses for ensuring the servicing of guests, including:

d.a) expenses for consular services (issuance of visas, extension of term);

d.b) expenses for meeting and seeing off at the airport (VIP lounge service);

d.c) expenses for transport services;

d.d) expenses for hotel services (booking of places, cost of accommodation);

d.e) expenses envisaged for receptions and parties (juices, mineral waters, soft drinks, tea, coffee, breakfast, lunch, dinner, banquet).

34. Net assets – the difference between a person's assets and his/her obligations.

35. Virtual zone person – a legal entity that carries out information technology activity and has been granted the relevant status.

36. Information technologies – the study, support, development, design, production and introduction of computer information systems, as a result of which software products are obtained.

37. Tourist zone entrepreneurial entity – a person (entrepreneurial entity) that, in accordance with the procedure established by the Law of Georgia "On Promoting the Development of Free Tourist Zones", builds a hotel and ensures its functioning.

37¹. Agro-tourism activity entity − a person that, in accordance with a Resolution of the Government of Georgia, has been granted the status of an agro-tourism activity entity.

37². Wine tourism activity entity − a person that, in accordance with a Resolution of the Government of Georgia, has been granted the status of a wine tourism activity entity.

38. Leasing − leasing in accordance with the Civil Code of Georgia, if the subject of the leasing is an asset subject to depreciation.

39. Leasing company − an enterprise whose income received from the leasing out of property during a calendar year is not less than 70 per cent of its income.

40. Donation – goods/services received free of charge by an organisation, including monetary funds.

41. High mountain settlement – a high mountain settlement defined by the Law of Georgia "On the Development of High Mountain Regions".

42. Enterprise of a high mountain settlement – an enterprise/entrepreneurial natural person that carries out economic activity in a high mountain settlement and has been granted the status of an enterprise of a high mountain settlement by the Law of Georgia "On the Development of High Mountain Regions".

43. Net profit − profit that may be distributed in the form of a dividend, in accordance with the procedure established by the legislation of Georgia.

44. Income − income in accordance with international accounting standards.

45. Loan-granting entity – a loan-granting entity in accordance with the Organic Law of Georgia "On the National Bank of Georgia"

.

46. Tax year – calendar year.

47. Import – placing of goods under the release for free circulation procedure in accordance with the Customs Code of Georgia.

48. Temporary importation – placing of goods under the temporary importation procedure in accordance with the Customs Code of Georgia.

49. Customs sanction – a measure of liability provided for by the Customs Code of Georgia for a customs offence.

50. Export – placing of goods under the export procedure in accordance with the Customs Code of Georgia.

51. Repo agreement, reverse repo agreement – a transaction defined by the Law of Georgia "On Financial Collateral, Netting and Derivatives", if this transaction is concluded in accordance with market principles, the repurchase of the security takes place within 12 months from its sale, and this transaction provides for compensation to the lender by the buyer of the interest, dividend (coupon) accrued and actually received on the security during the term of the agreement, or of any other distribution implying an equivalent payment thereof.

52. Securities lending – a transaction defined by the Law of Georgia "On Financial Collateral, Netting and Derivatives", if this transaction is concluded in accordance with market principles, the return of the securities takes place within 12 months from their initial delivery, and this transaction provides for compensation to the lender by the borrower of the interest, dividend (coupon) accrued and actually received on the security during the term of the agreement, or of any other distribution implying an equivalent payment thereof.

53. Financial collateral – a transaction defined by the Law of Georgia "On Financial Collateral, Netting and Derivatives".

54. Derivative – a transaction defined by the Law of Georgia "On Financial Collateral, Netting and Derivatives".

55. Banking institution – a commercial bank defined by the Law of Georgia "On the Activities of Commercial Banks", a microbank provided for by the Law of Georgia "On the Activities of Microbanks".

56. Person in the process of dissolution (dissolved company) – a person (except for a branch established by a natural person who is an individual entrepreneur), in respect of which, in accordance with the Law of Georgia "On Entrepreneurs", registration of the commencement of the dissolution process has been carried out (whose liquidation process is also ongoing).

Law of Georgia of 15 December 2010 No. 4061-LHG I, No. 75, 27.12.2010, Art. 469

Law of Georgia of 20 May 2011 No. 4705 – website, 01.06.2011

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011

Law of Georgia of 13 October 2011 No. 5118 – website, 31.10.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 9 December 2011 No. 5452 – website, 22.12.2011

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011

Law of Georgia of 27 March 2012 No. 5942 – website, 12.04.2012

Law of Georgia No. 189 of 28 December 2012 – website, 29 December 2012.

Law of Georgia No. 817 of 12 July 2013 – website, 5 August 2013.

Law of Georgia No. 906 of 30 July 2013 – website, 20 August 2013.

Law of Georgia No. 1886 of 26 December 2013 – website, 30 December 2013.

Law of Georgia No. 3581 of 1 May 2015 – website, 15 May 2015.

Law of Georgia No. 4037 of 16 July 2015 – website, 28 July 2015.

Law of Georgia No. 4680 of 18 December 2015 – website, 29 December 2015.

Law of Georgia No. 5092 of 13 May 2016 – website, 1 June 2016.

Law of Georgia No. 1182 of 30 June 2017 – website, 13 July 2017.

Law of Georgia No. 1935 of 23 December 2017 – website, 29 December 2017.

Law of Georgia No. 4225 of 27 December 2018 – website, 31 December 2018.

Law of Georgia No. 4906 of 28 June 2019 – website, 4 July 2019.

Law of Georgia No. 5677 of 20 December 2019 – website, 31 December 2019.

Law of Georgia No. 6817 of 14 July 2020 – website, 22 July 2020.

Law of Georgia No. 7169 of 18 September 2020 – website, 25 September 2020.

Law of Georgia No. 884 of 2 August 2021 – website, 4 August 2021.

Law of Georgia No. 2626 of 22 February 2023 – website, 10 March 2023.

Law of Georgia No. 2768 of 5 April 2023 – website, 18 April 2023.

Law of Georgia No. 3317 of 28 June 2023 – website, 18 July 2023.

Law of Georgia No. 3350 of 28 June 2023 – website, 19 July 2023.

Law of Georgia No. 3922 of 13 December 2023 – website, 27 December 2023.

Law of Georgia No. 4022 of 15 December 2023 – website, 28 December 2023.

Article 9. Economic activity🔗

1. Any activity carried out for the purpose of receiving income or compensation shall be considered economic activity, regardless of the result of such activity, unless otherwise provided by this Code.

2. The following shall not be classified as economic activity:

a) the activity of state authorities, national regulatory bodies and municipal bodies directly related to the performance of the functions assigned to them by the legislation of Georgia, except for the provision of paid services on the basis of a contract;

b) charitable activity;

c) religious activity;

d) hired employment;

e) placement by a natural person of monetary funds in deposits and savings accounts with banking institutions and other credit institutions;

f) types of activities and/or operations and/or a combination of operations determined by an Order of the Minister of Finance of Georgia, in agreement with the Finance and Budget Committee of the Parliament of Georgia.

3. The supply of goods/provision of services free of charge shall be considered economic activity if it was carried out by:

a) an enterprise;

b) an entrepreneur natural person, within the scope of the activity provided for by paragraph 2 of Article 2 and the first and second paragraphs of Article 3 of the Law of Georgia on Entrepreneurs.

Law of Georgia of 20 November 2013 No. 1588 – website, 03.1².2013.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 2 August 2021 No. 884 – website, 04.08.2021.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 10. Charitable activity🔗

1. The following shall be considered charitable activity:

a) the direct or through a third party, voluntary and gratuitous provision of assistance to persons who need such assistance, including:

a.a) to natural persons in need of social protection, to natural persons in need of medical assistance, to low-income natural persons (including persons with disabilities, the elderly, orphan children, persons who have lost their breadwinner, persons under international protection and persons forcibly displaced from the occupied territories of Georgia – the sick, large families and their members, persons affected as a result of war, armed conflict, accident, natural disaster, catastrophe, epidemic and/or epizootic);

a.b) to organizations providing services to children, the elderly and persons with disabilities, including care institutions, boarding schools, boarding houses, institutions of early and preschool upbringing and education and other children's institutions, free canteens for serving the elderly, medical institutions, rehabilitation centres;

a.c) to charitable organizations;

a.d) to religious organizations;

a.e) to natural persons endowed with exceptional talent – for the purpose of developing their talent;

a.f) to penitentiary institutions – for the purpose of improving the conditions of care or medical service of persons placed in these institutions;

a.g) to persons carrying out the activity provided for by subparagraph „b“ of this paragraph;

b) the carrying out by organizations of activity beneficial to society in the following fields: protection of human rights, protection of the environment, development of democracy and civil society, culture, education, science, health protection, social protection, physical training and amateur sport, art.

2. The activity referred to in paragraph 1 of this Article shall not be classified as charity:

a) carried out by state authorities and municipal bodies;

b) carried out in support of an enterprise, a political party or another election subject participating in elections;

c) carried out by a natural person for his/her own relatives or by a legal entity for the heads of its governing bodies and their relatives;

d) if it is considered sponsorship under the Law of Georgia on Advertising.

Law of Georgia of 6 December 2011 No. 5371 – website, 20.12.2011.

Law of Georgia of 1 May 2015 No. 3530 – website, 18.05.2015.

Law of Georgia of 8 June 2016 No. 5372 – website, 24.06.2016.

Law of Georgia of 1 December 2016 No. 57 – website, 15.12.2016.

Law of Georgia of 23 March 2017 No. 499 – website, 27.03.2017.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 26 June 2025 No. 845 – website, 03.07.2025.

Article 11. Religious activity🔗

1. Religious activity shall be considered the activity of a religious organization (association) registered in accordance with the established procedure, the purpose of which is the dissemination of confession and faith, including in such ways as:

a) organizing and conducting religious customs, ceremonies, prayers, and other cultic acts;

b) giving believers the opportunity to have or use prayer buildings and ritual structures to satisfy religious requirements both collectively and individually;

c) organizing the reception and sending off of religious delegations, pilgrims, and representatives of various confessions, organizing national and international religious conferences, congresses, and seminars, and during the holding of these events, providing their participants with hotels (other accommodation), transport, meals, and cultural services;

d) maintenance of monasteries, monastic churches, and theological-educational institutions, teaching of pupils and students of these theological-educational institutions, maintenance of charitable organizations (hospitals, shelters, specialized institutions for the elderly and persons with disabilities), as well as other similar statutory activities conditioned by canonical rules.

2. Religious activity shall be equated with the activity of enterprises of those religious organizations (associations) that publish religious (liturgical) literature or produce items of religious purpose; the activity of these organizations (associations) or their enterprises related to the sale (distribution) of religious (liturgical) literature or items of religious purpose; as well as the use of monetary funds received from such activity for carrying out religious activity.

Law of Georgia of 26 June 2025 No. 845 – website, 3 July 2025.

Article 12. Hired work🔗

1. The following shall be considered hired work:

a) performance by a natural person of an obligation within the framework of the relations regulated by the labour legislation of Georgia and/or of a foreign country;

b) performance by a natural person of an obligation related to his/her service in the Defence Forces of Georgia, law enforcement bodies and bodies equated thereto;

c) a natural person's being the head (director) of an enterprise or organisation or performance of the duties of the head (director).

2. A natural person working for hire is referred to, for the purposes of this Code, as a hired person; a person who remunerates the work performed by such natural person – as a hirer; and such remuneration – as a wage.

3. Information on hired persons provided for by this Article shall be reflected by the hirer in the register of hired persons maintained by the Revenue Service.

4. The list of information to be reflected in the register of hired persons and the procedure for reflecting information shall be determined by order of the Minister of Finance of Georgia.

Law of Georgia No. 3600 of 31 October 2018 – website, 21.11.2018.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 13. Goods🔗

1. Goods are tangible or intangible property, including electric and thermal energy, gas and water.

2. (Removed – 14.07.2020, No. 6817).

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 14. Service🔗

1. An activity which is not supply of goods shall be considered a service. Unless otherwise provided by the tax legislation of Georgia, the following activities shall be classified as services:

a) construction and installation;

b) repair;

c) restoration;

d) experimental and design;

e) geological and prospecting;

f) transport, including transportation of gas, oil, oil products, electric and thermal energy;

g) transfer of property for rent, lease or leasing;

h) intermediary;

i) personnel selection;

j) transfer of the right to use patents, certificates, licences, trademarks, service marks, intellectual property and other personal non-property rights;

k) performance of an obligation – an act or refraining from an act;

l) communication services, household and housing-communal services;

m) advertising service;

n) innovative service;

o) financial operations and/or financial service;

p) insurance service;

q) consulting, legal, accounting, audit, marketing service;

r) data processing and information support service;

s) service of preparing goods for sale, including breaking up of a lot, forming for dispatch, sorting, packaging, repackaging, bottling;

t) service of storage of goods or other property;

u) security service;

v) production of goods or other property from the customer's raw materials (materials);

w) transport cargo service, including freight forwarding, loading, unloading, transshipment service;

x) servicing of sea vessels, including port service, servicing of port fleet vessels;

y) servicing of aircraft, including aeronavigation service provided at the airports of Georgia, in airspace and outer space;

z) other service.

2. Production of goods from the customer's raw materials (materials) shall be considered any production of goods, including its manufacture, processing, treatment, or other transformation of the said raw materials (materials), in the process of which both the raw materials (materials) and the final product are owned by the person who supplied the raw materials (materials) and reimbursed in monetary or in-kind form the value of the service related to the production of goods from these raw materials (materials) (regardless of whether during production the manufacturer used or did not use its own raw materials (materials), accessories or other components, the value of which was included in the value of the service related to such production).

Law of Georgia No. 5118 of 13 October 2011 – website, 31.10.2011.

Law of Georgia No. 5503 of 22 June 2016 – website, 12.07.2016.

Article 15. Financial instrument, financial operation, financial service🔗

1. A financial instrument is any agreement (contract) that creates both a financial asset of one person and a financial obligation of another person. It includes: monetary funds (in cash and non-cash form), loans (credits), loan obligations, promissory notes and securities, including: shares in capital, shares, bonds and derivatives such as: option, futures, forward, swap and others. A financial instrument also includes any agreement between two entities (counterparties) permitted by Georgian legislation that has a monetary expression. At the same time, if during the existence of the said agreement, at any stage thereof, as a result of this agreement, goods and/or services were supplied, except for financial operations and provision of services, between the entities holding this financial instrument and/or to/from third parties, from the moment of such supply it is no longer considered a financial instrument.

2. The following are considered financial services/operations:

a) opening, managing, closing of all types of accounts (including current, settlement, deposit, brokerage and other accounts), as well as use of any payment instrument, including processing/execution of a transfer order in a payment system, clearing and settlement in cash or non-cash form (including collection services);

b) circulation of a financial instrument and operations related to circulation in cash and non-cash form and use of any payment instrument;

c) taking/granting/transferring a credit (loan), syndication, structuring, management and disposal, including actions carried out to secure a credit (loan) (pledging property/asset, selling credit risk to a third party in part or in full, issuing/certifying/managing/disposing of guarantees or financial instruments of similar content, or acquiring such an instrument/being its beneficiary), servicing a credit (loan) (payment of interest and principal) and receipt of repayment of interest and credit (principal) on a credit (loan), as well as factoring;

d) operations related to the issuance, acquisition, circulation and/or supply (including in the future) of a share in capital, share, bond, certificate, promissory note and other securities, including ensuring their circulation;

e) issue, management (including the formation of pension and investment funds or other collective and individual savings schemes, the accumulation of financial instruments therein, the activity of an asset management company, an insurer and a pension company in accordance with the Law of Georgia “On Voluntary Private Pension”), disposal, placement (including with third parties, on guaranteed and non-guaranteed grounds), acceptance/transfer into nominal ownership, borrowing/lending on a temporary (repo) basis, administration, including registration (formation/maintenance of a register), transfer, blocking/unblocking, encumbrance/release of encumbrance, other depositary (including special depositary) and custodial (safekeeping and record-keeping) operations, determination of their fair value, as well as the issuance/acceptance/management of financial collateral;

f) acting as a guarantor of the terms of a transaction in a financial instrument and of settlement (including as a third party);

g) corporate operations, namely, the splitting of a share and of a share in capital, consolidation, increase/decrease of capital (including the issue, acquisition/alienation and circulation of rights to participate in a capital increase), the merger of two or more legal entities/the division of a legal entity into two or more legal entities, liquidation, services related to the accrual/recording and payment of dividends (in cash or in any other form permitted by law);

h) insurance and/or reinsurance, including related services, performed by an insurance broker and/or an insurance agent;

i) the services of a payment service provider and of a payment system operator in accordance with the Law of Georgia “On Payment System and Payment Services”;

j) services directly related to any financial service/operation provided for by this paragraph.

3. (removed – 14.07.2020, No. 6817).

4. In the case of co-ownership (partnership) provided for by this Code, the owner's share, if no property is attached/personalized to it, as well as in the case of preliminary registration of a right to property, the right is a financial instrument.

Law of Georgia of 25 May 2012 No. 6312 – website, 12.06.2012.

Law of Georgia of 20 December 2019 No. 5677 – website, 31.12.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 28 June 2023 No. 3350 – website, 19.07.2023.

Article 16. Supply of goods, provision of services🔗

1. The transfer by a person to another person of the right of ownership over goods for consideration (including the sale, exchange of goods, remuneration in wages or in kind) or gratuitously shall be considered supply of goods.

2. The performance by a person for another person, at his/her own will, for compensation or gratuitously, of such an action which is not supply of goods shall be considered provision of services

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 17. (Deleted)🔗

Law of Georgia of 13 October 2011 No. 5118 - website, 31 October 2011.

Article 18. Principles of determining the price of goods/services🔗

1. For taxation purposes, the actual price of goods/services in a transaction shall be applied, unless this Code provides for the application of the market price or another value.

2. The market price of goods/services shall be the price formed in the market for goods/services as a result of the interaction of demand for and supply of identical (or, in its absence, similar) goods/services and on the basis of a transaction concluded in the relevant market between persons who, under Article 19 of this Code, are not interdependent persons. A transaction between interdependent persons shall be taken into account only on the condition that their interdependence does not affect the results of such transaction.

3. The market price of goods/services shall be determined on the basis of information on transactions concluded for identical (similar) goods/services at the moment of supply of such goods/services in the market (or, in the absence thereof, for the calendar day closest to the moment of sale that precedes or follows the moment of sale of such goods/services by not more than 30 calendar days), including information on prices fixed on international and other exchanges.

4. The market for goods/services shall be the sphere of circulation of such goods/services, determined by the ability of the seller/buyer, without significant expenditure, to sell/purchase goods/services in the territory closest to the seller/buyer in Georgia or outside its boundaries.

5. If in the market for goods/services there is no transaction concluded for identical (similar) goods/services or no supply of such goods/services in that market, the market price of goods/services shall be determined by the prices formed on the basis of transactions concluded for identical (similar) goods/services, for the calendar day closest to the moment of sale of the goods/services that precedes or follows the moment of sale of such goods/services by not more than 30 calendar days.

6. If the application of the provisions of paragraphs 1–5 of this Article is impossible, the market price of goods/services shall be established by methods of determining costs, the possible sale price or the expected benefit.

7. When determining the market price of goods/services, official sources of information on market prices of goods/services, the information base of the relevant executive authorities, information submitted by taxpayers to the tax authorities, as well as other reliable information shall be used.

8. From 1 September 2007, upon the supply of natural gas provided for by the Law of Georgia "On Energy and Water Supply", for tax purposes the price determined by the Government of Georgia (including by a concluded agreement) shall be considered the market price.

9. The market price of goods/services may be wholesale or retail.

10. An exchange (barter) transaction of goods/services shall be deemed, for each party supplying the goods/services, to be a sale at the market price of the goods/services, and for each recipient of the goods/services – to be a purchase at the same market price of the goods/services.

11. The tax authority shall be entitled, for the purposes of taxation, to apply the market price in the following cases:

a) if the transaction was carried out between mutually dependent persons, except where their mutual dependence does not affect the results of such transaction;

b) if the tax authority substantiates, in accordance with the procedure established by the Minister of Finance of Georgia, that the price declared between the participants of the transaction differs from the actual price;

c) if a person supplied goods and/or rendered services to an entrepreneurial entity of a tourist zone.

12. Identical goods are different goods which have the same characteristics, namely physical characteristics, quality, reputation on the market, country of origin and/or manufacturer.

13. Similar goods are different goods which are not identical but have similar characteristics and consist of similar components, which enables them to perform the same functions and to be commercially interchangeable.

14. For the purposes of subparagraph „a“ of paragraph 11 of this Article, the Minister of Finance of Georgia shall be entitled to determine the cases where the mutual dependence of persons does not affect the results of a transaction carried out between them.

15. For the purposes of paragraph 11 of this Article, the mutual dependence of persons shall be deemed not to have affected the results of a transaction if the supply of foreign goods between a special trading company and its mutually dependent person was carried out in a customs warehouse at the customs value.

Law of Georgia No. 4061-LHG I of 15 December 2010, No. 75, 27.12.2010, Art. 469

Law of Georgia No. 5120 of 13 October 2011 – website, 19.10.2011

Law of Georgia of 2012

of 27 March

No. 5942 – website, 12.04.2012

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012

Law of Georgia No. 5651 of 20 December 2019 – website, 27.12.2019

Article 19. Interdependent persons🔗

1. Persons between whom the existence of special relations may influence the conditions of activity or the economic results of their activity or of the activity of persons represented by them shall be considered interdependent persons.

2. Special relations include relations in the course of which:

a) persons are founders (participants) of one enterprise, if their aggregate share is not less than 20 percent;

b) one person directly or indirectly participates in another person's enterprise, if the share of such participation is not less than 20 percent;

c) a person exercises control over an enterprise;

d) a natural person is subordinated by position to another natural person;

e) one person directly or indirectly controls another person;

f) persons are directly or indirectly controlled by a third person;

g) persons together, directly or indirectly, control a third person;

h) persons are relatives;

i) persons are members of a partnership.

3. For the purposes of the tax legislation of Georgia, the following shall be considered relatives of a natural person:

a) first degree of kinship: spouse, parent, child, sister, brother;

b) second degree of kinship: the spouse, parent, child, sister, brother of each relative of the first degree, except for the natural person who has already been assigned to the first degree;

c) persons who, as a result of long-term guardianship, are related to each other as parents and children.

4. In determining kinship, step-sisters (step-brothers) are equated with blood sisters (brothers), and adopted children with blood children. At the same time, guardianship relations are equated with family unity (in the course of which persons are related to each other as parents and children), which, in turn, is equated with kinship relations. Termination of family unity between the said persons shall not be taken into account where the parent-child relationship between them is maintained under subparagraph "c" of paragraph 3 of this Article.

5. For the purposes of this Article, control means: membership of the supervisory board, directorship and the right to appoint persons to these positions; holding of 20 percent of a share or of shares with voting rights.

6. For the purposes of this Article, a natural person shall be considered an indirect holder of a share if that share is held by his/her relative.

Article 20. Taxpayer, tax agent🔗

1. A taxpayer is a person who has the obligation to pay tax established by this Code.

2. A tax agent is a person who, in the case and in the manner established by this Code, must fulfil the tax obligation of the taxpayer.

3. For the purposes of this Code, a tax agent is equated with a taxpayer.

Article 21. Enterprise🔗

1. The following formations shall be considered an enterprise, which carry out economic activity or are established for carrying out economic activity:

a) legal entities established in accordance with the legislation of Georgia;

b) corporations, companies, firms and other similar formations established in accordance with the legislation of a foreign country, regardless of whether they have the status of a legal entity, as well as a permanent establishment of a foreign enterprise;

c) associations, partnerships and other similar formations which are not provided for by subparagraphs "a" and "b" of this paragraph.

2. An individual entrepreneur shall not be considered an enterprise.

Article 22. Georgian enterprise, foreign enterprise🔗

1. A Georgian enterprise shall be considered an enterprise whose place of activity and/or management is in Georgia.

2. A foreign enterprise shall be considered an enterprise which, under this article, is not a Georgian enterprise.

Article 23. International company🔗

1. An international company is an enterprise of Georgia which carries out the activities determined by a Resolution of the Government of Georgia and derives income only from these activities.

2. The Government of Georgia grants a person the status of an international company.

3. The carrying out by an international company of an activity that is not determined by a Resolution of the Government of Georgia results in the revocation of its status of an international company from 1 January of the year in which this activity is commenced.

4. An international company may not be established in a free industrial zone.

5. (Removed - 14.07.2020, No. 6817).

6. (Removed - 14.07.2020, No. 6817).

7. Income received as a result of hired employment in an international company shall be taxed at 5 per cent.

8. A dividend issued by an international company shall not be taxed at the source of payment and shall not be included in the total income of the person receiving the dividend.

9. The object of taxation of an international company's profit by profit tax shall be determined in accordance with paragraph 1 of Article 97 of this Code.

10. The profit tax rate of an international company is 5 per cent.

11. The amount of an international company taxable by profit tax shall be obtained by dividing the amount of the payment/expense made according to the object of taxation by 0.95.

12. In the case of incurring in Georgia an expense determined by a Resolution of the Government of Georgia, an international company shall be entitled, in the manner determined by the Minister of Finance of Georgia, to reduce the amount taxable by profit tax by the amount of this expense.

13. An international company shall be exempt from property tax (except land) if this property is intended or used for carrying out an activity permitted by a Resolution of the Government of Georgia.

14. The Minister of Finance of Georgia shall establish the procedure for providing information to the tax authority about hired persons and for applying the benefit provided for by paragraph 7 of this Article.

15. The Government of Georgia shall establish the procedure for granting and revoking the status of an international company to a person, and shall also determine the types of activity permitted for an international company.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 23¹. Investment Funds🔗

1. An investment fund is an enterprise that is established in the form of a collective investment fund or an investment company in accordance with the Law of Georgia “On Investment Funds”.

2. In accordance with the Law of Georgia “On Investment Funds”, activities related to the management and administration of an investment fund, as well as the provision of depositary services to an investment fund, shall be considered financial services.

3. The profit and loss received by a collective investment fund shall be considered as profit and loss received by each holder of a unit of the collective investment fund without the collective investment fund, in proportion to the value of the unit (units) held by him/her. On the basis of this paragraph, the loss attributed to a holder of a unit of a collective investment fund shall not exceed the amount of his/her contribution made to the investment fund and the expenses and commission paid to the asset management company.

4. The asset management company of a collective investment fund shall be obliged to open an investment account for each unit holder in accordance with the procedure established by the joint order of the Ministry of Finance of Georgia and the National Bank of Georgia, and to keep records of the unit holder’s profit and loss.

5. The excess income received by a holder of a unit of a collective investment fund from the sale or redemption of the unit shall be reduced by the amount by which this excess income is taken into account in the taxable income of the same unit holder on the basis of paragraph 3 of this Article.

6. Holders of units of a collective investment fund shall carry out tax reporting independently. A collective investment fund and its asset management company shall not bear the obligation of a tax agent provided for by Article 154 of this Code.

7. The carrying out of activities by a holder of a unit of a collective investment fund, or on his/her behalf, in accordance with the Law of Georgia “On Investment Funds” shall not create a permanent establishment in Georgia for this unit holder.

8. Profit distributed by a collective investment fund within the scope of activities defined by the Law of Georgia “On Investment Funds”, and the expenses/payments provided for by subparagraphs “b”−“d” of the first paragraph of Article 97 of this Code, shall not be taxed with profit tax.

9. A dividend paid by an investment company to a natural person or to a non-resident enterprise shall not be taxed at the source of payment and shall not be included in the total income of the income recipient.

10. The expenses/payments provided for by subparagraphs “b”−“d” of the first paragraph of Article 97 of this Code, by an investment company within the scope of activities defined by the Law of Georgia “On Investment Funds”, shall be exempt from profit tax.

11. The distribution of profit by an investment company, if the recipient of the dividend is a non-resident or a natural person, shall be taxed in accordance with subparagraph “a” of the first paragraph of Article 97 of this Code:

a) at the rate of 15%, except for the case provided for by subparagraph „b“ of this paragraph;

b) at the rate of 5%, if the investment company invests only in bank deposits and/or financial instruments, except for the case of distribution of profit received from a resident enterprise.

12. Profit distributed by an investment company to a non-resident or to a natural person shall be exempt from profit tax, if the income from which the dividend is paid:

a) does not qualify as income received from a source in Georgia;

b) qualifies as income received from the realisation of an equity security issued by a resident legal person in Georgia through a public offering and admitted to trading on an organised market recognised by the National Bank of Georgia;

c) qualifies as income received from the realisation of a debt security issued by a resident legal person in Georgia through a public offering and admitted to trading on an organised market recognised by the National Bank of Georgia, or as income received in the form of interest from that security;

d) qualifies as excess income received from the realisation of a debt security issued by the Government of Georgia or an international financial institution, or as income received in the form of interest from that security or from a deposit placed with a banking institution of Georgia.

13. Excess income received by a non-resident or a natural person from the supply or redemption of a unit of an investment fund shall be taxed:

a) at the rate of 15%, except for the case provided for by subparagraph „b“ of this paragraph;

b) at the rate of 5%, if the investment fund invests only in bank deposits and/or financial instruments, except for the case of investment by the investment fund in the shares/stocks of a resident enterprise (holding of a share/stock).

14. Income shall be exempt from income tax and profit tax if it is received:

a) from the realisation of a unit of an investment fund issued in Georgia through a public offering and admitted to trading on an organised market recognised by the National Bank of Georgia;

b) from the realisation of a unit of an investment fund or from the redemption of a unit of an investment fund, if the investment fund invests only in deposits placed with banking institutions of Georgia, in securities issued by the Government of Georgia and/or an international financial institution, and/or in debt securities issued by a resident legal person in Georgia through a public offering and admitted to trading on an organised market recognised by the National Bank of Georgia.

15. For the purposes of identifying the amount of profit exempted from profit tax under paragraph 12 of this Article, it shall be deemed that, when an investment company distributes a dividend, this amount is paid first.

16. For the purposes of paragraphs 2–15 of this Article, each sub-fund of an umbrella fund provided for by the Law of Georgia on Investment Funds shall be considered an independent investment fund.

17. In addition to the grounds provided for by paragraphs 12 and 14 of this Article, additional grounds for exemption from income or profit tax shall be determined in accordance with the general rules established by this Code.

Law of Georgia No. 6815 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 2626 of 22 February 2023 – website, 10.03.2023.

Article 24. (Removed)🔗

Law of Georgia No. 4963 of 24 June 2011 – website, 30.06.2011.

Law of Georgia No. 5120 of 13 October 2011 – website, 19.10.2011.

Article 24¹. Special Trading Company🔗

1. A special trading company is an enterprise which, for the purpose of exemption from profit tax, has been granted special trading company status in accordance with this article.

2. Special trading company status may be granted only to an enterprise created for this purpose, together with registration, for the current and future calendar years. When granting special trading company status, a certificate confirming this status shall be issued. A foreign enterprise that carries out economic activity in Georgia through a permanent establishment has the right, for the purpose of being granted special trading company status and carrying out only the activities permitted by this article, to additionally register a separate permanent establishment.

3. The tax authority shall grant special trading company status to an enterprise. The procedure for granting special trading company status shall be determined by an order of the Minister of Finance of Georgia.

4. An enterprise with special trading company status has the right to:

a) carry out re-export of foreign goods from a customs warehouse;

b) carry out the supply of foreign goods in a customs warehouse both to enterprises with special trading company status and to enterprises without this status;

c) purchase foreign goods from an enterprise without special trading company status at not less than the customs value for the purpose of subsequent re-export and/or supply in a customs warehouse;

d) in addition to income received from the activities provided for by subparagraphs “a”–“c” of this paragraph, receive other income, including:

d.a) income that is exempt from profit tax under this Code;

d.b) income from the supply of a fixed asset used by it in economic activity for a period of more than 2 years;

d.c) income, except for that provided for by subparagraphs “d.a” and “d.b” of this paragraph, which from a source in Georgia for the tax period (year) must not exceed 1 million GEL and 5 percent of the customs value of foreign goods imported by it into Georgia.

5. An enterprise with special trading company status is prohibited from:

a) carrying out the import of goods into Georgia, except for import intended for this enterprise's fixed asset;

b) purchasing Georgian goods in the territory of Georgia for the purpose of subsequent supply;

c) providing services to a Georgian enterprise/individual entrepreneur and/or a permanent establishment of a foreign enterprise in Georgia;

d) having a customs warehouse.

6. In the case of the purchase of foreign goods from a special trading company by a taxpayer, the expense deductible by the buyer from the total annual income may not be more than the customs value of these goods. This restriction does not apply to expenses incurred by the buyer that are attributed under this Code to the value of an asset and are not related to payments to the special trading company.

7. The status of a special trading company shall be cancelled for the calendar year indicated by the authorised representative of the enterprise in the application on the cancellation of the status of a special trading company. At the same time, the application shall be submitted before the beginning of the respective year, not later than 5 working days.

Law of Georgia of 13 October 2011 No. 5120 – website, 19.10.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Article 24². Special Enterprise🔗

1. A special enterprise is a person that has been granted the status of a special enterprise in accordance with this article.

2. A person holding the status of a special enterprise shall be entitled, along with the activities permitted by the legislation of Georgia, and with the special consent provided for by paragraph 2 of Article 6 of the Law of Georgia "On Occupied Territories", to carry out the following activities:

a) supply of goods originating in or produced on the occupied territory of Georgia from the said territory to another territory of Georgia and/or placing them into the export procedure in accordance with the law from the territory of Georgia (except for the occupied territory of Georgia). In the case provided for by this subparagraph, the supply of excisable goods (except for alcoholic beverages and tobacco products) is prohibited;

b) supply of Georgian goods (except for goods originating in or produced on the occupied territory of Georgia) to the occupied territory of Georgia;

c) production of goods on the occupied territory of Georgia solely for the purpose provided for by subparagraph "a" of this paragraph.

3. The status of a special enterprise shall be granted to a person by the tax authority.

4. A person holding the status of a special enterprise shall be entitled to carry out the supply of goods provided for by subparagraphs "a" and "b" of paragraph 2 of this article only:

a) to/from the territory of the Autonomous Republic of Abkhazia – from/in the direction of Zugdidi Municipality;

b) to/from the territory of the Tskhinvali region (the former South Ossetian Autonomous Oblast) – from/in the direction of Gori Municipality.

5. The rules for granting and cancelling the status of a special enterprise to a person, for determining goods originating in or produced on the occupied territory of Georgia, and for the functioning of a person holding the said status shall be determined by the Government of Georgia.

Law of Georgia of 6 June 2018 No. 2476 – website, 21.06.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 25. Enterprise of a Free Industrial Zone🔗

1. An enterprise of a free industrial zone (hereinafter – FIZ enterprise) is an enterprise created in accordance with the Law of Georgia "On Free Industrial Zones".

2. Where an FIZ enterprise supplies goods to a person registered under the legislation of Georgia (except an FIZ enterprise), it shall pay 4 per cent of the income received/receivable from the supply of the goods (in the case of supply of goods free of charge – the market price of such goods) not later than the 15th day of the month following the month of supply of the goods.

3. Where a person registered under the legislation of Georgia (except an FIZ enterprise) supplies goods to an FIZ enterprise (except electricity, water and natural gas intended for on-site consumption and/or production), the FIZ enterprise shall pay 4 per cent of the market price of the supplied goods not later than the 15th day of the month following the month of supply of the goods.

4. Where a person registered under the legislation of Georgia (except an FIZ enterprise) supplies goods to an FIZ enterprise, the market price of such goods shall be used for taxation purposes.

5. An FIZ enterprise shall be prohibited from:

a) purchasing services from a person registered under the legislation of Georgia (except an FIZ enterprise), except:

a.a) provision of security services and/or transfer of property by way of rent or lease by the organiser and/or administration of the free industrial zone;

a.b) transport, communications, sewerage, audit and/or consulting services, performance of financial operations and/or provision of financial services by a licensed financial institution, as well as provision of services of installation, assembly and/or construction of fixed assets;

a.c) services determined by the Government of Georgia;

b) provision of services to a person registered under the legislation of Georgia (except an FIZ enterprise).

6. The procedure for tax reporting by an FIZ enterprise shall be determined by an Order of the Minister of Finance of Georgia.

7. The Government of Georgia shall have the right to determine the types of services to be provided by an FIZ enterprise to a non-resident (except a permanent establishment of a non-resident in Georgia) which, for the purposes of taxation, shall be considered as permitted activity carried out by the FIZ enterprise in the free industrial zone.

Law of Georgia of 24 June 2011 No. 4963 - website, 30.06.2011.

Law of Georgia of 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 December 2014 No. 2946 - website, 24.12.2014.

Law of Georgia of 18 December 2015 No. 4680 - website, 29.12.2015.

Article 26. (Removed)🔗

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 26¹. Tourist enterprise🔗

1. A tourist enterprise is a legal person that builds a hotel, carries out the supply of hotel assets/part thereof (with or without the right of redemption) and, on the basis of a paid contract concluded with the acquirer of this property (including lease, right of use, right of management, trust management of ownership, intermediary and/or other similar contractual terms), ensures the use of the hotel assets/part thereof as hotel rooms/apartments.

2. After completion of the hotel construction, the tourist enterprise shall:

a) have the established amount of area intended for use as hotel rooms/apartments;

b) ensure that within no more than 10 calendar years from the commissioning of the building (hotel), the VAT-taxable turnover declared from the specific object (hotel) by the tourist enterprise and/or by the person(s) invited for the functioning/operation of the object/part thereof as a hotel on the basis of the relevant contract (including additionally assessed by the tax authority in the relevant period in respect of the said object) in total (except for VAT-exempt operations) is not less than the amount obtained by dividing by 1.18 the turnover exempt from VAT with the right of deduction as determined by subparagraph "v" of paragraph 4 of Article 172 of this Code, as a result of the supply of hotel assets/part thereof.

3. The status of tourist enterprise in respect of a specific object (hotel) is granted to a person by the Revenue Service, which is entitled to require the tourist enterprise to submit means of security, the value of which shall not exceed 18 percent of the amount obtained by dividing by 1.18 the turnover exempt from VAT with the right of deduction as determined by subparagraph "v" of paragraph 4 of Article 172 of this Code.

4. The procedure for granting the status of tourist enterprise to a person, for the functioning and cancellation of a tourist enterprise, as well as the amount of the minimum area to be used as hotel rooms/apartments out of the total area of the building by municipalities, shall be established by the Government of Georgia.

Law of Georgia No. 5791 of 13 March 2012 – website, 23.03.2012

Law of Georgia No. 6446 of 12 June 2012 – website, 25.06.2012

Law of Georgia No. 2946 of 12 December 2014 – website, 24.12.2014

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020

Law of Georgia No. 6942 of 15 July 2020 – website, 28.07.2020

Article 26². (removed)🔗

Law of Georgia No. 1935 of 23 December 2017 – website, 29.12.2017

Law of Georgia No. 5627 of 19 December 2019 – website, 26.12.2019

Law of Georgia No. 1061 of 12 November 2025 – website, 14.11.2025

Article 26³. Pharmaceutical enterprise🔗

1. A pharmaceutical enterprise is a legal entity that produces pharmaceutical products in Georgia and carries out their supply.

2. A person shall be granted the status of a pharmaceutical enterprise by the Government of Georgia.

3. The procedure for granting a person the status of a pharmaceutical enterprise, for its functioning and for its revocation shall be determined by a Resolution of the Government of Georgia.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 27. Place of activity of an enterprise🔗

1. The place of state registration of an enterprise shall be considered the place of activity of the enterprise, and in the absence thereof – the legal address indicated in the founding documents of the enterprise (charter, contract, regulation).

2. If an enterprise carries out activity without state registration and its founding documents do not indicate the place of activity of the enterprise, the place of its principal activity shall be considered the place of activity of the enterprise. The place of the principal activity of the enterprise shall be determined by the tax authority on the basis of the data submitted by the enterprise, and in the case of failure to submit such data or submission of doubtful data – on the basis of the available information.

3. In the case of absence of appropriate information and impossibility of determining the place of the principal activity of the enterprise, the place of management of the enterprise shall be considered the place of activity of the enterprise.

4. The place of activity of an enterprise provided for by subparagraph „c“ of paragraph 1 of Article 21 of this Code shall be considered the place of activity of the person participating in the contract who is charged with the management of affairs under a joint activity contract. If one of the participants of the contract is an enterprise of Georgia or a resident natural person, he/she must keep records of the results of the joint activity for the purposes of taxation, regardless of who is charged with the management of affairs. If the management of affairs is not charged to one or several participants of the joint activity contract and the participants of the contract jointly manage the affairs, the place of activity of the enterprise of Georgia participating in the joint activity contract shall be considered the place of activity of the enterprise. If the participants of the joint activity contract are only resident natural persons and they jointly manage the affairs, the place of activity of the enterprise shall be determined by the tax authority on the basis of the data submitted by the participants of the joint activity contract, and in the case of failure to submit such data or submission of doubtful data – on the basis of the available information.

Article 28. Place of management of an enterprise🔗

1. The place of management of an enterprise shall be considered the place of actual management of the enterprise, that is, the place where, in accordance with the founding documents of the enterprise (charter, contract, regulation), the directorate of the enterprise (another management body) performs a management function, regardless of the place of activity of the supreme supervisory bodies of that enterprise and the place of receipt of income through the carrying out of activity, unless otherwise provided by this Article.

2. The place of management of an enterprise provided for by subparagraph „c“ of the first paragraph of Article 21 of this Code shall be considered its place of activity.

3. If an enterprise is managed by a manager (another enterprise or natural person) acting under a contract or a decision on appointment, the place of management of the enterprise shall accordingly be considered the place of activity of the managing enterprise or the place of residence of the managing natural person. The place of management of an enterprise shall be determined similarly if it is actually managed by another enterprise or natural person without an appropriate contract or decision.

4. If an enterprise does not have a management body, or the management body of the enterprise does not have a permanent place of activity, or the manager does not directly manage the enterprise, the place of management of the enterprise shall be considered the place of activity of the management body of the enterprise (administration, directorate, board, central accounting department or another similar body).

Article 29. Permanent establishment🔗

1. A defined place, through the use of which a foreign enterprise or a non-resident natural person carries out economic activity in Georgia, in part or in full, including the activity of an authorised person, shall be considered a permanent establishment in Georgia, except for the cases provided for by paragraphs 6, 9 and 12 of this Article.

2. The following shall be equated to a permanent establishment:

a) a construction site, an installation or assembly facility, as well as the carrying out of control activities related thereto;

b) an installation or structure, a drilling rig or a vessel used for the exploration of natural resources, as well as the carrying out of control activities related thereto;

c) a permanent base where a non-resident natural person carries out economic activity;

d) a place of management, a branch, a representative office, a division, a bureau, an office, an agency, a workshop, a mine, a quarry, another place of extraction of natural resources, any other subdivision of a foreign enterprise, or any other place of activity of this enterprise.

3. The provisions of paragraphs 1 and 2 of this Article shall not apply to the provision of services by non-resident subcontractors in the course of carrying out oil and gas operations as defined by the Law of Georgia "on Oil and Gas".

4. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, the management of a foreign enterprise in Georgia for a period of more than 3 months by another person (another enterprise, a subdivision of this or another enterprise, or a natural person who is not a person provided for by paragraph 5 of this Article) in the name of and/or in accordance with the interests of this enterprise shall be considered a permanent establishment of this enterprise, except for the cases provided for by paragraphs 5 and 6 of this Article.

5. If a foreign enterprise or a non-resident natural person carries out economic activity in Georgia through an intermediary, an agent or a broker with a professional status defined by legislation, who is not authorised to conduct negotiations or sign a contract in the name of this foreign enterprise or non-resident natural person, then the activity of the intermediary, agent or broker does not give rise to a permanent establishment of this foreign enterprise or non-resident natural person in Georgia.

6. The mere fact of holding securities, capital shares of Georgian enterprises, as well as property on the territory of Georgia, by a foreign enterprise or a non-resident natural person, in the absence of the characteristics of a permanent establishment provided for by paragraphs 1 and 2 of this Article, does not give rise to a permanent establishment of this foreign enterprise or non-resident natural person in Georgia.

7. The mere fact of secondment of its own employees by a foreign enterprise to work in another enterprise or organisation existing on the territory of Georgia does not give rise to a permanent establishment of this foreign enterprise in Georgia, if these employees are under the control of the enterprise or organisation to which they were seconded.

8. The mere fact of control by a foreign enterprise or non-resident natural person of an enterprise of Georgia or an organization of Georgia does not create a permanent establishment in Georgia of this foreign enterprise or non-resident natural person.

9. A facility located in the territory of Georgia that is used only for the following shall not be attributed to a permanent establishment in Georgia of a foreign enterprise or non-resident natural person:

a) for the purpose of storage or display of goods belonging to this foreign enterprise or non-resident natural person;

b) for the storage of a stock of goods belonging to this foreign enterprise or non-resident natural person – for the purpose of processing thereof by another person;

c) for the purpose of purchasing goods or collecting information for this foreign enterprise or non-resident natural person;

d) for the purpose of carrying out any other activity of a preparatory or auxiliary nature arising from the interests of this foreign enterprise or non-resident natural person;

e) for the purpose of preparing and/or signing contracts related to the granting of loans, the supply of goods or the provision of services of a technical nature in the name of this foreign enterprise or non-resident natural person;

f) for the purpose of carrying out any combination of the types of activities provided for by subparagraphs “a”–“e” of this paragraph.

10. A permanent establishment in Georgia of a foreign enterprise or non-resident natural person shall be considered as such from the moment of its registration in accordance with paragraph 11 of this article, the entrusting to it of the relevant powers, or the commencement by it of the carrying out of representative activity.

11. The obligation to register a permanent establishment in Georgia of a foreign enterprise or non-resident natural person shall be imposed on the tax authority that maintains the relevant register. The procedure for registration and maintenance of the register shall be determined by the Minister of Finance of Georgia.

12. The granting of property in the territory of Georgia by a foreign enterprise or non-resident natural person only by way of leasing, usufruct, lease, rent and/or other similar forms does not create a permanent establishment in Georgia of this foreign enterprise or non-resident natural person, except where the person, personally, through a representative or hired personnel, systematically carries out servicing and supervision of the activity of the recipient of the property.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Article 30. Organisation🔗

1. The following formations shall be considered an organisation:

a) non-entrepreneurial (non-commercial) legal entities, as well as public or religious organisations (associations), institutions which are non-entrepreneurial (non-commercial) legal entities created in accordance with the legislation of Georgia or are created and operate in accordance with the legislation of a foreign country, as well as branches and other analogous subdivisions existing in Georgia of organisations created in accordance with the legislation of a foreign country, through which they carry out their activity in whole or in part (including the activity of an authorised person), as well as budgetary organisations, legal entities of public law, corporations, institutions;

b) international (interstate, intergovernmental, diplomatic) organisations – organisations regulated by international law, diplomatic missions and consular institutions, foreign non-entrepreneurial organisations.

2. The place of activity of an organisation and the place of management of an organisation shall be determined in accordance with the procedure established by this Code for an enterprise.

3. The attribution of an organisation to a Georgian organisation or to a foreign organisation shall be carried out in accordance with the procedure established by this Code for an enterprise.

4. If an organisation carries out economic activity, the part of its property and activity which is directly related to its economic activity shall be considered the property and activity of an enterprise, and in the part where such separation is impossible, for the purposes of calculating the property and activity related to economic activity, the proportional share of the income received from economic activity in the income received by the organisation shall be used.

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012.

Article 31. Budgetary organisation🔗

A budgetary organisation is an organisation defined by subparagraph „r“ of Article 6 of the Budget Code of Georgia.

Law of Georgia of 28 October 2011 No. 5173 – website, 07.11.2011.

Law of Georgia of 12 December 2014 No. 2938 – website, 24.12.2014.

Article 32. Charitable Organization🔗

1. An organization that has been granted the status of a charitable organization in accordance with this Article shall be considered a charitable organization.

2. The status of a charitable organization shall be granted to an organization that is established for the purpose of carrying out charitable activity, is registered in accordance with the procedure established by legislation, has at least 1 year of experience in charitable activity, and meets the requirements of this Article.

3. Auxiliary economic activity that serves the main goals of the organization does not change its charitable character.

4. The granting, cancellation and revocation of the status of a charitable organization shall be carried out by the Head of the Revenue Service, upon the submission of the relevant tax authority, in agreement with the Minister of Finance of Georgia.

5. The status of a charitable organization shall be granted on the basis of a written application of the organization. The application shall indicate the organization's:

a) name;

b) organizational-legal form;

c) main goals;

d) main directions of the last year's activity;

e) addresses of the governing body and branches.

6. The application shall be accompanied by:

a) copy of the organization's charter;

b) copy of the certificate of state and/or tax registration;

c) report on the last year's activity, which shall contain a description of the activity (projects, services);

d) financial documents of the last year certified by an independent auditor (balance sheet and profit and loss statement).

7. The Head of the Revenue Service shall adopt a reasoned decision on the application within 1 month. If no decision is adopted within this period, the status shall be considered granted. The status shall be granted indefinitely. The status shall enter into force upon granting.

8. The organization that has been granted the status shall be issued a certificate confirming the status. It shall indicate:

a) name of the organization, organizational-legal form;

b) status;

c) address of the governing body;

d) date and number of granting of the status;

e) identification number of the organization.

9. Upon receiving the status, the organization shall bear the additional obligations and liability provided for by this Code. In particular, the charitable organization shall submit to the relevant tax authority before 1 April of each year:

a) programme report on the last year's activity, which shall contain a description of the activity (including economic activity);

b) financial report on the income received, indicating the sources and the purpose of the expenses incurred;

c) financial documents of the last year certified by an independent auditor (balance sheet and profit and loss statement).

10. The programme report on the last year's activity and the financial documents (balance sheet and profit and loss statement) shall be published and shall be accessible to all interested persons.

11. The distribution of the profit and assets of a charitable organization among the members, founders, members of the board and of the curatorium of the organization shall be inadmissible. After the liquidation of a charitable organization, its property shall, by decision of the authorized body or person, be transferred to a charitable organization with similar goals, and in the absence of such, to another charitable organization. The property remaining as a result of the liquidation of a Legal Entity of Public Law established on the basis of state property and having the status of a charitable organization shall pass into the ownership of the State.

12. The status of a charitable organization shall be revoked:

a) at the initiative of the organization;

b) in the event of its withdrawal.

13. The status of a charitable organization shall be withdrawn if:

a) it has violated the requirements of this Code;

b) its state and/or tax registration has been cancelled.

14. In the event of the withdrawal of status due to a violation of the requirements of this Code, the charitable organization shall be obliged to return the part of the benefit received through the tax privileges arising from the status that is related to the violation of the said requirements.

15. In the event of a violation of the requirements of this Code by a charitable organization, the tax authority, before preparing a submission to the Head of the Revenue Service on the withdrawal of status from the charitable organization, shall send a notification to the charitable organization and shall set an additional, one-month period for the fulfilment of the requirements of this Code.

16. A charitable organization whose status has been withdrawn shall have the right to file an application for its restoration no earlier than 1 year after the elimination of the ground for the withdrawal of the status.

17. The Revenue Service shall maintain a unified register of charitable organizations. The following data shall be entered in the register:

a) the name of the organization;

b) the addresses of the governing body, branches and representative offices;

c) the main goals;

d) the date and number of the granting of the status;

e) the identity and addresses of all members of the supreme governing body.

18. In the event of a change in any data entered in the unified register of charitable organizations, the organization shall be obliged to notify the relevant tax authority in writing of this change immediately upon the change.

19. The unified register of charitable organizations shall be accessible to all interested persons.

Article 33. Religious organization🔗

An organization that is created for the performance of religious activity and is registered as such in accordance with the procedure established by legislation shall be considered a religious organization.

Article 34. Resident and non-resident natural persons of Georgia🔗

1. The following shall be considered natural persons:

a) citizens of Georgia;

b) nationals of a foreign country;

c) stateless persons.

2. A natural person who is actually present in the territory of Georgia for 183 days or more during any continuous 12 calendar month period ending in the given tax year, or a natural person who during the given tax year was present in a foreign country in the state service of Georgia, shall be considered a resident of Georgia throughout the entire current tax year.

3. Time during which a natural person was present in Georgia, as well as time for which he/she left the borders of Georgia specifically for medical treatment, rest, a business trip or study, shall be counted as time of actual presence in the territory of Georgia.

4. Time during which a natural person was present in Georgia shall not be counted as time of actual presence in the territory of Georgia:

a) as a person with diplomatic or consular status or a family member of such a person;

b) as an employee of an international organization operating in accordance with an international treaty of Georgia, or as a person in the state service of a foreign country in Georgia or a family member of such a person, except a citizen of Georgia;

c) when moving from one foreign country to another through the territory of Georgia;

d) for medical treatment or rest.

5. A day during which a natural person was present in Georgia shall be counted as a day of actual presence in the territory of Georgia, regardless of the duration of such presence.

6. Georgian residency, except for the case provided for by paragraph 2 of this Article, may be granted to a person with significant property, in accordance with the procedure and conditions determined by the Minister of Finance of Georgia. A person with significant property is a person defined by the Law of Georgia "On the Securities Market".

6¹. If the residency of a natural person with respect to any country is not established, in the event of an application by this natural person to the tax authority, he/she shall be considered a resident of Georgia, if he/she is a citizen of Georgia.

6². Georgian residency, except for the cases provided for by paragraphs 2, 6 and 6¹ of this Article, may be granted to a natural person who is a national of a foreign country in the case determined and in accordance with the procedure established by the Minister of Finance of Georgia.

7. A natural person who is not a resident under this Article shall be considered a non-resident of Georgia.

8. The status of resident or non-resident shall be determined for each tax period. At the same time, those days according to which a natural person was considered a resident in the previous tax period shall not be taken into account when determining residency in the next tax period.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 35. Residence and place of actual presence of a natural person🔗

1. The residence of a natural person shall be the place which he/she ordinarily chooses as his/her residence, or his/her place of actual presence, unless otherwise provided by this Article.

2. The residence of a minor shall be the residence of the person having parental rights, and the residence of a person who has a guardian or curator shall be the residence of the guardian or curator.

3. The place of actual presence of a natural person shall be his/her temporary place of residence, unless otherwise provided by this Article.

4. The place of actual presence of a military servicemember, as well as of a natural person who permanently moves due to the nature and conditions of work, shall be the place where he/she actually lives or is registered in accordance with the established procedure (including the place of deployment of the military unit or the location of the respective enterprise).

5. If a natural person has several residences (an apartment or other dwelling), his/her residence or place of actual presence shall be determined by the tax authority in agreement with this natural person.

Article 36. Entrepreneurial natural person and place of his/her activity🔗

1. An entrepreneurial natural person shall be:

a) an individual entrepreneur – a natural person, if, under the Law of Georgia "On Entrepreneurs", he/she is an individual entrepreneur;

b) a natural person, if he/she carries out the activity provided for by paragraphs 1 and 2 of Article 3 of the Law of Georgia "On Entrepreneurs".

2. The carrying out of economic activity by a natural person defined by paragraph 1 of this Article without registration, licence or permit shall not be a ground for not recognising him/her as an entrepreneurial natural person for the purposes of taxation of this natural person.

3. The place of activity of an entrepreneurial natural person shall be the place of his/her economic activity.

Law of Georgia of 2 August 2021 No. 884 – website, 04.08.2021.

Article 37. Representative of Taxpayer🔗

1. A taxpayer has the right to participate in tax relations through his/her legal or authorized representative. The personal participation of a taxpayer in tax relations does not deprive him/her of the right to have a representative, just as the participation of a representative does not deprive him/her of the right to participate personally in the said relations.

2. The legal representatives of an enterprise/organization shall be considered its bodies and/or other persons authorized by the legislative acts of Georgia and the constituent documents of this enterprise/organization. A person who, on the basis of this Code and other legislative acts of Georgia, exercises the respective authority shall be considered the legal representative of a natural person.

3. An action of the legal representative of a taxpayer related to the participation of the above-mentioned person in tax relations shall be considered the action of that person himself/herself.

4. A person who, by authorization of the above-mentioned person, is authorized to represent his/her interests in relations with tax authorities and/or other participants of tax relations, as well as in court, shall be considered the authorized representative of the taxpayer.

5. The authorized representative of an enterprise/organization shall act on the basis of a power of attorney issued by this enterprise/organization, while the authorized representative of a natural person – on the basis of a power of attorney issued by this natural person and certified in notarial form or another document equated with a power of attorney under the Civil Code of Georgia, within the scope of authority determined by such power of attorney or other document.

Article 38. Right to Request Information🔗

1. A taxpayer has the right to receive information from tax authorities about the application of the tax legislation of Georgia and the protection of taxpayer rights, and, in accordance with the procedure established by law, to review information about him/her available in tax authorities.

2. A taxpayer has the right not to submit to law enforcement and other controlling bodies, except tax authorities, documents related to the determination of objects of taxation by taxes, the calculation and payment of taxes, except for cases when such authority has been transferred to other bodies by this Code.

Article 39. Tax Secret🔗

1. Any information received by the tax authority about a taxpayer (except for the information specified in paragraph 1¹ of this Article) shall be classified as a tax secret.

1¹. The following information about a taxpayer shall not be classified as a tax secret and shall be public:

a) on registration as a taxpayer;

b) on registration as a VAT payer;

c) status;

d) name;

e) legal form;

f) address;

g) identification number;

h) date of assignment of the identification number;

i) registering authority;

j) tax arrears;

k) persons with the authority to manage/represent;

l) founders;

m) on tax pledge/mortgage right and seizure imposed on property;

n) other public information registered in the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities;

o) public information registered in the Register of Political Unions (Parties) of Citizens;

p) on restriction of the use of a tax invoice for a person (including suspension of drawing up/issuance).

2. The tax authority, its employee, an invited specialist and/or expert shall be obliged to maintain the confidentiality of information about a taxpayer that became known to them in the performance of their official duties. It has the right to transfer identified information about an individual taxpayer only to the following persons:

a) to employees of the system of the Ministry of Finance of Georgia and members of the Dispute Review Council under the Ministry of Finance of Georgia – for the purpose of the performance of official duties by these persons;

b) to law enforcement agencies – in connection with criminal cases in their proceedings;

b¹) (removed - 17.12.2026, No. 1296).

b²) to the Ministry of Internal Affairs of Georgia – for the purpose of exercising the powers provided for by the legislation of Georgia;

c) to a court – in connection with a case in the court's proceedings, for the purpose of determining the taxpayer's tax obligations or liability;

d) to the competent authority of another state – in accordance with an international treaty of Georgia;

e) to a Legal Entity of Public Law within the area of governance of the Ministry of Justice of Georgia – the National Bureau of Enforcement (hereinafter – the National Bureau of Enforcement) and a private enforcement officer – in the process of enforcement of judgments provided for by the Law of Georgia "On Enforcement Proceedings" and/or in the exercise of powers provided for by a contract concluded between the tax authority and the National Bureau of Enforcement;

f) to the National Statistics Office of Georgia (Geostat) – in accordance with the procedure established by the Government of Georgia;

g) the State Audit Office – when conducting an inspection provided for by the Law of Georgia on Personal Data Protection, as well as on the basis of a judge's order, for the purpose of exercising the powers established by the Organic Law of Georgia on the State Audit Office;

h) the Legal Entity of Public Law operating in the area of governance of the Ministry of Justice of Georgia – the National Agency of Public Registry (hereinafter – the National Agency of Public Registry) – when exercising the powers provided for by a contract concluded between the tax authority and the National Agency of Public Registry;

i) the persons determined by the Government of Georgia, for the purpose of providing a taxpayer with information about his/her tax arrears in the manner established by the Minister of Finance of Georgia;

j) (removed – 01.05.2015, No. 3581);

k) the Legal Entity of Public Law operating in the area of governance of the Ministry of Justice of Georgia − the Public Services Development Agency – when exercising the powers provided for by the legislation of Georgia;

l) the Legal Entity of Public Law – the Financial Monitoring Service of Georgia – when exercising the powers provided for by the legislation of Georgia;

m) the state sub-agency institution of the Ministry of Environmental Protection and Agriculture of Georgia – the Department of Environmental Supervision – when exercising the powers determined by the legislation of Georgia, as well as the Legal Entity of Public Law within the system of the Ministry of Environmental Protection and Agriculture of Georgia – the Nuclear and Radiation Safety Agency and the Standing Commission on Military-Technical Issues of the Ministry of Defence of Georgia – the information provided for by the Law of Georgia on Radiation Protection, Nuclear Safety and Security;

n) the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and the administrative bodies within its system – for the purpose of exercising the powers provided for by the legislation of Georgia;

o) the Legal Entity of Public Law – the Competition and Consumer Protection Agency of Georgia – when exercising the powers provided for by the legislation of Georgia;

p) the Legal Entity of Public Law within the area of governance of the Ministry of Environmental Protection and Agriculture of Georgia – the National Food Agency – in accordance with the procedure established by the Government of Georgia;

q) (removed – 17.12.2025, No. 1282);

r) the Legal Entity of Public Law operating in the area of governance of the Ministry of Justice of Georgia − the Digital Governance Agency − for the transfer by this Agency of the said information to the State Audit Office, for the purpose of exercising the powers provided for by the Law of Georgia on Combating Corruption and the subordinate normative acts issued on its basis, for the functioning of the electronic data exchange system;

s) to the Legal Entity of Public Law operating in the sphere of governance of the Ministry of Justice of Georgia − the Digital Governance Agency − information necessary for the functioning of the system of electronic exchange of documentation between entities engaged in international trade;

t) to the Ministry of Environmental Protection and Agriculture of Georgia − information provided for by the Law of Georgia “On Import, Export and Transit of Waste”;

u) (removed - 05.07.2018, No. 3109);

v) to the Legal Entity of Public Law within the system of the Ministry of Environmental Protection and Agriculture of Georgia – the National Agency of Mineral Resources – in the exercise of the powers determined by the legislation of Georgia;

w) to the Legal Entity of Public Law − the Pension Fund of Georgia − for the purpose of exercising the powers provided for by the Law of Georgia “On Accumulative Pension” and the subordinate normative acts of Georgia issued on its basis;

w¹) to the Legal Entity of Public Law – the State Insurance Supervision Service of Georgia − for the purpose of exercising the powers provided for by the Law of Georgia “On Voluntary Private Pension” and the subordinate normative acts issued on its basis;

w²) to the insurer, the asset management company and the pension company determined by the Law of Georgia “On Voluntary Private Pension” − for the purpose of exercising the powers provided for by the same law and the subordinate normative acts issued on its basis;

x) to the Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the Market Supervision Agency − in the exercise of the powers provided for by the legislation of Georgia;

y) to the Ministry of Justice of Georgia − for the purpose of exercising the powers of state representation in arbitration or in a court of a foreign country conferred on it by the legislation of Georgia, as well as the powers of state representation in international courts, in particular, the European Court of Human Rights, the Human Rights Committee established on the basis of the International Covenant on Civil and Political Rights of the United Nations, and the committees established on the basis of other conventions of the United Nations, and the International Court of Justice of the United Nations;

z) for the purpose of ensuring control over the legal regime of the maritime space of Georgia, to the Joint Maritime Operations Management Centre of the state border protection entities and the bodies of the executive authority of Georgia related to the protection of the state border regime − in the exercise of the powers determined by the legislation of Georgia;

aa) to the Legal Entity of Public Law subordinate to the state control of the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia – the Labour Inspection Service − in the exercise of the powers provided for by the legislation of Georgia;

bb) to the Legal Entity of Public Law within the system of the Ministry of Economy and Sustainable Development of Georgia − the Land Transport Agency − when exercising the powers provided for by the legislation of Georgia;

bb¹) to the structural unit of the City Hall determined by the representative body of the Tbilisi Municipality, to a natural person or legal entity − for the purpose of considering cases of administrative offences provided for by Article 135² of the Code of Administrative Offences of Georgia;

[ cc) to the Legal Entity of Public Law – the Public Procurement Agency – when exercising the powers provided for by the Law of Georgia “On Public Procurement”;

dd) to the Council for the Review of Disputes Related to Public Procurement – when exercising the powers provided for by the Law of Georgia “On Public Procurement”; (shall enter into force from 1 January 2027)]

ee) in accordance with the procedure determined by a Resolution of the Government of Georgia, to the organization managing economic rights on a collective basis as defined by paragraph 2 of Article 63 of the Law of Georgia “On Copyright and Related Rights”, which has the authority provided for by paragraph 3 of Article 21 of the same Law and acts in accordance with a Resolution of the Government of Georgia.

ff) to the Administration of the Government of Georgia – for the purpose of performing the function of facilitating control over the execution of decisions provided for by the Law of Georgia “On the Structure, Powers and Rules of Activity of the Government of Georgia”.

gg) to the Ministry of Defence of Georgia − for the purpose of controlling compliance with the permit conditions provided for by the Laws of Georgia “On Weapons”, “On Control of Military and Dual-Use Products” and “On Licences and Permits”, within the scope of its competence.

3. An employee of the tax authority shall be obliged to maintain the confidentiality of information received in the performance of official duties, not to use it for personal purposes or transfer it to another person, which is considered disclosure of tax secrecy. The loss of documents containing tax secrecy or the disclosure of such information entails liability in accordance with the legislation of Georgia.

3¹. The Legal Entities of Public Law provided for by subparagraphs “o” and “p” of paragraph 2 of this Article and their employees who have received the information defined by this Article shall not have the right to disclose the confidentiality of this information.

4. Information containing tax secrecy existing in the tax authority has a special regime of storage and processing. Only authorized persons determined by the Minister of Finance of Georgia may be granted access to information containing tax secrecy, in accordance with the procedure established by the same Minister of Finance.

5. In the case of the written/electronic consent of the taxpayer, information about the taxpayer may be transferred to another person. The publication and/or dissemination by the taxpayer of this information publicly, in the mass media, shall be considered the taxpayer's consent, within the scope of the said information, to the transfer of the information by the tax authority to a third person.

6. This Article shall not apply to the public notice provided for by Article 44 of this Code, as well as to the dissemination by the Revenue Service of information about persons carrying out economic activity with falsified tax documents.

Law of Georgia No. 4206 of 22 February 2011 – website, 10.03.2011

Law of Georgia No. 4963 of 24 June 2011 – website, 30.06.2011

Law of Georgia No. 5556 of 20 December 2011 – website, 30.12.2011

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012

Law of Georgia No. 6330 of 25 May 2012 – website, 08.06.2012

Law of Georgia No. 6317 of 25 May 2012 – website, 19.06.2012

Law of Georgia No. 6446 of 12 June 2012 – website, 25.06.2012

Law of Georgia No. 6444 of 12 June 2012 – website, 25.06.2012

Law of Georgia No. 6550 of 22 June 2012 – website, 29.06.2012

Law of Georgia No. 491 of 25 March 2013 – website, 05.04.2013

Law of Georgia No. 1886 of 26 December 2013 – website, 30.12.2013

Law of Georgia No. 2160 of 21 March 2014 – website, 27.03.2014

Law of Georgia No. 2466 of 29 May 2014 – website, 02.06.2014

Law of Georgia No. 3581 of 1 May 2015 – website, 15.05.2015

Law of Georgia No. 3613 of 28 May 2015 – website, 04.06.2015

Law of Georgia No. 3673 of 29 May 2015 – website, 04.06.2015

Law of Georgia No. 4368 of 27 October 2015 – website, 11.11.2015

Law of Georgia No. 4458 of 28 October 2015 – website, 11.11.2015

Law of Georgia No. 4493 of 11 November 2015 – website, 24.11.2015

Law of Georgia No. 4680 of 18 December 2015 – website, 29.12.2015

Law of Georgia No. 4958 of 13 April 2016 – website, 26.04.2016

Law of Georgia No. 5144 of 27 May 2016 – website, 04.06.2016

Law of Georgia No. 195 of 22 December 2016 – website, 29.12.2016

Law of Georgia No. 1182 of 30 June 2017 – website, 13.07.2017

Law of Georgia No. 1701 of 7 December 2017 – website, 14.12.2017

Law of Georgia No. 3109 of 5 July 2018 – website, 11.07.2018

Law of Georgia No. 3308 of 21 July 2018 – website, 06.08.2018

Law of Georgia No. 3279 of 21 July 2018 – website, 09.08.2018

Law of Georgia No. 3383 of 5 September 2018 – website, 24.09.2018

Law of Georgia No. 4260 of 27 December 2018 – website, 29.12.2018

Law of Georgia No. 4599 of 8 May 2019 – website, 08.05.2019

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019

Law of Georgia of 20 December 2019 No. 5691 – website, 26.12.2019.

Law of Georgia of 17 March 2020 No. 5758 – website, 23.03.2020.

Law of Georgia of 12 June 2020 No. 6301 – website, 26.06.2020.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 16 September 2020 No. 7132 – website, 21.09.2020.

Law of Georgia of 29 September 2020 No. 7183 – website, 05.10.2020.

Law of Georgia of 16 December 2021 No. 1148 – website, 27.12.2021.

Law of Georgia of 30 December 2021 No. 1331 – website, 13.01.2022.

Law of Georgia of 16 February 2022 No. 1384 – website, 23.02.2022.

Law of Georgia of 30 November 2022 No. 2214 – website, 15.12.2022.

Law of Georgia of 1 December 2022 No. 2285 – website, 15.12.2022.

Law of Georgia of 9 February 2023 No. 2578 – website, 27.02.2023.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 16 June 2023 No. 3290 – website, 06.07.2023.

Law of Georgia of 28 June 2023 No. 3350 – website, 19.07.2023.

Law of Georgia of 29 November 2023 No. 3759 – website, 11.12.2023.

Law of Georgia of 15 December 2023 No. 3965 – website, 25.12.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 27 June 2024 No. 4324 – website, 12.07.2024.

Law of Georgia of 5 September 2024 No. 4427 – website, 23.09.2024.

Law of Georgia of 13 May 2025 No. 561 – website, 16.05.2025.

Law of Georgia of 12 November 2025 No. 1055 – website, 17.11.2025.

Law of Georgia of 25 November 2025 No. 1074 – website, 27.11.2025.

Law of Georgia of 17 December 2025 No. 1282 – website, 18.12.2025.

Law of Georgia of 17 December 2025 No. 1296 – website, 23.12.2025.

Article 40. (removed)🔗

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Article 41. Rights of a taxpayer🔗

1. A taxpayer has the right to:

a) get acquainted, in accordance with the procedure established by law, with the information about him/her held by the tax authority;

b) present his/her own interests in the tax authority in person or through a representative;

c) not submit documents related to tax administration to other controlling and law enforcement bodies, except the tax authority, unless such authority is granted to another body by this Code;

d) benefit from a tax relief;

e) recover and/or have credited against the account of future tax obligations the amount of overpaid tax and/or sanction (including customs sanction);

f) request information on the grounds for carrying out tax control in respect of him/her;

g) submit a relevant explanation to the tax authority when a tax control measure is carried out in respect of him/her;

h) attend the on-site tax audit conducted in respect of him/her, receive from the tax authority the original or a certified copy of any decision relating to him/her, and also, in the course of an action, request compliance with the legislation of Georgia;

i) appeal, in accordance with the procedure established by law, against an action or decision of the tax authority;

j) not comply with an unlawful act or request of the tax authority;

k) request, in accordance with the procedure established by law, compensation for damage caused as a result of an unlawful decision or action of the tax authority;

l) exercise other rights provided for by the legislation of Georgia.

2. Protection of the rights and legitimate interests of a taxpayer by way of administrative proceedings and by way of court is guaranteed.

3. Violation of the rights and legitimate interests of a taxpayer entails liability provided for by law.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 42. (removed)🔗

Law of Georgia of 28 May 2015 No. 3613 - website, 04.06.2015.

Article 43. Obligations of a taxpayer🔗

1. A taxpayer shall:

a) fulfil tax obligations in accordance with the procedure and conditions established by the tax legislation of Georgia;

b) register with the relevant tax authority or be registered in the registry of entrepreneurs and non-entrepreneurial (non-commercial) legal entities and in the registry of political unions (parties) of citizens;

c) submit tax declarations, calculations and accounting documents to the tax authority in accordance with the procedure established by the legislation of Georgia;

d) during a tax audit or in other cases provided for by this Code, submit to the tax authority and its authorised person the documents (information) necessary for the calculation and payment of taxes;

e) fulfil the lawful demands of the tax authority and its authorised person related to the elimination of detected violations of the tax legislation of Georgia, and also not obstruct this authorised person in the exercise of official powers;

f) keep for 3 years the document necessary for determining the object of taxation. This period shall be counted from the end of the calendar year of the tax period for which it is necessary for determining the tax obligation;

g) place a copy of the taxpayer's certificate and, in retail trade, price indicators (in the national currency of Georgia) in a place visible to consumers;

g¹) not obstruct the person selected by the Revenue Service in accordance with the procedure established by the legislation of Georgia in the performance of the service of mandatory marking/labelling with excise stamps;

h) fulfil other obligations established by the tax legislation of Georgia.

2. An enterprise of Georgia, an organisation of Georgia and an entrepreneurial natural person shall, at the place of tax registration, submit to the tax authority information on the opening of bank accounts outside Georgia (except for escrow (time) accounts) within 5 working days from the opening of such accounts.

2¹. The financial institution of Georgia defined by the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)" shall, within the framework of this Agreement, transfer to the tax authority the information provided for by the same Agreement.

3. A taxpayer shall submit the information provided for by paragraph 2 of this Article to the tax authority in the form approved by the Minister of Finance of Georgia.

4. In the event of non-fulfilment or improper fulfilment of the obligations established by the tax legislation of Georgia, the taxpayer shall bear the liability provided for by this Code and/or other legislative acts of Georgia.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia No. 5557 of 20 December 2011 – website, 28.12.2011.

2012 of Georgia

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia No. 4458 of 28 October 2015 – website, 11.11.2015.

Law of Georgia No. 4680 of 18 December 2015 – website, 29.12.2015.

Law of Georgia No. 5144 of 27 May 2016 – website, 04.06.2016.

Article 44. Correspondence with a taxpayer🔗

1. The tax authority sends and/or submits a document to a person in written or electronic form.

2. A document sent by the tax authority in written form shall be signed by an authorized person. The addressee shall be given the original or a certified copy of the document.

2¹. The tax authority shall have the right, when a written document is submitted by the chancellery or a structural unit of the same purpose at the address of the person provided for by paragraphs 6 and 7 of this article or at the legal address determined by registration documents, to use technical means for the purpose of recording the fact of refusal to accept its delivery.

3. The tax authority shall choose the form of sending and/or submitting the document.

4. If the same document is submitted to a person several times or in several forms, the date of its submission shall be the date of the first delivery of this document.

5. When submitting a written document, if the person declares refusal to accept it, the person submitting the document shall make a corresponding note.

5¹. In the case provided for by paragraph 5 of this article, if the fact of submission of a written document is recorded by technical means, the document shall be considered delivered.

6. A written document shall be considered delivered to a natural person if the document was delivered to:

a) the addressee in person;

b) an authorized or legal representative of this person;

c) any adult member of the family living with this person at his/her place of residence;

d) the chancellery or a structural unit of the same purpose at the place of activity of an entrepreneurial natural person;

e) in the case of an order of an authorized person on drawing up a protocol of a tax offence, current control procedures and/or implementation of measures to ensure collection of tax arrears − to the person directly carrying out the economic activity of the natural person.

7. A written document shall be considered delivered to a taxpayer (except a natural person) if the document was delivered to:

a) an authorized person;

b) an authorized or legal representative of the person;

c) the chancellery or a structural unit of the same purpose at the legal address determined by registration documents;

d) in the case of an order of an authorized person on drawing up a protocol of a tax offence, current control procedures and/or implementation of measures to ensure collection of tax arrears − to the person directly carrying out the economic activity of the taxpayer;

e) any adult person living in the residential apartment determined as the legal address by registration documents.

8. Delivery of the document shall be confirmed by the recipient's signature on its second copy or on the corresponding postal document. The recipient's name and surname and his/her relationship to the addressee, as well as the date of delivery of the document, shall be noted there.

9. A document sent by the tax authority to a person in electronic form shall be deemed delivered upon its review by the addressee, and in the case provided for by paragraph 2 of Article 264 of this Code — upon review or on the 30th day from its placement on the authorized user's page of the taxpayer, if within this period the addressee has not reviewed the notification.

10. The tax/dispute reviewing authority or the National Bureau of Enforcement has the right to publicly disseminate a document if the taxpayer (except an individual) has not reviewed the document sent by the tax authority in electronic form within 30 days from its placement on the taxpayer's authorized user page. If the taxpayer is an individual, public dissemination of the document is possible if the following conditions are met:

a) the document was sent/submitted to the person in written form at least twice and its delivery to the addressee could not be effected;

b) the person is not an authorized user of the official website of the Revenue Service or the addressee has not reviewed the document within 30 days from its placement on the authorized user page.

11. Public dissemination of a document is carried out by placing it on the official website of the Revenue Service or the National Bureau of Enforcement and shall be deemed delivered on the 20th day from placement.

12. When exercising the powers defined by this Code, the tax authority has the right to create, receive, send, store and issue any document in the form of a written and/or electronic document (including archival material) that may entail legal consequences, as well as to use the electronic document exchange system.

13. A taxpayer may submit a document to the tax authority in written or electronic form.

14. A written document submitted by a taxpayer to the tax authority shall be signed by an authorized person. The addressee shall be given the original or a certified copy of the document.

15. In the case of sending a document by a taxpayer to the tax authority by post, the date of its submission shall be the date of sending of this document. At the same time, the period for responding to the document shall be counted from the day following the day of actual delivery of the postal item to the tax authority.

16. The rules of electronic correspondence and public dissemination of a document between the taxpayer and the tax/dispute reviewing authority shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 22 February 2011 No. 4206- website, 10.03.2011.

Law of Georgia of 14 June 2011 No. 4754 - website, 28.06.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 18 December 2015 No. 4680 - website, 29.12.2015.

Law of Georgia of 21 April 2017 No. 649 - website, 10.05.2017.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023.

Article 45. (repealed)🔗

Law of Georgia No. 1886 of 26 December 2013 – website, 30.12.2013.

Article 46. Explanation on the Application of the Tax Legislation of Georgia🔗

The tax authority is entitled to send a person a written explanation on the application of the tax legislation of Georgia. The said explanation is a recommendation.

Law of Georgia No. 2946 of 12 December 2014 – website, 24.12.2014.

Article 46¹. Public Decision🔗

1. The Minister of Finance of Georgia is entitled, on the basis of a decision of the dispute review body or an analysis by the tax authority of the existing practice of taxation of taxpayers, to issue a public decision on the application of a norm of the tax legislation of Georgia.

2. A document shall be considered a public decision if it states that it is a public decision.

3. A public decision (including a decision on amending or repealing a public decision) shall be published on the official website of the Legislative Herald of Georgia.

4. A public decision shall enter into force from the date specified therein and shall be valid indefinitely or for the period specified therein. The application of this decision shall be mandatory for the tax authority from the date of its entry into force.

5. A public decision shall not apply if the norm of the tax legislation of Georgia, on the application of which this decision was issued, has been amended or repealed.

6. The Minister of Finance of Georgia is entitled to declare a public decision invalid in whole or in part or to amend it.

7. If a person acts in accordance with a public decision, it shall be inadmissible for a controlling/law enforcement body to adopt a decision contrary to this decision and to assess additional tax/sanction.

8. If two public decisions or a public and a preliminary decision contradict each other, the person is entitled to act in accordance with one of the decisions, at their discretion.

9. The procedure for issuing a public decision shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia No. 2946 of 12 December 2014 – website, 24.12.2014.

Article 47. Preliminary decision🔗

1. On the basis of an application by a person, the Revenue Service is entitled to issue a preliminary decision according to the operation to be carried out or carried out:

a) on the reporting rules and/or tax/customs obligations to be fulfilled provided for by this Code and the Customs Code of Georgia;

b) on the reporting rules and/or obligations to be fulfilled related to the fee the administration of which is carried out by the tax authority.

2. A preliminary decision shall be issued no later than 90 days after the submission of the request.

3. A preliminary decision shall apply only to the person in respect of whom it was issued. At the same time, the preliminary decision shall indicate the norm of the legislation of Georgia on the basis of which the decision was taken.

4. Different preliminary decisions may not be issued according to identical operations carried out by different persons.

5. If a person acts in accordance with a preliminary decision, the adoption by a controlling/law enforcement body of a decision contrary to the preliminary decision and the assessment of a tax and/or sanction shall be inadmissible.

6. A preliminary decision shall not be applied if:

a) the facts and circumstances indicated in the preliminary decision, which would have influenced the preliminary decision, do not correspond to those actually existing;

b) the norm of the legislation of Georgia on the basis of which the preliminary decision was taken has been repealed or amended.

7. A norm of the legislation of Georgia which aggravates the situation of a taxpayer and which has been given retroactive force may not influence operations carried out in accordance with a preliminary decision issued before the entry into force of the norm.

8. (Removed – 28.06.2019, No. 4906).

9. The information submitted by a person in a request for a preliminary decision shall be classified as a tax secret.

10. If a person does not agree with a preliminary decision of the tax authority, he/she has the right to appeal it in accordance with the procedure established by this Code.

11. A preliminary decision requires agreement with the Minister of Finance of Georgia.

12. On the basis of a person's request and in the case of the submission of additional or corrected information, the Revenue Service may make an amendment and addition to a preliminary decision issued by it, if the person has not used the preliminary decision issued before the making of the amendment and addition in respect of the operation according to which that decision was issued.

13. The procedure for issuing a preliminary decision shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 48. Tax authorities of Georgia🔗

1. The tax authorities of Georgia are the Revenue Service and the structural units within its composition as determined by the Minister of Finance of Georgia.

2. The Revenue Service is a Legal Entity of Public Law within the sphere of governance of the Ministry of Finance of Georgia, exercising state control, which exercises its authority throughout the entire territory of Georgia and which may have one or several places of location.

3. Tax control in Georgia shall be exercised by the tax authorities of Georgia, except where such authority is conferred on another body by this Code.

Law of Georgia of 20 May 2011 No. 4705 – website, 01.06.2011.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Article 49. Rights of Tax Authorities🔗

1. Subject to the provisions of this Code, tax authorities, within the scope of their competence and in accordance with the procedure established by the legislation of Georgia, shall have the right to:

a) check financial documents related to the taxpayer’s economic activity, accounting books, accounts, cost estimates, financial resources, securities and other valuables, calculations, declarations, and other documents for the calculation and payment of taxes;

b) receive from the taxpayer and/or their representative documents related to the calculation and payment of taxes, as well as written and oral explanations on issues raised during a tax audit;

c) inspect production, warehouse, trade and other premises of enterprises, organizations and entrepreneurial natural persons, conduct tax monitoring, record goods inventories by inventory-taking, conduct observation using timekeeping or another method and determine the number of taxable objects, conduct a tax audit, ensure control over the taxpayer’s compliance with the rules for the use of control cash registers and, in the event of their violation, apply to the relevant persons the liability measures established by the legislation of Georgia;

d) summon the taxpayer to the tax authority (instead of them, their legal or authorized representative may appear, who has accounting documentation and/or information related to the taxation of the taxpayer);

e) independently determine the amount of the taxpayer’s tax obligation based on information available in the tax authority (including information on the taxpayer’s expenses) or by the comparison method – on the basis of an analysis of information on other similar taxpayers, if the taxpayer fails to submit the accounting documentation necessary for carrying out tax control or keeps accounting in violation of the established procedure, as well as in other cases provided for by this Code;

f) apply a sanction against a taxpayer who has violated the tax legislation of Georgia;

g) for the purpose of collecting tax arrears, apply to the taxpayer the measures provided for by this Code;

h) in cases of violation of the tax legislation of Georgia, draw up protocols on administrative offences against offenders and adopt resolutions on the imposition of administrative penalties;

i) for the purpose of fully determining the taxable object, carry out a test purchase of goods/services from the taxpayer;

j) for the purpose of tax administration, invite specialists or experts;

k) to receive, for official purposes, free of charge from state and municipal bodies, data, information, documents and other necessary information. Where necessary, the procedure for the exchange of information between state bodies shall be determined by a Resolution of the Government of Georgia;

l) to demand and receive a copy of the accounting documentation (where necessary – a copy certified by the taxpayer);

m) to install meters and/or take their readings, as well as to seal documents or other materials in accordance with the procedure established by this Code;

n) to receive, within the framework of the “Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)”, from a Georgian financial institution as defined by that agreement, the information provided for by the same agreement, and to transmit this information to the competent authority of the United States of America as defined by the said agreement.

2. Tax bodies shall also have the rights determined by this Code and other legislative acts.

3. On the basis of a contract concluded between a tax body and the National Bureau of Enforcement, for the purpose of ensuring the payment of tax arrears falling within the competence of the tax body under the tax legislation of Georgia, the National Bureau of Enforcement shall carry out the requesting of a list of property from the taxpayer, the description and valuation of the person's property, the drawing up of an act of seizure of property, sealing, the ensuring of the registration of the seizure of the taxpayer's property in the registering body, the drawing up of a protocol on a tax offence in the case determined by this Code, the applying to court in the name of the tax body, in the case of the implementation by the National Bureau of Enforcement of the procedures for the seizure of a person's property, with a request for the realisation of this property or its direct transfer into state ownership, and other necessary actions for the purpose determined by this paragraph.

4. On the basis of a contract concluded between a tax body and a legal entity in agreement with the Government of Georgia, certain types of taxpayer services falling within the competence of the tax body under the tax legislation of Georgia may be performed by this legal entity.

5. The consent of the Government of Georgia provided for by paragraph 4 of this article shall not be required if the contract is concluded between a tax body and the National Agency of Public Registry.

6. (Removed - 01.05.2015, No. 3581).

Law of Georgia of 22 February 2011 No. 4206 - website, 10.03.2011.

Law of Georgia of 20 May 2011 No. 4705 - website, 01.06.2011.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Law of Georgia of 28 October 2015 No. 4458 - website, 11.11.2015.

Law of Georgia No. 4906 of 28 June 2019 – website, 4 July 2019.

Law of Georgia No. 6942 of 15 July 2020 – website, 28 July 2020.

Article 49¹. General analytical procedures🔗

1. The tax authority is entitled to carry out general analytical procedures.

2. General analytical procedures imply the collection and analysis of information about a person and, on the basis of this analysis, the planning and optimisation of tax administration measures, including the collection and analysis of information on an object subject to taxation, as well as the study of the causes of the occurrence of tax arrears and overpayments.

Law of Georgia No. 6817 of 14 July 2020 – website, 22 July 2020.

Article 50. Personal tax adviser🔗

1. When exercising the rights established by this Code and fulfilling the obligations imposed, for the purpose of facilitating relations with the tax authority, a taxpayer is entitled to use the services of a personal tax adviser.

2. A personal tax adviser is an employee of the tax authority who provides a taxpayer with the service determined by an order of the Minister of Finance of Georgia. The service of a personal tax adviser does not involve determining the monetary amount of a taxpayer's tax obligation.

3. The types of service to be provided by a personal tax adviser to a taxpayer, and the rules and conditions for using the service, shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 6211 of 15 May 2012 – website, 29 May 2012.

Law of Georgia No. 6817 of 14 July 2020 – website, 22 July 2020.

Article 51. Obligations of tax authorities🔗

1. Tax authorities shall, within the scope of their competence:

a) observe the tax legislation of Georgia, act in accordance with the requirements of this Code and other acts of the tax legislation of Georgia, and participate in the implementation of the state tax policy;

b) protect the rights of taxpayers and the interests of the State;

c) monitor the correctness and completeness of the calculation of taxes and their timely payment, conduct tax audits in the manner established by this Code, and, during such audits, inform the taxpayer of his/her rights and obligations;

d) ensure timely registration of taxpayers;

e) keep records of accrued taxes and taxes paid into budgets and prepare reports on paid taxes;

f) refund to the taxpayer the overpaid amount in the manner established by this Code;

g) protect the confidentiality of information about the taxpayer and the rules for storing information in accordance with this Code;

h) develop forms of declarations and other documents related to the calculation and payment of taxes and ensure the provision of information to the taxpayer;

i) study, analyse and assess the facts of violation of the tax legislation of Georgia and outline appropriate measures to eliminate the causes and conditions giving rise to tax offences;

j) identify natural and legal persons who evade payment of taxes, and prevent tax offences, conduct cases of tax offences and apply liability measures in the manner established by this Code;

k) maintain the state register of models of control-cash registers permitted for cash settlements with customers, register control-cash registers, and monitor compliance with the rules for the use of control-cash registers;

l) receive applications, notifications and other information on facts of violation of the tax legislation of Georgia and verify them in the manner established by law;

m) consider, in the established manner, letters, complaints and inquiries of the taxpayer and, where necessary, provide him/her free of charge with information on the taxes in force, the procedure for their calculation and payment, as well as on the rights and obligations of the taxpayer;

n) conduct explanatory work in connection with the application of the tax legislation of Georgia, issue methodological instructions, manuals and brochures, and publish consultations and explanations in the mass media;

o) conduct administrative proceedings on administrative offences in the manner established by the Code of Administrative Offences of Georgia;

p) transfer (send) to the taxpayer or his representative, in the manner provided for by this Code and other acts of the tax legislation of Georgia and within the established time limits, tax inspection reports, as well as other decisions and notifications of tax authorities;

q) present a tax demand to the taxpayer, and in the event of its non-fulfilment or improper fulfilment, take measures to ensure its fulfilment in the manner established by this Code;

r) immediately confirm the receipt of letters and other documents provided for by this Code directly transferred by the taxpayer;

s) ensure, in accordance with this Code, the tax registration (maintenance of the register) of taxpayers and the assignment of an identification number to them (except for persons subject to registration in the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities and the register of political unions of citizens (parties)).

2. The tax authority shall be obliged, no later than 10 calendar days from the receipt of the taxpayer's demand, to hand over to him an extract on the changes in his tax obligations and the state of their fulfilment during the period indicated in the demand.

3. Tax authorities shall also bear the obligations provided for by this Code and other legislative acts.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 27 May 2016 No. 5144 – website, 04.06.2016.

Article 52. Delegation of powers🔗

The head of the tax authority may grant a specific power to any employee. The said person shall be prohibited from transferring the power delegated to him to another person.

Article 53. Tax obligation and its performance🔗

1. A tax obligation shall be deemed the obligation of a person to pay a tax imposed by this Code, as well as a tax imposed by this Code and introduced by a representative body of a municipality.

2. A person shall bear a tax obligation from the moment of the occurrence of those circumstances established by the tax legislation of Georgia which provide for the payment of a tax.

3. The performance of a tax obligation shall be deemed the payment of the tax amount within the established time limit.

4. A tax obligation shall be performed directly by the taxpayer, unless otherwise provided by the legislation of Georgia. The tax obligation of a taxpayer may be performed by another person in accordance with the procedure established by the National Bank of Georgia.

5. In the cases provided for by this Code, it shall be permissible to change the procedure and/or the time limit for the performance of a tax obligation.

6. The day of payment of a tax shall be deemed the day on which the tax amount is credited to the relevant budget account, unless otherwise provided by the tax legislation of Georgia.

7. (repealed – 01.05.2015, No. 3581).

8. In accordance with the Law of Georgia “on Oil and Gas”, on the basis of a petition of the parties participating in a production sharing agreement, by decision of the Minister of Finance of Georgia, the performance of tax obligations may be imposed on the party that receives profit from the State's share of oil and gas.

9. In respect of import duty, a tax obligation shall be considered performed in the cases provided for by subparagraphs „a“–„d“ of paragraph 2 of Article 62 of the Customs Code of Georgia.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Article 54. Obligation of a banking institution in relation to the fulfilment of a taxpayer's tax obligation🔗

1. A banking institution shall, first of all, execute the taxpayer's payment order for the payment of tax and the tax authority's collection order for the debiting of the tax amount from the bank account, in the following sequence:

a) the tax authority's collection order;

b) the taxpayer's payment order.

1¹. The obligation of a banking institution provided for by paragraph 1 of this Article does not restrict a person's right, before the collection order is fully executed or after its partial execution, to dispose of the funds exceeding the uncollected amount of the collection order.

2. Where funds are available in a person's bank account, the banking institution shall execute the payment or collection order not later than the next operating day following the day of receipt of the said order, unless otherwise provided by this Code. The costs of servicing the collection order shall be borne by the taxpayer.

3. If the funds available in a person's bank account are insufficient for the execution of the payment or collection order, they shall be executed not later than the next operating day after the funds are credited to that account.

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012

Law of Georgia No. 2626 of 22 February 2023 – website, 10.03.2023

Article 55. Fulfilment of a tax obligation upon the liquidation of an enterprise/organisation (including where the commencement of the dissolution process is registered)🔗

1. Upon the liquidation of an enterprise/organisation (including where the commencement of the dissolution process is registered), the requirements/obligations provided for by the tax legislation of Georgia shall be fulfilled and the tax arrears shall be paid by that enterprise/organisation, unless otherwise provided by this Article.

2. Upon the liquidation/termination of activity (deregistration for tax accounting purposes) of an enterprise provided for by subparagraph „c“ of paragraph 1 of Article 21 of this Code, the fulfilment of the tax obligation and the payment of the tax arrears shall be effected jointly and severally by the partners/participants of the said enterprise.

3. Upon the liquidation of an enterprise/organisation (including where the commencement of the dissolution process is registered), the tax authority shall return the overpaid amount to the said enterprise/organisation in accordance with the procedure established by this Code.

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023

Article 56. Fulfillment of Tax Liability upon Reorganization of an Enterprise/Organization🔗

1. The tax liability of a reorganized enterprise/organization shall be fulfilled and the tax arrears shall be paid by its legal successor in the manner established by this Code.

2. Upon merger of several enterprises/organizations, the enterprise/organization created as a result of the merger shall be considered the legal successor for the fulfillment of the tax liability of each of them.

3. Upon accession of one enterprise/organization to another enterprise/organization, the enterprise/organization to which the acceding enterprise/organization has acceded shall be considered the legal successor for the fulfillment of the tax liability/arrears of the acceding enterprise/organization.

4. Upon division of an enterprise/organization into several enterprises/organizations, the enterprises/organizations created as a result of the division shall be considered legal successors for the fulfillment of the tax liability/arrears of the original enterprise/organization.

5. If there are several legal successors, the share of each of them in the fulfillment of the tax liability/arrears of the reorganized enterprise/organization shall be determined by the separation balance sheet or another transfer act. The newly created enterprises/organizations shall bear joint and several liability for the fulfillment of the tax liability/arrears of the reorganized enterprise/organization or its corresponding part.

6. Upon change of the organizational-legal form of an enterprise/organization, the enterprise/organization created as a result of such reorganization shall be considered the legal successor for the fulfillment of its tax liability/arrears.

7. Upon separation of one or several enterprises/organizations from the composition of an enterprise/organization, paragraphs 4 and 5 of this article shall apply to the separated enterprise(s)/organization(s).

8. The amount overpaid before the reorganization of the enterprise/organization shall be offset by the tax authority against the future tax liabilities of the legal successor of this enterprise/organization or of the reorganized enterprise/organization in proportion to the total amount, or shall be returned to the legal successor(s) (in accordance with the share of each of them) in the manner established by this Code.

Article 57. Fulfilment of the tax obligation of a deceased person🔗

1. Payment of the tax debt of a deceased person shall be borne by his/her heir in proportion to his/her share in the estate property, from the day of receipt of the inheritance certificate.

2. The tax debt of a deceased person is the tax debt existing as of the date of his/her death.

3. The heir of a deceased person shall be obliged to notify the tax authority of the receipt of the inheritance certificate, if he/she is aware of the tax debt of the deceased person.

4. The tax authority shall be obliged, no later than 30 days from the day when it became aware of the receipt of the inheritance certificate by that person, to send him/her a notification on the tax debt.

5. The tax debt of a deceased person shall be written off if:

a) the deceased person has no heir;

b) the heir has renounced the inheritance;

c) the amount of the tax debt of the deceased person exceeds the value of the inherited property − by the amount of the remaining tax debt.

6. An heir who continues the economic activity of the deceased natural person shall be obliged to:

a) notify the tax authority thereof;

b) register as a taxpayer before commencing the economic activity, and if the deceased person was a value added tax payer − as a value added tax payer;

c) pay the tax debt of the deceased person;

d) fulfil other obligations of a taxpayer provided for by this Code.

7. An heir who continues the economic activity of the deceased person shall have the right to:

a) request the refund of the amount of tax and/or sanction (including customs sanction) overpaid by the deceased person or its offset against future tax;

b) use the primary tax documents of the deceased person in tax reporting;

c) submit tax declarations (including amended ones) for the period of the deceased person's activity;

d) in the cases provided for by this Code, use the relevant documents of the deceased person to confirm expenses deductible from joint income and to obtain offset of excise/value added tax;

e) continue the tax dispute initiated by the deceased person;

f) enjoy other rights of a taxpayer provided for by this Code.

8. The tax authority shall be obliged to merge the personal accounting cards of the deceased person and his/her heir, if the heir continues the economic activity of the deceased person.

9. In the case of a request by the heir for the refund of the amount of tax and/or sanction (including customs sanction) overpaid by the deceased person or its offset against future tax, the tax authority, no later than 3 months from the submission of the taxpayer's request:

a) shall be obliged to reflect the amount of tax and/or sanction (including customs sanction) overpaid by the deceased person on the heir's personal accounting card;

b) is entitled to determine the compliance with the legislation of Georgia of the amount of overpaid tax and/or sanction on the person's personal accounting card, including by conducting a tax audit;

c) is entitled, in the event of detection of unfulfilled tax obligations of a deceased person, to effect the accrual of the relevant tax:

c.a) on the personal accounting card of the heir, if the heir continues the economic activity of the deceased person;

c.b) on the personal accounting card of the heir, within the amount of the overpaid tax and/or sanction available, if the heir does not continue the economic activity of the deceased person;

d) is obliged, after carrying out the procedures provided for by subparagraphs „a“−„c“ of this paragraph, to return to the heir of the deceased person, or to credit towards future tax, in accordance with the procedure established by the tax legislation of Georgia, the amount of overpaid tax and/or sanction of the deceased person.

10. In the case provided for by subparagraph „c“ of paragraph 9 of this Article, the sanctions (including customs sanction) determined by this Code shall not be applied to the heir.

Law of Georgia No. 6446 of 12 June 2012 – website, 25.06.2012

Law of Georgia No. 1886 of 26 December 2013 – website, 30.12.2013

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019

Article 58. Performance of the tax obligation of a missing person and a support recipient🔗

1. The tax debt of a person declared missing by a court shall be paid by the person who is authorized by the guardianship and curatorship authority to manage the property of the missing person within 3 months from his/her declaration as missing, at the expense of the property of the missing person.

2. The tax authority shall be obliged to send a notification to the person who is authorized by the guardianship and curatorship authority to manage the property of the missing person that, instead of the missing person, he/she shall pay the tax debt in accordance with the established procedure.

3. The tax obligation of a support recipient shall be performed by his/her support person at the expense of the support recipient's property, unless otherwise determined by a court judgment. The tax debt of a support recipient shall be paid by his/her support person at the expense of the support recipient's property, unless otherwise determined by a court judgment.

4. The tax debt of a person declared missing by a court or recognized as a support recipient shall be considered an uncollectible tax debt and written off, if his/her property is insufficient to cover the tax debt and, in respect of the support recipient, no other determination is made by a court judgment.

5. From the day of adoption of a court judgment on revocation of the declaration of a person as missing or recognition as a support recipient, the written-off tax debt shall be restored.

6. The tax debt of a missing person or a support recipient is the tax debt existing as of the date of his/her declaration as missing or recognition as a support recipient by a court.

Law of Georgia of 20 March 2015 No. 3349 - website, 31 March 2015.

Article 59. Tax period🔗

1. A tax period is the period of time by which a person’s tax obligation is determined in respect of a specific tax.

2. If an enterprise/organization was founded (passed state registration) after the beginning of a calendar year and before 1 December of that year, its first tax period is the period from the day of its founding (registration) until the end of that year. At the same time, the day of conclusion of a contract on joint activity shall be considered the day of founding of the enterprise provided for by subparagraph „c“ of the first paragraph of Article 21 of this Code.

3. If an enterprise/organization was founded from 1 December to 31 December inclusive, its first tax period is the period from the day of founding until the end of the following year, unless otherwise provided by this Article.

4. If liquidation/reorganization of an enterprise/organization was carried out before the end of the calendar year, its last tax period is the period from the beginning of that year until the day of completion of its liquidation/reorganization.

5. If an enterprise/organization was founded after 30 November of the year preceding the year of its liquidation/reorganization, its first and last tax periods are the period from the day of founding until the day of completion of liquidation/reorganization.

6. The rules provided for by paragraphs 4 and 5 of this Article shall not apply to those enterprises/organizations from which one or several enterprises/organizations were separated or to which one or several enterprises/organizations were merged.

7. If during a tax period a Georgian enterprise/organization acquires the status of a foreign enterprise or, vice versa, a foreign enterprise acquires the status of a Georgian enterprise, the tax period is divided into two parts: in the first part, the enterprise/organization is a taxpayer in accordance with its initial status, and in the second part, in accordance with the acquired status.

7¹. (Removed – 26.12.2013, No. 1886).

8. The rules provided for by paragraphs 2–4 of this Article shall not apply to a tax whose tax period is not a calendar year.

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Article 60. Tax benefit🔗

1. Exemption from a national or local tax provided for by this Code may be granted only by introducing amendments and additions to this Code.

2. A tax benefit shall be considered an advantage granted to a separate category of taxpayers compared to other taxpayers, in particular, the possibility to pay tax in a smaller amount or to be exempted from payment of tax.

3. A tax benefit for payment of a local tax shall be established by introducing an amendment to the respective normative act.

4. It is prohibited to establish a tax benefit of an individual nature and to exempt a particular person from a tax.

5. A taxpayer shall have the right to enjoy a tax benefit from the moment the respective legal ground arises throughout the entire period of its validity.

Article 61. Assessment of tax🔗

1. Assessment of tax implies the recording and reflection by the tax authority of the amount of tax for a specific tax period on the taxpayer's personal accounting card, the procedure for maintaining which is determined by the Minister of Finance of Georgia.

2. The grounds for assessment of tax are:

a) tax declaration/customs declaration;

a¹) (removed - 01.05.2015, No. 3581);

b) information on amounts paid in accordance with Article 154 of this Code;

c) tax audit act;

d) information provided to the tax authority by other controlling or law enforcement bodies on a person's tax obligation;

e) information (data) provided to the tax authority by the National Agency of Public Registry, another registering body, as well as a municipal body, for the purposes of assessing property tax on land;

f) information on VAT taxation of the sale of goods in the case provided for by Article 161¹ of this Code;

g) information revealed in the proceedings of a tax/customs offence case.

3. The tax authority is entitled to assess tax to a person on the basis of the information at its disposal, if the person does not submit to it the information necessary for the assessment of tax.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 62. Time limit for payment of tax🔗

1. The time limit for payment of tax, as well as of current tax payments, is established for each tax.

2. If the time limit for payment of tax is not determined by this Code, its payment shall be made within the time limit established for submitting the declaration, and in other cases – within 30 days from receipt of the tax claim.

3. Import tax payable on the basis of a customs declaration shall be paid within the time limit established for payment of import tax in accordance with the Customs Code of Georgia.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 63. Return of the overpaid amount🔗

1. If the amount of taxes and/or sanctions (including customs sanction) paid by the taxpayer exceeds the amount of assessed taxes and/or sanctions (including customs sanction), the tax authority shall, on the basis of the taxpayer's request, return the overpaid amount to the taxpayer no later than 1 month from the submission of this request.

2. If the amount of taxes and/or sanctions (including customs sanction) paid by the taxpayer exceeds the amount of the recognised tax debt, the tax authority shall apply the overpaid amount to cover subsequently assessed and recognised tax debt.

3. (Removed - 01.05.2015, No. 3581).

4. (Removed - 01.05.2015, No. 3581).

5. (Removed - 14.07.2020, No. 6817).

5.1 (Removed - 12.06.2012, No. 6446).

6. (Removed - 14.07.2020, No. 6817).

7. The overpaid amount that arose as a result of the incorrect debiting, by the tax authority's collection order, from the taxpayer's bank account of the amount of tax and/or tax sanction (including customs sanction), including as a result of the simultaneous execution of the tax authority's collection order by two or more banking institutions, shall be returned to the taxpayer no later than 15 days from the submission of an application to the tax authority.

8. The procedure for the return to the taxpayer of the amount overpaid by him/her shall be established by the Minister of Finance of Georgia.

9. In an individual case, in respect of a taxpayer who carries out electronic declaration, an automatic return of the overpaid tax amount may be effected. The procedure and conditions for the automatic return of the overpaid tax amount shall be determined by the Minister of Finance of Georgia.

10. In individual cases, by decision of the Head of the Revenue Service, the overpaid amount of tax and/or sanction (including customs sanction) may be returned to the taxpayer without the submission of a request by the taxpayer. The cases, procedure and conditions for the return of the overpaid amount of tax and/or sanction (including customs sanction) without the submission of a request by the taxpayer shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 4754 of 14 June 2011 - website, 28.06.2011.

Law of Georgia No. 4963 of 24 June 2011 - website, 30.06.2011.

Law of Georgia No. 5202 of 8 November 2011 - website, 22.11.2011.

Law of Georgia No. 5791 of 13 March 2012 – website, 23.03.2012.

Law of Georgia No. 6446 of 12 June 2012 – website, 25.06.2012.

Law of Georgia No. 3581 of 1 May 2015 - website, 15.05.2015.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 64. Tax claim🔗

1. A tax claim is an individual administrative-legal act of the tax authority, the fulfilment of which is mandatory in accordance with the procedure established by this Code.

2. The tax authority shall be obliged to submit a tax claim to a person if there exists one of the following grounds for its submission:

a) assessment of tax, the calculation of which is the obligation of the tax authority;

b) a decision of the tax authority on the assessment of tax and/or imposition of a sanction, or a protocol of a tax offence;

c) a decision on the transfer of collection to a third person in accordance with paragraph 1 of Article 240 of this Code;

d) a decision of the customs authority on the assessment of import duty to a person and/or imposition of a customs sanction, or a protocol of a customs offence.

3. (Removed - 05.04.2023, No. 2768).

4. A tax claim shall be considered fulfilled from the moment of payment by the person of the amount indicated in the tax claim.

5. The procedure for issuing a tax claim shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 20 May 2011 No. 4705 - website, 01.06.2011.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 65. Claim of the taxpayer🔗

1. A claim of the taxpayer is a claim submitted by a person to the tax authority for the return of the overpaid amount of taxes and/or sanctions (including customs sanction), the fulfilment of which is mandatory for the tax authority in the cases provided for by this Code and in accordance with the established procedure.

2. The ground for submitting a claim of the taxpayer is the overpaid amount of taxes and/or sanctions (including customs sanction).

3. A claim of the taxpayer shall be considered fulfilled from the moment of payment of the claimed amount.

4. If the tax authority considers that the claim of the taxpayer is unfounded, it shall be obliged, within 20 days from receipt of the claim, to submit to the taxpayer a reasoned objection.

5. A person has the right to appeal the objection of the tax authority in accordance with the procedure established by this Code.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 66. Registration as a taxpayer🔗

1. A natural person who is a citizen of Georgia, a person holding a neutral identity card or a neutral travel document, as well as persons lawfully residing in the Autonomous Republic of Abkhazia and the Tskhinvali region (former South Ossetian Autonomous Oblast), who are registered in accordance with the procedure established by the legislation of Georgia and who have been assigned a personal number, except for a person whose income is taxed at source or is exempt from taxation, shall be obliged, before commencing economic activity, to apply to the tax authority with an application for the purpose of assigning identification numbers to them.

2. Tax registration (accounting) of taxpayers shall be carried out by tax authorities in accordance with the procedure established by the Minister of Finance of Georgia. This procedure shall not apply to persons whose registration, in accordance with the legislation of Georgia, is carried out by a Legal Entity of Public Law operating in the governance sphere of the Ministry of Justice of Georgia – the National Agency of Public Registry (hereinafter – the National Agency of Public Registry). The procedure and conditions for assigning an identification number to these persons shall be determined by an order of the Minister of Justice of Georgia.

3. The tax registration and assignment of an identification number to a branch of a foreign enterprise that is subject to registration in the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities shall be carried out by the National Agency of Public Registry together with the registration of this branch. At the same time, if the said foreign enterprise was registered for tax purposes before the registration of the branch and had been assigned an identification number by the tax authority, or if two or more branches were registered, the identification number assigned initially shall remain unchanged.

4. A citizen of Georgia who is a natural person, a person holding a neutral identity card or a neutral travel document, as well as persons lawfully residing in the Autonomous Republic of Abkhazia and the Tskhinvali region (former South Ossetian Autonomous Oblast), who are registered in accordance with the procedure established by the legislation of Georgia and who have been assigned a personal number (except for an individual entrepreneur), are entitled, upon the occurrence of an obligation to pay and/or declare tax in Georgia, without undergoing tax registration procedures with the tax authority, to indicate the personal number specified in the citizen's identity card, the neutral identity card or the neutral travel document, as well as the number assigned at the time of registration (identification number), when declaring incurred tax, including customs, obligations and when paying tax at a banking institution. The tax registration of a citizen of Georgia who is a natural person, of a person holding a neutral identity card or a neutral travel document, as well as of persons lawfully residing in the Autonomous Republic of Abkhazia and the Tskhinvali region (former South Ossetian Autonomous Oblast), who are registered in accordance with the procedure established by the legislation of Georgia and who have been assigned a personal number, shall be carried out on the basis of the data of their tax declarations, customs declarations/re-export declarations and/or payment orders confirming the payment of tax submitted to a banking institution.

5. A citizen of Georgia who is a natural person (including an individual entrepreneur) shall be assigned as an identification number the personal number specified in the identity card of the same person; a person holding a neutral identity card or a neutral travel document shall be assigned the personal number specified in the same card/document; and a person lawfully residing in the Autonomous Republic of Abkhazia or the Tskhinvali region (former South Ossetian Autonomous Oblast) shall be assigned the personal number assigned at the time of registration.

6. The identification number of a natural person who does not hold Georgian citizenship is the 9-digit identification number assigned by the body determined by the legislation of Georgia.

7. The identification number is permanent and its change or duplication is prohibited, unless otherwise provided by the legislation of Georgia.

8. The tax registration (accounting) of an enterprise/organisation, an entrepreneurial entity and a non-entrepreneurial (non-commercial) legal entity shall be carried out according to the legal address (location), and that of a natural person – according to the place of residence/activity declared by him/her.

9. A taxpayer shall be obliged to indicate the taxpayer's identification number in the tax declaration, in correspondence with the tax authority and in other documents established by the tax legislation of Georgia.

10. The tax authority shall, upon detection of a tax offence provided for by Article 273 of this Code, ensure the tax registration (accounting) of the person in the manner established by the Minister of Finance of Georgia.

Law of Georgia of 1 July 2011 No. 4998 – website, 15.07.2011.

Law of Georgia of 27 May 2016 No. 5144 – website, 04.06.2016.

Law of Georgia of 6 June 2018 No. 2476 – website, 21.06.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 66¹. Presumptive assessment🔗

1. The tax authority is entitled, without a tax audit, to carry out a presumptive assessment on the basis of the information at its disposal, if:

a) there is a reasoned presumption that an unjustified reduction of the tax amount was made on the taxpayer's personal accounting card. In this case, the presumptive assessment may be carried out only in the amount of the reduced tax;

b) the taxpayer has not fulfilled the obligation to submit a declaration/calculation within the time limit established by the tax legislation of Georgia.

2. A presumptive assessment may be cancelled by a corrective assessment.

3. The rule for presumptive and corrective assessment is determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 67. Tax declaration🔗

1. A tax declaration is a person's report on the calculation of tax established by this Code.

2. In a tax declaration, the calculation of the total tax liability amount shall be made in whole GEL. For this purpose, a tax liability of up to 1 GEL shall be zeroed.

3. A person has the right to submit a tax declaration in person to the tax authority, as well as to send it by insured mail or in electronic form.

4. Except for cases determined by the Minister of Finance of Georgia, if a person does not submit a tax declaration, it shall be considered that he/she has submitted a declaration on the basis of which the amount of tax payable is equal to zero. A tax declaration submitted subsequently for this reporting period shall be considered as submitted late.

5. The forms of the tax declaration, the rules for filling it in and electronic declaration shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 68. Extension of the deadline for submitting a tax declaration🔗

The deadline for submitting the tax declaration of annual income, profit or property tax shall be extended by 3 months, if the person has paid the current payments payable for the declared period (or has no obligation to pay current payments) and, before the expiry of the deadline for submitting the tax declaration, applies in writing to the tax authority for the extension of the deadline. Extension of the deadline for submitting the tax declaration does not change the deadline for payment of the tax.

Article 69. Introduction of an amendment and/or addition to a tax declaration🔗

1. If a person discovers an error in a submitted tax declaration which results in a change of the tax obligation, he/she shall be obliged to introduce the corresponding amendment and/or addition into the tax declaration.

2. An amended tax declaration shall be considered as initially submitted if it is submitted to the tax authority before the expiry of the deadline for submission of that tax declaration.

3. For the period or matter in respect of which the tax authority has already conducted a tax audit or assessment, in the event of submission by a person of a tax declaration (including an amended tax declaration), the tax authority shall be entitled to carry out accounting according to that tax declaration (including an amended tax declaration). The authorized person of the tax authority shall issue a reasoned order on the foregoing.

4. For the period or matter in respect of which a tax audit is being conducted or is to be conducted, submission by a person of a tax declaration (including an amended tax declaration) shall be inadmissible during the period from the delivery of the relevant judgment/notification of the court/tax authority on the conduct of the tax audit, or from the electronic posting of that judgment/notification on the authorized user's page of the taxpayer, or from the drawing up of the protocol of the tax offence, until the delivery to that person of the relevant tax claim.

5. The restriction established by paragraph 4 of this Article shall not apply if the notification of the tax authority is considered invalid in accordance with paragraph 3 of Article 264 of this Code.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Article 70. Right to request information🔗

1. The tax authority shall have the right to require a person to:

a) submit its accounting documentation and/or information related to its taxation (including information requested by the competent (authorised) authority of another state on the basis of an international treaty of Georgia);

b) submit a list of its property.

2. In the case provided for by this Code, the authorised person of the National Bureau of Enforcement shall have the right to exercise the authority provided for by subparagraph "b" of paragraph 1 of this Article.

3. The tax authority shall be authorised, during a tax audit of a taxpayer, within the scope of that audit or on the basis of an application by the competent (authorised) authority of another state in accordance with an international treaty of Georgia, to request from a banking institution confidential information provided for by Article 17 of the Law of Georgia "On the Activities of Commercial Banks" or Article 24 of the Law of Georgia "On the Activities of Microbanks" concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the cases provided for by paragraph 3¹ of this Article and paragraphs 1 and 3 of Article 70² of this Code.

3¹. The tax authority shall be authorised, from a financial institution of Georgia defined by the "Agreement between the Government of the United States of America and the Government of Georgia to Improve International Tax Compliance and to Implement the Foreign Account Tax Compliance Act (FATCA)", within the scope of this Agreement, to request the information provided for by the same Agreement and to transmit this information to the competent authority of the United States of America defined by the said Agreement.

3². The tax authority shall be authorised, during a tax audit of a taxpayer, within the scope of that audit or on the basis of an application by the competent (authorised) authority of another state in accordance with an international treaty of Georgia, to request from a payment service provider confidential information provided for by Article 43 of the Law of Georgia "On Payment Systems and Payment Services" concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the cases provided for by paragraph 3¹ of this Article and paragraphs 1 and 3 of Article 70² of this Code.

3³. The tax authority shall be entitled, during a tax audit of a taxpayer, within the scope of that audit or, in accordance with an international treaty of Georgia, on the basis of a request by a competent (authorised) body of another state, to request from a brokerage company, a licensed central depositary, a securities registrar confidential information provided for by paragraph 2 of Article 32 of the Law of Georgia “On the Securities Market” concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the cases provided for by paragraph 3¹ of this Article and paragraphs 1 and 3 of Article 70² of this Code.

3⁴. The tax authority shall be entitled, during a tax audit of a taxpayer, within the scope of that audit or, in accordance with an international treaty of Georgia, on the basis of a request by a competent (authorised) body of another state, to request from an asset management company, an investment company confidential information provided for by paragraph 5 of Article 12 of the Law of Georgia “On Investment Funds” concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the cases provided for by paragraph 3¹ of this Article and paragraphs 1 and 3 of Article 70² of this Code.

3⁵. The tax authority shall be entitled, during a tax audit of a taxpayer, within the scope of that audit or, in accordance with an international treaty of Georgia, on the basis of a request by a competent (authorised) body of another state, to request from a microfinance organisation confidential information provided for by Article 10 of the Law of Georgia “On Microfinance Organisations” concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the cases provided for by paragraph 3¹ of this Article and paragraphs 1 and 3 of Article 70² of this Code.

3⁶. The tax authority shall be entitled, during a tax audit of a taxpayer (within the scope of that audit) or, in accordance with an international treaty of Georgia, on the basis of a request by a competent (authorised) body of another state, to request from a lending entity and a currency exchange point confidential information provided for by Articles 50² and 52² of the Organic Law of Georgia “On the National Bank of Georgia” concerning a person. The tax authority shall request this information on the basis of a court judgment, in the manner established by the Administrative Procedure Code of Georgia, except for the case provided for by paragraph 3¹ of this Article.

[ 3⁷. The tax authority is entitled, during a tax audit of a taxpayer (within the scope of that audit) or on the basis of a request by the competent (authorised) authority of another state in accordance with an international treaty of Georgia, to request from a factoring company and a factoring platform the confidential information provided for by Article 52⁸ of the Organic Law of Georgia on the National Bank of Georgia concerning a person. The tax authority shall request this information on the basis of a court judgment, in accordance with the procedure established by the Administrative Procedure Code of Georgia, except for the case provided for by paragraph 3¹ of this Article. (shall enter into force from 1 January 2027)]

4. The tax authority shall not be entitled to transfer the information provided for by paragraphs 3 and 32−3⁶ of this Article to the persons defined by paragraph 2 of Article 39 of this Code, except for the case where the information is transferred to the competent (authorised) authority of another state on the basis of an international treaty of Georgia.

[ 4. The tax authority shall not be entitled to transfer the information provided for by paragraphs 3 and 3² −3⁷ of this Article to the persons defined by paragraph 2 of Article 39 of this Code, except for the case where the information is transferred to the competent (authorised) authority of another state on the basis of an international treaty of Georgia. (shall enter into force from 1 January 2027)]

5. A person shall be obliged to submit the requested information to the tax authority/National Enforcement Bureau within the specified period, correctly and in full. A person whose property has been seized by the tax authority shall be obliged, in the event of acquisition of new property, to correct the list of property submitted by them no later than 7 working days from the acquisition of that property.

Law of Georgia of 22 February 2011 No. 4206- website, 10.03.2011.

Law of Georgia of 12 December 2014 No. 2946 - website, 24.12.2014.

Law of Georgia of 28 October 2015 No. 4458 - website, 11.11.2015.

Law of Georgia of 9 September 2022 No. 1808 – website, 23.09.2022.

Law of Georgia of 30 November 2022 No. 2138 – website, 15.12.2022.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Law of Georgia of 1 April 2026 No. 1456 – website, 06.04.2026.

Article 70¹. Reporting of multinational enterprise groups🔗

1. The ultimate parent enterprise of a multinational enterprise group that is a resident of Georgia shall be obliged to submit to the tax authority a country-by-country report no later than 12 calendar months after the end of the reporting year.

2. A constituent enterprise of a multinational enterprise group that is a resident of Georgia, which is the ultimate parent or a surrogate parent entity, shall be obliged to notify the tax authority thereof by the end of the reporting year.

3. For the purposes of this article:

a) A multinational enterprise group is any group that:

a.a) contains two or more enterprises that are tax residents of different countries/jurisdictions, or contains an enterprise that is a resident of one country for tax purposes and is subject to taxation in another country/jurisdiction in respect of economic activity carried out through its permanent establishment;

a.b) does not constitute an excluded multinational enterprise group;

b) Excluded multinational enterprise group − with respect to any fiscal year of the group, a group whose total consolidated group revenue is less than EUR 750 million during the fiscal year immediately preceding the reporting fiscal year, as reflected in its consolidated financial statement for that preceding financial year;

c) Ultimate parent enterprise − a constituent enterprise of a multinational enterprise group that meets the following criteria:

c.a) directly or indirectly holds a sufficient number of shares in one or more constituent enterprises of such multinational enterprise group, such that it is required to prepare consolidated financial statements in accordance with generally applicable accounting principles in the country/jurisdiction of which it is a tax resident, or would be required to prepare them if its shares were traded on a public securities exchange;

c.b) there is no other constituent enterprise of such multinational enterprise group that directly or indirectly holds the shares provided for by subparagraph "c.a" of this paragraph in the said constituent enterprise;

d) Surrogate parent entity − a constituent entity of a multinational enterprise group that, in the country/jurisdiction of which it is a resident, has been designated by this multinational enterprise group as the sole substitute for the ultimate parent entity for the submission of the country-by-country report, when the conditions provided for by the Order of the Minister of Finance of Georgia are met;

e) The following shall be considered a constituent enterprise:

e.a) any separate economic unit of a multinational enterprise group that is included in the consolidated financial statements of the multinational enterprise group for financial reporting purposes, or would be included therein if the shares of such economic unit of the multinational enterprise group were traded on a public securities exchange;

e.b) any separate economic unit that is not included in the consolidated financial statements of a multinational enterprise group solely on the basis of size or materiality;

e.c) any permanent establishment of any separate economic unit of a multinational enterprise group provided for by subparagraphs „e.a“ and „e.b“, provided that the economic unit prepares a separate financial statement for such permanent establishment for the purposes of financial/tax reporting and internal management control.

4. The rule for submitting the report of a multinational enterprise group shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 70². Obligations provided for by the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA) within the framework of the Convention of 25 January 1988 on Mutual Administrative Assistance in Tax Matters, or by an agreement between Georgia and the relevant jurisdiction on the automatic exchange of information on financial accounts🔗

1. A Reporting Financial Institution defined by the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA) within the framework of the Convention of 25 January 1988 on Mutual Administrative Assistance in Tax Matters and/or by an agreement between Georgia and the relevant jurisdiction on the automatic exchange of information on financial accounts (hereinafter – the agreements on the automatic exchange of information) (hereinafter – Reporting Financial Institution) shall be obliged to carry out the appropriate procedures in accordance with the Common Reporting Standard provided for by the said agreements and to submit to the tax authority information on each financial account subject to reporting of a person resident in the relevant jurisdiction.

2. The information provided for by paragraph 1 of this Article shall be submitted to the tax authority after the end of the calendar year to which it relates, but not later than 30 June of the following calendar year.

3. The tax authority shall be entitled, for the purpose of clarifying the information received in accordance with paragraph 1 of this Article, to require the Reporting Financial Institution to submit additional information, for which it shall set it a reasonable time limit of not less than 15 calendar days.

4. The tax authority shall be entitled to transfer the received information to the competent authorities of those jurisdictions that are parties to the agreements on the automatic exchange of information with which the said agreements have entered into force.

5. The reporting rules provided for by the agreements on the automatic exchange of information shall be approved by the Minister of Finance of Georgia.

6. The tax authority shall be entitled, in accordance with the procedure established by the Minister of Finance of Georgia, to monitor the fulfilment by a Reporting Financial Institution of the requirements established by the agreements on the automatic exchange of information.

7. A transaction concluded or an act performed by a person in order to avoid the obligation established by the Common Reporting Standard provided for by the agreements on the automatic exchange of information shall not release that person from the fulfilment of the obligation defined by this Article.

Law of Georgia of 30 November 2022 No. 2138 – website, 15.12.2022.

Article 71. Obligations of a Banking Institution🔗

1. A banking institution shall be obliged to:

a) open a bank account for an entrepreneurial natural person and/or an enterprise/organization on the basis of data confirming the assignment of a taxpayer identification number, except for the case provided for by subparagraph „b“ of this paragraph;

b) upon the initial opening of a bank account for a foreign enterprise or upon the closing of the last account for this enterprise, notify the Revenue Service thereof within 3 working days (except for the case provided for by subparagraph „e“ of this paragraph) and, before the Revenue Service receives this information, not carry out debit transactions from the account of the foreign enterprise. In addition, it shall, on the basis of information provided by the foreign enterprise, submit to the Revenue Service information on the identification number of the foreign enterprise and/or the actual address of the permanent establishment (if such information exists or the person opening the account has submitted this information to the banking institution);

c) within 3 working days, notify the relevant tax authority of the initial opening of an account by it for the persons indicated in subparagraph „a“ of this paragraph or of the closing of the last account for them, and, within 2 working days from the receipt of this information by the tax authority, not carry out debit transactions from the account of the person indicated in subparagraph „a“ of this paragraph, except for the case where the debit transaction is related to the payment of a tax amount to the budget. If a contract has been concluded between the Revenue Service and the banking institution on the exchange of information (including a collection order) in electronic form, the time limits indicated in this subparagraph shall be determined in accordance with the terms of the contract, but not more than the time limits provided for by this subparagraph;

c¹) within 3 days from the establishment of the fact of existence of an individual entrepreneur as a natural person, notify the tax authority of the date of opening of the first of such person's active accounts or of the closing of the last account for such person. If a contract has been concluded between the Revenue Service and the banking institution on the exchange of information (including a collection order) in electronic form, the time limit indicated in this subparagraph shall be determined in accordance with the terms of the contract, but not more than the time limit provided for by this subparagraph;

d) not carry out debit transactions from the bank account of the person indicated in subparagraph „a“ of this paragraph (except for remuneration for the services of the banking institution, if these transactions are not related to settlement operations outside the banking institution's system) without indicating the taxpayer identification number;

e) in the cases determined by the contract concluded with it and in compliance with the term and conditions established by the same contract, to notify the Revenue Service only about the opening and/or closing of the accounts of the persons provided for by subparagraphs "a" and "b" of this paragraph, and, within the scope of the collection order and/or attachment, to extend to their bank account/accounts a collection order issued by the tax authority indicating the identification numbers of these persons, or an attachment imposed, which does not restrict the right to dispose of the monetary funds existing above the scope of the collection order and/or attachment, and, in the event of the absence of monetary funds in full volume on the bank account/accounts within the scope of the collection order and/or attachment, to extend the issued collection order or the imposed attachment automatically to all their bank accounts;

f) upon request of the Revenue Service, to provide it with information about the opening or closing of a taxpayer's account within 3 working days from the said request. The Revenue Service has the right to request this information within the limitation period provided for by this Code, which is counted from the opening/closing of the account, and in other cases the information may be requested on the basis of a court judgment. If a contract on the exchange of information in electronic form has been concluded between the Revenue Service and a banking institution, the information indicated in this subparagraph may be requested in electronic form. In this case, the term indicated in this subparagraph is determined in accordance with the terms of the contract;

g) upon submission by the tax authority of a collection order to a person's bank accounts, to ensure immediately after accounting the informing of this person about the said matter, except in the case of impossibility of informing him/her;

h) within the framework of the agreement "for the purpose of improving the fulfilment of international tax obligations between the Government of the United States of America and the Government of Georgia and fulfilling the Foreign Account Tax Compliance Act (FATCA)", to transfer to the tax authority the information provided for by this agreement.

2. If the information provided for by paragraph 1 of this Article is reported by delivery of a written notification to the tax authority, its certification is carried out on the second copy of the notification on the opening of a bank account by the signature of an authorised person of the tax authority, and in the case of non-certification within 2 working days of the notification submitted to the tax authority, it shall be automatically considered certified. Accordingly, the banking institution has the right to carry out expenditure operations from this account. At the same time, receipt of correspondence by the tax authority shall be considered delivery of the notification.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 28 October 2015 No. 4458 – website, 11.11.2015.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 72. Primary tax document🔗

1. A primary tax document is a written document by which it is possible to identify the parties participating in an economic operation, which has a date and includes the list and value of the goods supplied/services rendered. In a primary tax document issued for an exchange (barter) operation of goods/services, the indication of the value of the goods (including the price of a unit of goods) is not mandatory.

2. A primary tax document shall be drawn up in at least two identical copies, which shall remain with the parties participating in the economic operation.

3. A person shall be obliged to retain the primary tax document for at least 3 years from the end of the calendar year for the determination of the tax obligation of which it is necessary.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Article 72¹. Tax document🔗

1. A tax document (hereinafter – TD) is a document of the form established by the Minister of Finance of Georgia, which shall be issued:

a) during the transportation of goods within the country;

b) upon the supply of goods;

c) upon the rendering of services.

2. In the case of the issuance of a TD, the obligation to issue a goods waybill or a tax invoice (including a special tax invoice) shall not arise.

3. For a VAT payer, a TD is a VAT credit document.

4. In the case of the issuance/non-issuance of a TD, all those legal consequences shall arise which, in the relevant case, would have arisen upon the issuance/non-issuance of a goods waybill and/or a tax invoice (including a special tax invoice).

5. In the case of violation of the procedure for the issuance and submission of a TD, the measures of liability established by the legislation of Georgia for an offence related to the procedure for the issuance and submission of a goods waybill or a tax invoice (including a special tax invoice) shall be applied accordingly.

6. A TD may be issued and submitted in electronic form.

7. The procedure for the issuance and submission of a TD shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 73. Determination of the object of taxation and tax obligation in individual cases🔗

1. Income shall be taxed even when its lawfulness is disputed.

2. Income received through a tax offence or another transaction carried out shall be taxed in accordance with the procedure established by the tax legislation of Georgia.

3. If, in the cases provided for by the legislation of Georgia, income is fully subject to seizure in favour of the budget by a court judgment, it shall not be taxed.

4. If any amount is used for the interests of a specific person, that amount shall be deemed to have been received by that person.

5. The tax authority has the right to determine a person's tax obligations using indirect methods (on the basis of the size of assets, operating income and expenses, comparison of information about the person with another tax period of its activity or with data about another similar taxpayer, as well as analysis of other similar information):

a) if the person does not have accounting documentation or it is impossible to determine the object of taxation from the accounting documentation;

b) in the presence of more than one of any of the following conditions:

b.a) there is an unjustified increase in the person's assets;

b.b) the expenses incurred by the person for economic activity and/or personal consumption exceed the declared income;

b.c) as a result of current tax control measures, two or more instances of the person committing a tax offence have been detected in the audited period determined by the relevant act of the tax authority on the commencement of a tax audit;

b.d) a material difference has been detected between the data related to taxation submitted/declared by the person to the tax authority and the data actually recorded as a result of current tax control measures.

6. In a transaction between interdependent persons, income and expenses shall be allocated as in a transaction concluded between independent persons.

7. A person who sells goods/services predominantly by cash settlement shall, when paying tax, use the simplified rules for accounting of income and expenses established by the Minister of Finance of Georgia. The said rules shall not apply to a taxpayer who, for the purposes of profit and income taxes, is obliged to carry out or voluntarily carries out accounting on an accrual basis, as well as to a person registered as a value added tax payer.

8. The tax authority is authorised, in the case of an exchange (barter) transaction of goods/services, to determine the taxable amount at the market price. The conditions and rules for the application of this paragraph, as well as the cases when this paragraph does not apply, shall be determined by the Minister of Finance of Georgia.

9. For the purpose of determining tax obligations, the tax authority has the right to:

a) disregard business transactions that have no material economic effect;

b) taking into account the form and content of a business operation, change its qualification, if the form of the operation does not correspond to its content;

c) for VAT purposes, consider as a single taxable person any several persons established in the territory of Georgia, notwithstanding their formal/legal independence, if the main decisions related to their activity/management are taken by one and the same person and the place, type and content of their activity are identical. The cases and rules for the exercise of the right provided for by this subparagraph shall be determined by the Minister of Finance of Georgia.

10. An operation carried out in foreign currency, which is subject to taxation, shall be recalculated into the national currency of Georgia in the following sequence:

a) if, for the day of carrying out the operation, the official exchange rate of the lari determined by the National Bank of Georgia against the currency of the respective foreign country exists — at that rate;

b) if, for the day of carrying out the operation, the official exchange rate of the lari determined by the National Bank of Georgia against the currency of the respective foreign country does not exist — at the rate determined in accordance with the rules established by the Board of the National Bank of Georgia.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 74. (removed)🔗

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 75. (removed)🔗

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 76. (removed)🔗

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 77. (removed)🔗

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 78. (removed)🔗

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 79. Taxpayer🔗

The payer of income tax is:

a) a resident natural person;

b) a non-resident natural person who derives income from a source in Georgia.

Article 80. Object of taxation🔗

1. The object of taxation by income tax of a resident natural person is taxable income, which is determined as the difference between the aggregate income received during the calendar year and the amounts of deductions provided for by this Code for that period.

2. The object of taxation by income tax of a non-resident natural person carrying out activities through a permanent establishment in Georgia is taxable income, which is determined as the difference between the aggregate income related to the permanent establishment, received during the calendar year from a source in Georgia, and the amounts of deductions provided for by this Code for that period.

3. The aggregate income of a non-resident natural person which is not related to his/her permanent establishment in Georgia shall be taxed in accordance with Article 134 of this Code at the source of payment without deductions, except for the cases provided for by paragraphs 4 and 6 of this article.

4. A non-resident natural person who receives income from the realisation of property is a payer of income tax on the aggregate income received during the calendar year from a source in Georgia, which is reduced by the amounts of deductions related to the receipt of such income for that period.

5. Income received from the realisation of property provided for by paragraph 4 of this article includes:

a) the excess received from the realisation of ordinary shares or a partner's share of a resident legal entity;

b) excess income received from the supply of the assets referred to in paragraph 21 of Article 8 of this Code;

c) the excess received from the realisation of property used for economic activity, provided for by subparagraphs „k“ or „l“ of paragraph 1 of Article 104 of this Code;

d) the excess received from the realisation of other property.

6. The object of taxation by income tax of a non-resident natural person who receives remuneration for the lease/rental of property from a person who is not a tax agent provided for by paragraph 1 of Article 154 of this Code is the difference between the aggregate income received during the calendar year from a source in Georgia and the amounts of deductions related to the receipt of this income.

7. For a natural person who receives income from the arrangement of a gaming machine salon and/or the organisation of gambling in a system-electronic form, in the part of the said activity the object of taxation by income tax is the difference between the bets received from players and the winnings paid out to players.

7¹. For a natural person who receives income from the organisation of totalisator games in a system-electronic form as a result of the participation of foreign country nationals in totalisator games organised in a system-electronic form, in the part of the said activity the object of taxation by income tax is the difference between the bets received from players holding foreign country citizenship and the winnings paid out to these players.

8. For a participating person in gambling games organized by means of gaming machines and/or in gambling and/or profitable games organized in system-electronic form (except for an incentive drawing organized in system-electronic form), the object of taxation by income tax is the amount withdrawn by such person from the organizer of a gaming machine salon or from a system-electronic gaming account (except for the amount withdrawn by citizens of a foreign country from a system-electronic gaming account).

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020.

Law of Georgia of 22 December 2021 No. 1191 – website, 28 December 2021.

Law of Georgia of 9 February 2023 No. 2590 – website, 24 February 2023.

Law of Georgia of 13 December 2023 No. 3903 – website, 25 December 2023.

Law of Georgia of 13 December 2023 No. 3902 – website, 25 December 2023.

Law of Georgia of 27 June 2024 No. 4364 – website, 11 July 2024.

Article 81. Tax rate🔗

1. The taxable income of a natural person shall be taxed at 20 percent, unless otherwise provided by this Code.

2. Income received by a natural person from leasing residential space to an organization, a legal entity or a natural person for residential purposes, where that natural person does not make deductions from this income, shall be taxed at 5 percent.

3. Excess income received by a natural person from the supply of a residential apartment (house) and the land plot attached thereto, as well as of a motor vehicle, shall be taxed at 5 percent.

3¹. Taxable income received by a natural person from arranging a gaming machine salon and/or from organizing gambling in a system-electronic form, except for the taxable income of the organizer of gambling in a system-electronic form resulting from the participation of foreign country citizens in gambling organized in a system-electronic form, shall be taxed at 20 percent.

3². The amount provided for by paragraph 8 of Article 80 of this Code shall be taxed at 5 percent.

3³. Taxable income received by the organizer of gambling in a system-electronic form and/or of totalizator games in a system-electronic form as a result of the participation of foreign country citizens in gambling organized in a system-electronic form and/or in totalizator games organized in a system-electronic form shall be taxed at 5 percent.

4. For the purposes of paragraph 3 of this Article, excess income received from the supply of an asset shall be determined in accordance with subparagraph „b“ of paragraph 4 of Article 82 of this Code.

5. For the purposes of paragraph 2 of this Article, the rule for maintaining the register of persons leasing residential space and for persons leasing residential space to legal entities to enjoy a tax benefit shall be established by the Minister of Finance of Georgia.

Law of Georgia No. 118 of 20 December 2012 – website, 29.12.2012

Law of Georgia No. 3581 of 1 May 2015 – website, 15.05.2015

Law of Georgia No. 4680 of 18 December 2015 – website, 29.12.2015

Law of Georgia No. 1191 of 22 December 2021 – website, 28.12.2021

Law of Georgia No. 2590 of 9 February 2023 – website, 24.02.2023

Law of Georgia No. 3903 of 13 December 2023 – website, 25.12.2023

Law of Georgia No. 3902 of 13 December 2023 – website, 25.12.2023

Law of Georgia No. 4364 of 27 June 2024 – website, 11.07.2024

Law of Georgia No. 134 of 13 December 2024 – website, 29.12.2024

Article 81¹. (removed)🔗

Law of Georgia No. 118 of 20 December 2012 – website, 29.12.2012

Law of Georgia No. 3015 of 26 December 2014 – website, 30.12.2014

Article 82. Exemption from tax🔗

1. The following types of income of natural persons shall be exempt from taxation by income tax:

a) income received by a non-resident from employment in foreign diplomatic and equivalent institutions on the territory of Georgia;

b) received grant, state pension, state compensation, state academic scholarship, state scholarship, amounts received from budget allocations and/or budget reserve funds for the purpose of assistance and one-time payments;

b¹) benefit received from a non-entrepreneurial (non-commercial) legal entity founded by the state within the framework of charitable activity;

b²) benefit received from a charitable organization to finance treatment and/or medical service expenses;

b³) pension contribution made to the individual pension account of a participant of the accumulative pension scheme in accordance with the Law of Georgia “On Accumulative Pension”, the benefit accrued thereon and the pension/pension assets payable in accordance with Articles 32–34 of the Law of Georgia “On Accumulative Pension”, except:

b3.a) in the case of erroneous or excessive making of a pension contribution, the amount corresponding to the amount of the erroneously or excessively made pension contribution to be returned to the participant of the accumulative pension scheme/natural person and the benefit accrued thereon;

b3.b) the amount corresponding to the amount of the pension contribution to be returned to an employee who has left the accumulative pension scheme in accordance with Article 22 of the Law of Georgia “On Accumulative Pension” and the benefit accrued thereon;

b3.c) the amount corresponding to the pension assets to be returned to a participant of the accumulative pension scheme on the ground of permanently leaving Georgia in accordance with Article 34¹ of the Law of Georgia “On Accumulative Pension”.

Note: In the cases provided for by subparagraphs “b3.a”, “b3.b” and “b3.c” of this paragraph, the corresponding amount shall be taxed at the rate determined by paragraph 1 of Article 81 of this Code;

b⁴) in a voluntary private pension scheme:

b4.a) pension contribution made by and/or in favour of a participant during the year in a total amount of up to GEL 6,000;

b4.b) benefit received by a participant as a result of participation in the pension scheme, except for the case of withdrawal of pension assets before the occurrence of the circumstances determined by paragraph 1 of Article 40 of the Law of Georgia “On Voluntary Private Pension”;

b4.c) upon receipt of pension assets recorded in the participant's personal pension account in the form of programmed withdrawal or annuity upon the participant reaching pension age, early retirement or restriction of his/her ability. At the same time, in the case of a lump-sum payment of pension, except for withdrawal of the pension by a beneficiary, pension contributions made within the benefit provided for by subparagraph “b4.a” of this paragraph shall be subject to taxation at the rate determined by paragraph 1 of Article 81 of this Code;

c) monetary and other types of awards received by athletes and their coaches, as well as by the medical personnel of Georgian national teams, for victory and/or taking prize places in the Olympic Games, chess Olympiads, world and/or European championships, the European Games, the World Youth Olympic Games and/or the European Youth Olympic Festivals, as well as other monetary prizes established by the respective Resolution of the Government of Georgia for athletes and their coaches, as well as for medical personnel in individual Olympic, non-Olympic and certain game sports;

d) alimony;

e) the value (income) of property received on the basis of divorce;

f) by a natural person:

f.a) the excess received from the sale of a residential apartment (house) held in ownership for more than 2 years together with the land attached to it;

f.b) the excess received from the sale of a motor vehicle held in ownership for more than 6 months from the registration of the ownership right;

f.c) the excess received from the supply of an asset held in ownership for more than 2 years, except for the cases of use of the asset in economic activity by the alienator before the supply of the asset and/or the cases provided for by subparagraphs "f.a" and "f.b" of this subparagraph.

Note: For the purposes of this subparagraph, the mere holding of a security/share for the purpose of receiving a dividend/interest shall not be considered as use in economic activity. At the same time, the use of an asset in economic activity shall not be taken into account if 2 years have elapsed from the moment of completion of its use in economic activity until its supply;

g) the value of property received by heirs of the I and II order by gift or inheritance during the tax year;

h) the value of property received by gift during the tax year in an amount up to GEL 1000, except for the value of property received by gift by a hired person from the hirer;

i) the value of property of a value up to GEL 150,000 received by heirs of the III and IV order by gift or inheritance during the tax year;

j) (removed - 15.12.2022, No. 2400);

j¹) monetary remuneration issued before 1 April 2030 to a natural person (donor) for the donation of blood or a blood component;

k) taxable income received before 1 January 2028 by a person employed in agricultural production from the primary supply of agricultural products produced in Georgia, if the aggregate income received from such supply during a calendar year does not exceed GEL 200,000;

l) the benefit arising as a result of the receipt of property (except for movable property transferred into state ownership) by way of privatisation (including free of charge), as well as as a result of the free of charge receipt of apartments in the same settlement by persons affected by an earthquake and other natural phenomena in exchange for damaged apartments, or in another settlement by eco-migrants;

l¹) benefit arising as a result of the recognition of the right of ownership in accordance with the Law of Georgia “On Recognition of the Right of Ownership to Land Plots in the Possession (Use) of Natural Persons and Legal Entities of Private Law”;

m) compensation received by a refugee, a person with additional protection or an internally displaced natural person in exchange for a temporary place of residence within the framework of the privatisation programme, as well as the value of property transferred by the State to internally displaced persons – IDPs, and the income received from the initial sale of such property;

n) (removed - 14.07.2020, No. 6817).

o) (removed - 28.06,2019, No. 4906).

p) (removed - 23.12.2017, No. 1935);

q) income received by a non-resident from a source in Georgia, on the basis of risk insurance and reinsurance by an enterprise, organisation and/or individual entrepreneur;

r) income received by a non-resident from the leasing out of property, which is not attributable to the non-resident's permanent establishment in Georgia;

s) income received in the form of interest from loan securities of the State, the National Bank of Georgia, a legal entity of public law – the Deposit Insurance Agency, as well as an international financial institution. The list of international financial institutions shall be determined by a Resolution of the Government of Georgia;

t) excess income received from the sale of loan securities of the State, the National Bank of Georgia, a legal entity of public law – the Deposit Insurance Agency, as well as an international financial institution, and income received from interest accrued on funds placed in accounts with the National Bank of Georgia. The list of international financial institutions shall be determined by a Resolution of the Government of Georgia;

t¹) income received by a resident legal entity from the supply of a loan security issued by way of public offering in Georgia and admitted to trading on an organised market recognised by the National Bank of Georgia;

t²) until 1 January 2028, income received in the form of interest from a loan security issued by a resident legal entity by way of public offering in Georgia and admitted to trading on an organised market recognised by the National Bank of Georgia;

t³) income received by a resident legal entity from the supply of an equity security issued by way of public offering in Georgia and admitted to trading on an organised market recognised by the National Bank of Georgia;

u) income (including benefit) received by a resident natural person which is not attributable to income from a source in Georgia;

v) appropriate assistance provided by the employer to that employee of the Ministry of Internal Affairs of Georgia, that employee of the State Security Service of Georgia, or that military servicemember who was injured in the performance of his/her official duties or whose capabilities were limited in the performance of this duty, as well as, in the event of the death of the said person, assistance provided by his/her employer to the family of this person (his/her heir);

w) winnings received from a lottery, the value of which does not exceed GEL 1000;

x) income received by a partnership through the transfer of property to its member (co-owner), if the members of the partnership are only natural persons, the composition of the partnership members has not changed from the establishment of the partnership until the moment of transfer (distribution) of the property, and the partnership is not a value added tax payer at the moment of distribution. For the purposes of this subparagraph, upon the death of a member of the partnership, the transfer of the member's share to the heir or the sale of the member's share in accordance with the procedure established by the Law of Georgia “On Enforcement Proceedings” shall not be considered a change in the composition of the partnership members;

y) income received by a non-resident natural person in the form of wages, if employment is carried out in the territory of Georgia during the tax year for not more than 30 calendar days and the payer of the income (wages) is a non-resident employer, except when such expense is attributed to the expenses of the non-resident's permanent establishment, regardless of whether this expense is paid by this permanent establishment or not;

z) the excess received by a partner natural person of this enterprise through the transfer of ownership of immovable property in exchange for a share by way of liquidation of the enterprise or reduction of capital, if more than 2 years have passed since the emergence of the natural person's ownership right to the enterprise's share;

aa) wages paid before 1 January 2028 by a natural person employed in agricultural production within the framework of this activity, if the total income received by the employer from the said activity does not exceed GEL 200,000;

bb) income received by the organizer of a gambling club or totalizator from the said activity;

bb¹) winnings received by citizens of a foreign country as a result of participation in gambling games organized in a system-electronic form and/or in totalizator games organized in a system-electronic form, and the amount withdrawn from a system-electronic gaming account;

cc) the value of property received free of charge from a charitable organization by a person registered in the unified database of socially vulnerable families in accordance with the established procedure (who receives a subsistence allowance, which is confirmed by relevant documentation), by a person injured in the struggle for the territorial integrity of Georgia, as well as by a family member of a person killed in the struggle for territorial integrity;

dd) benefit received by an administrative body (hirer) through the transfer of immovable property into ownership, for consideration or free of charge, to an employee (hired person);

dd¹) benefit received by an administrative body through the free-of-charge transfer, to an employee in the performance of official duties, of fuel intended for a motor vehicle in his/her personal possession;

ee) compensation receivable from this service by the provider of the free-of-charge service of suretyship provided for by Article 249 of this Code, of suretyship provided for by the Civil Code of Georgia, as well as of a servitude, and the benefit received by the recipient of the free-of-charge service;

ff) benefit received by the owner of a hotel room as a result of the provision, free of charge, by a tourist enterprise and/or by a person/persons invited by it under a contract for the functioning/operation of the hotel, of hotel services (accommodation in the hotel) to the owner of the hotel room for a period of not more than 60 days during a calendar year;

ff¹) income received by a notary, as provided for by the Law of Georgia "On Notariate", in the form of financial assistance from the LEPL – Chamber of Notaries of Georgia, in a high-mountain settlement or in a settlement where, at the time of appointment to the position of notary, notarial services were not properly accessible;

gg) income received by a person in bankruptcy regime after the opening of the bankruptcy regime in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors";

gg¹) income received by a natural person from working under hire for a person in bankruptcy regime;

gg²) compensation for property expropriated in accordance with Article 19 of the Constitution of Georgia;

gg³) income received by an individual entrepreneur holding the status of a high-mountain settlement enterprise from activities carried out within the scope of the status of a high-mountain settlement enterprise – for 10 calendar years from the granting of the respective status (including the calendar year of granting the status);

gg⁴) income received by a retail consumer owning a micro-capacity power plant from the supply of surplus electricity generated to the distribution licensee;

gg⁵) income received by a person holding the status of a special enterprise from the activities provided for by subparagraphs "a" and "b" of paragraph 2 of Article 242 of this Code.

Note: The tax benefit provided for by subparagraphs "t1"–"t3" of this paragraph shall apply also where a debt/equity security is admitted to trading on an organised market before its recognition by the National Bank of Georgia. At the same time, the said benefit shall be effective from the date of recognition of the organised market by the National Bank of Georgia.

2. The following shall not be subject to income tax:

a) taxable income of up to GEL 3,000 received by the following natural persons during a calendar year:

a.a) of citizens of Georgia who are veterans of World War II, veterans of combat operations for the territorial integrity, freedom and independence of Georgia, and veterans of combat operations on the territory of other states;

a.b) of a person who has been awarded the honorary title “Mother of a Georgian”;

a.c) of a single parent;

a.d) of a person who has adopted a child (within 1 year from adoption);

a.e) of a person who has taken a child into foster care;

a.f) taxable income received as wages from a budgetary organization in a high-mountain settlement during a calendar year by a person with three or more children permanently residing in a high-mountain settlement (who has three or more children under 18 years of age in their care). For a person with one or two children permanently residing in a high-mountain settlement (who has one or two children under 18 years of age in their care), the income tax payable on taxable income of up to 3,000 GEL received as wages from a budgetary organization in a high-mountain settlement during a calendar year is reduced by 50 percent;

b) taxable income of up to 6,000 GEL received during a calendar year by a person with a disability since childhood, as well as by a person with a severe or significantly expressed disability;

b¹) taxable income of up to 6,000 GEL received during a calendar year by a person who, in accordance with the legislation of Georgia, sustained a serious health injury in connection with participation in an operation for the maintenance and restoration of international peace and security or in another type of peacekeeping activity;

c) taxable income of up to 6,000 GEL received during a calendar year from activity in a high-mountain settlement by a person having the status of a person permanently residing in a high-mountain settlement, except for income received as wages from a budgetary organization and from a medical institution founded by the state or a municipality.

3. If, in the cases provided for by paragraph 2 of this Article, an income tax payer acquires the right to more than one tax benefit, one of them, the highest benefit, shall apply to them.

4. For the purposes of this Article:

a) The 2-year period of ownership of an asset shall be counted:

a.a) from the date of drawing up a document confirming the right of ownership for the purpose of registering the right of ownership in the registering body; in the case of division of an asset registered in the registering body as a single item in terms of rights, the 2-year period of ownership of the resulting asset shall be counted from the date of ownership of the asset existing before the division;

a.b) if the right of ownership is not registered in the registering body, from the moment of origin of the right of ownership;

a¹) for the purposes of the 2-year period of ownership of an asset, the period of ownership by the natural person and by the testator/donor whose first-order heir is this natural person shall be taken into account in aggregate;

a²) The moment of supply of an asset, including its sale, shall be deemed to be the date of drawing up of the document confirming ownership, on the basis of which the registration of the transfer of the right of ownership to another person in the registering authority is carried out. And, if the right of ownership is not registered in the registering authority — the moment of transfer of the right of ownership;

b) The "excess received from the sale" of an asset shall be calculated as:

b.a) the difference between the supply price of the asset and its acquisition price at the time when the right of ownership to it arose;

b.b) the difference between the supply price of the asset and its market price at the time of its receipt free of charge, if the right of ownership to the asset was received free of charge.

c) In the case of gifting of property and/or inheritance by will, the following persons shall be considered heirs of the I, II, III and IV order:

c.a) heirs of the I order — spouse, child, adopted child, grandchild, great-grandchild and his/her child, parent and adopter;

c.b) heirs of the II order — sister, brother, sister's child, brother's child and their children;

c.c) heirs of the III order — grandmother and grandfather, the parents of the grandmother and the parents of the grandfather, both on the mother's and on the father's side;

c.d) heirs of the IV order — uncle (mother's brother and father's brother), aunt (mother's sister) and aunt (father's sister).

5. In the cases provided for by paragraph 2 of this Article, the rule for applying the benefit to income received from a source of payment by tax year shall be established by the Minister of Finance of Georgia.

Law of Georgia of 7 December 2010 No. 3882-LHG I, No. 72, 22.12.2010, Art. 428

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 24 June 2011 No. 4935 – website, 30.06.2011

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 6 December 2011 No. 5371 – website, 20.12.2011

Law of Georgia of 9 December 2011 No. 5452 – website, 22.12.2011

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011

Law of Georgia of 13 March 2012 No. 5791 – website, 23.03.2012

Law of Georgia 2012

of 24 April

No. 6053 – website, 27.04.2012

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 5 June 2012 No. 6395 – website, 19.06.2012

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012

Law of Georgia of 19 June 2012 No. 6502 – website, 02.07.2012

Law of Georgia of 30 July 2013 No. 906 – website, 20.08.2013

Law of Georgia of 6 September 2013 No. 1046 – website, 23.09.2013

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 1² December 2014 No. 2950 – website, 23.12.2014

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014

Law of Georgia of 8 July 2015 No. 3942 – website, 15.07.2015

Law of Georgia of 16 July 2015 No. 4037 – website, 28.07.2015

Law of Georgia of 10 December 2015 No. 4611 – website, 22.12.2015

Law of Georgia No. 4647 of 16 December 2015 – website, 25.12.2015.

Law of Georgia No. 4680 of 18 December 2015 – website, 29.12.2015.

Law of Georgia No. 4842 of 4 March 2016 – website, 09.03.2016.

Law of Georgia No. 5491 of 22 June 2016 – website, 29.06.2016.

Law of Georgia No. 97 of 16 December 2016 – website, 23.12.2016.

Law of Georgia No. 854 of 17 May 2017 – website, 02.06.2017.

Law of Georgia No. 1182 of 30 June 2017 – website, 13.07.2017.

Law of Georgia No. 1935 of 23 December 2017 – website, 29.12.2017.

Law of Georgia No. 2476 of 6 June 2018 – website, 21.06.2018.

Law of Georgia No. 2607 of 27 June 2018 – website, 06.07.2018.

Law of Georgia No. 3308 of 21 July 2018 – website, 06.08.2018.

Law of Georgia No. 3383 of 5 September 2018 – website, 24.09.2018.

Law of Georgia No. 3440 of 20 September 2018 – website, 05.10.2018.

Law of Georgia No. 3600 of 31 October 2018 – website, 21.11.2018.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 6942 of 15 July 2020 – website, 28.07.2020.

Law of Georgia No. 7169 of 18 September 2020 – website, 25.09.2020.

Law of Georgia No. 1652 of 9 June 2022 – website, 23.06.2022.

Law of Georgia No. 2400 of 15 December 2022 – website, 27.12.2022.

Law of Georgia No. 2439 of 16 December 2022 – website, 27.12.2022.

Law of Georgia No. 2590 of 9 February 2023 – website, 24.02.2023.

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023.

Law of Georgia No. 3350 of 28 June 2023 – website, 19.07.2023.

Law of Georgia No. 3540 of 21 September 2023 – website, 12.10.2023.

Law of Georgia No. 3608 of 1 November 2023 – website, 20.11.2023.

Law of Georgia No. 3903 of 13 December 2023 – website, 25.12.2023.

Law of Georgia No. 3902 of 13 December 2023 – website, 25.12.2023.

Law of Georgia No. 4022 of 15 December 2023 – website, 28.12.2023.

Law of Georgia No. 4364 of 27 June 2024 – website, 11.07.2024.

Law of Georgia No. 143 of 13 December 2024 – website, 29.12.2024.

Law of Georgia No. 845 of 26 June 2025 – website, 03.07.2025.

Law of Georgia No. 879 of 26 June 2025 – website, 07.07.2025.

Law of Georgia No. 1024 of 11 November 2025 – website, 14.11.2025.

Law of Georgia No. 1061 of 12 November 2025 – website, 14.11.2025.

Law of Georgia No. 1475 of 1 April 2026 – website, 01.04.2026.

Article 83. Special taxation regimes🔗

Special taxation regimes apply to:

a) natural persons with micro business status;

b) entrepreneur natural persons with small business status;

c) persons with fixed tax payer status.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Article 84. Micro business🔗

1. Micro business status may be granted to a natural person who does not use hired labour and independently carries out economic activity, from which the total aggregate income receivable by him during a calendar year does not exceed GEL 30,000.

2. The GEL 30,000 threshold established by paragraph 1 of this article does not apply to the types of activity determined by the Government of Georgia in agreement with the Finance and Budget Committee of the Parliament of Georgia.

3. In agreement with the Finance and Budget Committee of the Parliament of Georgia, the Government of Georgia has the right to prohibit the carrying out of individual activities, within the framework of which micro business status may not be granted to a natural person.

4. In agreement with the Finance and Budget Committee of the Parliament of Georgia, the Government of Georgia has the right to determine the types of income which shall not be taxed under the special taxation regime and, for the purposes of paragraph 1 of this article, shall not be taken into account in aggregate income.

5. The granting of micro business status, its cancellation and the issuance of a micro business certificate shall be carried out in accordance with the procedure established by the Minister of Finance of Georgia.

Article 85. Granting of Micro Business Status🔗

1. A natural person who meets the conditions established by Article 84 of this Code is entitled to apply to the tax authority for the purpose of granting micro business status, which issues a micro business certificate.

2. Micro business status shall be cancelled in the current tax year if:

a) the natural person has applied to the tax authority with a request for cancellation of micro business status or granting of small business status;

b) as a result of an inventory conducted by the tax authority, it has been established that the balance of commodity-material inventories of the natural person holding micro business status exceeds GEL 45,000.

c) the natural person has registered as a value added tax payer.

3. If a natural person holding micro business status, within 15 days after the violation of the requirement established by paragraph 1 of Article 84 of this Code (limitation on the amount of total income), does not apply to the tax authority for the purpose of granting small business status, its micro business status shall be cancelled and it shall exit the special taxation regime.

4. The basis for the cancellation of micro business status and exit from the special taxation regime by the tax authority is the violation by the natural person of the requirement of paragraph 3 of Article 84 of this Code.

5. In the event of cancellation of the micro business status granted to a natural person, the income of the natural person at that moment shall be subject to taxation:

a) upon receipt of small business status – in accordance with the rules established for micro business;

b) in other cases – in accordance with Articles 79–82 of this Code.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 86. Exemption of Micro Business from Tax🔗

A natural person holding micro business status shall not pay income tax.

Article 87. Obligations of Micro Business🔗

1. A person holding micro business status, when issuing a primary tax document, shall indicate in the document its status and the number of the status certificate.

2. A person holding micro business status, in the case of issuance of a primary tax document to it or by it, shall retain the said document.

Article 88. Small Business🔗

1. Small business status may be granted to an entrepreneurial natural person.

2. In agreement with the Finance and Budget Committee of the Parliament of Georgia, the Government of Georgia has the right to prohibit the carrying out of certain activities within the framework of which small business status may not be granted to an entrepreneurial natural person.

3. In agreement with the Finance and Budget Committee of the Parliament of Georgia, the Government of Georgia has the right to determine the types of income that shall not be taxed under the special regime and shall not be taken into account in the aggregate income when calculating the GEL 500,000 threshold established for a natural person having small business status for aggregate income received during the calendar year, and in the case of a wine tourism activity subject and an agritourism activity subject – the GEL 700,000 threshold.

Law of Georgia of 30 May 2018 No. 2391 – website, 12 June 2018.

Law of Georgia of 13 December 2023 No. 3922 – website, 27 December 2023.

Article 89. Granting of Small Business Status🔗

1. An entrepreneur natural person who meets the conditions established by Article 88 of this Code is entitled, for the purpose of granting small business status, to apply to the tax authority, which issues a small business certificate.

2. Small business status is terminated if:

a) the person's combined income received from his/her economic activity, according to 2 calendar years, exceeded GEL 500,000 during each calendar year, and in the case of a wine tourism activity subject and an agrotourism activity subject — GEL 700,000;

b) the person applied to the tax authority with this request before the end of the calendar year;

c) the person carries out the activity provided for by paragraph 2 of Article 88 of this Code;

d) the person was fined not less than 3 times during the calendar year for violation of the rules for the use of a control cash register;

e) the person does not meet the requirement provided for by paragraph 1 of Article 88 of this Code.

3. In the case provided for by subparagraph „a“ of paragraph 2 of this Article, small business status shall be considered terminated from the beginning of the year following the calendar year.

3¹. In the case provided for by subparagraph „b“ of paragraph 2 of this Article, small business status shall be considered terminated from the first day of the month following the month of the person's application to the tax authority.

4. In the case of termination of small business status on the ground provided for by subparagraph „c“ or „d“ of paragraph 2 of this Article, small business status shall be considered terminated from the beginning of the current calendar year.

5. In the case provided for by subparagraph „e“ of paragraph 2 of this Article, small business status shall be considered terminated from the date of the occurrence of the respective ground.

Law of Georgia No. 5556 of 20 December 2011 – website, 30.12.2011

Law of Georgia No. 2391 of 30 May 2018 – website, 12.06.2018

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023

Law of Georgia No. 3922 of 13 December 2023 – website, 27.12.2023

Article 90. Taxable income of small business and tax rates🔗

1. The taxable income of a person with small business status is taxed at 1 percent, except for the case provided for by paragraph 2 of this Article.

2. The taxable income of a person with small business status is taxed at 3 percent if the total income received by that person from his/her economic activity exceeded 500,000 GEL, and in the case of a wine tourism activity subject and an agrotourism activity subject — 700,000 GEL. A person with small business status is taxed at the rate established under this paragraph from the beginning of the respective month (the month in which the exceeding of the 500,000-GEL threshold of total income, and in the case of a wine tourism activity subject and an agrotourism activity subject — the 700,000-GEL threshold, is recorded) until the end of the calendar year.

3. The taxable income of small business consists of income received from a source in Georgia, except for income received in the form of salary and income received in the form of the income determined in accordance with paragraph 3 of Article 88 of this Code.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 13 December 2023 No. 3922 – website, 27.12.2023.

Article 91. Principles of accounting of income and expenses of small business🔗

1. A person with small business status maintains a special accounting journal. The rule for maintaining this journal (including maintaining it in electronic form) is determined by Order of the Minister of Finance of Georgia.

2. (removed – 30.05.2018, No. 2391)

3. A person with small business status shall, when transporting and/or supplying goods, in the cases provided for by this Code, use a goods waybill.

4. (removed – 30.05.2018, No. 2391)

5. A loss incurred by small business during the tax year shall not be carried forward to the next year, unless there is an exit from the special taxation regime.

6. For an entrepreneur natural person with small business status, upon cancellation of the status, the rule for accounting of existing goods balances is determined by Order of the Minister of Finance of Georgia.

7. (removed – 30.05.2018, No. 2391)

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 92. Registration of small business as a value added tax payer🔗

1. An individual entrepreneur with small business status who has incurred the obligation of mandatory registration as a VAT payer shall, in accordance with Article 165 of this Code, be obliged to register.

2. An individual entrepreneur with small business status, upon the occurrence of the obligation to register as a value added tax payer, shall be obliged to record the balance of commodity-material inventories existing at that moment.

3. An individual entrepreneur with small business status shall, from the moment of registration as a value added tax payer, have the right to receive a value added tax credit on the balance of commodity-material inventories determined by paragraph 2 of this Article, in accordance with the procedure determined by this Code, if the relevant documentation exists.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 93. Submission of the declaration of micro and small business🔗

1. An individual with micro business status shall submit a declaration to the tax authority according to the place of tax registration before 1 April of the year following the reporting year.

1¹. The submission of the tax declaration of a person with small business status to the tax authority and the payment of tax shall be effected no later than the 15th day of the month following the reporting month.

2. An individual with micro business status shall, within 30 working days from the termination of economic activity in Georgia, submit a declaration to the tax authority.

3. (Removed – 20.12.2011, No. 5556).

4. The procedure for submitting a declaration by persons with micro and small business status shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 94. Current payments of small and micro business and the rule of withholding tax at the source of payment🔗

1. A natural person with micro business status and a natural person with small business status shall not pay current payments.

2. (Removed - 30.05.2018, No. 2391).

3. A natural person with micro business status shall not be obliged to withhold tax at the source of payment in the case of remuneration for received services.

4. Salary of up to 6,000 GEL paid in total by a person with small business status to hired persons during a calendar year shall not be taxed at the source of payment, if one of the following conditions exists:

a) he/she registered as an individual entrepreneur and was granted small business status during the same calendar year;

b) the total income received by him/her during the previous calendar year does not exceed 50,000 GEL.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 95. Tax control of small and micro business🔗

1. Tax authorities may, with respect to persons with micro and small business status, carry out the following measures of current tax control:

a) control purchase of goods/services;

b) inspection;

c) compliance with the rules for the use of control-cash registers;

d) chronometry;

e) inventory.

2. A tax authority shall have the right to determine the income of a person with micro business status by indirect methods, in accordance with the rules established by the Minister of Finance of Georgia.

Article 95¹. Fixed tax payer🔗

A fixed tax payer may be a person who is not a value added tax payer and carries out one or more activities subject to fixed tax.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Article 95². Object of taxation by fixed tax🔗

The types of activities subject to fixed tax and, in the case of an activity subject to taxation at the rate provided for by subparagraph "a" of paragraph 1 of Article 95³ of this Code, the object of taxation by fixed tax according to the types of activities shall be determined by the Government of Georgia.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Article 95³. Fixed tax rate🔗

1. The fixed tax rate, according to the types of activity determined by the Government of Georgia, may be:

a) on the object of taxation − within the range of GEL 1 to GEL 2000;

b) 3 percent of the income received from the taxable activity.

2. In the case provided for by subparagraph „a“ of paragraph 1 of this Article, the fixed tax rate shall be determined by the Government of Georgia according to the types of activity within the amount established by the said subparagraph. At the same time, the Government of Georgia is entitled to determine a different fixed tax rate for the same type of activity subject to fixed taxation, according to municipalities.

3. In the case provided for by subparagraph „b“ of paragraph 1 of this Article, the conditions and types of activity subject to taxation according to the place of activity shall be determined by the Government of Georgia.

Law of Georgia No. 5556 of 20 December 2011 - website, 30.12.2011.

Law of Georgia No. 1886 of 26 December 2013 - website, 30.12.2013.

Law of Georgia No. 4680 of 18 December 2015 - website, 29.12.2015.

Law of Georgia No. 6942 of 15 July 2020 – website, 28.07.2020.

Article 95⁴. Granting of the status of fixed tax payer🔗

1. A person who meets the requirements established by Article 95¹ of this Code is entitled to apply to the tax authority with an application for the purpose of granting the status of fixed tax payer and to switch to the fixed taxation regime, for which a fixed tax payer's certificate shall be issued.

2. A person has the right to switch to the fixed taxation regime in any month of the reporting year. At the same time, the person shall be considered as having the status of fixed tax payer and, accordingly, as a fixed tax payer from the first day of the month following the month of granting the status of fixed tax payer.

3. The procedure for granting and revoking the status of fixed tax payer and for issuing the fixed tax payer's certificate shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia No. 5556 of 20 December 2011 - website, 30.12.2011.

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012.

Article 95⁵. Conditions of taxation by fixed tax🔗

1. A payer of fixed tax is entitled, in addition to the activity subject to taxation by fixed tax, to carry out additionally only an activity permitted by the Government of Georgia.

2. Income derived from the additional activity provided for by paragraph 1 of this Article shall be subject to taxation under the general rules.

3. Income derived from the activity subject to taxation by fixed tax shall not be included in the aggregate income of the fixed tax payer and shall not be subject to subsequent taxation.

4. A fixed tax payer shall not pay current tax payments under the fixed tax.

5. A fixed tax payer shall be obliged, when issuing a primary tax document, to indicate in the document the status of the fixed tax payer and the number of the fixed tax payer's certificate.

6. A fixed tax payer shall be obliged, in the case of issuance of a primary tax document to him or by him, to retain the said document.

7. The procedure for the payment of and reporting on the fixed tax shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Article 95⁶. Cancellation of the status of a fixed tax payer🔗

1. The status of a fixed tax payer shall be cancelled if:

a) the person ceases the activity subject to taxation by fixed tax;

b) the person applies to the tax authority with a request for cancellation of the status of a fixed tax payer;

c) the person carries out an activity different from the additional activity permitted by the Government of Georgia for a fixed tax payer;

d) in the part of the additional activity permitted by the Government of Georgia for a fixed tax payer, the person has incurred the obligation to register as a value added tax payer or has voluntarily registered as a value added tax payer.

2. Upon the occurrence of one of the conditions for cancellation of the status of a fixed tax payer (except for subparagraph „b“ of paragraph 1 of this Article), the person shall be obliged, for the purpose of cancellation of the status of a fixed tax payer, to apply to the tax authority with an application no later than 10 working days from the occurrence of the respective condition.

3. The status of a fixed tax payer shall be considered cancelled from the day of occurrence of the condition for cancellation of the status of a fixed tax payer provided for by paragraph 1 of this Article.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Article 96. Taxpayer🔗

The payers of profit tax are:

a) a resident enterprise;

b) a non-resident enterprise which carries out activity in Georgia through a permanent establishment and/or derives income from a source in Georgia.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Article 97. Object of taxation🔗

1. The object of taxation by profit tax for a resident enterprise (except for the cases provided for by paragraphs 2, 8−9¹ and 9³ of this article) is:

a) distributed profit;

b) an incurred expense or other payment that is not related to economic activity;

c) supply of goods/provision of services free of charge and/or transfer of funds;

d) representation expenses incurred in an amount exceeding the limit established by this Code.

2. The object of taxation by profit tax for an organization carrying out economic activity is:

a) an incurred expense or other payment that is not related to economic activity and/or does not arise from the purpose of the activity of this organization (including that is not related to charitable activity or does not arise from the purpose of a grant contract);

b) supply of goods/provision of services free of charge and/or transfer of funds, if this does not arise from the purpose of the activity of this organization;

c) representation expenses incurred in an amount exceeding the limit established by this Code.

3. The object of taxation by profit tax for a non-resident enterprise that carries out activity in Georgia through a permanent establishment is the payment made/expense incurred by this non-resident enterprise or the permanent establishment arising from the activity of its permanent establishment, which is provided for by paragraph 1 of this article.

4. Income received by a non-resident enterprise from a source in Georgia that is not attributable to its permanent establishment in Georgia shall be taxed at the source of payment without deductions, in accordance with Article 134 of this Code, except for the cases provided for by paragraphs 5, 6 and 11 of this article.

5. The object of taxation by profit tax for a non-resident enterprise that receives income from the sale of property provided for by paragraph 6 of this article, which is not related to the activity of its permanent establishment in Georgia, is the difference between the aggregate income received from a source in Georgia during the calendar year and the amounts of deductions related to the receipt of this income.

6. The following shall be attributed to income received from the sale of property provided for by paragraph 5 of this article:

a) income received from the sale of ordinary shares of a resident legal entity or a partner's share;

b) income received from the sale of assets provided for by paragraph 21 of Article 8 of this Code;

c) income received from the sale of property provided for by subparagraphs „k“ or „l“ of paragraph 1 of Article 104 of this Code;

d) income received from the sale of other property.

7. In the case of making the payments/issuances provided for by Articles 98¹−98⁴ of this Code in non-monetary form, the object of taxation by profit tax is determined at the market price of the supplied goods/rendered services, and if the market price of the supplied goods/rendered services includes value added tax, at the market price without value added tax.

8. The difference between the total income received during the calendar year and the amounts of deductions provided for by this Code is the object of taxation by profit tax:

a) for a person who receives profit arising from the "existing contracts" defined by the Law of Georgia on Oil and Gas, as a result of oil and gas operations, in the part of this profit;

b) for a participant in the Baku-Tbilisi-Ceyhan main export pipeline project defined by the Agreement between Georgia, the Republic of Azerbaijan and the Republic of Turkey on the transportation of oil through the Baku-Tbilisi-Ceyhan main export pipeline through the territories of the Republic of Azerbaijan, Georgia and the Republic of Turkey, in the part of profit received within the framework of this project;

c) for a participant in the South Caucasus Pipeline project defined by the Agreement between Georgia and the Republic of Azerbaijan on the transit, transportation and sale of natural gas through the South Caucasus Pipeline system in the territories of Georgia and the Republic of Azerbaijan and outside these territories, in the part of profit received within the framework of this project.

9. In the case of organizing totalizator games in systemic-electronic form, in the part of the said activity, the object of taxation of a person by profit tax is determined in accordance with paragraph 16 of Article 309 of this Code (except for the profit received by the organizer of totalizator games in systemic-electronic form as a result of the participation of foreign country citizens in totalizator games organized in systemic-electronic form).

9¹. In the case of arranging a gaming machine salon and/or organizing gambling games in systemic-electronic form, in the part of the said activity, the object of taxation of a person by profit tax is the difference between bets received from players and winnings paid to players.

9². In the cases provided for by paragraphs 9, 9¹ and 9³ of this Article, for the purpose of identifying the amount of profit received from the activities provided for by the same paragraphs, it is considered that, when a person distributes dividends, this amount is issued first.

9³. In the case of participation of foreign country citizens in totalizator games organized in systemic-electronic form, in the part of the said activity, the object of taxation of a person by profit tax is the difference between bets received from players holding foreign country citizenship and winnings paid to these players.

10. For the purposes of paragraphs 1–3 of this article, the amount taxable with profit tax shall be obtained by dividing the amount of the payment made/expense incurred under the object of taxation determined in accordance with the same paragraphs by 0.85.

11. For a non-resident enterprise that receives remuneration for the lease/rental of property from a person who is not a tax agent provided for by paragraph 1 of Article 154 of this Code, the object of taxation with profit tax shall be the difference between the aggregate income received from a source in Georgia during the calendar year and the amounts of deductions related to the receipt of this income.

12. For a banking institution, a credit union, a microfinance organisation, and a loan-providing entity, the object of taxation with profit tax shall be the difference between the aggregate income received during the calendar year and the amounts of deductions provided for by this Code.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 22 December 2021 No. 1191 – website, 28.12.2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 13 December 2023 No. 3903 – website, 25.12.2023.

Law of Georgia of 13 December 2023 No. 3902 – website, 25.12.2023.

Law of Georgia of 27 June 2024 No. 4364 – website, 11.07.2024.

Article 98. Tax rate🔗

1. The profit tax rate is 15 percent, except for the cases provided for by paragraphs 2, 4, 5 and 6 of this article.

2. Profit derived from oil and gas operations as a result of the implementation of "existing contracts" as defined by the Law of Georgia "on Oil and Gas" shall be taxed at 10 percent, if these contracts were concluded before 1 January 1998.

3. (Removed - 13.12.2023, No. 3902).

4. The taxable profit of a banking institution, a credit union, a microfinance organization, or a lending entity shall be taxed at 20 percent.

5. The taxable profit of the organizer of gambling games organized in a systemically-electronic form and/or of totalizator games organized in a systemically-electronic form, in the part of the said activity, derived as a result of the participation of foreign country citizens in gambling games organized in a systemically-electronic form and/or in totalizator games organized in a systemically-electronic form, shall be taxed at 5 percent.

6. Taxable profit derived from the arrangement of a gaming machine salon and/or from the organization of gambling games in a systemically-electronic form, except for the taxable profit of the organizer of gambling games in a systemically-electronic form derived as a result of the participation of foreign country citizens in gambling games organized in a systemically-electronic form, shall be taxed at 20 percent.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 22 December 2021 No. 1191 – website, 28.12.2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 13 December 2023 No. 3903 – website, 25.12.2023.

Law of Georgia of 13 December 2023 No. 3902 – website, 25.12.2023.

Law of Georgia of 27 June 2024 No. 4364 – website, 11.07.2024.

Law of Georgia of 13 December 2024 No. 134 - website, 29.12.2024.

Article 98¹. Distributed Profit🔗

1. Distributed profit is profit that is distributed by an enterprise to its partner in the form of a dividend, in monetary or non-monetary form.

2. The following shall not be considered distributed profit:

a) payment/remittance made in monetary or in-kind form upon liquidation of the enterprise or redemption of a share/interest, which does not exceed the amount of the contribution made by the partner to the capital (paid-in and share premium). For the purposes of this subparagraph, after carrying out a transaction in accordance with subparagraph „b“ of this paragraph, an increase in the enterprise's capital shall not be considered a contribution made by a partner to the capital (paid-in and share premium);

b) payment made to a partner of the enterprise by transferring ownership of a share/interest of the same enterprise, except for the transfer of an equity security issued by a resident legal entity through a public offering in Georgia and admitted to trading on an organized market recognized by the National Bank of Georgia;

c) distribution of dividends to persons provided for by paragraph 3 of Article 2 of the Law of Georgia on Entrepreneurs (except for an individual enterprise and a person exempt from profit tax in accordance with this Code);

d) transfer of assets by an enterprise to the state and/or municipality through a reduction of capital, if more than 50 percent of the shares/interest of this enterprise is owned by the state and/or municipality;

e) distribution of a dividend received by an enterprise from a foreign enterprise (except for a person registered in a country with preferential taxation);

f) subsequent distribution of a received dividend by a person provided for by subparagraph „b“ of paragraph 1 of Article 21 of the Tax Code of Georgia (except for a permanent establishment of a foreign enterprise) that has transferred its place of management to Georgia.

3. For the purposes of this Article, profit distributed to a permanent establishment of a non-resident enterprise shall be considered a payment made in monetary or non-monetary form from the profit received as a result of the activity of this permanent establishment to the non-resident enterprise (the transfer by the non-resident enterprise of profit attributed to its permanent establishment). The profit that it could have received as an independent enterprise engaged in the same or similar activity under the same or similar conditions shall be attributed to the permanent establishment.

4. The following shall be considered distribution of profit:

a) a transaction carried out by an enterprise with a related person (which is not taxed with profit tax according to the objects of taxation provided for by paragraphs 1 and 3 of Article 97 of this Code), if the price of the transaction concluded between them differs from its market price and their relatedness affects the result of the transaction. In such a case, the amount of distributed profit shall be:

a.a) the difference between the market price of the transaction and the received/receivable income, if the market price of the transaction exceeds the received/receivable income;

a.b) the difference between the expenses incurred as a result of the transaction and the market price of the transaction, if the expenses incurred as a result of the transaction exceed the market price of the transaction;

b) the carrying out of a controlled transaction, if the established terms of this transaction do not comply with the arm's length principle. In such case, the amount of distributed profit shall be determined by the adjustment amount calculated in accordance with the procedure established by Chapter XVII of this Code;

c) a transaction carried out by an enterprise with a person exempt from income tax/profit tax (except a budgetary organisation, a Legal Entity of Public Law – the Deposit Insurance Agency and the National Bank of Georgia), if the price of the transaction concluded between them differs from its market price. In such case, the amount of distributed profit shall be:

c.a) the difference between the market price of the transaction and the received/receivable income, if the market price of the transaction exceeds the received/receivable income;

c.b) the difference between the expenses incurred as a result of the transaction and the market price of the transaction, if the expenses incurred as a result of the transaction exceed the market price of the transaction.

5. For the identification of the amount provided for by subparagraph „e“ of paragraph 2 of this Article, it shall be considered that, when an enterprise distributes a dividend, this amount shall be paid first.

Law of Georgia No. 5092 of 13 May 2016 – website, 01.06.2016

Law of Georgia No. 854 of 17 May 2017 – website, 02.06.2017

Law of Georgia No. 1182 of 30 June 2017 – website, 13.07.2017

Law of Georgia No. 1935 of 23 December 2017 – website, 29.12.2017

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020

Law of Georgia No. 884 of 2 August 2021 – website, 04.08.2021

Article 98². Expense incurred or other payment not related to economic activity🔗

1. For the purposes of this Article, an expense not related to economic activity includes:

a) an expense that is not documented, if this obligation is established in accordance with this Code;

b) an expense the purpose of incurring which is not the receipt of profit, income or compensation;

c) an expense incurred on goods/services purchased from an individual with micro business status, except when the income received by the person with this status from the supply of goods/provision of services is taxed under the general rules or when a goods waybill/a document of the form established by the Minister of Finance of Georgia is issued upon the supply/purchase of goods;

d) an expense incurred on goods/services purchased within the scope of an activity taxable by fixed tax from a person with the status of a fixed tax payer (except for an activity taxable at the fixed tax rate determined by subparagraph „b“ of paragraph 1 of Article 95³ of this Code);

e) interest paid for credit (loan) above the annual interest limit established by the Minister of Finance of Georgia;

f) an expense incurred by a person (except a special trading company) for the purchase of foreign goods from a special trading company in an amount exceeding the customs value of these goods, except for an expense not related to payments to the said special trading company.

2. Expenses determined by paragraph 1 of this Article shall not include payments provided for by Articles 98¹ and 98³ of this Code (including a payment not taxed by profit tax), as well as an expense incurred for making a payment taxed at the source of payment.

3. The following shall be taxed by profit tax:

a) a payment made for the purchase of a debt security issued by a person registered in a country with preferential taxation, as well as by a person exempt from profit tax in accordance with this Code (except a budgetary organization, a Legal Entity of Public Law – the Deposit Insurance Agency and the National Bank of Georgia);

b) a penalty and/or other fine paid to a person registered in a country with preferential taxation, as well as to a person exempt from profit tax in accordance with this Code (except a budgetary organization, a Legal Entity of Public Law – the Deposit Insurance Agency and the National Bank of Georgia), arising from a contractual relationship;

c) payment of an advance to a person registered in a country with preferential taxation, as well as to a person exempt from profit tax in accordance with this Code (except a budgetary organization, a Legal Entity of Public Law – the Deposit Insurance Agency and the National Bank of Georgia);

d) a payment made for granting a loan to a person registered in a country with preferential taxation, as well as to a person exempt from profit tax in accordance with this Code (except for a legal entity of public law – the Deposit Insurance Agency and the National Bank of Georgia), and/or for acquiring a claim existing against such person. This subparagraph shall not apply to operations carried out by a banking institution, a credit union, a microfinance organisation and a lending entity with a person exempt from profit tax in accordance with this Code;

e) a loss arising from the assignment of a right of claim or the waiver of a right of claim in favour of a person registered in a country with preferential taxation, as well as of a person exempt from profit tax in accordance with this Code (except for a legal entity of public law – the Deposit Insurance Agency and the National Bank of Georgia);

f) a payment made as a contribution to the capital of a non-resident, as well as of a person exempt from profit tax in accordance with this Code, or for the acquisition of a share/interest (except for a share/interest placed on a recognised stock exchange of a foreign country);

g) granting a loan to an individual or a non-resident (except for the acquisition of a debt security placed on a recognised stock exchange of a foreign country). This subparagraph shall not apply to operations carried out by a banking institution, a credit union, a microfinance organisation and a lending entity;

g¹) securing, by a partner individual or a partner non-resident, a loan taken from a third person with monetary funds placed on a bank account. In this case, the amount subject to profit tax shall be the amount of the monetary funds placed on the bank account to secure the loan. This subparagraph shall not apply to operations carried out by a banking institution, a credit union, a microfinance organisation and a lending entity;

h) granting, by a banking institution, a credit union, a microfinance organisation or a lending entity, of a loan to a partner non-resident, to a partner exempt from profit tax in accordance with this Code, or to a partner individual holding the right to participate in the capital by not less than 1 per cent, and/or securing, with monetary funds placed on a bank account, a loan taken by a partner from a third person. In this case, the amount subject to profit tax shall be the amount of the monetary funds placed on the bank account to secure the loan.

4. Expenses related to the placement and issuance of equity securities and/or international depositary receipts on a stock exchange (including on a recognised stock exchange of a foreign country), as well as to a change of listing category/regime, shall be considered expenses related to economic activity.

5. A country and/or individual territories of a country shall be considered a country with preferential taxation if, under its/their tax legislation:

a) a legal entity shall be exempt from profit tax;

b) no profit tax is imposed on profit received and/or distributed by a legal entity, or the profit tax rate does not exceed 1/3 of the profit tax rate existing in Georgia.

6. If, in accordance with the tax legislation of a foreign country or of individual territories of a foreign country, one of the cases provided for by paragraph 5 of this Article occurs in respect of any legal entity, that country and/or individual territories of the country shall be considered in this paragraph to be a country with preferential taxation.

7. If, as a result of the supply of an acquired debt security, a right to participate in capital (share/interest) or a claim, consideration was effected (actual receipt of money), the person is entitled, in the reporting period of the actual receipt of the money, to be credited with the amount of profit tax calculated in accordance with the reimbursed amount and to recover, in the manner established by this Code, the amount of previously paid profit tax.

8. If the amount of a loan issued/an advance paid has been repaid, or goods/services have been received in exchange for an advance paid, the person is entitled, in the reporting period of the repayment of the loan/advance amount or of the actual receipt of the goods/services, to be credited with the amount of profit tax calculated in accordance with the returned amount or the compensating amount of the goods/services received and to recover, in the manner established by this Code, the amount of previously paid profit tax.

9. If security by monetary funds placed on a bank account for a loan has been cancelled, the person is entitled, in the reporting period of the cancellation of the security, to be credited with the amount of profit tax calculated in accordance with the security by monetary funds placed on the cancelled bank account and to recover, in the manner established by this Code, the amount of previously paid profit tax.

10. The list of countries and/or individual territories of countries which are considered, for the purposes of this Code, to be countries with preferential taxation shall be determined by a Resolution of the Government of Georgia, taking into account the criteria established by paragraphs 5 and 6 of this Article.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 17 May 2017 No. 854 - website, 02.06.2017.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 98³. Free-of-charge supply of goods/provision of services and/or transfer of funds🔗

1. For the purposes of this Article, the supply of goods or the provision of services the purpose of which is not the receipt of profit, income or compensation shall be considered a free-of-charge supply.

2. The shortage of commodity-material assets and/or a fixed asset provided for by this Code shall be considered a free-of-charge supply of such goods at the moment of its detection.

3. The following cases of free-of-charge supply of goods/provision of services and/or transfer of funds shall not be subject to profit tax:

a) a donation issued to a charitable organisation during a calendar year that does not exceed 10 per cent of the net profit received by it during the previous calendar year;

b) free-of-charge supply of goods, provision of services or transfer of funds that is taxed at the source of payment in accordance with Article 154 of this Code;

c) free-of-charge provision of hotel services (accommodation in a hotel) by a tourist enterprise and/or by a person/persons invited by a tourist enterprise under a contract for the functioning/operation of a hotel, to the owner of a hotel room, for a period of not more than 60 days during a calendar year;

d) free-of-charge supply of goods, provision of services and/or transfer of funds to the State, a municipality or a Legal Entity of Public Law;

e) free-of-charge supply of immovable property to a charitable organisation, if the organisation receiving this property has been carrying out charity for persons with disabilities since childhood and/or persons with severe and significantly pronounced disabilities for at least the last 3 calendar years;

f) free-of-charge provision of suretyship provided for by Article 249 of this Code, suretyship provided for by the Civil Code of Georgia, as well as servitude services;

g) free-of-charge supply of goods, provision of services and/or transfer of funds to a person who is subject to profit tax according to the objects of taxation provided for by the first and 3rd paragraphs of Article 97 of this Code;

h) in accordance with the Law of Georgia "On Reducing Food Loss and Food Waste and Food Donation", free-of-charge supply (transfer) of food by a participant in the food supply chain to a charitable organisation/food bank.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 4 October 2023 No. 3549 – website, 24.10.2023.

Article 98⁴. Taxation of Representation Expenses🔗

1. For the purposes of this Article, representation expenses shall be determined in accordance with paragraph 33 of Article 8 of this Code.

2. For the purposes of Article 97 of this Code, the maximum amount of representation expenses incurred during a calendar year shall be 1 percent of the income received during the previous calendar year, and if the expenses incurred exceed the income received — 1 percent of the expenses incurred.

3. In the calendar year of the establishment of an enterprise, the maximum amount of representation expenses incurred shall be 1 percent of the expenses incurred before the end of the current calendar year.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Article 99. Exemption from tax🔗

1. The following shall be exempt from profit tax:

a) (removed - 30.05.2018, No. 2391);

b) (removed - 30.05.2018, No. 2391);

c) (removed - 30.05.2018, No. 2391);

c¹) (removed - 30.05.2018, No. 2391);

d) profit received by the Patriarchate of Georgia from the sale of crosses, candles, icons, books and calendars used for religious purposes;

e) before 1 January 2018, profit received or profit distribution from the primary supply by a person employed in agricultural production of agricultural products produced in Georgia prior to industrial processing (before the change of the commodity code), and expenses incurred/transfers made within the framework of the same activity, which are provided for by subparagraphs „b“−„d“ of paragraph 1 of Article 97 of this Code, if the income received from such supply during the calendar year does not exceed GEL 200,000;

f) until 1 January 2028, distribution of profit received by an agricultural cooperative from the primary supply of agricultural products produced in Georgia prior to industrial processing (before the change of the commodity code), and expenses incurred/transfers made within the framework of the same activity, which are provided for by subparagraphs „b“−„d“ of paragraph 1 of Article 97 of this Code;

g) (removed - 28.06,2019, No. 4906);

h) (removed - 28.06,2019, No. 4906);

i) (removed - 23.12.2017, No. 1935);

j) income received by a non-resident from a source in Georgia by an enterprise, organisation and/or individual entrepreneur on the basis of risk insurance and reinsurance;

k) income received by a non-resident from the leasing out of property which is not attributable to the non-resident's permanent establishment in Georgia;

l) profit received or profit distribution from the sale of debt securities of the State, the National Bank of Georgia, a legal entity of public law – the Deposit Insurance Agency, as well as of an international financial institution, and in the form of interest from these securities, and profit received or profit distribution from interest accrued on funds placed in accounts with the National Bank of Georgia. The list of international financial institutions shall be determined by a Resolution of the Government of Georgia;

l¹) income received by a non-resident from the supply of a debt security issued by a resident legal person through public offering in Georgia and admitted to trading on an organised market recognised by the National Bank of Georgia, which is not attributable to the permanent establishment of this non-resident in Georgia;

l²) income received by a non-resident in the form of interest from a debt security issued by a resident legal person before 1 January 2028 through public offering in Georgia and admitted to trading on an organised market recognised by the National Bank of Georgia, which is not attributable to the permanent establishment of this non-resident in Georgia;

l³) income received by a non-resident from the supply of a share security issued by a resident legal entity through a public offering in Georgia and admitted to trading on an organized market recognized by the National Bank of Georgia, which is not attributable to the permanent establishment of this non-resident in Georgia;

m) distribution of profit received by a FIZ enterprise from an activity permitted in the free industrial zone and expenses incurred/payments made within the framework of the same activity, which are provided for by subparagraphs „b“–„d“ of the first paragraph of Article 97 of this Code;

n) (removed - 28.06.2019, No. 4906);

o) (removed - 30.05.2018, No. 2391);

p) profit (distribution of profit) received by a legal entity of a virtual zone from the supply outside the borders of Georgia of information technologies created by it;

q) until 1 January 2026, distribution of profit received by an entrepreneurial entity of a tourist zone from the provision of hotel services and expenses incurred/payments made within the framework of the same activity, which are provided for by subparagraphs „b“–„d“ of the first paragraph of Article 97 of this Code;

r) distribution of profit received by a person organizing a gambling club or a totalizator from the said activity;

s) distribution of profit received by a special trading company from a permitted activity (except for profit received from the supply of a fixed asset used by it in economic activity for a period of more than 2 years);

t) (removed - 30.05.2018, No. 2391);

u) distribution of profit received by a person in the bankruptcy regime after the opening of the bankruptcy regime in accordance with the procedure established by the Law of Georgia „On Rehabilitation and Collective Satisfaction of Creditors“;

v) distribution of profit received as compensation for property expropriated in accordance with Article 19 of the Constitution of Georgia;

w) distribution of profit received by an enterprise of a high-mountain settlement from activity in the same high-mountain settlement and expenses incurred/payments made within the framework of the same activity, which are provided for by subparagraphs „b“–„d“ of the first paragraph of Article 97 of this Code, – within 10 calendar years from the granting of the relevant status (including the calendar year of granting of the status);

x) distribution of profit received from interest received from a financial institution licensed in accordance with the legislation of Georgia;

y) distribution of profit received by a person having the status of a special enterprise from the activity provided for by subparagraphs „a“ and „b“ of paragraph 2 of Article 242 of this Code.

Note: The tax benefit provided for by subparagraphs „l1“–„l3“ of this paragraph shall apply also where the loan/share security was admitted to trading on an organized market before its recognition by the National Bank of Georgia. At the same time, the said benefit shall be effective from the date of recognition of the organized market by the National Bank of Georgia.

2. For the purposes of this Article, the types of hotel services (except for hotel services provided for by subparagraph „d.d“ of paragraph 33 of Article 8 of this Code) shall be determined by the Government of Georgia.

3. For the identification of the amount of profit exempted from profit tax by paragraph 1 of this Article, it shall be considered that when a dividend is distributed by an enterprise, this amount shall be issued first.

Law of Georgia of 15 December 2010 No. 4061-LHG I, No. 75, 27.12.2010, Art. 469

Law of Georgia of 24 June 2011 No. 4935 - website, 30.06.2011

Law of Georgia of 24 June 2011 No. 4963 - website, 30.06.2011

Law of Georgia of 24 June 2011 No. 4961 - website, 06.07.2011

Law of Georgia of 13 October 2011 No. 5120 - website, 19.10.2011

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011

Law of Georgia of 9 December 2011 No. 5452 - website, 22.12.2011

Law of Georgia of 13 March 2012 No. 5791 – website, 23.03.2012

Of Georgia 2012

of 24 April

Law No. 6053 – website, 27.04.2012

Of Georgia 2012

of 10 April

Law No. 6015 – website, 30.04.2012

Law of Georgia of 5 June 2012 No. 6395 - website, 19.06.2012

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012

Law of Georgia of 12 July 2013 No. 817 - website, 05.08.2013

Law of Georgia of 30 July 2013 No. 906 - website, 20.08.2013

Law of Georgia of 6 September 2013 No. 1046 – website, 23.09.2013

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013

Law of Georgia of 16 July 2015 No. 4037 - website, 28.07.2015

Law of Georgia of 22 June 2016 No. 5503 - website, 12.07.2016

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016

Law of Georgia of 17 May 2017 No. 854 - website, 02.06.2017

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018

Law of Georgia of 6 June 2018 No. 2476 – website, 21.06.2018

Law of Georgia of 5 July 2018 No. 3109 – website, 11.07.2018

Law of Georgia of 5 September 2018 No. 3383 – website, 24.09.2018

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023

Law of Georgia of 13 December 2023 No. 3903 – website, 25.12.2023

Law of Georgia of 13 December 2023 No. 3902 – website, 25.12.2023

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025

Article 100. Gross income🔗

1. The gross income of a resident consists of income from a source in Georgia and income received outside Georgia.

2. The gross income of a non-resident consists of income received from sources in Georgia.

3. Gross income shall include income received in any form and/or through any activity, namely:

a) income received in the form of wages;

b) income received from economic activity that is not related to employment;

c) other income that is not related to employment or economic activity.

4. The following shall not be reflected in gross income:

a) (removed – 13 May 2016, No. 5092);

b) transfer of goods free of charge to the state and/or municipalities and/or provision of services free of charge;

c) transfer of goods to other persons within the framework of these projects by legal entities of public law implementing projects (including the preparatory stage) defined by international treaties ratified by the Parliament of Georgia, with which the Ministry of Finance of Georgia has concluded a contract on the authority to implement the project;

d) wages paid by a person with small business status to an employee, which, in accordance with paragraph 4 of Article 94 of this Code, is not taxed at the source of payment;

e) in the case provided for by subparagraph “b” of paragraph 4 of Article 115 of this Code, return of a fixed asset to the lessor;

f) benefit received on the basis of a tax agreement concluded with the taxpayer, through reduction of taxes and/or sanctions (including customs sanctions), write-off of tax debt, as well as through exemption from tax sanctions on the basis of paragraph 7 of Article 269 of this Code or exemption from customs sanctions on the basis of paragraph 11 of Article 163 of the Customs Code of Georgia;

f¹) benefit received through reduction of the amount of a fee and the related fine and penalty interest under a tax agreement;

g) until 1 January 2028, supply of agricultural products produced in Georgia and received as a result of agricultural activity between an agricultural cooperative and its members (shareholders), and/or provision of services related to this activity;

h) market value of immovable property (including a land plot) transferred free of charge to a charitable organization, if the recipient organization has been carrying out charity for persons with disabilities since childhood and/or with severe and significant disabilities for at least the last 3 calendar years;

i) reimbursement of expenses paid to a member of the municipal council (sakrebulo) who is not an official of the municipal council, on the basis of a resolution of the municipal council provided for by paragraph 3 of Article 41 of the Organic Law of Georgia "Local Self-Government Code", except for reimbursement of expenses paid to a member of the Tbilisi Municipality Council;

j) income received by an individual as a result of the provision of hotel services (use as hotel rooms/apartments) by a tourist enterprise through the use of the assets of a hotel owned by the individual/part thereof − to the individual;

k) supply of surplus electricity produced by a retail consumer organisation that owns a micro-power plant to the distribution licensee.

Law of Georgia of 20 May 2011 No. 4705 - website, 01.06.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 July 2013 No. 817 - website, 05.08.2013.

Law of Georgia of 30 July 2013 No. 906 - website, 20.08.2013.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Law of Georgia of 22 July 2015 No. 4088 - website, 04.08.2015.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 22 June 2016 No. 5491 - website, 29.06.2016.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 101. Income received in the form of salary🔗

1. Income received in the form of salary shall include any remuneration or benefit received by an individual as a result of employment, including income received from a previous place of work in the form of a pension or in another form, or income from a future place of work.

2. For the purposes of paragraph 1 of this Article, the value of a benefit shall be the amount indicated below, reduced by the amount paid by the employee to the employer upon receipt of such benefit:

a) (removed - 28.06.2019, No. 4906).

b) when the employer grants a loan to the employee at an interest rate lower than the interest rate determined by the Minister of Finance of Georgia – the amount corresponding to the interest payable at the interest rate determined by the Minister of Finance of Georgia;

c) when the employer supplies goods/services to the employee or transfers them without compensation – the market price of such goods/services;

d) when the employer transfers residential premises to the employee for use – the annual market value of the lease rent (in proportion to the respective period);

e) when the employer provides assistance to the employee or to persons dependent on the employee for obtaining education (excluding a training programme directly related to the performance of the employee's duties) – the value of the assistance provided by the employer for obtaining education;

f) when the employer reimburses expenses to the employee – the amount of the reimbursement;

g) when the employer forgives a debt or obligation to the employee – the amount of the debt or obligation, except where the expenses to be incurred for the implementation of the measures provided for by the legislation of Georgia for the compulsory enforcement of a monetary claim exceed the amount of the monetary claim;

h) when the employer pays an insurance premium or another amount in the case of life and health insurance for the employee – the amount of the insurance premium or other amount paid by the employer;

h¹) the amount of pension contributions made by the employer in favour of the employee to a pension scheme provided for by the Law of Georgia "On Voluntary Private Pension";

i) in other cases – the market price of the benefit in accordance with Article 18 of this Code.

2¹. The benefit received by the employee through the use of the employer's vehicle for personal use shall be considered salary and shall be taxed with income tax in the following amount:

| No. | Vehicle engine capacity | Amount of income tax (in GEL) |
| --- | --- | --- |
| 1 | more than 3500 cm³ | 300 |
| 2 | 2500 cm³ − 3500 cm³ | 200 |
| 3 | less than 2500 cm³ | 100 |
| 4 | in the case of a hybrid vehicle − any engine capacity | 60 |

2². The reporting period for the income tax provided for by paragraph 2¹ of this Article is a calendar month, and it shall be paid by the tax agent (employer) (except for the cases provided for by subparagraph „a“ of paragraph 1 of Article 154 of this Code) not later than the 15th day of the month following the reporting month.

2³. The use by an employee of the employer's electric vehicle for personal use shall not be taxed with income tax.

2⁴. The procedure for recording an employer's vehicle used by an employee for personal use and for providing the tax authority with information about such a vehicle shall be determined by Order of the Minister of Finance of Georgia.

3. Income received as salary shall not include:

a) reimbursement of travel expenses paid to the employee within the norm determined by the Ministry of Finance of Georgia;

b) reimbursement of representation expenses;

c) organized transportation by the employer of the employee from the place of residence to the place of work or from the place of work to the place of residence, if it is impossible to carry this out using public transport or if the travel requires the employee to incur unreasonable expenses and/or spend unreasonable time;

d) pension contributions made by the employer at its own expense in favour of the employee in accordance with the Law of Georgia „On Accumulated Pension“, as well as pension contributions made by the State in favour of the employee to his/her individual pension account;

e) benefit received through the payment by the employer of an insurance premium in favour of the employee within the framework of compulsory insurance in accordance with the legislation of Georgia;

f) transfer of residential premises for use by the employer to the employee and/or provision of catering services and/or reimbursement of expenses related to the same services, if all of the following conditions are satisfied:

f.a) the provision of residential premises/food is carried out due to the specifics of the employer's activity and constitutes a necessary condition for the proper performance by the employee of the obligations undertaken under the employment contract and/or the provision of the employee with residential premises/food, without provision by the employer, requires the employee to incur unreasonable expenses and/or spend unreasonable time;

f.b) the transfer of residential premises for use and/or the provision of catering services and/or reimbursement of expenses related to the same services does not constitute part of the remuneration for work provided for by the employment contract existing between the employer and the employees.

4. The amount determined by paragraph 2 of this Article includes excise tax, value added tax and other tax that must be paid by the employee.

5. For the purposes of subparagraph „b“ of paragraph 2 of this Article, the amount of the interest rate shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 26 December 2013 No. 1886 - website, 30 December 2013.

Law of Georgia of 13 May 2016 No. 5092 - website, 1 June 2016.

Law of Georgia No. 3308 of 21 July 2018 – website, 06.08.2018.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 3350 of 28 June 2023 – website, 19.07.2023.

Law of Georgia No. 3608 of 1 November 2023 – website, 20.11.2023.

Article 102. Income received from economic activity🔗

1. Income received from economic activity includes:

a) income received from the supply of goods/services;

b) excess income received from the sale of assets;

c) income received as a result of the restriction of economic activity and/or the closure of an enterprise;

d) amounts received from the sale of fixed assets, and in the case of free supply of fixed assets, the market value shall be included in income in accordance with paragraph 7 of Article 111 of this Code;

e) compensated deductions under Article 146 of this Code;

f) income received in the form of interest, except for income received by an individual in the form of interest from the placement of funds in deposits and savings accounts with banking institutions and other credit institutions;

g) dividend;

h) royalty;

i) benefit received by a person from the write-off of a debt;

j) income received from property granted under leasing, usufruct, lease, rent or another similar form;

k) income received from other economic activity.

2. In the case of free supply of goods/services, the market price of such goods/services shall be reflected in the total income. This does not apply to the free distribution of advertising goods, including through a retailer, which has no independent consumer characteristics and is an integral part of the supply of the main goods/services.

3. (Removed - 13.05.2016, No. 5092).

Law of Georgia No. 2946 of 12 December 2014 - website, 24.12.2014.

Law of Georgia No. 5092 of 13 May 2016 - website, 01.06.2016.

Law of Georgia No. 2626 of 22 February 2023 – website, 10.03.2023.

Article 103. Income not related to employment and economic activity🔗

1. Income not related to employment and economic activity includes any income or benefit, except:

a) partners' contributions which increase the net assets of the enterprise whose partners are the persons making the contributions;

b) under an insurance contract:

b.a) insurance compensation paid by the insurer to the insured natural person upon the occurrence of an insured event under a health insurance contract;

b.b) insurance compensation paid by the insurer to the insured natural person upon the occurrence of an insured event under an insurance contract, which does not exceed the amount of the incurred damage;

b¹) compensation, within the scope of the authority delegated by the insurer to the non-entrepreneurial (non-commercial) legal entity – the Compulsory Insurance Centre – provided for by the Law of Georgia "On Compulsory Civil Liability Insurance of Owners of Motor Vehicles Registered in a Foreign State and Moving on the Territory of Georgia", of damage caused by the owner of an uninsured motor vehicle to the injured person (third person) by means of a motor vehicle, which does not exceed the amount of the incurred damage;

c) the value of goods and services purchased for the purpose of a controlled purchase in accordance with this Code and the legislation of Georgia, as well as income or benefit covertly received by a person who covertly assists the criminal investigation bodies.

d) pension contributions made by the State in favour of a self-employed person to their individual pension account in accordance with the Law of Georgia "On Accumulated Pension";

e) the benefit received by the employer in favour of the employee through the payment of an insurance premium within the framework of compulsory insurance in accordance with the legislation of Georgia.

2. In the case of receipt by a person of property or benefit from another person, the value of the property or benefit to be included in the aggregate income shall be determined in accordance with the procedure established by paragraph 2 of Article 101 of this Code.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 21 July 2018 No. 3308 – website, 06.08.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 1 November 2023 No. 3608 – website, 20.11.2023.

Article 104. Income derived from a source in Georgia🔗

1. For the purposes of this Title, income derived from a source in Georgia shall include:

a) income derived from employment in Georgia;

b) income or benefit derived from the supply of goods in the territory of Georgia;

c) income derived from the provision of services in Georgia. For this purpose, unless otherwise provided by this Article, a service shall be considered to be provided in Georgia if:

c.a) the service is actually provided in the territory of Georgia;

c.b) the service is directly related to immovable property located in Georgia;

c.c) the service is directly related to movable property located in Georgia;

c.d) the service is related to securities issued by a resident of Georgia;

c.e) the place of actual provision of the service is Georgia and the service is provided in the fields of culture, art, education, tourism, recreation, physical culture and sport;

c.f) the provision of the service is related to the transportation of cargo or carriage of passengers and the place of commencement and completion of transportation is Georgia;

c.g) the service provider and the service recipient are in different states and the service provider is a resident of Georgia, except where the provision of the service by the service provider is carried out through its permanent establishment in another country, which confirms that the service provider provided the service in another country (other than Georgia);

c.h) the service provider and the service recipient are in different states and the provision of the service by the service provider is carried out in Georgia through its permanent establishment, an employee, or otherwise (including where the expense related to the provision of the service by the service provider is incurred in Georgia, regardless of the place of its actual payment), which confirms that the service provider provided the service in Georgia;

d) income derived from economic activity carried out in Georgia by a permanent establishment of a non-resident, including income that comprises proceeds derived by this non-resident in Georgia from the sale of identical (similar) goods; as well as income from services provided in Georgia that are identical or similar to services provided by the permanent establishment;

e) income derived from the cancellation of obligations and the sale of fixed assets as a result of the write-off of bad debts related to economic activity carried out in Georgia, in accordance with paragraph 7 of Article 111 of this Code, or income derived as a result of compensation in accordance with Article 146 of this Code;

f) a dividend received from a resident legal entity, income derived from the sale of a share of a resident legal entity and/or a partner's interest in a legal entity;

g) interest, if the payer of the interest is a resident of Georgia. At the same time, regardless of whether or not the payer of the interest is a resident of Georgia:

g.a) interest shall be deemed income derived from a source in Georgia if a non-resident person has a permanent establishment in Georgia to which the debt obligation of the non-resident person is connected, and the interest expense related to this debt obligation is attributed to the expenses of the permanent establishment, regardless of whether or not this expense is incurred by this permanent establishment;

g.b) interest shall not be deemed income derived from a source in Georgia if a resident person confirms that it has a permanent establishment in a foreign country to which the debt obligation of the resident person is connected, and the interest expense related to this debt obligation is attributed to the expenses of the permanent establishment, regardless of whether or not this expense is incurred by this permanent establishment;

h) a pension or scholarship paid by a resident;

i) royalty, if the payer of the royalty is a resident of Georgia. At the same time, regardless of whether or not the payer of the royalty is a resident of Georgia:

i.a) royalty shall be deemed income derived from a source in Georgia if a non-resident has a permanent establishment in Georgia in connection with which the obligation to pay the royalty arose, regardless of whether or not this expense is incurred by this permanent establishment;

i.b) royalty shall not be deemed income derived from a source in Georgia if a resident confirms that it has a permanent establishment in a foreign country in connection with which the obligation to pay the royalty arose, regardless of whether or not this expense is incurred by this permanent establishment;

j) income derived from the realisation or transfer of the rights existing or used in Georgia as defined by paragraph 21 of Article 8 of this Code;

k) income derived from the transfer of the right to lease and/or otherwise use under a contract movable property used in Georgia;

l) income derived from immovable property located in Georgia and used for economic activity, including income derived from the realisation of a partner's share in such property;

m) income derived from the supply of shares or a partner's share in an enterprise, more than 50 per cent of the value of whose assets is directly or indirectly formed from the value of immovable property located in Georgia;

n) income received from a resident enterprise or from a permanent establishment of a non-resident in Georgia for management, as well as for financial and/or insurance services (including reinsurance services);

o) income received in the form of insurance contributions under an insurance or reinsurance contract for a risk originating in Georgia;

p) income derived from transport services in international carriage between Georgia and foreign countries or from telecommunication services in international communications;

q) other income derived from activity in Georgia.

2. When determining the source of income provided for by paragraph 1 of this article, the place of receipt of the amount of income shall not be taken into account.

3. (Repealed – 28.06.2019, No. 4906).

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Article 105. Expenses related to the receipt of income🔗

1. All expenses related to the receipt of gross income shall be deducted from gross income, except for those expenses which are not subject to deduction in accordance with this Code.

2. Unless otherwise provided by this Code, all expenses shall be documented.

3. Expenses for the acquisition, installation and other capitalizable expenses of fixed assets shall be deducted gradually, in the form of depreciation deductions, except in the case of the exercise by the taxpayer of the right to full deduction of depreciation deductions.

4. The taxpayer shall be entitled to deduct from gross income:

a) the benefit derived as a result of the supply of goods/services to him (including free of charge), taking into account the restrictions defined by this Code, in the reporting year in which this goods/services are used in economic activity;

b) for advertising purposes, the amount of VAT charged on goods distributed free of charge having independent consumer characteristics, if no tax invoice has been issued for this transaction;

c) expenses related to the placement and issuance of share securities and/or international depositary receipts on a stock exchange (including on a recognized stock exchange of a foreign country), as well as to a change of listing category/regime.

d) the expense related to income (profit) exempted from profit tax in accordance with subparagraph „l“ of paragraph 1 of Article 99 of this Code.

5. The Minister of Finance of Georgia shall be entitled to determine:

a) individual cases where documentary confirmation of an expense is not mandatory;

b) the list of documents which, without regard to the requirements of this Code, shall be considered documents confirming an expense.

6. (Removed – 13.05.2016, No. 5092).

7. (Removed – 26.12.2013, No. 1886).

8. (Removed – 13.05.2016, No. 5092).

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012

Law of Georgia of 25 May 2012 No. 6330 – website, 08.06.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014

Law of Georgia of 24 December 2015 No. 4720 – website, 29.12.2015

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Article 106. Expenses that are not deducted🔗

The following shall not be deducted from gross income:

a) those expenses that are not related to economic activity, except:

a.a) the case provided for by Article 117 of this Code;

a.b) the case of free-of-charge supply of goods and/or free-of-charge provision of services by a Legal Entity of Public Law to the state and/or the municipality;

b) expenses incurred on entertainment, except for the case where the taxpayer carries out economic activity of an entertainment nature and the expenses are incurred within the framework of such activity;

c) expenses incurred by a natural person for personal consumption, expenses related to profits received from lotteries, casinos, gambling or other profitable games, or expenses related to the receipt of income in the form of wages;

d) expenses related to the receipt of income exempt from the payment of profit tax or income tax, except for the case provided for by the note to this Article;

e) expenses incurred on goods/services that are not considered a supply for profit tax purposes or upon the supply of which the respective income/market price is not subject to reflection in gross income in accordance with paragraph 4 of Article 100 of this Code, except for the case provided for by subparagraph "b" of the same paragraph;

f) expenses incurred on goods/services purchased from a natural person having the status of micro business, except for the case where the income received by the person with this status from the supply of goods/provision of services is taxed under the general rule or, upon the supply/purchase of goods, a goods waybill/a document of the form established by the Minister of Finance of Georgia has been issued;

g) (removed - 26.12.2013, No. 1886).

h) expenses incurred on goods/services purchased within the framework of an activity taxable by fixed tax from a person having the status of a fixed tax payer (except for an activity taxable at the rate provided for by subparagraph "b" of paragraph 1 of Article 95³ of this Code);

i) expenses not distinguishable between an activity taxable by fixed tax and an additionally carried out activity by a person having the status of a fixed tax payer.

Note: In the cases provided for by subparagraphs "f" and "k" of paragraph 1 of Article 82 of this Code, a person has the right to deduct expenses related to the receipt of exempt income. In the case of exercising this right, the person is obliged to tax with income tax the income exempt from income tax in accordance with subparagraphs "f" and "k" of paragraph 1 of Article 82 of this Code.

Law of Georgia of 22 February 2011 No. 4206 - website, 10.03.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 25 May 2012 No. 6330 – website, 08.06.2012.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 1² December 2014 No. 2950 - website, 23.12.2014.

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020

Article 107. Limitation on deduction of interest🔗

1. Subject to paragraph 2 of this Article, interest paid and/or payable (according to the use of the accrual method) for credit (loan) shall be deducted within no more than the annual interest rate established by the Minister of Finance of Georgia, in proportion to the respective period.

2. In an enterprise, more than 20 percent of the share (shares) of which directly or indirectly belongs to a legal entity exempt from profit tax, the maximum amount of deductible interest provided for by paragraph 1 of this Article shall not exceed the sum of the amount of any income received by the taxpayer in the form of interest and the amount of 50 percent of the taxable profit determined without taking into account the income received in the form of interest and the expense incurred in the form of interest.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012

Article 108. Deduction of bad debts🔗

1. A taxpayer shall be entitled to deduct bad debts related to sold goods and services, in respect of which the receivables were included in the total income received from economic activity in previous reporting periods.

2. Deduction of bad debts shall be allowed only if the debt has been written off and is reflected in the taxpayer's accounting statements.

Article 109. Deduction of transfers to reserve funds🔗

A banking institution, credit union, microfinance organization shall deduct reserves for possible loan losses from total income in accordance with International Financial Reporting Standards (IFRS).

Note: for the purposes of this article, a loan shall be considered credit (loan), overdraft, letter of credit, credit line, guarantee and/or debt securities, factoring, as well as any kind of pre-declared (established) income received/receivable from these instruments (including received/receivable in the form of discount, commission and/or interest).

Law of Georgia of 17 December 2010 No 4114-LHG I, No 76, 29.12.2010, Art. 506

Law of Georgia of 13 October 2011 No 5118 – website, 31.10.2011

Law of Georgia of 27 December 2018 No 4225 – website, 31.12.2018

Law of Georgia of 14 July 2020 No 6817 – website, 22.07.2020

Law of Georgia of 13 May 2016 No 5092 – website, 01.06.2016

Law of Georgia of 30 May 2018 No 2392 – website, 12.06.2018

Law of Georgia of 16 December 2022 No 2441 – website, 27.12.2022

Law of Georgia of 16 December 2022 No 2439 – website, 27.12.2022

Article 110. Deduction of expenses for scientific-research, design and experimental-construction services🔗

Expenses for scientific-research, design and experimental-construction services related to the receipt of total income shall be deductible, except for the acquisition, installation and other capitalizable expenses of fixed assets.

Article 111. Depreciation charges and deductions for fixed assets🔗

1. Depreciation charges on fixed assets used for economic activity shall be deducted under the conditions provided for by this Article.

2. Depreciation shall not be charged on land, works of art, museum exhibits, objects of historical significance (except buildings and structures) and other non-depreciable assets. At the same time, depreciation shall not be charged on fixed assets and biological assets with a value of up to 1000 GEL. A fixed asset with a value of up to 1000 GEL shall be fully deducted from total income in the reporting year in which it was put into operation, while expenses incurred on a biological asset shall be deducted in the reporting year in which they were actually incurred.

3. Fixed assets subject to depreciation shall be grouped according to the following depreciation rates:

Group

number

Fixed assets

Depreciation

rate (%)

1

Passenger cars; automotive tractor equipment for use on roads; office furniture; rolling stock of motor transport; trucks, buses, special-purpose vehicles and trailers; machinery and equipment for all branches of industry, for foundry production; forging and pressing equipment; construction equipment; agricultural machinery and equipment.

20

2

Special tools, inventory and equipment; computers, data processing peripheral devices and equipment; electronic equipment.

20

3

Railway, sea and inland waterway transport vehicles; power machinery and equipment; thermal engineering equipment, turbine equipment, electric motors and diesel generators, power transmission and communication equipment; pipelines.

8

4

Buildings, structures.

5

5

Depreciable assets not included in other groups.

15

4. The amount of depreciation charges for each group shall be calculated at the end of the tax year from the value balance of the group in accordance with the depreciation rates specified in paragraph 3 of this Article.

5. Depreciation on buildings and structures (hereinafter – structure) shall be charged separately for each structure. Accordingly, each structure shall be considered a separate group.

6. The value balance of the group at the end of the tax year shall be the amount determined in the following manner – the value balance of the group at the end of the tax year preceding the reporting year:

a) is decreased by:

a.a) the amount of depreciation charged in the tax year preceding the reporting year;

a.b) the amount of deductions made in accordance with paragraphs 8 and 9 of this Article;

a.c) the amount from the sale of fixed assets of the group during the reporting tax year, and in the case of gratuitous supply of fixed assets – at market value;

b) is increased by:

b.a) the value of fixed assets added to the group during the reporting tax year, determined in accordance with Article 148 of this Code (except for fixed assets not subject to depreciation);

b.b) by the amount exceeding the maximum level of repair expenses incurred on fixed assets during the reporting tax year, in accordance with paragraph 2 of Article 115 of this Code.

7. If during the tax year the amount from the sale of the group's fixed assets, and in the case of gratuitous supply of fixed assets – their market value, exceeds the value balance of the group at the end of the year, the excess amount shall be included in aggregate income and the value balance of the group shall be equal to zero.

8. If the amount of the group's value balance at the end of the year is less than 1000 GEL, the amount of the group's value balance shall be subject to deduction.

9. If all fixed assets of the group are sold or liquidated, the amount of the group's value balance at the end of the year shall be subject to deduction from aggregate income.

10. A taxpayer shall have the right to apply the accelerated depreciation rate to groups 2 and 3, but not more than double the amount of the corresponding rate provided for by paragraph 3 of this article.

11. A non-entrepreneurial natural person shall not have the right to deduct depreciation charges on fixed assets used for economic activity.

12. Each fixed asset leased out by a lessor shall be recorded as a separate group. Depreciation charges on it shall be deducted in the amount of the discounted value of lease payments, which is determined taking into account the terms of the lease and the value balance of the group of this fixed asset.

13. Upon expiry or early termination of the lease contract, in the case of return of the leased fixed asset to the lessor, this fixed asset shall remain in the same group and, until its subsequent lease out, the accrual of depreciation charges on it shall cease.

14. (deleted - 26.12.2013, No. 1886).

Law of Georgia of 13 October 2011 No. 5118 - website, 31.10.2011.

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 28 June 2023 No. 3317 – website, 18.07.2023.

Article 112. Full deduction of depreciation charges in respect of fixed assets🔗

1. In respect of fixed assets, except those contributed to the capital of an enterprise, the taxpayer shall be entitled to fully deduct the value of these assets in the tax year in which the fixed assets were put into operation.

2. In the event of exercising the right to fully deduct the value of fixed assets, the taxpayer shall be obliged to apply the same method to all subsequently purchased (produced) fixed assets.

3. In the event of full deduction of the value of fixed assets:

a) the said fixed assets shall not be included in the value balance of the group provided for by Article 111 of this Code;

b) the amounts received and/or receivable upon the subsequent supply of such assets, and in the absence thereof – the market value, exclusive of value added tax, shall be included in the aggregate income.

4. In the event of full deduction of the value of fixed assets, the taxpayer shall not be entitled to change the chosen deduction rate for 5 years. At the same time, the choice of such deduction rate shall be made in the tax year in which the fixed assets were put into operation.

5. The right to fully deduct the value of fixed assets shall not apply to such fixed assets as are not subject to depreciation.

Law of Georgia of 13 October 2011 No. 5118 – website, 31 October 2011.

Article 113. Deduction of depreciation charges on intangible assets🔗

1. The expenses on intangible assets shall be deducted in the form of depreciation charges, over their useful life, in proportion to the reporting period. At the same time, the taxpayer shall be entitled to fully deduct an intangible asset with a value of up to GEL 1000 from the aggregate income in the reporting year in which the relevant expense was incurred.

2. If it is impossible to determine the useful life of intangible assets, the depreciation rate shall be 15 per cent.

3. Each intangible asset shall be recorded as a separate group.

4. The costs of their acquisition or production shall not be included in the value of intangible assets subject to depreciation if they have already been deducted when calculating the taxpayer's taxable profit (income).

5. If the value balance of a group of intangible assets at the end of the year is less than GEL 1000, the value balance of the group shall be deducted.

Law of Georgia of 15 May 2012 No. 6211 – website, 29 May 2012.

Law of Georgia of 12 December 2014 No. 2946 – website, 24 December 2014.

Article 114. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5118 – website, 31 October 2011.

Article 115. Deduction of expenses for repair of fixed assets🔗

1. In each group provided for by paragraph 3 of Article 111 of this Code, deduction of the expenses for repair of the fixed assets included in the group shall be permitted annually, in an amount of up to 5 percent of the value balance of the group as of the end of the tax year preceding the reporting year.

2. The amount exceeding the limit established by paragraph 1 of this Article shall increase the value balance of the corresponding group.

3. When exercising the right to full deduction of depreciation charges provided for by Article 112 of this Code, repair expenses shall be deducted in full, without taking into account the restriction determined by this Article.

4. The expenses for repair of leased fixed assets, if its carrying out in accordance with the contract is not provided for at the expense of a reduction of lease payments, shall be subject to capitalisation with the recipient of the fixed assets and, by the end of the reporting period, shall form a separate group, in which case:

a) the expenses incurred shall be deducted from the aggregate income according to the depreciation rates established by this Code in respect of fixed assets, in the amount of 15 percent;

b) in the event of expiry or early termination of the contract, if the fixed asset is returned to the lessor, the value balance of the said group shall be equal to zero and the remaining amount shall not be deducted from the aggregate income. At the same time, the return of the fixed asset to the lessor shall not be considered a supply.

5. (Removed - 26.12.2013, No. 1886).

Law of Georgia No. 6212 of 15 May 2012 – website, 29.05.2012.

Law of Georgia No. 1886 of 26 December 2013 - website, 30.12.2013.

Article 116. Restriction of the deduction of representation expenses🔗

A person carrying out economic activity shall be entitled to deduct representation expenses in an amount not exceeding 1 percent of the aggregate income received during the tax year.

Article 117. Deduction of a donation given to a charitable organisation🔗

The amount given by an enterprise/individual entrepreneur to a charitable organisation shall be deducted from the aggregate income, as well as the market price of goods supplied free of charge (except immovable property)/services rendered reflected in the aggregate income, but not more than 10 percent of the amount remaining after the deductions provided for by this Code from the aggregate income (without the deduction provided for by this Article).

Law of Georgia No. 906 of 30 July 2013 - website, 20.08.2013.

Article 118. Deduction of expenses for insurance contributions🔗

On the basis of an insurance contract, insurance contributions paid and/or payable (according to the application of the accrual method) by policyholders and/or insured persons, related to economic activity, except for insurance contributions paid by the insured person under a pension insurance contract, shall be subject to deduction.

Article 119. Expenses for geological research and preparatory services for the extraction of natural resources🔗

1. Expenses for geological research and preparatory services for the extraction of natural resources shall be deducted from total income in the form of depreciation charges, in accordance with the depreciation rate established by Article 111 of this Code, at the amount of 20 percent, according to the value balance of the group, and shall be recorded as a separate group.

2. This Article:

a) shall also apply to the expenses of those intangible assets which are incurred by the taxpayer in connection with the acquisition of the right to geological research, development or exploitation of natural resources;

b) shall not apply to those intangible assets for which it is possible to determine the useful life and to deduct proportionally to the reporting period.

3. In accordance with the Law of Georgia "on Oil and Gas", the expenses of geological research, preparatory services for the extraction of natural resources and drilling carried out under a production sharing agreement shall be deducted in accordance with the norms provided for by the contract.

Article 120. Taxes and fines that are not deducted🔗

1. The following shall not be deducted:

a) profit tax and income tax which are paid or payable in Georgia or in another state, except for income tax paid by an individual in connection with the receipt of benefit (except that received from employment and economic activity). In this case, the amount of income tax payable in accordance with the income received from the realisation of property shall be reduced by the amount of income tax paid (including in previous tax periods) in respect of this property;

b) amounts of sanctions/fines established by the legislation of Georgia and paid or payable into the budget by the taxpayer.

2. (Removed - 26.12.2013, No. 1886).

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Article 121. Carrying forward of losses🔗

1. Compensation of a loss incurred by an individual entrepreneur from the realisation of an asset (except an asset used in economic activity) shall be effected out of the excess of the value received from the realisation of an asset of the same type. If compensation of the loss is impossible in the same year, the loss shall not be carried forward to the following year.

2. During a tax year, compensation of a loss incurred by an individual (except an individual entrepreneur) from the realisation of an asset shall be effected out of the excess received from the realisation of an asset of the same type. At the same time, if compensation of the loss is impossible in the same year, the loss shall not be carried forward to the following year.

3. In respect of an individual entrepreneur, the excess of deductions over the aggregate income received from economic activity which is not related to employment shall not be deducted at the expense of the salary received by that person. It shall be carried forward for a term of up to 5 years and shall be covered at the expense of the excess of deductions over the aggregate income of future periods which is not related to employment.

4. In respect of a legal entity, the excess of deductions over aggregate income shall be carried forward for a term of up to 5 years and shall be covered at the expense of the excess of deductions over the aggregate income of future periods.

5. (Removed - 28.06.2019, No. 4906).

Law of Georgia No. 5120 of 13 October 2011 - website, 19.10.2011.

Law of Georgia 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia No. 189 of 28 December 2012 - website, 29.12.2012.

Law of Georgia No. 5092 of 13 May 2016 - website, 01.06.2016.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 122. Extension of the term for carrying forward of losses🔗

1. A person shall be entitled to replace the 5-year term for carrying forward of a loss determined by Article 121 of this Code with a 10-year term for carrying forward of the loss. In this regard, the person shall, before the expiry of the 5-year term for carrying forward of the loss determined by Article 121 of this Code, apply to the tax authority by an application.

2. When applying the provision of paragraph 1 of this Article, in the event of the loss being covered, the person shall be entitled to again replace the chosen 10-year term for carrying forward of the loss with the 5-year term for carrying forward of the loss, for which purpose he/she shall, in any subsequent tax year after the covering of the loss, notify the tax authority of the transition to the 5-year term again.

3. (Removed - 18.12.2015, No. 4680).

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012.

Law of Georgia No. 4680 of 18 December 2015 - website, 29.12.2015.

Article 123. (Removed)🔗

Law of Georgia No. 5118 of 13 October 2011 - website, 31.10.2011.

Law of Georgia No. 6211 of 15 May 2012 – website, 29.05.2012.

Law of Georgia No. 6547 of 22 June 2012 – website, 04.07.2012.

Law of Georgia No. 5092 of 13 May 2016 - website, 01.06.2016.

Article 124. Credit for tax paid outside Georgia🔗

1. An enterprise (except for an enterprise provided for by paragraph 2 of this article) shall be entitled to credit the profit tax paid outside Georgia for the relevant tax year when paying tax in Georgia on that profit, on income not derived from a source in Georgia.

2. An enterprise that is taxed by profit tax upon distribution of profit shall be entitled, when paying profit tax on distributed dividends, to credit for the relevant tax period the profit tax paid outside Georgia on income not derived from a source in Georgia.

3. The amount of amounts credited under paragraphs 1 and 2 of this article shall not exceed the amount of taxes that would have been assessed on this profit in Georgia under the rules and rates in force in Georgia.

Law of Georgia of 13 May 2016 No. 5092 - website, 1 June 2016.

Article 125. Enjoyment by a non-resident of tax benefits in accordance with international agreements on avoidance of double taxation🔗

The procedure for enjoying the tax benefit defined by international agreements on avoidance of double taxation and for refunding to a non-resident the tax paid in Georgia shall be determined by an order of the Minister of Finance of Georgia.

Law of Georgia of 20 December 2011 No. 5556 - website, 30 December 2011.

Article 126. Meaning of concepts for the purposes of this Chapter🔗

1. Two persons are mutually dependent if:

a) one person directly or indirectly participates in the management, control or capital of the other person;

b) the same persons directly or indirectly participate in the management, control or capital of two persons.

2. A person directly or indirectly participates in the management, control or capital of an enterprise if:

a) it directly or indirectly owns more than 50 per cent of the enterprise;

b) it in practice exercises control over the entrepreneurial decisions of the enterprise.

3. Persons that are not mutually dependent are independent.

4. Any transaction between mutually dependent persons is controlled.

5. Any transaction between independent persons is independent.

6. Margin is a profitability ratio calculated by the ratio of such indicators as, for example, indicators of purchases, sales, expenses and assets.

7. A transaction condition means a financial or other relevant indicator used when applying the method of assessment of international controlled transactions.

Law of Georgia of 8 November 2011 No. 5202 - website, 22 November 2011.

Article 127. General principles of assessment of international controlled transactions🔗

1. For the purposes of this Code, if a Georgian enterprise carries out one or more financial or commercial transactions with an interdependent enterprise that is not a Georgian enterprise, each such enterprise shall determine the amount of its taxable profit in accordance with the market principle.

2. The amount of taxable profit of an enterprise that carries out one or more financial or commercial international controlled transactions with an interdependent enterprise shall be in accordance with the market principle if the terms of the transaction do not differ from the terms that would be agreed upon between independent enterprises in comparable transactions carried out in comparable circumstances.

3. If the established terms of a transaction determined under paragraph 1 of this Article do not comply with the market principle, any amount of profit which would have accrued to either enterprise had the established terms of the transaction complied with the market principle, but which did not accrue due to the non-compliance with the market principle, may be included in the taxable profit of that enterprise and taxed accordingly.

4. An independent transaction is comparable to an international controlled transaction if:

a) there is no significant difference between them that would materially affect the financial indicator that is being examined by the relevant method of assessment of international controlled transactions;

b) where there is a difference between them referred to in subparagraph „a“ of this paragraph, a reasonably accurate adjustment of the financial indicator of the independent transaction was made in the comparison in order to eliminate the effects of that difference.

5. The provisions of paragraph 3 of this Article shall also apply to cases where a Georgian enterprise carries out one or more financial or commercial transactions with a resident of a country with preferential taxation, regardless of whether or not they are interdependent persons. At the same time, a transaction one of the parties to which is a resident of a country with preferential taxation shall be considered a controlled transaction.

6. The criteria upon satisfaction of which the price of the transactions subject to review shall be considered a market price for the purposes of this Chapter shall be determined by the Minister of Finance of Georgia.

7. The provisions of paragraph 3 of this Article shall also apply to a case where an enterprise carries out one or more financial or commercial transactions with its permanent establishment.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Article 128. Methods of assessment of international controlled transactions🔗

1. For the purpose of determining compliance of the amount of taxable profit with the arm's length principle, the following methods are adopted for the assessment of international controlled transactions:

a) Comparable uncontrolled price method. Under this method, the price set for goods and services transferred under an international controlled transaction is compared to the price set for goods and services transferred under a comparable uncontrolled transaction;

b) Resale price method. Under this method, the margin received upon the sale, under an uncontrolled transaction, of goods purchased under an international controlled transaction is compared to the margin received upon the sale, under a comparable uncontrolled transaction, of goods purchased under comparable uncontrolled transactions;

c) Cost plus method. Under this method, the mark-up set on direct and indirect costs incurred in the supply of goods or services within the framework of an international controlled transaction is compared to the mark-up set on direct and indirect costs incurred in the supply of goods or services within the framework of a comparable uncontrolled transaction;

d) Transactional net margin method. Under this method, the net profit margin received by an enterprise in respect of the relevant indicator (for example: costs, sales, assets) within the framework of an international controlled transaction is compared to the net profit margin received within the framework of a comparable uncontrolled transaction in respect of the same indicator;

e) Transactional profit split method. Under this method, each enterprise participating in an international controlled transaction is attributed the share of the profit/loss derived from that transaction which an independent enterprise would presumably have received within the framework of a comparable uncontrolled transaction.

2. The price of an international controlled transaction complying with the arm's length principle shall be determined by the method most appropriate to the circumstances of the assessment of the international controlled transaction.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Article 129. Special provisions for the assessment of international controlled transactions🔗

1. The taxpayer shall, upon the request of the tax authority, provide an explanation on the basis of which it considers the profit received by it to be in compliance with the arm's length principle defined by paragraph 1 of Article 127 of this Code. At the same time, the taxpayer is entitled to submit sufficient information and analysis to substantiate its own explanation and to verify the extent to which the transactions carried out by it with related persons comply with paragraph 1 of Article 127 of this Code.

2. If, in the conditions of a transaction carried out between an enterprise taxed in Georgia and its related enterprise, the tax authority of another country made an adjustment, as a result of which the part of the profit that had already been taxed in Georgia was taxed in that country, and Georgia has concluded with that country an agreement on the avoidance of double taxation, then the tax authority of Georgia shall, on the basis of a request of the Georgian taxpayer enterprise, verify whether the adjustment made complies with the arm's length principle. If the tax authority concludes that the above adjustment complies with the arm's length principle, it shall make the corresponding adjustment and shall carry out an adjustment of the amount of tax of the Georgian taxpayer enterprise.

3. The methods for the assessment of international controlled transactions and their application, the determination of the comparability of an independent transaction, the procedure for making an adjustment of a transaction, the information to be submitted by the parties to a transaction to the tax authority, the list of documents, the sources of information on market prices, the procedure for applying a price range, the time limits to be used for the purposes of this Chapter, and other procedural issues shall be determined by an Order of the Minister of Finance of Georgia.

4. The audit of international controlled transactions shall be carried out in accordance with the provisions of this Chapter, on which the Head of the Revenue Service shall take a decision.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 129¹. Advance agreement related to international controlled operations🔗

1. On the basis of an application by a taxpayer, the Head of the Revenue Service is entitled to conclude an advance agreement with the said taxpayer for the purposes of this Chapter. The advance agreement is concluded before the commencement of operations, for a certain period, and within its framework the criteria are determined in advance on the basis of which prices shall be established for the operations. Such criteria are, for example, the method, comparable operations and their respective adjustments, significant assumptions relating to future operations, etc.

2. The advance agreement applies only to the person with respect to whom it was concluded. At the same time, the advance agreement shall indicate the norm of the legislation of Georgia on the basis of which it was concluded.

3. If a person acts in accordance with the advance agreement, it is inadmissible for the controlling body to adopt a decision contrary to the advance agreement and to assess tax and/or a sanction.

4. The advance agreement shall not apply if:

a) the facts and circumstances indicated therein, which would have affected the advance agreement, do not correspond to the existing facts and circumstances;

b) the norm of the legislation of Georgia on the basis of which the advance agreement was concluded has been repealed or amended.

5. A norm of the legislation of Georgia which aggravates the situation of a taxpayer and which has been given retroactive force may not affect operations carried out in accordance with an advance agreement concluded before the entry into force of this norm.

6. Information submitted by a person for the purpose of concluding an advance agreement shall be classified as tax secret.

7. If the price declared by the taxpayer corresponds to the market principle, he shall not be held liable under this Code solely on the ground that he has violated a condition of the advance agreement determined by paragraph 1 of this Article.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 130. Taxation of dividends at the source of payment🔗

1. Dividends paid by a resident enterprise to an individual, to a non-entrepreneurial (non-commercial) legal entity or to a non-resident enterprise shall be taxed at the source of payment at the rate of 5 per cent of the amount payable, unless otherwise provided by this Article.

2. Dividends received by the persons provided for by paragraph 3 of Article 2 of the Law of Georgia on Entrepreneurs (except an individual enterprise) shall not be taxed at the source of payment and shall not be included in the aggregate income by the enterprise receiving the dividends.

3. Dividends received by a resident individual which were taxed at the source of payment shall not be included in the aggregate income of that person and shall not be subject to subsequent taxation.

3¹. (Removed - 14.07.2020, No. 6817).

4. (Removed - 28.06,2019, No. 4906).

4¹. Until 1 January 2028, dividends received by a member of an agricultural cooperative from that cooperative (except dividends received from the profit derived from the activity provided for by paragraph 2 of Article 6 of the Law of Georgia on Agricultural Cooperatives) shall not be taxed at the source of payment and shall not be included in the aggregate income by the person receiving the dividend.

5. (Removed - 23.12.2017, No. 1935).

6. Dividends paid by a resident enterprise to the State shall not be taxed at the source of payment.

7. A dividend received from an FIZ enterprise in a free industrial zone shall not be taxed at the source of payment and shall not be included in the aggregate income by the person receiving this dividend.

8. A dividend issued by a banking institution, a credit union, a microfinance organisation, or a lending entity from the profit attributable to 2023 and subsequent periods shall not be taxed at the source of payment and shall not be included in the aggregate income by the person receiving the dividend.

9. A dividend issued from the profit attributable to 2025 and subsequent periods shall not be taxed at the source of payment and shall not be included in the aggregate income by the person receiving the dividend, if this dividend is issued by the organiser of a gaming machine salon and/or the organiser of gambling games in a system-electronic form, which is taxed with the profit tax at the rate provided for by paragraph 6 of Article 98 of this Code, from the profit attributable to this part of the activity.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 20 December 2012 No. 118 - website, 29.12.2012.

Law of Georgia of 12 July 2013 No. 817 - website, 05.08.2013.

Law of Georgia of 22 June 2016 No. 5491 - website, 29.06.2016.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 11 December 2019 No. 5499 – website, 23.12.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 2 August 2021 No. 884 – website, 04.08.2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 13 December 2024 No. 134 – website, 29.12.2024.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 131. Taxation of interest at the source of payment🔗

1. Interest paid by a permanent establishment of a non-resident or by a resident, or on their behalf, to an individual or to a non-resident having no permanent establishment in Georgia shall be taxed at the source of payment at the rate of 5 per cent of the amount payable.

2. (Removed – 30.06.2017, No. 1182).

3. Interest received by an individual which has been taxed at the source of payment shall not be included in the total income of that person and shall not be subject to further taxation.

4. (Removed – 14.07.2020, No. 6817).

5. Interest received from a financial institution licensed in accordance with the legislation of Georgia shall not be taxed at the source of payment. At the same time, the said interest shall not be included by the recipient in total income if the recipient of this interest is not also a licensed financial institution.

6. (Removed – 23.12.2017, No. 1935).

7. Interest paid to the State by a resident enterprise shall not be taxed at the source of payment.

8. Interest received from a debt security issued by a Georgian enterprise and admitted to trading on the listing of a recognised foreign stock exchange shall not be taxed at the source of payment and shall not be included by the recipient of this interest in total income.

9. Interest received from an enterprise of a FIZ in a free industrial zone shall not be taxed at the source of payment and shall not be included by the recipient of this interest in total income.

Law of Georgia 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 20 December 2012 No. 118 – website, 29.12.2012.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 132. Taxation of royalties at the source of payment🔗

1. Royalties paid by a permanent establishment of a non-resident or by a resident, or on their behalf, to a resident individual (except an individual registered as a VAT payer) shall be taxed at the source of payment at the rate of 20 per cent of the amount payable.

2. Royalties received by an individual (except in the case provided for by paragraph 3 of this Article) which have been taxed at the source of payment shall not be included in the total income of that person and shall not be subject to further taxation.

3. An individual entrepreneur who has received royalties taxed at the source of payment in Georgia shall be entitled to credit the amount of tax paid to the budget at the source of payment.

4. Royalties paid to the State shall not be taxed at the source of payment.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 20 December 2012 No. 118 – website, 29.12.2012.

Article 133. (repealed)🔗

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 133¹. (repealed)🔗

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 133². Taxation of the income of a natural person owning hotel assets/part thereof, by a tourist enterprise🔗

1. Remuneration issued by a tourist enterprise to a natural person on the basis of the relevant contract shall be taxed at the source of payment at a rate of 5 per cent of the amount payable.

2. In the case provided for by paragraph 1 of this article, the income received by a natural person which was taxed at the source of payment shall not be included in the aggregate income of the recipient and shall not be taxed thereafter.

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014.

Article 133³. Taxation of the income of a natural person supplying certain goods🔗

1. The Minister of Finance of Georgia shall be authorised to determine the list of goods the income received by a natural person from the supply of which shall be taxed at the source of payment at a rate of 3 per cent, by the person acquiring the goods.

2. The rule of taxation at the source of payment provided for by paragraph 1 of this article shall apply where, upon the supply of goods, a goods waybill has not been issued.

3. The income received by a natural person which was taxed in accordance with this article shall not be included in the aggregate income of that person and shall not be subject to taxation thereafter.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 134. Taxation of a non-resident's income at the source of payment🔗

1. Income received by a non-resident from a source in Georgia, which is not attributable to a permanent establishment in Georgia of a non-resident registered for tax accounting in Georgia, shall be taxed at the source of payment without deductions, at the following rates:

a) dividends – in accordance with Article 130 of this Code;

b) interest – in accordance with Article 131 of this Code;

b¹) royalties – at 5 per cent;

c) amounts paid by an enterprise, organisation and/or individual entrepreneur for international communications telecommunication services and for transport services for international carriage – at 10 per cent;

d) income received by non-resident subcontractors in the course of carrying out oil and gas operations as defined by the Law of Georgia "on Oil and Gas" – at 4 per cent;

d¹) the amount for lease services paid to an individual − at the rate determined by Article 81 of this Code;

e) other amounts paid which are considered under this Code as income received from a source in Georgia – at 10 per cent;

f) income received in the form of wages – at the rate determined by Article 81 of this Code.

1¹. Income received by a person registered in a country with preferential taxation in the cases provided for by subparagraphs "b", "b1" and "e" of paragraph 1 of this Article shall be taxed at the source of payment without deductions, at 15 per cent.

2. For the purposes of this Article, amounts payable that are to be paid by or on behalf of a permanent establishment of a non-resident in Georgia shall be considered as paid by a resident enterprise.

3. A non-resident who receives income defined by subparagraphs "c"–"e" of paragraph 1 of this Article and is taxed at the source of payment shall have the right, before 1 April of the year following the reporting year, to submit a declaration requesting recalculation and refund of the withheld tax.

4. In the case of exercising the right provided for by paragraph 3 of this Article:

a) the taxable income/profit of the non-resident shall be determined as the difference between the total income received from a source in Georgia and the deductible amounts provided for by this Code;

b) (removed - 13.05.2016, No. 5092);

c) the tax paid by the non-resident shall not exceed the amount taxed at the source of payment as determined by paragraph 1 of this Article.

5. (removed - 13.05.2016, No. 5092).

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Article 135. Reporting period🔗

1. For a person (except for the persons provided for by paragraphs 2–5 of this Article), the reporting period is a calendar year.

2. For a resident enterprise, organization and a permanent establishment of a non-resident in Georgia (persons taxed with profit tax according to the objects of taxation provided for by paragraphs 1–3 of Article 97 of this Code), the reporting period is a calendar month.

3. For a person taxed with income/profit tax according to the object of taxation provided for by paragraph 7¹ of Article 80, paragraph 9³ of Article 97 or paragraph 16 of Article 309 of this Code, in the part of organizing totalizator games in a system-electronic form, the reporting period is a calendar month.

4. For the organizer of a gaming machine salon and/or the organizer of gambling in a system-electronic form, the reporting period is a calendar month.

5. The reporting period for taxation with income tax of the excess received by an individual from the supply of property/asset within the framework of non-entrepreneurial activity is a calendar month.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 16 December 2016 No. 97 – website, 23.12.2016.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 22 December 2021 No. 1191 – website, 28.12.2021.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 13 December 2023 No. 3903 – website, 25.12.2023.

Law of Georgia of 13 December 2023 No. 3902 – website, 25.12.2023.

Law of Georgia of 27 June 2024 No. 4364 – website, 11.07.2024.

Article 136. Principles of accounting of income and expenses🔗

1. A taxpayer shall be obliged to correctly and timely account for income and expenses on the basis of documented data, using the methods provided for by this Chapter, and to attribute them to the reporting period in which their receipt and incurrence occurred.

2. Unless otherwise provided by this Chapter, a taxpayer shall use the cash or accrual method for accounting of income and expenses, depending on which method it uses for accounting.

3. A taxpayer shall be obliged to fully account for all transactions related to its activity, so as to guarantee control over their commencement, course and completion.

4. When transporting goods within the country for entrepreneurial activity, and when supplying goods — at the buyer's request (except for supplies made under special value added tax invoices, which include the details provided for by a goods waybill) a goods waybill shall be issued in the form and manner established by the Minister of Finance of Georgia. At the same time, when supplying goods, at the buyer's request, when issuing a goods waybill, it is prohibited to store goods without a goods waybill.

4¹. The Minister of Finance of Georgia shall have the right to determine cases when a goods waybill is not issued.

5. Taxable income (profit) shall be determined by the same method that the taxpayer uses for accounting. At the same time, adjustment of income (profit) is made only in accordance with the requirements of this Code. If, according to the deductions provided for by this Code, the taxpayer's accounting data and the ceiling norms established by the Code differ from each other, for the purpose of determining the taxable object it shall use the norms established by this Code.

6. Taking into account the provisions of this Article, a taxpayer shall keep accounting for tax purposes using the cash or accrual method of accounting, provided that it uses one method during the tax year.

7. A natural person shall have the right to account for income and expenses by the cash method.

8. (Removed - 14.07.2020, No. 6817).

9. When a taxpayer changes any aspect of the accounting method, adjustment of taxable income (profit) shall be made in the year of such change, taking into account that no element related to the determination of taxable income (profit) is omitted or included twice.

10. If a taxpayer receives income or incurs expenses in non-monetary form, the moment of receipt of such income or incurrence of expenses shall be determined by the same procedure by which the moment of receipt of income or incurrence of expenses in monetary form is determined.

11. A taxpayer carrying out certain types of activity, if this Code provides different taxation conditions for such activity, may be imposed by the Minister of Finance of Georgia with the obligation of separate accounting of income and expenses related to certain types of activity. At the same time, income and expenses related to certain types of activity shall be confirmed by accounting documentation.

12. A taxpayer is entitled to record income and expenses in electronic form, in the manner established by the Minister of Finance of Georgia.

13. The penalty stipulated by a contract and other fines shall be recorded on a cash basis.

14. The moment of incurring the expenses and making other payments/disbursements provided for by Articles 981−98⁴ of this Code shall be the moment of their actual incurrence/making.

15. Determination and recognition of the amount of income and expenses by a person within the scope of a derivative shall be carried out in accordance with international accounting standards. At the same time, the Minister of Finance of Georgia is entitled to determine individual cases to which the said rule of determination and recognition of the amount of income and expenses within the scope of a derivative shall not apply, and to regulate such cases differently.

Law of Georgia of 13 October 2011 No. 5118 – website, 31.10.2011.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 20 December 2019 No. 5677 – website, 31.12.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 137. Accounting of income and expenses on a cash basis🔗

When applying the cash method of accounting, a taxpayer shall:

a) record income from the moment of its receipt or of acquiring the right to use and dispose of it;

b) deduct expenses after their payment in cash (the foregoing does not apply to fixed assets subject to depreciation provided for by Article 111 of this Code).

Article 138. Moment of receipt of income on a cash basis🔗

1. When applying the cash method of accounting, the moment of receipt of income shall be:

a) in the case of settlement in cash – the moment of receipt of the cash;

b) in the case of non-cash settlement – the moment of crediting the funds to the taxpayer's current account or another account at a banking institution, which the taxpayer has the right to dispose of or from which the taxpayer has the right to receive these funds.

2. In the case of cancellation or discharge of a taxpayer's financial obligations, in particular, in the case of mutual set-off, the moment of receipt of income shall be the moment of cancellation or discharge of these obligations.

Law of Georgia of 25 May 2012 No. 6312 – website, 12.06.2012.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 139. Moment of incurring expenses under the cash method🔗

1. When applying the cash method of accounting, the moment of incurring expenses shall be considered the moment of actual incurrence of expenses by the taxpayer, except for the cases provided for by paragraphs 3 and 4 of this Article.

2. When applying the cash method of accounting, the moment of incurring expenses by the taxpayer shall be considered:

a) in the case of settlement in cash – the moment of payment of cash;

b) in the case of settlement by non-cash means – the moment of debiting of funds by a banking institution from the taxpayer's bank account or another account.

3. In the case of cancellation or discharge of financial obligations to the taxpayer, in particular, in the case of offset, the moment of incurring expenses shall be considered the moment of cancellation or discharge of these obligations.

4. With respect to a payable related to a debt obligation or the leasing of property, if the term of the debt obligation or lease contract covers several reporting periods, the amount of actually paid interest (rent) that is deducted during the tax year is the amount of interest (rent) calculated on the basis of the amount accrued or to be accrued in each reporting period.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 140. Accounting of income and expenses by the accrual method🔗

When applying the accrual method, the taxpayer shall record income and expenses according to the moment of acquiring the right to receive income and the moment of recognition of expenses, respectively, regardless of the moment of actual receipt of income and actual incurrence of expenses, except for the case provided for by paragraph 4 of Article 142 of this Code.

Article 141. Moment of receipt of income under the accrual method🔗

1. The right of a taxpayer to receive income shall be deemed to have been acquired if:

a) the relevant amount is subject to payment to the taxpayer;

b) the taxpayer has performed all obligations stipulated by the transaction (contract).

2. If a taxpayer provides a service, the right referred to in paragraph 1 of this Article shall be deemed to have been acquired at the moment of completion by him of the provision of the service stipulated by the transaction (contract).

3. If a taxpayer receives or has the right to receive income in the form of interest or from leasing out property, the income shall be deemed received at the moment of expiry of the term of the debt obligation or lease contract. At the same time, if the term of the debt obligation or lease contract covers several reporting periods, the income shall be distributed among the reporting periods according to the amount accrued or to be accrued in each reporting period.

4. (Removed – 13 May 2016, No. 5092).

5. A banking institution, credit union, or microfinance organization shall recognize interest income accrued on loans in accordance with International Financial Reporting Standards (IFRS).

Note: For the purposes of this paragraph:

a) The following shall be considered a loan: credit (loan), overdraft, letter of credit, credit line, guarantee and/or debt securities, factoring, as well as any type of pre-declared (established) income received/receivable from these instruments (including received/receivable in the form of discount, commission and/or benefit);

b) Interest income shall be determined in accordance with International Financial Reporting Standards (IFRS).

Law of Georgia of 13 October 2011 No. 5118 – website, 31 October 2011.

Law of Georgia of 13 May 2016 No. 5092 – website, 1 June 2016.

Law of Georgia of 30 May 2018 No. 2392 – website, 12 June 2018.

Law of Georgia of 16 December 2022 No. 2439 – website, 27 December 2022.

Law of Georgia of 15 December 2023 No. 4022 – website, 28 December 2023.

Article 142. Moment of Incurring Expenses under the Accrual Method🔗

1. Unless otherwise provided by this Article, when applying the accrual method, the moment of incurring expenses related to a transaction (contract) shall be considered the moment when all of the following conditions are fulfilled:

a) it is possible to unambiguously consider that the taxpayer has assumed a financial obligation;

b) the amount of the financial obligation can be assessed with sufficient accuracy;

c) all participants of the transaction (contract) have actually performed their obligation under this transaction (contract), and the appropriate remuneration is subject to mandatory payment.

2. A financial obligation means an obligation assumed as a result of a transaction (contract), by virtue of the performance of which the second participant of this transaction (contract) must indicate the income corresponding to the obligation in monetary or other form.

3. When paying interest on a debt obligation or amounts payable from property leased out, the moment of incurring expenses shall be considered the moment of expiry of the term of the debt obligation or lease contract. If the term of the debt obligation or lease contract covers several reporting periods, the expenses shall be allocated among the reporting periods in accordance with their accruals.

4. Notwithstanding paragraphs 1–3 of this Article, if a person, except a licensed financial institution, uses the accrual method, the moment of incurring expenses shall be considered the moment of payment of the amount when:

a) the payment relates to a natural person, except a natural person registered as a VAT payer;

b) the payment of compensation for services received relates to a non-resident enterprise that is not attributable to the non-resident's permanent establishment in Georgia.

Law of Georgia No. 6211 of 15 May 2012 – website, 29 May 2012.

Article 143. Co-ownership🔗

1. The object of taxation by profit tax of a partnership or other similar formation that carries out economic activity and is considered an enterprise in accordance with subparagraph „c“ of the first paragraph of Article 21 of this Code shall be determined in accordance with the first paragraph of Article 97 of this Code.

2. The owner of a partnership share shall be obliged to include the share of profit (income) attributed to him from the partnership in the total income of the corresponding reporting period.

3. A partnership shall be obliged, in accordance with Article 154 of this Code, to tax at the source of payment the income distributed to a natural person who is the owner of its share (a person who is not registered as an individual entrepreneur and/or a VAT payer).

4. A member of a partnership shall have the right to have the tax withheld at the source of payment for him in accordance with paragraph 3 of this Article counted towards the amount of taxes payable when taxing the total income received during the year.

5. A partnership's loss shall be attributed to its owners in accordance with their shares. At the same time, a partnership's loss shall not be distributed among its owners and shall not be deducted from the owner's total income.

6. The share loss of a partnership owner may be deducted only against the taxable profit of his share in this partnership (of the following year/years). The carryforward of the loss shall be carried out in accordance with the procedure established by paragraph 4 of Article 121 of this Code.

7. A partnership's loss attributed to its owner shall not be deducted against the profit received by this owner as a result of participation in another partnership.

8. The supply of goods/services by a partnership to its member in exchange for a share shall not be considered as a gratuitous supply of goods/services.

9. The provisions of paragraphs 2 and 5–7 of this Article shall not apply to a member of a partnership who is taxed by profit tax according to the objects of taxation provided for by the first–third paragraphs of Article 97 of this Code.

10. The receipt by a tourist enterprise from a natural person, on the basis of a corresponding contract, of hotel assets/part thereof, their use as hotel rooms/apartments, and the organization of the functioning of the hotel shall not be considered a partnership provided for by subparagraph „c“ of the first paragraph of Article 21 of this Code.

Law of Georgia of 12 December 2014 No. 2946 - website, 24.12.2014.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 144. Income and Deductions under Long-Term Contracts🔗

1. If a taxpayer uses the accrual method of accounting, income and deductions under long-term contracts shall be taken into account proportionally during the tax year, in accordance with their actual performance.

2. The volume of actual performance under a long-term contract shall be determined by comparing the expenses incurred within the framework of the contract by the end of the tax year with the total expenses provided for by the contract.

Article 145. Rule for accounting of commodity-material assets🔗

1. A taxpayer shall include in the composition of commodity-material assets the processed or partially processed goods in its ownership, regardless of their location, namely raw materials and/or materials (except capitalisable expenses) that are acquired for further sale or for the production of goods/provision of services.

2. When determining taxable income (profit), the value of commodity-material assets existing at the beginning of the reporting period shall be deducted, and the value of commodity-material assets existing at the end of the reporting period shall be added to the total income.

3. When accounting for commodity-material assets, the taxpayer shall reflect in the accounting the value of the produced or acquired goods at the expenses incurred for the production of these goods (except depreciation charges) or at the purchase price. At the same time, the taxpayer shall include in the value of the goods the expenses of its storage and transportation.

4. Upon sale of goods, the taxpayer has the right to use one of the following methods for accounting of commodity-material assets:

a) individual accounting method;

b) weighted average valuation method;

c) the FIFO method, according to which the goods that belong to commodity-material assets at the beginning of the reporting period shall be considered sold first in the reporting period, and thereafter the goods produced (acquired) during the reporting period shall be considered sold, according to the time of their production (acquisition).

5. When accounting for commodity-material assets, the taxpayer has the right to value defective or obsolete and out-of-fashion goods, the sale of which is impossible at a price higher than the expenses incurred for their production or the purchase price, at the possible sale price of these goods.

6. When writing off expired and/or commodity-material assets unfit for use or further supply, the taxpayer shall notify the tax authority about the write-off of the commodity-material assets (indicating the type, quantity and value of the commodity-material assets) and shall carry out the write-off only in the case of the relevant confirmation by the tax authority.

6¹. The taxpayer is entitled, without taking into account the conditions specified in paragraph 6 of this Article, to write off commodity-material assets destroyed/lost as a result of the impact of force majeure (earthquake, flood, landslide, avalanche, fire, accident or another emergency or special circumstance, as a result of which, for a reason independent of the taxpayer, the commodity-material assets were destroyed/lost).

7. In the presence of the circumstance provided for by paragraph 6 of this Article, the tax authority shall, within 10 working days from the taxpayer's application, be obliged, in the case of write-off of commodity-material assets, to confirm directly or, by an on-site visit, to carry out a physical verification of the commodity-material assets and to confirm the write-off document to the taxpayer.

8. In the cases provided for by paragraphs 6 and 6¹ of this Article, the procedure for the write-off of commodity-material assets shall be established by the Minister of Finance of Georgia.

9. The taxpayer is entitled to keep records of commodity-material assets in electronic form, in accordance with the procedure established by the Minister of Finance of Georgia.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Article 146. Compensated deductions and reduction of reserves🔗

1. Amounts received as compensation for previously deducted expenses, losses and bad debts shall be considered income of the year in which they were compensated.

2. Upon reduction of previously deducted reserves, the reduced amount shall be included in the aggregate income of the current year.

Article 147. Profit and loss upon supply of assets🔗

1. The profit received upon the supply of assets is the positive difference between the income received from their supply and the value of these assets, which is determined in accordance with Article 148 of this Code.

2. The loss received upon the supply of assets is the negative difference between the income received from their supply and the value of these assets.

3. Upon the supply of assets free of charge or at a price lower than the cost, the supplier's profit shall be determined as the positive difference between the market price of the supplied assets and the value of the assets determined in accordance with Article 148 of this Code.

4. The provisions of paragraphs 1–3 of this Article shall not apply to assets subject to depreciation by the group method and to commodity-material assets.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Article 148. Value of assets🔗

1. The value of assets shall include the costs (expenses) of their purchase, production, construction, installation and setting up, as well as other costs (expenses) that increase their value, except for such costs (expenses) that the taxpayer is entitled to directly deduct, and in the case of receiving assets free of charge – the market price of these assets.

2. In the case of supply or transfer of only part of the assets, the value of the assets at the moment of supply or transfer shall be distributed between the remaining and the supplied or transferred parts.

3. In the case of use of a fixed asset initially leased out for other purposes, its value shall be determined by the value balance of the group in which this fixed asset was previously recorded.

4. In the case of supply to a third party by the buyer/borrower of a debt security initially acquired/supplied within the framework of a repo agreement, securities lending or financial pledge, the value and price of the supplied/repurchased debt security shall in each case be determined by the market price of the security initially supplied by the seller/lender.

5. Interest received by the buyer after the acquisition of a debt security, which is part of the purchase amount, shall be considered as interest in accordance with subparagraph „b.d“ of paragraph 19 of Article 8 of this Code, which shall reduce the value of the securities. It shall not be included in the buyer's total income.

Law of Georgia No. 5118 of 13 October 2011 – website, 31.10.2011.

Law of Georgia No. 5677 of 20 December 2019 – website, 31.12.2019.

Article 149. Non-recognition of profit or loss🔗

1. When determining taxable income, no profit or loss shall be taken into account if:

a) an asset is transferred between spouses;

b) an asset is transferred between former spouses at the time of divorce;

c) an asset is involuntarily destroyed/confiscated and, before the end of 2 years following the year of destruction/confiscation:

c.a) the amount of compensation received as a result of the destruction/confiscation is reinvested in an asset of a similar type and characteristics;

c.b) the destroyed/confiscated asset is replaced by an asset of a similar type and characteristics received as a result of the compensation;

d) a change of the registered owner of shares of a resident company admitted/placed for trading in any form (including in the form of international depositary receipts) on a recognised stock exchange of a foreign country, without a change of the beneficial owner of these shares;

e) within the framework of a repo agreement, securities lending or financial pledge, the delivery of a loaned security and its return, or the return of another equivalent loaned security, to the seller/lender at a pre-agreed price.

2. The value of the replacement asset referred to in subparagraph „c“ of paragraph 1 of this Article shall be determined taking into account the book value of the replaced asset as at the moment of destruction/confiscation.

3. In the case provided for by subparagraph „a“ or „b“ of paragraph 1 of this Article, the value of the transferred asset shall be deemed to be the value of the given asset for the transferring party at the moment of the transaction.

4. The requirements of this Article shall not apply to assets which, in accordance with Chapter XV of this Code, are subject to depreciation by the group method, except where, in accordance with subparagraph „a“ or „b“ of paragraph 1 of this Article, all assets of the group are transferred simultaneously.

Law of Georgia of 24 December 2015 No. 4720 – website, 29.12.2015.

Law of Georgia of 20 December 2019 No. 5677 – website, 31.12.2019.

Article 150. Liquidation of a Legal Entity🔗

1. If a legal entity is liquidated and assets proportional (corresponding) to its share are transferred to a partner legal entity and, at the same time, the partner legal entity held 50 percent or more in this legal entity before the liquidation, then:

a) such transfer shall not be considered as realization (supply) of assets by the liquidated legal entity;

b) the value of the asset transferred to the partner in proportion (correspondingly) to its share is the same as the value of this asset before its transfer to the liquidated legal entity;

c) distribution of assets is not a dividend;

d) profit and loss shall not be taken into account upon cancellation of a partner's share in the liquidated legal entity.

2. The requirements of this Article shall not apply to assets that, in accordance with Chapter XV of this Code, are subject to depreciation by the group method, except when all assets of a group grouped under one depreciation norm are transferred simultaneously.

3. In the case of transfer of all assets of a group grouped under one depreciation norm, as referred to in paragraph 2 of this Article, for their recipient the value of the assets shall be considered the value balance of the group as of the moment of transfer.

4. Paragraph 1 of this Article shall not apply if:

a) the tax authority proves that the purpose of the liquidation is evasion of tax payment;

b) the partner legal entity in the liquidation is a non-resident, except for the case provided for by paragraph 5 of this Article.

5. Where there is a partner non-resident legal entity in the liquidation, paragraph 1 of this Article may be applied if the tax authority, on the basis of information submitted by this person, concludes that no evasion of tax occurs, and issues the relevant consent thereon.

6. The provisions of this Article shall not apply if any party participating in the operation is taxed with profit tax according to the objects of taxation provided for by paragraphs 1 and 3 of Article 97 of this Code.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Article 151. Contribution of assets in exchange for a share (shares) in a legal entity🔗

1. The transfer of assets by a person (persons) to a legal entity in exchange for 50 percent or more of a share (shares) therein (with or without debt) is not a supply of assets.

2. In the case provided for by paragraph 1 of this Article, the value of the assets for the receiving party is the same as their value for the supplying party at the moment of transfer.

3. The value of the partner's share received as a result of the exchange referred to in paragraph 1 of this Article is equal to the value of the transferred assets, less the transferred (corresponding) debt.

4. The requirements of this Article do not apply to assets which, in accordance with Chapter XV of this Code, are subject to depreciation by the group method, except in cases where all assets of a group grouped under one depreciation rate are transferred simultaneously.

5. In the case of the transfer of all assets of a group grouped under one depreciation rate referred to in paragraph 4 of this Article, the value balance of the group at the moment of transfer shall be considered as the value of the assets for their recipient.

6. The requirements of this Article do not apply to a transferor of assets having a legal defect, if the debt exceeds the value of the transferred assets.

7. The provisions of this Article shall not apply if any party participating in the transaction is taxed with profit tax according to the objects of taxation provided for by paragraphs 1 and 3 of Article 97 of this Code, except in the case where a natural person transfers assets to a legal entity in exchange for 50 percent or more of a share/shares therein.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 152. Reorganization of a Legal Entity🔗

1. The value of the property and share (stocks) held by a legal entity party to reorganization or legal entities shall be equal to the value of such property and share (stocks) before the reorganization.

2. The transfer of property or a share (stocks) between legal entities party to reorganization shall not be considered a sale of property.

3. Any exchange by a party to reorganization of a share (stocks) in a resident legal entity for a share (stocks) in another legal entity that is also a party to this reorganization shall not be considered a sale of the share (stocks).

4. The value of the share (stocks) exchanged under paragraph 3 of this Article shall be equal to the initial value of the share (stocks).

5. The distribution of a share in a legal entity party to reorganization, which gives rise to a similar right in another legal entity that is also a party to this reorganization, shall not be a dividend.

6. The initial value of the share (stocks) referred to in paragraph 5 of this Article shall be subject to attribution to the share (stocks) to be distributed using the coefficient determined as the ratio of the market value of the distributed and initial share (stocks) at the time of distribution to the value of the initial share after distribution.

7. Unless the tax authority proves that the purpose of the merger, acquisition, accession or division operation is avoidance of tax payment, the reorganization includes:

a) the merger of two or more resident legal entities;

b) the acquisition or accession of 50 percent or more of the voting share (stocks) and 50 percent or more of the value of the total volume of the partner’s share of a resident legal entity, only with similar rights of the partner parties in the acquisition or accession operation, in exchange for a share (stocks);

c) the acquisition by another resident legal entity of 50 percent or more of the assets of a resident legal entity in exchange for voting share (stocks), without a preferential right in relation to dividends;

d) the division of a resident legal entity into two or more resident legal entities.

8. Any resident legal entity shall be considered a party to reorganization:

a) that is directly involved in the reorganization;

b) that directly owns a resident legal entity directly involved in the reorganization;

c) that is owned by a resident legal entity directly involved in the reorganization.

9. For the purposes of paragraph 8 of this Article, ownership of a legal entity means holding 50 percent or more of the voting share (stocks) in this legal entity and 50 percent or more of the value of all other remaining share (stocks).

10. The requirements of this Article shall not apply to assets that, in accordance with Chapter XV of this Code, are subject to depreciation by the group method, except when all assets of a group grouped under one depreciation norm are transferred simultaneously.

11. In the case of all assets of a group referred to in paragraph 10 of this Article, grouped according to one depreciation rate, the value balance of the group as at the moment of transfer shall be considered as the value of the assets for their recipient.

12. The provisions of this Article shall not apply if any party participating in the transaction is taxed with profit tax according to the objects of taxation provided for by paragraphs 1 and 3 of Article 97 of this Code.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Article 153. Filing of Declaration🔗

1. A declaration on income tax/profit tax shall be submitted to the tax authority before 1 April of the year following the reporting year by:

a) resident natural persons whose income is not taxed at the source of payment in Georgia (except for persons who are taxed with income tax according to the objects of taxation provided for by paragraphs 7 and 7¹ of Article 80 of this Code);

b) an enterprise (except for enterprises that are taxed with profit tax according to the objects of taxation provided for by paragraphs 1–3 of Article 97 of this Code);

c) a non-resident natural person and a non-resident enterprise without a permanent establishment in Georgia, if the income received by them from a source in Georgia is not taxed at the source of payment.

2. An entrepreneurial natural person, upon termination of economic activity in Georgia, shall submit to the tax authority, within 30 working days, a declaration on total income and deductions. At the same time, in the subsequent period, until the resumption of economic activity, the taxpayer shall not be obliged to submit a tax declaration.

3. A person in the process of dissolution (a dissolved company) shall, within 5 working days from registration of the commencement of the liquidation process, notify the tax authority in writing of the dissolution and, within the same period, submit a declaration.

3¹. (repealed - 1 May 2015, No. 3581);

4. A natural person who is not obliged to submit a declaration may submit it with a request for recalculation and refund of tax.

4¹. (repealed - 26 December 2014, No. 3015).

5. An entrepreneurial natural person, an enterprise and an organisation shall, not later than the 15th day of the month following the reporting month, submit to the tax authority a declaration on the amounts of remuneration for labour paid for the reporting month and the tax withheld.

5¹. The taxpayer shall, within 15 days from the entry into legal force of the court ruling issued in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors" on declaring admissible the application on insolvency and on opening the bankruptcy regime, submit to the tax authority:

a) unsubmitted declarations provided for by paragraph 1 of this Article, corresponding to the full/incomplete tax period(s) before the opening of the bankruptcy regime. At the same time, after the opening of the bankruptcy regime, the taxpayer shall not submit an income/profit tax declaration corresponding to the full/incomplete tax period(s);

b) unsubmitted declarations provided for by paragraph 5 of this Article, corresponding to the full/incomplete tax period(s) before the opening of the bankruptcy regime. At the same time, after the opening of the bankruptcy regime, the taxpayer shall not submit a declaration on the amounts of remuneration for labour paid and the tax withheld corresponding to the full/incomplete tax period(s).

6. Before registration of the future owner's ownership right, the registering authority shall be obliged to notify the natural person about the obligation of tax reporting and tax payment, as well as about the liability provided for by this Code in case of its non-fulfilment:

a) in the case of sale of an asset owned by a natural person;

b) in the case of receipt of property as a gift by a natural person (except for receipt of property by way of gift by heirs of the I and II order and receipt by way of gift or/and by inheritance by heirs of the III and IV order of property worth up to GEL 150,000 during the tax year);

c) in the case of receipt by way of gift or/and by inheritance by heirs of the III and IV order of property worth GEL 150,000 or more during the tax year.

7. In the case of receipt by way of gift or/and by inheritance by heirs of the III and IV order of property worth GEL 150,000 or more during the tax year, income tax shall be payable within 2 calendar years, during which the deadlines for submitting the declaration and paying the tax shall be determined by the Minister of Finance of Georgia.

8. The rules for taxation of remuneration paid by international organisations having diplomatic status in Georgia to citizens of Georgia shall be determined by the Minister of Finance of Georgia.

9. The rules for taxation of wages paid by an enterprise of a free industrial zone to a hired person shall be determined by the Government of Georgia.

10. An enterprise, an organisation and a permanent establishment of a non-resident enterprise (enterprises taxed with profit tax according to the objects of taxation provided for by paragraphs 1–3, 9¹ and 9³ of Article 97 of this Code) shall be obliged to submit monthly, not later than the 15th day of the month following the reporting month, to the tax authority a declaration on profit tax.

11. Natural persons taxed with income tax according to the objects of taxation provided for by paragraphs 7 and 7¹ of Article 80 of this Code shall be obliged to submit monthly, not later than the 15th day of the month following the reporting month, to the tax authority a declaration on income tax.

12. In the case of receipt of excess income from the supply of property/an asset within the framework of non-entrepreneurial activity, a natural person shall be obliged, not later than the 15th day of the month following the reporting month, to submit to the tax authority a declaration on income tax.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 5 June 2012 No. 6395 – website, 19.06.2012.

Law of Georgia of 20 December 2012 No. 118 – website, 29.12.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 26 December 2014 No. 3015 – website, 30.12.2014.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia No. 2391 of 30 May 2018 – website, 12 June 2018.

Law of Georgia No. 6817 of 14 July 2020 – website, 22 July 2020.

Law of Georgia No. 7169 of 18 September 2020 – website, 25 September 2020.

Law of Georgia No. 1191 of 22 December 2021 – website, 28 December 2021.

Law of Georgia No. 2768 of 5 April 2023 – website, 18 April 2023.

Law of Georgia No. 4022 of 15 December 2023 – website, 28 December 2023.

Law of Georgia No. 4364 of 27 June 2024 – website, 11 July 2024.

Article 154. Rule for withholding tax at the source of payment🔗

1. Withholding of tax at the source of payment shall be the duty of a tax agent, which is a legal entity, an enterprise/organisation or an entrepreneurial natural person, namely:

a) a person who pays wages to an employee, except:

a.a) wages paid by an enterprise of a free industrial zone to an employee resident in Georgia;

a.b) wages paid by a non-resident to an employee, where such expense is not attributed to the expenses of the non-resident's permanent establishment;

b) a person who pays a pension to a person, except a pension granted within the state social security system;

c) a person who pays the payments defined by paragraph 1 of Article 134 of this Code;

d) an enterprise/organisation or an entrepreneurial natural person who reimburses to a natural person the value of services rendered (except a natural person registered as a VAT payer, a notary, a private enforcement officer, a natural person having the status of micro/small business and a natural person having the status of a fixed tax payer, in the part of the respective activity), who is not registered as an individual entrepreneur;

e) a person organising an incentive draw, a casino (in the part of organising a gambling tournament), a gambling club (in the part of organising a gambling tournament), lotto, bingo and a lottery, who pays winnings to a natural person.

Note:

1. Upon a natural person's winning, at his/her request, the person organising a casino, a gambling club or a totalisator shall, in the part of the said activity, be obliged to perform the obligations provided by this Article for a tax agent.

2. The operation of this subparagraph shall not extend to the case provided by subparagraph „e1“ of this paragraph;

e¹) a person organising a gaming machine hall and/or an organiser of gambling and/or winning games in a system-electronic form (except an incentive draw), who pays out money to a player, including from a system-electronic gaming account;

f) a person who pays a scholarship to a person, except a state scholarship;

g) a resident enterprise which pays a dividend to a person;

h) a person who, in the case provided by Article 131 of this Code, pays interest to a person;

i) a person who pays a royalty to a natural person;

j) (deleted – 08.11.2011, No. 5202);

k) a brokerage company provided by paragraph 26 of Article 2 of the Law of Georgia on the Securities Market, in the case of sale of securities of a person not registered as a taxpayer, when paying out the excess income received from such sale;

l) a person who transfers property free of charge to a natural person who is not registered as an individual entrepreneur, except the free-of-charge transfer by this person to the same natural person of property of a value of up to 1000 GEL during the tax year. In such a case, the rule for withholding tax at the source of payment by a tax agent shall be established by the Minister of Finance of Georgia;

m) (deleted - 12.11.2025, No. 1061);

n) a tourist enterprise – in the case provided for by Article 133² of this Code;

o) a person who, in the case provided for by Article 133³ of this Code, reimburses to an individual the value of goods purchased from him/her;

p) an asset management company, an insurer or a pension company – when, in accordance with the Law of Georgia "On Voluntary Private Pension", issuing to a participant of a pension scheme the pension assets recorded in his/her personal pension account;

q) a Legal Entity of Public Law – the Pension Fund of Georgia – in the case of transferring/paying, in accordance with the Law of Georgia "On Accumulative Pension", to an employee/individual the pension assets held in his/her individual pension account.

2. When withholding tax at the source of payment:

a) responsibility for withholding the tax and transferring it to the budget shall rest with the income payer;

b) in the case of failure to withhold the tax amount, the income payer shall be obliged to pay into the budget the amount of the unwithheld tax in accordance with the remuneration actually paid and the sanctions related thereto;

c) the amount of the tax and sanctions may be paid on behalf of the income payer by the income recipient.

3. A person who, in accordance with paragraph 1 of this Article, withholds tax at the source of payment, shall be obliged to:

a) transfer the tax to the budget immediately upon payment of the amount to the person, and in the case of making the payment in non-monetary form – by the last day of the respective month;

b) when paying wages, upon the request of the individual receiving the income, give him/her a certificate indicating the surname and name of that person, the amount and type of income, as well as the amount of the withheld tax (if tax was withheld);

c) a certificate indicating the registration number, surname and name, address of the place of residence of the income recipient, the total amount of income for the reporting period and the total amount of the withheld tax:

c.a) submit to the tax authority not later than the 15th day of the month following the month of tax withholding;";

c.b) hand over to the income recipient upon his/her request.

3¹. The Minister of Finance of Georgia is entitled to establish, for certain categories of payers, deadlines for the submission of information different from those provided for by subparagraph "c.a" of paragraph 3 of this Article.

4. The tax agent referred to in paragraph 1 of this Article shall, for each reporting period established by paragraph 5 of Article 153 of this Code, not later than the 15th day of the month following that period, submit to the tax authority, in the manner and form established by the Minister of Finance of Georgia, a declaration relating to the taxation of the payments made.

5. A hired person shall be entitled, for the purpose of fulfilling the tax obligation in respect of the salary determined by subparagraph „a.b“ of paragraph 1 of this Article, to himself/herself fulfil the obligations of calculating, declaring and paying the tax to the budget, in accordance with the procedure established by the Minister of Finance of Georgia. In such case, the non-resident employer shall be released from the obligation to withhold tax at the source of payment.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 24 June 2011 No. 4935 – website, 30.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 9 December 2011 No. 5452 – website, 22.12.2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia 2012

of 24 April

No. 6053 – website, 27.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 22 December 2021 No. 1191 – website, 28.12.2021.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 28 June 2023 No. 3350 – website, 19.07.2023.

Law of Georgia of 1 November 2023 No. 3608 – website, 20.11.2023.

Law of Georgia of 13 December 2023 No. 3903 – website, 25.12.2023.

Law of Georgia of 13 December 2023 No. 3902 – website, 25.12.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 27 June 2024 No. 4324 – website, 12.07.2024.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 155. Current payments🔗

1. An enterprise and an individual entrepreneur whose reporting period is a calendar year (in the part of activity for which the object of taxation is determined according to the calendar year) shall be obliged to pay the amounts of current payments into the budget according to the annual tax of the previous reporting period, in the following amounts:

a) not later than 15 May – 25 percent;

b) not later than 15 July – 25 percent;

c) not later than 15 September – 25 percent;

d) not later than 15 December – 25 percent.

2. Current payments shall not be paid by a taxpayer that during the past tax year had no taxable income/taxable profit, as well as by a person whose status of micro business or fixed tax payer was revoked in the current year and which, according to the past tax year, had taxable income.

3. If the expected taxable income (profit) of a taxpayer for the current tax year, including taking into account tax benefits, decreases by at least 50 percent compared to the taxable income (profit) of the past tax year, and the taxpayer notifies the relevant tax authority thereof before the due date for payment of current payments, the taxpayer shall have the right to reduce or not pay the amounts of current payments.

4. In the case of application by a taxpayer of paragraph 3 of this Article, if, according to the actual annual results submitted, a decrease of the expected taxable income (profit) by at least 50 percent is not confirmed and the taxpayer has not paid the current payments in full during the reporting year, it shall pay a penalty in accordance with this Code, for the period of time from the established dates of payment of current payments to the date of submission of the tax return.

5. If the tax rate changes compared to the previous tax period, the taxpayer shall have the right to pay current payments from the amounts recalculated from the taxable income (profit) of the previous tax year according to the rate in force for the current tax year.

5¹. (removed – 26.12.2013, No. 1886).

6. The amounts of current payments credited to the budget shall be counted for the taxpayer in the tax accrued according to the tax year.

7. In the event of failure to fulfil the obligation to pay current payments, the measures to secure the collection of tax arrears provided for by Article 238 of this Code shall be applied.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 16 December 2016 No. 97 – website, 23.12.2016.

Article 156. General Provisions🔗

1. This Title determines the procedure for calculation and payment of value added tax (hereinafter – VAT).

2. VAT is a tax imposed on the consumption of goods/services, which is directly proportional to the price of these goods/services.

3. The obligation to pay VAT arises at every stage of supply of goods/provision of services, including retail supply.

4. In cases provided for by this Title, the amount of VAT payable may be reduced by the amount of VAT directly attributable to the value of various components of the expense related to the supply of goods/provision of services.

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020

Article 157. Definitions of Terms🔗

For the purposes of this Title, the terms used have the following meaning:

a) Person:

a.a) natural person;

a.b) enterprise or organization in accordance with this Code;

a.c) association of persons that independently participates in legal relations but does not have the status of a legal entity;

b) place of establishment of a taxable person − the place from which the taxable person carries out its principal economic activity, where the management body of the taxable person operates and where the principal decisions related to its activity/management are taken.

Note: If the criteria provided for by this subparagraph do not allow the place of establishment of the taxable person to be determined precisely, preference shall be given to the place where the principal decisions related to its activity/management are taken;

c) fixed establishment − any place that is not the place of establishment of the taxable person but is characterised by a sufficient degree of permanence, as well as by an appropriate structure in terms of human and technical resources, which enables it to provide or receive services and use them for its own needs;

d) permanent address − the address of a natural person at which he/she is registered in accordance with the procedure established by legislation, or the address of which the natural person has notified the tax authority, if there is no evidence that this address does not reflect reality;

e) place of residence − the place that a natural person chooses as his/her usual residence, arising from personal or economic activity purpose/obligation, taking into account the existence of his/her close/stable connection with this place of residence;

f) territory of Georgia − the territory defined by the legislation of Georgia, including land area, its subsoil and airspace above it, internal waters and territorial sea, their seabed, subsoil and airspace above them, as well as the contiguous zone adjacent to its territorial sea, the exclusive economic zone and the continental shelf, in respect of which Georgia may exercise its sovereign rights and/or jurisdiction in accordance with international law;

g) state authorities − bodies that, in accordance with the legislation of Georgia, exercise legislative, executive or judicial power, as well as state supervision and control;

h) immovable thing:

h.a) any place existing on or under the surface of the land in respect of which the right of ownership or possession may arise;

h.b) any building/structure located on or under the land that is firmly connected to the land and is not intended for temporary use;

h.c) any thing that is an integral part of a building/structure and without which this building or structure is incomplete, namely, a door, window, roof, staircase, elevator and other similar things;

h.d) any thing, equipment or machinery that is permanently installed in a building/structure and whose movement is impossible without its destruction, alteration or change of its purpose;

i) low-value gift − goods or services, the transfer of which is carried out free of charge and the value of which, excluding VAT, does not exceed GEL 50 per natural person during a calendar year. Advertising and representation expenses shall not be considered a low-value gift;

j) trade intermediary − a taxable person whose main activity is the resale of purchased natural gas or electricity and whose volume of consumption of the said goods for personal purposes is insignificant;

k) independently functioning subdivision − a part of the assets of a taxable person, which constitutes a set of functionally interconnected fixed assets and accompanying communications and whose independent functioning does not depend on a change of owner;

l) ancillary service/goods − a service/goods, the acquisition of which is not the main purpose of its user, but is intended to improve the conditions for the provision of the main service/supply of goods to it and/or to ensure better enjoyment thereof;

m) directly related service/goods − a service/goods, the provision of which is carried out to ensure the provision of the main service/goods and the performance of which is necessary for the completion of this main transaction;

n) continuous service − a service, the enjoyment of the result of which is continuously available to the user at any moment of the reporting period;

o) regular service − a service that is not a continuous service, but the right to receive which, under a contract/agreement, the user has at a specific moment of the reporting period, without additional agreement with the service provider;

p) electronically supplied service − a service that is supplied via the Internet or an electronic network, the provision of which is essentially automated, requires minimal human intervention and cannot be supplied without information technology; including:

p.a) supply of a digital product, including support for software and the supply of its updated version;

zh. b) provision of a website;

p.c) web hosting, remote technical maintenance of software and hardware;

p.d) software and corresponding updates;

p.e) provision of images, text and information for the purpose of ensuring access to a database;

p.f) provision of music, films and games (including gambling games);

p.g) broadcasting and provision of political, cultural, artistic, sports, scientific and entertainment programmes;

p.h) provision of distance learning;

p.i) other types of services determined by an Order of the Minister of Finance of Georgia.

Note: the mere circumstance that the provider and the acquirer of the service exchange information electronically does not in itself mean that the service is supplied electronically;

q) market price – the price that would be payable by a consumer at the relevant time when purchasing this good or service on a market of the same level, where, under conditions of free competition and economic independence of subjects, the supply of goods or the provision of services is carried out and where this transaction is subject to VAT. If it is impossible to determine a comparative price of the good or service, for VAT purposes the market price is:

q.a) for goods – a price which shall not be less than the purchase price of this or similar goods, and, if no purchase price exists, the cost of production of this good at the moment of its supply;

q.b) for services – a price which shall not be less than the value of all expenses related to the provision of this service;

r) voucher – an instrument which creates an obligation for a taxable person to accept it as consideration or part of consideration in exchange for the supply of goods/services, and in which or in a document related thereto the goods/services to be supplied or the potential supplier, as well as the conditions for the use of this instrument, are identifiable;

s) single-purpose voucher – a voucher in respect of which, at the time of its issue, the place of supply of goods/provision of services related thereto and the VAT chargeable in connection with this transaction are identifiable;

t) multi-purpose voucher – a voucher which is not a single-purpose voucher;

u) second-hand item – a used movable thing which is still fit for use in its existing form or after repair, except for a work of art, a collector's item and an antique, as well as precious metal or precious stone, within the meaning defined by the legislation of Georgia;

v) taxable dealer – any taxable person who, in the course of economic activity, purchases for the purpose of further sale or uses for its own economic activity a second-hand item, a work of art, a collector's item or an antique, or imports these goods, irrespective of whether it acts in its own name or in the name of another person, under a contract with that person, according to which a commission is paid upon the purchase or sale of the goods;

w) FEACN – the national commodity nomenclature of foreign economic activity;

x) short-term hire of a means of transport – the continuous possession or use of a means of transport (an aircraft, a vessel and any other means of transport provided for by groups 86, 87, 88 and 89 of the FEACN), in the case of a vessel – for not more than 90 days, and in the case of any other means of transport – for not more than 30 days;

y) tour operator – a person who forms a tourist product and supplies it to a tourist;

z) tourist – a natural person to whom a tourist product is supplied for the purpose of travelling (including rest and/or recreation) in Georgia for a period of not less than 24 hours and not more than one year;

aa) tourist product – a combination of not fewer than two types of tourist services (including transportation, accommodation, catering, guide service, as well as auxiliary services of tourist services);

bb) repair of a fixed asset (building/structure) – modification (reconstruction) of the elements of a building/structure for the purpose of extending their useful service life and to ensure an increase in their productivity, except for current operating expenses incurred for the purpose of restoring or maintaining the initial productivity of the fixed asset;

cc) investment gold − a gold bar or plate of not less than 995/1000 fineness, as well as a gold coin made of gold of not less than 900/1000 fineness, which was issued after 1800 and is/was used as a means of payment in the country of issue.

Note: Additional criteria and the procedure for determining the status of investment gold, as well as the list of gold coins that meet the criteria of investment gold, shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 158. Person subject to VAT taxation🔗

1. Any person who independently carries out any type of economic activity in any place, regardless of the purpose and result of this activity, shall be considered a person subject to VAT taxation (hereinafter – taxable person).

2. For the purposes of this Title, economic activity shall be considered:

a) the activity provided for by paragraph 2 of Article 2 and paragraphs 1 and 2 of Article 3 of the Law of Georgia "On Entrepreneurs";

b) the activity of persons carrying out operations of supply of goods/provision of services, except for activity of a one-time/irregular nature, taking into account paragraph 3 of this Article;

c) the use of property for the purpose of receiving regular income.

3. Notwithstanding the one-time/irregular nature, in any case, the supply of a building/structure of non-residential designation shall be considered economic activity.

4. The following shall not be considered economic activity:

a) the activities provided for by subparagraphs "b−f" of paragraph 2 of Article 9 of this Code;

b) the activity of a state authority/municipality body or a Legal Entity of Public Law, if, in carrying out the activity, it acts as a state body (exercises the authority delegated to it by the state), even where a membership fee, duty, fee or other payment is established for this activity, except:

b.a) telecommunication services;

b.b) supply of water, gas, electricity or thermal energy;

b.c) transportation of goods;

b.d) port or airport services;

b.e) transportation of passengers;

b.f) supply of goods produced for the purpose of sale;

b.g) supply of agricultural products and provision of services through an intermediary agency;

b.h) organization of exhibition-sales;

b.i) warehousing;

b.j) advertising activity;

b.k) activity of a tourist agent;

b.l) public catering;

b.m) radio and television broadcasting activity.

5. The Government of Georgia is entitled, in order to prevent restriction of competition, to determine types of activity different from paragraph 4 of this Article, in the case of carrying out of which the activity of a state authority/municipality body or a Legal Entity of Public Law shall be considered economic activity.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 2 August 2021 No. 884 – website, 04.08.2021.

Article 159. Transactions subject to VAT🔗

1. Transactions subject to VAT are:

a) supply of goods by a taxable person in the territory of Georgia in the course of economic activity for consideration;

b) provision of services by a taxable person in the territory of Georgia in the course of economic activity for consideration;

c) import of goods.

2. The supply of goods/provision of services which is directly related to the supply of other types of goods/provision of services or is of an auxiliary nature for the supply of other types of goods/provision of services shall be considered as part of the provision of this service/supply of goods.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 160. Supply of Goods🔗

1. Supply of goods is the transfer of the owner’s right to dispose of tangible property. The following shall also be considered supply of goods:

a) transfer of the right of ownership to property for consideration, by decision of a state authority/municipal body and/or in a case provided for by law;

b) actual transfer of goods under a lease, leasing or similar contract, with a buyout condition;

c) transfer of goods on the basis of a contract under which commission remuneration is paid in the case of purchase or sale of goods.

2. Electricity, gas, water, thermal energy, cooling energy and other similar property shall be considered tangible property. Money (except a collectible item and/or a coin of numismatic purpose), as well as cryptographic currency (cryptoasset), shall not be considered goods.

3. For consideration, the following shall also be considered supply of goods:

a) supply of goods free of charge by a taxable person, if it has fully or partially credited VAT on this goods or on expenses incurred on it. At the same time, the transfer/use of goods in the form of a sample or a low-value gift shall not be considered supply of goods for consideration;

b) use by a taxable person of a building/structure of its own production as a fixed asset, if it would not be able to receive a full VAT credit in the case of acquiring this building/structure from another person.

Note: For the purposes of this subparagraph, the construction of a building/structure on a land plot in the ownership/possession of the taxable person by own forces and/or through the acquisition of construction and installation services shall be considered own production;

c) supply of goods by a taxable person for the personal use of its hired person or supply/use for a purpose different from the purpose of its own activity, if it has fully or partially credited VAT on this goods or on expenses incurred on it;

d) retention of goods in own possession by a taxable person or its successor after termination of economic activity, if it has fully or partially credited VAT on this goods or on expenses incurred on it;

e) cancellation of the VAT payer registration of a taxable person, if at the moment of cancellation of registration as a VAT payer it has fully or partially credited VAT on goods remaining as a balance or on expenses incurred on it;

f) transfer of goods into ownership by an enterprise or partnership, respectively, to a partner or a member of the partnership, in exchange for a share;

g) expiry or early termination of the validity of the status of a tourist enterprise;

h) loss provided for by this Code.

4. The supply by a co-owner of an immovable thing of his share in joint ownership shall be considered supply of an immovable thing.

5. If the right of ownership to an immovable thing is registered in the registering body for an object under construction in the name of the acquirer, construction, installation and/or repair services rendered by its supplier in connection with the supply of this thing shall be considered part of the supply of the immovable thing.

6. The joint supply of a land plot and a building/structure attached thereto shall be regarded as the supply of a building/structure.

7. The following shall not be regarded as the supply of goods:

a) the supply by a taxable person of all assets or part thereof (an independently functioning subdivision) to another taxable person;

b) the contribution of an asset to the capital of an enterprise or to a partnership;

c) the transfer of an asset between the parties to a reorganisation of an enterprise.

Note: For the purposes of this paragraph, the person who received the asset shall be regarded as the successor in rights of the supplier of that asset.

8. The conditions and procedure for the application of paragraph 7 of this Article, as well as the cases in which the provisions envisaged by this paragraph do not apply, shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 160¹. Provision of services🔗

1. The provision of services is any activity that is not the supply of goods. The following shall also be regarded as the provision of services:

a) the transfer of intangible property;

b) the obligation to refrain from an action or to allow a specific action/situation;

c) the provision of services under a decision of a state authority/municipal body and/or in a case provided for by law.

2. In exchange for consideration, the following shall also be regarded as the provision of services:

a) the provision of services free of charge by a taxable person for the personal use of his hired person or for a purpose different from the purpose of his own activity;

b) the repair of his own fixed asset (building/structure) carried out by a taxable person for the purpose of his activity, if he would not be able to receive a VAT deduction in full had this service been purchased from another person.

Note: For the purposes of this subparagraph, the repair of a fixed asset (building/structure) shall be regarded as carried out by a taxable person where it is carried out by his own forces and/or by purchasing repair services/works from a person who is not registered as a VAT payer;

c) the provision of services by an enterprise or a partnership, respectively, to a partner or a member of the partnership in exchange for a share.

3. A person who participates in the provision of services in his own name but on the instruction of another person shall be regarded as the recipient and the provider of that service.

4. The following shall not be regarded as the provision of services:

a) the transactions envisaged by paragraph 7 of Article 160 of this Code;

b) the transfer of the right of ownership to money, as well as to cryptographic currency (crypto-asset).

5. The provisions envisaged by paragraph 7 of Article 160 of this Code shall, in the cases determined by the same paragraph, also apply to the supply of services.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 160². Import of goods🔗

The import of goods is the placing of goods under the procedure of release for free circulation in accordance with the Customs Code of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 160³. Transactions effected by means of vouchers🔗

1. The transfer of a single-purpose voucher by a taxable person acting in its own name to another person shall be considered as the supply of the goods or provision of the services to which that voucher relates.

2. In the case provided for by paragraph 1 of this article, the actual supply of goods/services in exchange for a single-purpose voucher shall not be considered an independent taxable transaction.

3. The transfer of a single-purpose voucher by a taxable person acting in the name of another taxable person shall be considered as the supply of goods/provision of services related to that voucher effected by the taxable person in whose name that person acts.

4. If the taxable person who carries out the supply of goods/provision of services is not the taxable person acting in its own name who issues the single-purpose voucher, it shall be deemed that such person supplied the goods/services related to the voucher to the taxable person issuing that voucher.

5. The actual supply of goods/services by the supplier in exchange for a multi-purpose voucher shall be considered a VAT-taxable transaction. At the same time, all previous transfers of that multi-purpose voucher shall not be considered VAT-taxable transactions.

6. If the transfer of a multi-purpose voucher is carried out by a taxable person who is not the person carrying out the taxable transaction provided for by paragraph 5 of this article, any provision of services that may be defined as distribution/sales promotion of goods or similar services shall be considered a VAT-taxable transaction.

7. In the case of continuous or regular supply of goods/services in exchange for a voucher, VAT taxation shall be carried out at the moment determined in accordance with Article 163 of this Code for the taxation of the respective continuous/regular supply.

8. The Minister of Finance of Georgia shall be authorised to determine rules for the taxation of certain types of taxable transactions carried out by means of a single-purpose voucher that differ from paragraphs 1–3 of this article.

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020.

Article 161. Reverse charge taxation🔗

1. The following shall be taxed with VAT under the reverse charge procedure:

a) the provision of services in the territory of Georgia to a tax agent by a taxable person who is not established or ordinarily resident in Georgia, or does not have a fixed establishment in Georgia that participates in the provision of this service;

b) transfer of the object of securing a claim (goods) into the ownership of the creditor within the framework of a measure for securing the performance of a contractual obligation;

c) foreign goods purchased from a person in a customs warehouse in the case provided for by paragraph 4 of Article 164¹ of this Code, which are placed under the customs procedure of release for free circulation;

d) foreign goods purchased from a free industrial zone enterprise in the case provided for by paragraph 5 of Article 164¹ of this Code, which are placed under the customs procedure of release for free circulation.

2. For the purposes of this Article, the following shall be considered a tax agent:

a) for the purposes of subparagraph “a” of paragraph 1 of this Article – any person established in Georgia (except a non-entrepreneurial natural person and a free industrial zone enterprise) or having a fixed establishment in Georgia through which the purchase of this service was carried out;

b) for the purposes of subparagraph “b” of paragraph 1 of this Article – the person (creditor) who, within the framework of a measure for securing the performance of a contractual obligation, receives into ownership the object of securing a claim (goods);

c) for the purposes of subparagraphs “c” and “d” of paragraph 1 of this Article – the person who places the goods under the customs procedure of release for free circulation.

3. In the case provided for by paragraph 1 of this Article, the tax agent shall charge VAT:

a) in the cases provided for by subparagraph “a” of paragraph 1 of this Article – on the amount payable for the service;

b) in the case provided for by subparagraph “b” of paragraph 1 of this Article – on the market price, excluding VAT, of the object of securing a claim (goods) received into ownership;

c) in the case provided for by subparagraph “c” of paragraph 1 of this Article:

c.a) if the import and supply of the goods are not exempt from VAT – on the amount of the positive difference between the purchase value of the foreign goods in a customs warehouse and the amount of import of the goods;

c.b) if the import of the goods is exempt from VAT, while the supply of the goods is subject to VAT – on the purchase value of the foreign goods in a customs warehouse;

d) in the case provided for by subparagraph “d” of paragraph 1 of this Article:

d.a) if the import and supply of the goods are not exempt from VAT – on the amount of the positive difference between the purchase value of the foreign goods from a free industrial zone enterprise and the amount of import of the goods;

d.b) if the import of the goods is exempt from VAT, while the supply of the goods is subject to VAT – on the purchase value of the foreign goods from a free industrial zone enterprise.

4. In the case provided for by paragraph 1 of this Article, the procedure for the submission of reporting by the tax agent to the tax authority and the payment of the accrued tax to the budget shall be determined by the Minister of Finance of Georgia.

5. In the case provided for by subparagraph „b“ of paragraph 3 of this Article, the obligation to charge VAT shall not be imposed on a person registered as a VAT payer. At the same time, it shall be considered that he has made a deduction of the corresponding amount of VAT in respect of this goods.

6. The following shall not be taxed under the reverse charge taxation procedure for VAT:

a) supply of goods or provision of services which, in accordance with this Code, is exempt from VAT;

b) in the case provided for by subparagraph „b“ of paragraph 1 of this Article − transfer of a land plot owned by a natural person and of a residential apartment/house attached thereto.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 161¹. Taxation with VAT in certain cases🔗

1. Within the framework of a measure to secure the collection of a tax debt or for the purpose of collecting another monetary obligation (except sanctions imposed under criminal and administrative procedure), the realisation (supply) of goods by auction, direct sale or in another manner shall be taxed with VAT in accordance with this Article, and the payment to the budget of the amount of VAT charged on this transaction in the name of the person (owner of the goods) shall be ensured by the authorised person carrying out the realisation of the goods. At the same time, in this case the following shall not be taxed with VAT:

a) supply of a residential apartment/house;

b) supply of a land plot;

c) supply of a light motor vehicle indicated in HS code 8703 or/and a motorcycle (including a moped) indicated in HS code 8711;

d) supply of property owned by a natural person (except an individual entrepreneur).

2. The realisation of an insolvency estate by auction, direct sale or in another manner in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors" shall be taxed with VAT in accordance with this Article, and the payment to the budget of the amount of VAT charged on this transaction in the name of the person (owner of the insolvency estate) shall be ensured by the authorised person carrying out the realisation of the goods. At the same time, except in the case of realisation of the insolvency estate as a single complex, the following shall not be taxed with VAT:

a) supply of a residential apartment/house owned by an individual entrepreneur;

b) supply of a land plot;

c) supply of a motor vehicle;

d) supply of agricultural machinery.

3. In the cases provided for by paragraphs 1 and 2 of this Article:

a) the sale price of the goods (the consideration paid/payable by the buyer) includes the amount of VAT;

b) when taxing the supply of goods with VAT, the operation of Articles 170–172 of this Code, as well as of other legislative norms provided for by this Code which provide for exemption of the supply of goods from VAT, shall not apply.

4. The procedure for taxing with VAT the transactions provided for by this Article and for paying the amount of VAT to the budget shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 7169 of 18 September 2020 – website, 25.09.2020.

Article 161². Special scheme of taxation of the supply of certain goods🔗

1. The supply of a second-hand thing, a work of art, a collector's item or an antique may be taxed with VAT under a special taxation scheme (hereinafter – the special scheme).

2. The profit margin of a taxable dealer is the difference between the price of supply of the goods and its purchase price.

3. The purchase price of goods imported by a taxable dealer, which shall be taken into account when calculating the profit margin, is the sum of the amount subject to VAT upon import of these goods and the corresponding amount of VAT.

4. The amount subject to VAT as a result of the supply of goods is obtained by dividing the amount of the profit margin received by the taxable dealer by 1.18.

5. A taxable dealer shall not be entitled to receive a VAT credit in respect of goods the supply of which is taxed under the special scheme.

6. A taxable person shall not be entitled to receive a VAT credit in relation to goods supplied or to be supplied to him/her by a taxable dealer, if the supply of these goods is taxed under the special scheme.

7. A taxable dealer shall be obliged to inform the tax authority about the application of the special scheme provided for by this Article, indicating the period of application of this scheme, which may not be less than 24 months. The said period shall be counted from the beginning of the month of submission to the tax authority of the information provided for by this paragraph.

8. The procedure for the application of the special scheme provided for by this Article and for informing the tax authority about the application of this scheme, as well as the types of works of art, collector's items and antiques the supply of which may be taxed under the special scheme, shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 162. Place of supply of goods🔗

1. The place of supply of goods shall be considered the place where the goods are located at the moment of supply, if the dispatch or transport of the goods is not carried out.

2. If the dispatch or transport of the goods is carried out, the place of supply of goods shall be considered the place where the goods are located at the moment of commencement of dispatch or transport to their acquirer.

3. In the case of supply of natural gas or electricity through a distribution network to a commercial intermediary, the place of supply shall be considered the place where the commercial intermediary has established its business or where it has a fixed establishment for which the supply of these goods is carried out, and if there is no place of establishment of business or fixed establishment – the place where it has a permanent address, or where it habitually resides.

4. When supplying natural gas or electricity through a distribution network, unless paragraph 3 of this Article provides otherwise, the place of supply of goods shall be considered the place of actual use and consumption of these goods by the consumer.

5. If natural gas or electricity is not actually consumed in full or in part by the consumer, the goods that were not consumed shall be considered used and consumed at the place where the consumer carries out its own business or has a fixed establishment for which the supply of goods is carried out. If there is no place of business or fixed establishment, it shall be considered that the goods are used and consumed by the consumer at the place where it has a permanent address, or where it habitually resides.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 162¹. Place of supply of services🔗

1. If, in accordance with this Article, a service is supplied in the territory of Georgia, it shall be considered not to have been supplied in the territory of another country, and if a service is not supplied in the territory of Georgia, it shall be considered supplied in the territory of another country.

2. For the purpose of determining the place of supply of services, a person (except for a non-entrepreneurial natural person) shall be considered a taxable person in relation to any service supplied to that person.

3. Unless otherwise provided by this Article:

a) The place of supply of services shall be considered the place where the recipient of the services is established, if the recipient of the services is a taxable person. At the same time, if the supply of services is carried out for a fixed establishment of the recipient of the services which is not located at the place where the recipient of the services is established, the place of supply of services shall be considered the place where the fixed establishment is located. In the absence of a place of establishment or a fixed establishment, the place of supply of services shall be considered the place where the recipient of the services has a permanent address, or where he/she ordinarily resides;

b) The place of supply of services shall be considered the place where the supplier of the services (a taxable person) is established, if the recipient of the services is not a taxable person. At the same time, if the supply of services is carried out by a fixed establishment of the supplier of the services which is not located at the place where the supplier of the services is established, the place of supply of services shall be considered the place where the fixed establishment is located. In the absence of a place of establishment or a fixed establishment, the place of supply of services shall be considered the place where the supplier of the services has a permanent address, or where he/she ordinarily resides.

4. The place of supply of services related to immovable property shall be considered the place where the immovable property is located, including:

a) services of an expert and an agent for immovable property;

b) services for the preparation and coordination of construction works (exercise of control and supervision at a construction site).

5. The place of supply of services supplied by an intermediary acting in the name and on the instruction of another person to a non-taxable person shall be considered the place of carrying out the transaction for which this intermediary service is supplied.

6. For a non-taxable person, the place of supply of services of cultural, artistic, scientific, educational, entertainment, physical culture and sports or similar events, such as a performance, presentation or exhibition, as well as services for the organisation of these events (including auxiliary services), shall be considered the place where these events are actually carried out.

7. For a taxable person, the place of supply of the right of admission to cultural, artistic, scientific, educational, entertainment, physical culture and sports or similar events, such as a performance, presentation or exhibition, and/or auxiliary services related to such right of admission, shall be considered the place where these events are actually carried out.

8. The place of supply of services shall be considered the place of their actual performance, if any of the following services is supplied to a non-taxable person:

a) services related to transportation, which include loading, unloading, repacking, warehousing and storage of goods during carriage, packaging of goods for transportation purposes, preparation of documentation before completion of customs formalities, inspection, services related to verification and other similar services;

b) valuation of a movable thing or work/services related to such property.

9. The place of supply of transportation services to a passenger shall be considered the place where the transportation is carried out, in proportion to the distance covered.

10. The place of supply of goods transportation services to a non-taxable person shall be considered the place where the transportation is carried out, in proportion to the distance covered.

11. The place of supply of restaurant and/or catering services shall be considered the place where these services are actually performed.

12. The place of supply of short-term lease services of a means of transport shall be considered the place where that means of transport is actually placed at the disposal of the user.

13. The place of hire/lease of a means of transport to a non-taxable person, except for short-term lease, is the place where the user is established, has a permanent address or usually resides. At the same time, the place of hire of a pleasure boat to a non-taxable person (except for short-term lease) is the place where the pleasure boat is actually placed at the disposal of the user.

14. The place of supply of services to a non-taxable person shall be considered the place where that person is established, has a permanent address or usually resides, if any of the following services is supplied to that person:

a) telecommunication services;

b) radio and television broadcasting services;

c) services supplied electronically;

d) transfer or assignment of copyright, patent, licence, trademark or other similar right;

e) advertising services;

f) consultancy, engineering, legal, accounting and other similar services, as well as data processing and information supply services;

g) the obligation to refrain, wholly or partly, from performing or exercising the economic activity or right provided for by this paragraph;

h) banking, financial and insurance operations, including reinsurance, except for safe deposit box lease;

i) provision of personnel;

j) lease of a movable thing, except for the lease of any type of means of transport.

15. The Minister of Finance of Georgia is authorised to determine the cases when individual services provided for by paragraph 3 and paragraphs 12–14 of this Article are considered:

a) as supplied in another country, if it is carried out in the territory of Georgia, but the actual benefit from and/or use of this service occurs outside the territory of Georgia;

b) shall be deemed to be provided in Georgia if it is carried out outside the territory of Georgia, but the actual enjoyment and/or use of this service occurs in Georgia.

Law of Georgia No. 6817 of 14 July 2020 – website, 22 July 2020.

Article 163. Time of taxation upon the supply of goods/provision of services🔗

1. VAT taxation of the supply of goods/provision of services shall be carried out at the moment of the supply of goods/provision of services, unless otherwise provided by this Article.

2. If the amount is fully or partially paid before the supply of goods/provision of services, payment of the VAT corresponding to the paid amount shall be made according to the reporting period of payment of the amount, except for the cases provided for by paragraphs 5 and 9 of this Article.

3. Of paragraph 3 of Article 160 of this Code:

a) VAT taxation of the transaction provided for by subparagraph „b“ shall be carried out at the moment when the taxable person begins using the building/structure (fixed asset) constructed by it in its economic activity;

b) VAT taxation of the transactions provided for by subparagraphs „d“ and „e“ shall be carried out at the moment of cessation of economic activity/cancellation of VAT registration by the respective person;

c) VAT taxation of the transactions provided for by subparagraph „g“ shall be carried out at the moment of cancellation of the status of a tourist enterprise;

d) in the case provided for by subparagraph „h“, VAT taxation shall be carried out at the moment of detection of the shortfall provided for by this Code.

4. VAT taxation of the transaction provided for by subparagraph „b“ of paragraph 2 of Article 160¹ of this Code shall be carried out at the moment of completion of the repair of the building/structure (fixed asset) (at the moment when the provision of repair services/works would have been subject to VAT had it been carried out by a person registered as a VAT payer).

5. VAT taxation shall be carried out no later than the last day of each reporting period, if the provision of telecommunication/communication services or the supply of goods (guaranteed capacity, electricity, gas, water, thermal energy, cooling energy or other similar goods) is carried out regularly or continuously.

6. If the condition provided for by paragraph 2 of this Article has not occurred, VAT taxation shall be carried out:

a) no later than the last day of each reporting period, if the provision of services is carried out regularly or continuously, taking into account paragraph 5 of this Article;

b) except for the case provided for by paragraph 5 of Article 160 of this Code, upon the supply of an immovable thing, at the moment of drawing up the document confirming the right of ownership to be submitted to the registering body for registration of the right of ownership, and, if the registration (transfer) of the right of ownership depends on the performance of a certain obligation by a party (parties) to this document and/or on the occurrence of a condition − at the moment of performance of such obligation/occurrence of the condition;

c) in the cases provided for by subparagraph „b“ of paragraph 1 of Article 160 of this Code − at the moment of actual transfer of the goods;

d) in the case provided for by paragraph 5 of Article 160 of this Code − at the moment of acceptance of the immovable thing into operation.

7. In the cases provided for by subparagraphs „c“ and „d“ of paragraph 1 of Article 161 of this Code, the VAT taxation of the respective operation shall be carried out at the moment of VAT taxation of the import of goods.

8. In the cases provided for by paragraph 5 of this Article, if a taxable person records the supply of goods/services on different days of the reporting period not according to the calendar month, but according to the volume of goods/services supplied during a certain period (cycle), which may cover both the reporting period and the period preceding the reporting period, the volume of goods/services recorded according to the different days of the reporting period (recorded according to the volume of goods/services supplied during a certain period (cycle)) shall be deemed supplied in the reporting period, regardless of what was actually supplied in the reporting period.

9. The Minister of Finance of Georgia is entitled to determine the cases of individual taxable operations where paragraph 2 of this Article does not apply.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 163¹. Time of taxation upon import🔗

VAT taxation of the import of goods shall be carried out in accordance with the customs legislation of Georgia at the moment when the customs obligation arises, and, if the goods are not subject to import duty or are exempt from import duty − at the moment when these goods would have been taxed had they not been exempt from this tax.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 164. Taxable amount on the supply of goods/provision of services🔗

1. Unless otherwise provided by this Article, the taxable amount for VAT is the consideration received/receivable for the supply of goods/provision of services, excluding VAT, including subsidies directly linked to the price of the goods/services. This provision shall also apply in the case of an exchange transaction of goods/services (barter transaction).

2. Paragraph 3 of Article 160 of this Code:

a) in the cases provided for by subparagraphs „a“–„e“, the taxable amount for VAT is the purchase price of this or similar goods, or, if such does not exist, its production price, which in the relevant cases is determined at the moment of use, disposal, appropriation (retention in possession) or cancellation of registration as a VAT payer;

b) in the cases provided for by subparagraphs „f“ and „h“, the taxable amount for VAT is the market price of the goods, excluding VAT;

c) in the case provided for by subparagraph „g“, the taxable amount for VAT is the difference between the amount obtained by dividing by 1.18 the turnover exempt from VAT with the right of deduction provided for by subparagraph „v“ of paragraph 4 of Article 172 of this Code and the amount declared (including additionally assessed by the tax authority in respect of the said object) for transactions subject to VAT (except transactions exempt from VAT) as a result of the operation of the hotel (object/part thereof) by the person/persons invited for the functioning/operation of a tourist enterprise and/or hotel.

3. Paragraph 2 of Article 160¹ of this Code:

a) in the cases provided for by subparagraphs „a“ and „b“, the taxable amount for VAT is the value of all costs related to the provision of services;

b) in the cases provided for by subparagraph „c“, the taxable amount for VAT is the market price of the services, excluding VAT.

4. The taxable amount for VAT shall include:

a) taxes, duties, fees and charges, except VAT;

b) incidental costs, such as commission, packaging, transportation, insurance costs, which the supplier charges to the purchaser.

5. The following shall not be included in the taxable amount for VAT:

a) a discount for advance payment;

b) a discount or other concession granted to the purchaser of goods/services and received by him at the time of supply;

c) amounts received by the taxable person from the purchaser of goods/services as reimbursement of expenses incurred in the name and on the instructions of the purchaser. At the same time, the taxable person shall be obliged to substantiate the actual amount of the expenses specified in this subparagraph and shall not have the right to deduct VAT paid in connection therewith;

d) the benefit provided for by a leasing contract − in the case provided for by subparagraph „b“ of paragraph 1 of Article 160 of this Code, upon the supply of goods by leasing;

e) a penalty or other type of monetary compensation received/receivable in connection with the breach of a contractual obligation.

6. When goods are supplied/services are provided covered by a multi-purpose voucher, the amount subject to VAT taxation is the consideration paid for this voucher, exclusive of VAT. And in the absence of information on the consideration, the amount subject to VAT taxation shall be obtained by dividing the value indicated in the multi-purpose voucher or in the documentation related thereto by 1.18.

7. During a taxable transaction carried out between interdependent persons, the amount subject to VAT taxation is the market price of the goods/services, exclusive of VAT, if:

a) the amount of consideration of the taxable transaction is lower than its market price and, in accordance with this Code, the acquirer of the goods/services does not have the right to fully deduct VAT on this transaction;

b) the amount of consideration of the taxable transaction is lower than its market price and, in accordance with this Code, the supplier of the goods/services does not have the right to fully deduct VAT and the supply is exempt from VAT without the right to deduction;

c) the amount of consideration of the taxable transaction is higher than its market price and the supplier of the goods/services does not have the right to fully deduct VAT.

8. The costs of multi-purpose (returnable) goods/packaging shall not be included in the amount subject to VAT taxation. At the same time, if the said goods are not returned, the amount subject to VAT taxation shall be adjusted. The rules for the application of this paragraph shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 164¹. Taxable amount during customs procedures🔗

1. Upon import of goods, the taxable amount is the value of the goods for customs purposes.

2. If the taxable amount does not include the components listed below, the following shall be included in it:

a) tax, duty, fee or other charge due in a foreign country and/or Georgia arising from the import of goods, except VAT;

b) incidental expenses, such as commission, packaging, transport and insurance expenses, incurred up to the first place of destination of the goods, as well as expenses incurred for transportation to another place of destination in the territory of Georgia, if this other place is known at the time the tax liability arises.

Note: For the purposes of subparagraph "b" of this paragraph, the first place of destination is the place indicated in the document by which the goods are imported. At the same time, if this place is not indicated in the relevant document, the place of first transportation/delivery of the goods in the territory of Georgia shall be considered the first place of destination.

3. The following shall not be included in the taxable amount:

a) discount for advance payment;

b) a discount or other concession granted to the acquirer and received by him at the time of import.

4. In the case of import of goods supplied to a customs warehouse, if:

a) the import and supply of goods are not exempt from VAT, payment of the VAT amount payable upon import shall be made based on the import amount, while the amount of the positive difference between the purchase value of foreign goods by the importer in the customs warehouse and the import amount of the goods shall be subject to VAT under reverse charge taxation;

b) the import of goods is exempt from VAT, while the supply of goods is subject to VAT, the purchase value of foreign goods by the importer in the customs warehouse shall be subject to VAT under reverse charge taxation;

c) the import of goods is subject to VAT, while the supply of goods is exempt from VAT, the importer shall pay the VAT amount payable upon import based on the import amount.

5. In the case of import of goods purchased by a person from a FIZ enterprise, if:

a) the import and supply of goods are not exempt from VAT, payment of the VAT amount payable upon import shall be made based on the import amount, while the amount of the positive difference between the purchase value of foreign goods by the importer from a FIZ enterprise and the import amount of the goods shall be subject to VAT under reverse charge taxation;

b) the import of goods is exempt from VAT, while the supply of goods is subject to VAT, the purchase value of foreign goods by the importer from a FIZ enterprise shall be subject to VAT under reverse charge taxation;

c) the import of goods is subject to VAT, while, if the supply of goods is exempt from VAT, the importer shall pay the VAT amount payable upon import based on the import amount.

Note: In the cases provided for by this paragraph, the obligations of the FIZ enterprise under this Code in respect of VAT, in connection with the operation of supply of goods to the importer, shall be deemed fulfilled.

6. In the case provided for by paragraph 2, 3 or 4 of Article 54 of the Customs Code of Georgia, the import amount shall be determined in accordance with the rule established by the same paragraph for calculating the amount of import tax.

7. The export/re-export of goods shall be considered effected if the goods are declared under the export procedure or re-exported, in which case the export/re-export amount is the customs value of the goods.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 165. Registration as a VAT payer🔗

1. A taxable person, unless otherwise provided by this Code, shall, from the day when the total amount of VAT-taxable transactions involving the supply of goods/provision of services carried out by it during any continuous 12 calendar months exceeds 100,000 GEL, apply to the tax authority for registration as a VAT payer no later than within 2 working days.

2. The obligation to calculate and pay VAT shall arise for a taxable person from the moment of carrying out the taxable transaction provided for by paragraph 1 of this article (including this transaction), as a result of which the total amount of taxable transactions exceeded 100,000 GEL.

3. A taxable person that produces excisable goods in Georgia shall, before the supply of the excisable goods, apply to the tax authority for registration as a VAT payer.

4. A person created as a result of reorganization, if any party to the reorganization is a person registered as a VAT payer, shall apply to the tax authority for registration as a VAT payer before carrying out the VAT-taxable transaction provided for by paragraph 1 of this article, but no later than 10 days after completion of the reorganization.

5. In the case of receipt of goods/services as a contribution from a partner/member registered as a VAT payer, an enterprise/partnership shall apply to the tax authority for registration as a VAT payer before carrying out the VAT-taxable transaction provided for by paragraph 1 of this article, but no later than 10 days after the contribution is made.

6. A person may voluntarily register as a VAT payer. In this case, such person shall be considered a VAT payer from the day of application to the tax authority, but no later than the deadline provided for mandatory registration.

7. When determining the total amount of VAT-taxable transactions provided for by paragraph 1 of this article, taxable transactions exempt from VAT in accordance with this Code shall not be taken into account, except:

a) transactions related to financial or immovable property exempt from VAT in accordance with this Code, if their carrying out is the main activity of the taxable person;

b) transactions for the export of goods;

c) transactions exempt from VAT in accordance with paragraphs 1 and 2 of Article 172 of this Code.

7¹. When determining the obligation of a person with the status of a fixed tax payer to register as a VAT payer, income received from an activity taxable by fixed tax shall not be taken into account.

8. When determining the total amount of VAT-taxable transactions provided for by paragraph 1 of this article for a person created as a result of reorganization, the VAT-taxable transactions of the parties to the reorganization shall be taken into account, in accordance with the procedure established by this article.

9. Notwithstanding the requirements of paragraphs 1 and 2 of this Article, a taxable person having a fixed establishment in Georgia shall have the obligation to calculate and pay VAT arising from the moment of the provision of services/supply of goods (inclusive of that transaction), and he shall be obliged to apply to the tax authority for registration as a VAT payer no later than the last day of the reporting period in which this transaction was carried out.

10. The procedure for registration as a VAT payer shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023.

Article 165¹. Cancellation of registration as a VAT payer🔗

1. If the total amount, excluding VAT, of the taxable transactions provided for by paragraph 1 of Article 165 of this Code (except for transactions exempt from VAT in accordance with this Code, taking into account paragraph 7 of Article 165 of this Code) carried out by a person during the last 12 calendar months does not exceed GEL 100,000 and 1 year has elapsed since the date of his last registration as a VAT payer, he may apply to the tax authority with a request to cancel registration as a VAT payer.

2. With the consent of the person, the tax authority shall have the right, notwithstanding the requirements of paragraph 1 of this Article, to cancel the registration of this person as a VAT payer on its own initiative. The procedure for applying this paragraph shall be determined by Order of the Minister of Finance of Georgia.

3. Registration as a VAT payer shall be cancelled:

a) upon liquidation of an enterprise/organisation − from the date of cancellation of registration in the state/entrepreneurial register;

b) upon the death of a person − from the date of death;

c) upon a person's application or consent regarding the cancellation of VAT registration, from the first day of the month following the person's written application/consent;

d) upon the opening of a bankruptcy regime under the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors" − from the publication of the court's ruling on the recognition of the application on insolvency as admissible and on the opening of the bankruptcy regime.

4. The procedure for cancellation of registration as a VAT payer shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 7169 of 18 September 2020 – website, 25.09.2020.

Law of Georgia No. 4022 of 15 December 2023 – website, 28.12.2023.

Article 165². Persons Liable to Pay VAT🔗

1. The obligation to calculate and pay VAT arises for a person registered as a VAT payer or obligated to register, except for the cases provided for by paragraph 2 of this Article.

2. Without the obligation to register as a VAT payer, the obligation to calculate and pay VAT arises for:

a) a person carrying out the import of goods;

b) a tax agent, for an operation that is taxed under the reverse charge taxation procedure in accordance with this Code;

c) an authorized person carrying out the sale of goods, when selling such goods, within the framework of a measure to ensure the collection of a tax debt or for the purpose of collecting another monetary obligation (except for a sanction imposed under criminal and administrative procedure), by auction, direct sale or another procedure;

d) a person carrying out the sale of goods, during the sale of an insolvency estate in accordance with the procedure established by the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors”;

e) a taxable person that is not established or ordinarily resident in Georgia or does not have a fixed establishment in Georgia that participates in the provision of services, if the place of provision of the service carried out by it is Georgia in accordance with this Code and this operation is not taxed under the reverse charge taxation procedure. The rules for fulfilling the obligation defined by this subparagraph and for informing the taxable person shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020.

Article 166. VAT Rate🔗

The VAT rate is 18 percent.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 167. Tax Period🔗

The VAT reporting period is a calendar month.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 168. Declaration rules🔗

1. A taxable person registered as a VAT payer shall be obliged to submit a VAT declaration to the tax authority no later than the 15th day of the month following the reporting period and to pay the tax within the same period.

2. Upon import of goods, payment of the VAT amount shall be made in accordance with the procedure established for the payment of import tax, except for the case provided for by paragraph 3 of this Article.

3. Upon import of goods indicated in the SES ESN 8401-9033 codes, provided for by the list determined by the Government of Georgia, payment of the accrued VAT shall be made no later than 45 days from the release of such goods into free circulation.

4. In the cases provided for by this Code, when taxing a transaction under the reverse charge taxation procedure, the tax agent (except for a person registered as a VAT payer) shall be obliged to pay the accrued VAT amount in accordance with the procedure established by the Minister of Finance of Georgia, no later than the 15th day of the month following the reporting period.

5. A person registered as a VAT payer shall be obliged, within 15 days from the entry into legal force of the court ruling on declaring admissible the application on insolvency and on opening the bankruptcy regime, issued in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors", to submit to the tax authority the unsubmitted declarations corresponding to the full/incomplete tax period(s) prior to the opening of the bankruptcy regime.

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Article 169. General Provisions🔗

1. This Chapter determines the cases of exemption of taxable transactions from VAT.

2. Taxable transactions provided for by Articles 170 and 171 of this Code are exempt from VAT without the right to deduct VAT, which means that in the case of carrying out these transactions, taxable persons do not have the right to deduct VAT in relation to expenses incurred for these transactions.

3. Taxable transactions provided for by Article 172 of this Code are exempt from VAT with the right to deduct VAT, which means that in the case of carrying out these transactions, taxable persons have the right, in accordance with the procedure established by this Code, to deduct VAT related to expenses incurred for these transactions.

4. The joint supply of VAT-taxable and VAT-exempt goods and/or provision of services shall be considered as separate transactions of the supply of VAT-taxable and VAT-exempt goods and/or provision of services, except for the case of the supply of goods/provision of services directly related thereto together with the supply of the main goods/provision of services.

5. A taxable person has the right not to apply the tax benefit provided for by this Code and to subject to VAT the transactions provided for by subparagraphs “a” and “c” of paragraph 1 of Article 171 of this Code. The procedure for the application of this paragraph shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020.

Article 170. Exemptions in the medical, educational, cultural, sports and social spheres🔗

1. The following are exempt from VAT without the right of deduction:

a) Inpatient/outpatient medical services/treatment services, as well as the provision of services/supply of goods directly related and/or auxiliary thereto by a person who, in accordance with Georgian legislation, has the right to carry out medical activity;

b) Provision of medical services by a person who, in accordance with Georgian legislation, has the right to carry out medical and/or paramedical activity;

c) Provision of services by a dental technician within the scope of professional activity, as well as provision of dental prosthetics services by a dentist and/or dental technician;

d) Provision of transportation services for a sick or injured person by a vehicle specially created for this purpose;

e) Provision of education services by an educational institution, as well as provision of services/supply of goods directly related and/or auxiliary thereto;

f) Provision by a private teacher of school and university education services that are carried out through an educational institution;

g) Provision of art and sports instruction services for a natural person under 18 years of age, as well as provision by an organization of services directly related to sports and/or physical education/instruction for the person who carries out the said activity;

h) Supply of goods/provision of services directly related to the social welfare of the population (including provision of child care services in a childcare institution, early development and education institution and/or preschool development and education institution, provision of care services for the sick, persons with disabilities and/or persons over 60 years of age, supply of goods/provision of services for a shelter for the elderly);

i) Provision of services and/or supply of goods directly related to the protection of the rights of a child and adolescent by the guardianship and curatorship body defined by Georgian legislation;

j) Provision by an organization, proceeding from the purpose of its activity, of services to its own members in exchange for established membership fees and supply of goods directly related thereto;

k) Performance, in agreement with the Ministry of Culture of Georgia, of restoration, rehabilitation, design and research works on cultural heritage monuments included in the World Heritage List, of the category of national significance and/or of cultic-religious purpose;

l) Provision by a religious organization of personnel supply services for the purpose of carrying out any of the activities provided for by subparagraphs “a”, “e”, “h” and “i” of this paragraph;

m) provision of services/delivery of goods by an organisation whose activity is exempt on the basis of any one of subparagraphs „a“, „e“ and „g“–„k“ of this paragraph, only within the framework of events organised for raising funds for the purposes of its own activity;

n) universal postal service provided within the scope of powers delegated by the State, except passenger carriage/transportation service and the delivery of goods related thereto. The list of universal postal services shall be determined by a Resolution of the Government of Georgia;

o) delivery by the postal operator designated by the State of the national postage payment mark (postage stamp) provided for by the legislation of Georgia, at its nominal value;

p) provision of ritual services related to burial (including service by motor vehicle);

q) delivery of diabetic bread which is marked as such at the time of delivery;

r) delivery by the Patriarchate of Georgia of a cross, candle, icon, book, calendar and other liturgical items which are used exclusively for religious purposes;

s) restoration and/or painting of a church or ecclesiastical building.

2. The Minister of Finance of Georgia shall be entitled to determine the rules and criteria for the application of the tax reliefs provided for by paragraph 1 of this Article.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 16 March 2021 No. 342 – website, 18.03.2021.

Law of Georgia of 30 November 2023 No. 3829 – website, 15.12.2023.

Law of Georgia of 12 December 2024 No. 109 – website, 28.12.2024.

Law of Georgia of 26 June 2025 No. 845 – website, 03.07.2025.

Article 171. Exemption of certain categories of operations from VAT without the right to deduction🔗

1. The following are exempt from VAT without the right to deduction:

a) financial operations/financial services;

b) provision of services through lotteries, gambling and profitable games, except for the services provided for by subparagraph "r" of paragraph 4 of Article 172 of this Code;

c) supply of a land plot;

d) supply to a natural person of a land plot and a residential apartment/house attached to it, if the supplier supplies this property to that natural person or to a first-degree heir of that natural person:

d.a) from whom this property was received within the framework of a measure securing the performance of a contractual obligation of his/her and/or another natural person;

d.b) whose property was acquired at auction or in another manner for the purpose of enforcing payment of a monetary obligation of his/her and/or another natural person;

e) supply of lecture courses by means of electronic media (disks) which are of an educational nature and may also be published in book form;

f) provision of services for the sale of goods (magazines, newspapers, sheet music) provided for by HS codes 4901, 4902 and 4904 00 000 00, printing services and/or advertising services by magazines/newspapers;

g) supply of property that has become state property, as well as transfer (supply) of property by leasing in accordance with the Law of Georgia "On State Property";

h) supply of state property (except movable property that has become state property) under the privatisation programme;

i) supply of a share in a partnership (right of preliminary registration of property), if no property is attached/personalised to this share (right), except in the case of transfer of property into ownership in exchange for the share (right);

j) leasing of goods whose supply is exempt from VAT without the right to deduction in accordance with this Code;

k) provision of services by passenger transport (except taxi) on urban and intra-district routes at regulated prices and tariffs;

l) provision to a municipality of sweeping and cleaning and waste management services in a populated area;

m) provision, by a person selected by the Revenue Service in accordance with the procedure established by the legislation of Georgia, of services for mandatory marking/labelling of excisable and/or non-excisable goods;

n) supply by a natural person of hotel assets/part thereof provided for by paragraph 1 of Article 261 of this Code, held in his/her ownership, if the new owner (natural person) takes the place of the old owner in the contractual relationship existing between the old owner and the tourist enterprise;

o) delivery (distribution) of property by a partnership to its member (co-owner), if the members of the partnership are only natural persons, the composition of the partnership members has not changed from the establishment of the partnership until the moment of transfer (distribution) of the property, and the partnership is not a VAT payer at the moment of distribution. For the purposes of this subparagraph, upon the death of a partnership member, the transfer of the partnership share to an heir or the realization of a partnership member's share in accordance with the procedure established by the Law of Georgia "On Enforcement Proceedings" shall not be considered a change in the composition of the partnership members;

p) delivery of the goods indicated in code 4820 20 000 00 of the SES ESN;

q) delivery of goods by a FIZ enterprise to another FIZ enterprise;

r) provision of services by a FIZ enterprise to another enterprise of the same FIZ;

s) delivery of goods originating in or produced in the occupied territories of Georgia from the occupied territories of Georgia to a person having the status of a special enterprise;

t) provision of construction-installation, repair, restoration, experimental-design and/or geological-prospecting services financed by preferential credits issued by foreign states and/or international organizations under international treaties of Georgia ratified by the Parliament of Georgia for the rehabilitation of the electric power sector;

u) provision of services under a contract financed by a foreign organization for the liquidation of a natural disaster, accident and catastrophe, for the purpose of humanitarian aid, and a party to which is the respective body of the executive authority of Georgia;

v) delivery of goods and/or provision of services to investors and operating companies for the implementation of oil and gas operations, in accordance with equipment, installations, transport vehicles, spare parts and materials intended for carrying out oil and gas operations as provided by the Law of Georgia "On Oil and Gas", as well as contracts defined by the above-mentioned law and/or licences issued for carrying out oil and gas operations;

w) delivery of goods provided for by subparagraphs "a"–"n" of Article 173 of this Code;

x) provision of servitude services free of charge.

2. Exempt from VAT without the right of deduction is the delivery by a taxable person of goods used by it for any activity exempt from VAT in accordance with paragraph 1 of Article 170 of this Code or subparagraphs "a" and "b" of paragraph 1 of this Article, if the right to deduct VAT did not arise and/or was not used upon the acquisition of the said goods.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 11 November 2025 No. 1024 – website, 14.11.2025.

Article 172. Exemption from VAT with the right to deduction🔗

1. The following supply of goods/provision of services shall be exempt from VAT with the right to deduction:

a) supply of goods for the supply of fuel or provisions to a vessel intended for operation on the high seas or for paid passenger transportation or for commercial, industrial or fishing activity, or for rescue or sea assistance operations, or for coastal fishing;

b) supply of goods for the supply of fuel or provisions to a warship provided for by code 8906 10 00 of the Commodity Nomenclature of Foreign Economic Activity of Georgia, which is leaving the territory of Georgia;

c) supply, conversion, repair, technical servicing, freight or lease of a vessel provided for by subparagraph „a“ of paragraph 1 of this Article, and supply, lease, repair or technical servicing of equipment installed or used on such vessel;

d) except for that provided for by subparagraph „c“ of paragraph 1 of this Article, provision of other services for the direct needs of a vessel provided for by subparagraph „a“ of paragraph 1 of this Article or its cargo;

e) supply of an aircraft with fuel or provisions;

f) supply, conversion, repair, technical servicing or lease of an aircraft, as well as supply, lease, repair or technical servicing of equipment installed or used on such aircraft;

g) except for that provided for by subparagraph „e“ of paragraph 1 of this Article, provision of other services for the direct needs of an aircraft provided for by subparagraph „f“ of paragraph 1 of this Article or its cargo;

h) transportation of goods placed under export, re-export, outward processing or transit, or intended for transit (as confirmed by the accompanying documents of the goods), and provision of services directly related to such transportation. Services directly related to such transportation are:

h.a) services related to the dispatch/receipt of cargo and/or means of transport and carriage during transportation, as well as services provided by an airport, seaport, railway or motor station/terminal;

h.b) air or maritime navigation, dispatch and/or information services;

h.c) freight forwarding services;

h.d) services of preparation of cargo documentation, inspection, examination, transport handling (including loading and unloading), packaging for transportation and storage;

h.e) agency services in seaports;

i) provision of services for the transportation of passengers and baggage and services directly related to such transportation, provided that the point of departure or destination is located outside the territory of Georgia and a single transport document has been issued for such transportation. Services directly related to such transportation are:

i.a) services related to the dispatch/receipt of a passenger and/or vehicle, as well as services provided by airports, seaports, railway and motor terminals;

i.b) air or maritime navigation, dispatch and/or information services, as well as supervision of air navigation services;

i.c) services of inspection, examination, transport handling (including loading and unloading), packaging for transportation and storage;

i.d) services of sale of passenger tickets for international carriage of passengers;

i.e) passenger services in the customs control zone of airports and seaports, the cost of which is included in the price of an international carriage passenger ticket;

i.f) agency services at seaports.

2. Exempt from VAT with the right of deduction is the provision of services by an intermediary acting on behalf of another person, in the case of participation in operations provided for by paragraph 1 of this Article or in operations carried out outside the borders of Georgia.

3. Exempt from VAT with the right of deduction is the supply of goods and/or the provision of services intended for the official use of a foreign diplomatic or equivalent representation, as well as for the personal use of such representation or of a member of a diplomatic mission (including family members living with him/her). The procedure for applying the tax benefit provided for by this paragraph shall be determined by the Minister of Finance of Georgia.

4. Exempt from VAT with the right of deduction are also:

a) supply of natural gas to thermal power plants;

b) supply of assets by an enterprise, more than 50 percent of the share/shares of which is in the ownership of the state and/or a municipality, to the state and/or the municipality by way of withdrawal from the enterprise's capital;

c) gratuitous transfer of goods to the state and/or a municipality and/or gratuitous provision of services;

d) transfer of goods to other persons, within the framework of projects (including the preparatory stage) defined by international treaties ratified by the Parliament of Georgia, by legal entities of public law implementing these projects, with which the Ministry of Finance of Georgia has concluded a contract on the authority to implement the project;

e) supply of goods outside the borders of Georgia (export/re-export of goods). At the same time, if the goods are to be carried outside the borders of Georgia by a passenger as personal luggage, the tax benefit provided for by this subparagraph shall be applied only if the passenger does not reside in Georgia (the place recorded in the passport or other identity document provided for by the legislation of Georgia is not Georgia), the transportation of the goods from Georgia is carried out within 90 days from their supply, and the price of the goods, including VAT, exceeds GEL 600.

Note: in the case of carrying goods outside the borders of Georgia by a passenger as personal luggage, the procedure for applying the tax benefit provided for by this subparagraph shall be determined by an Order of the Minister of Finance of Georgia;

f) transportation of goods between points located on the territory of Georgia before the goods are placed under the import, customs warehouse, temporary importation, inward processing or free zone procedure, and the provision of services directly related to this transportation as provided for by subparagraph „h“ of paragraph 1 of this Article, except for cargo storage services;

g) transportation of goods placed under the import, customs warehouse, temporary importation, inward processing or free zone procedure, before their importation into the territory of Georgia, from the customs border of Georgia to the destination point indicated in the customs declaration, and the provision of services directly related to this transportation as provided for by subparagraph „h“ of paragraph 1 of this Article, except for cargo storage services;

h) supply of fuel, lubricants and other auxiliary means intended for on-board delivery for the performance of civil aviation flights and specialized operations (aviation works) within the state border of Georgia;

i) provision of transportation, loading, unloading and storage services rendered in respect of empty means of transport (including containers and wagons) used in transportation;

j) when rail transportation is carried out on the territory of Georgia by a wagon/container belonging to a non-resident, the provision by the non-resident of the service of use of the wagon/container, except in the case of transfer of the wagon/container under a lease contract;

k) when rail transportation is carried out outside the territory of Georgia by a wagon/container belonging to a resident of Georgia, the provision by the resident of Georgia of the service of use of the wagon/container;

l) supply of goods by a person having the status of a special enterprise to the occupied territories of Georgia;

m) supply of Georgian goods to a free trade point for sale and the sale of goods at this point and/or the provision of catering services;

n) supply of gold to the National Bank of Georgia;

n¹) supply of investment gold;

o) organized bringing in of a foreign tourist to the territory of Georgia by a tour operator and the supply of a tourist product to him on the territory of Georgia;

p) provision of services to a vessel upon importation of cargo into the customs territory of Georgia (in particular, the provision of port, maritime pilotage services and hydrographic services by the Maritime Transport Agency, a legal entity of public law within the system of the Ministry of Economy and Sustainable Development of Georgia);

q) supply of foreign goods to a customs warehouse, except for the case provided for by paragraph 4 of Article 164¹ of this Code;

r) provision of services by lotteries, gambling and profitable games by the organizer of a lottery provided for by the Law of Georgia „On the Arrangement of Lotteries, Gambling and Profitable Games“, more than 50 percent of the share of which is owned by the state;

s) transfer of a person's property (except money) into the ownership of the state, an autonomous republic or a municipality within the framework of collection in favour of the state, the republican budget of an autonomous republic or the budget of a municipality, including within the framework of measures to secure collection of tax arrears, as well as sale/transfer of a person's property for the purpose of enforcing sanctions imposed by criminal and administrative procedure;

t) supply of agricultural products produced in Georgia (except goods (eggs) provided for by UCN codes 0407 11 000 00 and 0407 21 000 00 and goods specified in subheading 0207 11 (domestic fowl, not cut in pieces, fresh or chilled)) before their industrial processing (before change of commodity code);

u) supply of goods provided for by UCN codes 0201, 0203 11–0203 19, 0204 10 000 00–0204 23 000 00, 0204 50 110 00–0204 50 390 00 obtained from goods wholly produced in Georgia (including goods in ground/chopped form (mince)), cheese produced as a result of industrial processing of products obtained from animals resident in Georgia, as well as goods provided for by UCN code 0802 22 000 00 (shelled hazelnuts);

v) supply by a tourist enterprise of hotel assets or part of these assets to another person for the purpose of receiving this property back. If a tourist enterprise, within 2 years from the supply of hotel assets or part of these assets to another person, receives the same assets back under a paid contract, the transaction is also exempt from VAT with the right to deduction, and this is the basis for adjusting the amount of the taxable transaction. In this case, the tourist enterprise has the right to adjust the taxable transaction in accordance with the procedure established by Article 179 of this Code;

w) provision, free of charge, by a tourist enterprise and/or by a person/persons invited under the relevant contract for the functioning/operation of a facility or part of this facility as a hotel, to the owner of hotel assets or part of these assets, of hotel services (accommodation in a hotel) for a period of not more than 60 days during a calendar year;

x) services for termination of an international call in a mobile or fixed network in Georgia;

y) provision, by the person carrying out the said procedure, of services provided for by subparagraphs “aa.a”, “aa.b”, “aa.d” and “aa.e” of the first paragraph of Article 6 of the Customs Code of Georgia, for the purpose of processing goods placed under the inward processing procedure (except where the processed goods were subsequently imported);

z) supply of electricity and guaranteed capacity, except supply of electricity to a consumer provided for by the Law of Georgia “On Energy and Water Supply” who purchases electricity for own consumption, as well as provision of transmission and/or dispatch services;

aa) provision of services for air transportation and specialised operation (aviation works) within the state border of Georgia;

bb) supply of ferrous and/or non-ferrous metal scrap and ferrous and/or non-ferrous metal waste, if it is possible to identify the receiving party of the goods. At the same time, it shall be considered that, according to the reporting period of the supply of the goods, the receiving person of the goods has received a VAT credit in respect of the relevant goods.

Note: the goods specified in this subparagraph do not include ferrous metal castings, ingots, rolled products, other primary processing raw materials and semi-finished products classified under HS CN commodity headings 7201, 7202, 7203, 7205, 7206, 7207 and commodity subheading 7204 50 000 00;

cc) supply of the goods (books) or electronic books provided for by HS CN codes 4901 and 4903 00 000 00, as well as provision of services for the sale and printing of these goods;

dd) supply of the electric bus (including an electric minibus) specified in HS CN code 8702 40 000 00;

ee) services rendered in connection with imported goods, if the value of these services is included in the taxable amount determined in accordance with subparagraph „b“ of paragraph 2 of Article 164¹ of this Code;

ff) supply of goods produced in Georgia and intended for medicinal/medical purposes or, by a pharmaceutical enterprise, of pharmaceutical products produced by it. For the purposes of this subparagraph, the list of goods and pharmaceutical products intended for medicinal/medical purposes shall be determined by a joint order of the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and the Minister of Finance of Georgia;

gg) in accordance with the Law of Georgia “On Reducing Food Loss and Food Waste and on Food Donation”, free supply (transfer) of food by a participant of the food supply chain to a charitable organisation/food bank.

5. Supply of goods and/or provision of services and/or import of goods shall be exempt from VAT with the right to credit, if the said is carried out within the framework of international treaties ratified by the Parliament of Georgia and in force, and in accordance with these treaties such supply of goods and/or provision of services and/or import of goods is exempt from VAT.

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020.

Law of Georgia of 15 June 2023 No. 3272 – website, 4 July 2023.

Law of Georgia of 4 October 2023 No. 3549 – website, 24 October 2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28 December 2023.

Law of Georgia of 12 June 2025 No. 685 – website, 16 June 2025.

Law of Georgia of 12 November 2025 No. 1061 – website, 14 November 2025.

Article 173. Exemption of Import of Goods from VAT🔗

The following shall be exempt from VAT:

a) In accordance with the list established by the joint order of the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and the Minister of Finance of Georgia:

a.a) import of raw materials and/or substances provided for by HS groups 28 and 29 intended for medicinal/pharmaceutical purposes;

a.b) import of goods intended for medicinal/medical purposes;

a.c) import of goods necessary for the movement of a person with disabilities since childhood, as well as a person with severe and significantly pronounced disabilities;

a.d) import of infant food products and/or children's hygiene products;

a.e) import of goods provided for by HS code 9619 00;

b) import of goods provided for by HS group 30;

c) import of radiopharmaceuticals provided for by HS code 2844, registered by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia, goods provided for by HS codes 8419 20 000 00, 9001 30 000 00, 9001 40 and 9001 50, HS codes 9018–9022 (except code 9022 29 000 00), 9025 11 200 00 and 9402 90 000 00, wheelchairs and their parts and accessories provided for by HS codes 8713 and 8714 20 000 00, X-ray films for medical purposes, diagnostic test systems for medical purposes, glucometers (the test systems of which are registered by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia);

d) import of goods provided for by HS codes 4801, 4802 55, 4802 61 150 00 and 4810 22;

e) import of liquorice roots provided for by HS commodity subheading 1211 90 860 00, goods specified in HS commodity subheading 1211 20 000 00, natural unrefined shellac provided for by HS commodity subheadings 1301 20 000 00 and 1301 90 000 00, goods provided for by HS codes 1504 20, 1515 30, 1520 00 000 00, 1702 11 000 00, 3912 12 000 00, 3912 31 000 00, 7010 10 000 00, 7010 90 790 00 and 9602 00 000 00 (gelatin capsules);

f) import of goods provided for by HS codes 0102 21, 0103 10 000 00, 0104 10 100 00, 0104 20 100 00, 0105 11, 0511 10 000 00, 0602 10, 2503 00, 2803 00, 3101 00 000 00, 3103–3105 (except mechanical mixtures), 3808 61 000 00, 3808 62 000 00, 3808 69 000 00, 3808 91, 3808 92 and 3808 93;

g) import of passenger cars provided for by HS code 8703 and/or motorcycles (including mopeds) provided for by HS code 8711;

h) import of goods provided for by HS commodity heading 8903;

i) import of excise stamps by the Revenue Service and/or by a person selected by the Revenue Service in accordance with the procedure established by the legislation of Georgia;

j) import of treasure and/or movable thing transferred into state ownership;

k) import of diabetic bread marked as such;

l) import of goods (magazines, newspapers, notes) provided for by codes 4901, 4902 and 4904 00 000 00 of the CN FEA;

m) import of a vehicle provided for by code 8703 10 110 00 of the CN FEA;

n) import of money (except for a collection specimen and/or a coin of numismatic purpose), as well as securities;

o) import of chassis, bodies, parts and accessories intended for tractors specified in CN FEA codes 8701 91 100 01, 8701 91 100 05, 8701 92 100 01, 8701 92 100 05, 8701 93 100 01, 8701 93 100 05, 8701 94 100 01, 8701 94 100 05, 8701 95 100 01 and 8701 95 100 05, and specified in CN FEA codes 8706 00 190 00, 8706 00 990 00, 8707 90 900 00, 8708 10 900 00, 8708 29 900 00, 8708 30 910 00, 8708 30 990 00, 8708 40 500 00 – 8708 40 990 00, 8708 50 990 00, 8708 70 500 00 – 8708 70 990 00, 8708 80 350 00 – 8708 80 990 00, 8708 91 350 00 – 8708 91 990 00, 8708 92 350 00 – 8708 92 990 00, 8708 93 900 00, 8708 94 350 00 – 8708 94 990 00, 8708 99 930 00 and 8708 99 970 00, as well as goods provided for by CN FEA codes 8432 90 000 00 and 8433 90 000 00;

p) import of natural gas for electricity generation (for thermal power plants);

q) import of agricultural pesticides and agrochemicals, sowing and planting material of agricultural crops, in accordance with the list approved by a resolution of the Government of Georgia;

r) import of fuel contained in the standard tank structurally and technologically connected to the engine fuel system of a motor vehicle of a person entering Georgia by motor vehicle;

s) import of goods provided for by the corresponding CN FEA codes 8802 11 000 10, 8802 12 000 10, 8802 20 000 10, 8802 30 000 10 and 8802 40 000 10 and/or goods intended for it (for civil aviation) under the CN FEA;

t) import of gold to be transferred to the National Bank of Georgia;

t¹) import of investment gold;

u) of the Customs Code of Georgia:

u.a) import of returned goods provided for by Article 107, if the said goods meet the conditions defined by the same Article for exemption from import tax, regardless of whether or not such goods are subject to import tax;

u.b) import of processed products obtained by processing goods placed under the outward processing procedure in accordance with Article 152, if the said goods meet the conditions defined by the same Article for exemption from import tax, regardless of whether or not such goods are subject to import tax;

v) import of goods to be transferred to state and/or public organizations of Georgia for the elimination of natural disasters, accidents and catastrophes, for humanitarian aid purposes;

w) import of property of a diplomatic mission or consular post of Georgia abroad;

x) import of goods in accordance with an international diplomatic and consular agreement, if these goods are exempted from import tax;

y) import of goods exempted from customs obligation in accordance with Book X of the Customs Code of Georgia, except for the import of goods from a TIZ;

z) import, by a person selected by the Revenue Service in accordance with the procedure established by the legislation of Georgia, of goods intended for the mandatory labelling/marking of excisable and/or non-excisable goods;

aa) import of goods provided for by a grant agreement, by the grantor or the grantee;

bb) import of personal use items and household goods intended for the personal use of foreign nationals (including family members living with them) employed in oil and gas prospecting, exploration and extraction operations;

cc) import of goods intended for the official use of a foreign diplomatic or equivalent representation, as well as for the personal use of the diplomatic and administrative-technical personnel of that representation (including family members living with them), in the form in which such exemption is provided for by the relevant international agreements to which Georgia is a party;

dd) import of equipment, machinery, vehicles, spare parts and materials intended for carrying out oil and gas operations provided for by the Law of Georgia “on Oil and Gas”, as well as, in accordance with the contracts and/or licences issued for carrying out oil and gas operations as defined by the above-mentioned Law, import of goods for investors and operating companies for carrying out oil and gas operations;

ee) import of goods by an international representation recognised by the relevant authorised body, under the conditions and within the limit provided for by an international convention;

ff) import into a port of goods caught by a person carrying out fishing, which are not processed or were processed before sale;

gg) import and/or supply of goods intended for on-board delivery for the operation of international aviation flights and international maritime voyages, as well as import of fuel, lubricants and other auxiliary means intended for on-board delivery for the operation of civil aviation flights and specialised operations (aviation works) within the borders of the state border of Georgia;

gg¹) import of goods (books) provided for by SES ESN codes 4901 and 4903 00 000 00;

gg²) import of electric buses (including electric minibuses) provided for by SES ESN code 8702 40 000 00;

gg³) import of goods financed by a concessional credit issued by a foreign state and/or an international organisation in accordance with an international treaty of Georgia ratified by the Parliament of Georgia for the rehabilitation of the electricity sector.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 17 December 2021 No. 1165 – website, 28.12.2021.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 15 June 2023 No. 3272 – website, 04.07.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 174. General provisions🔗

1. VAT deduction is the right of a taxable person to reduce the amount of VAT payable by the amount of VAT directly attributable to the value of the various components of the expense related to the supply of goods/the provision of services.

2. The right of VAT deduction arises from the moment when the obligation to accrue the amount of VAT to be deducted arises (the taxation of the relevant transaction with VAT).

3. Only a taxable person registered as a VAT payer has the right of VAT deduction.

4. The rules for obtaining a VAT deduction shall be determined by Order of the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 175. Right of VAT deduction🔗

1. If goods/services are intended or used for carrying out a VAT-taxable transaction, the taxable person has the right to deduct:

a) VAT paid/payable for the acquisition of these goods/services from another taxable person in the territory of Georgia;

b) VAT payable in connection with transactions treated as the supply of goods or the provision of services in accordance with this Title;

c) VAT paid/payable upon the import of goods;

d) VAT accrued in the case of taxation under the reverse charge taxation rules.

2. A taxable person, in addition to the cases provided for by paragraph 1 of this Article, has the right to deduct the amount of VAT related to the expense incurred for the acquisition of goods/services, if the goods or services are used:

a) for the provision of services/the supply of goods outside the territory of Georgia;

b) in transactions exempt from VAT with the right of deduction, in accordance with Article 172 of this Code;

c) for financial services/a financial transaction, if the customer is established outside Georgia or if these transactions are directly related to goods that are to be exported from Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 176. Rule for the use of VAT credit🔗

1. The basis for receiving a VAT credit is:

a) in the cases provided for by subparagraphs „a“ and „b“ of paragraph 1 and by paragraph 2 of Article 175 of this Code – a tax invoice issued in accordance with the procedure established by this Code in connection with the purchase of goods/services;

b) in the case provided for by subparagraph „c“ of paragraph 1 of Article 175 of this Code – an import declaration in connection with the import of goods;

c) in the case of reverse charge taxation by a person registered as a VAT payer, the amount of reverse charge VAT accrued and reflected in the VAT declaration, which is at the same time the basis for receiving a credit;

d) in the cases provided for by Article 161¹ of this Code − the relevant document confirming the purchase of goods by the buyer, which must indicate the amount of money paid for the purchase of the goods (including the amount of VAT);

e) when VAT is accrued in connection with the import of goods on the basis of a decision of the tax authority − a document confirming payment to the budget of the accrued VAT.

2. The Minister of Finance of Georgia is entitled to determine individual cases when the VAT credit may be effected on a basis different from paragraph 1 of this Article.

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020.

Article 177. Proportional VAT deduction🔗

1. If a taxable person uses goods or services for transactions in respect of which it has the right to receive a VAT deduction, as well as for transactions in respect of which it does not have that right, only the part of the VAT amount that is attributable to the transactions in respect of which it has the right to receive a VAT deduction shall be deducted.

2. The deductible part of VAT shall be calculated according to a fraction and shall be fixed as a percentage, where:

a) the numerator is the amount of annual turnover, excluding VAT, of the transactions in respect of which VAT is subject to deduction in accordance with Article 175 of this Code;

b) the denominator is the amount of annual turnover, excluding VAT, of the transactions reflected in the numerator and of the transactions in respect of which VAT is not subject to deduction.

3. When calculating the proportional share subject to VAT deduction, the turnover amount relating to the following shall not be taken into account:

a) the supply of a fixed asset used by the taxable person for its own activity;

b) transactions relating to immovable property or financial transactions, if these transactions are not the main activity of the taxable person.

4. The amount of VAT deductible for a reporting period shall be determined:

a) according to the annual percentage rate fixed in the previous tax year in accordance with paragraph 2 of this Article, which shall be adjusted according to the annual percentage rate of the current tax year in the last reporting period of the same year;

b) in each reporting period, according to the monthly percentage rate fixed in accordance with paragraph 2 of this Article, which shall be adjusted in the last reporting period of the current tax year according to the annual percentage rate, if the corresponding annual percentage rate of the previous tax year has not been fixed.

5. If a fixed asset is used by a taxable person, or is intended to be used, for transactions in respect of which it has the right to receive a VAT deduction, as well as for transactions in respect of which it does not have that right, and the separation of these transactions is impossible, the VAT deduction shall be made in accordance with the following procedure:

a) if, according to the previous tax year, the amount of transactions of the taxable person in respect of which it does not have the right to receive a VAT deduction is less than 20 percent of the total turnover (the total amount of supply of goods/provision of services, excluding VAT), the person has the right, in the very first reporting period, to receive a VAT deduction in full on the fixed asset, and at the same time, at the end of each calendar year, to determine the amount of VAT to be reversed in proportion to the share of the amount of taxable transactions in respect of which it does not have the right to receive a VAT deduction in the total turnover amount of the calendar year;

b) a taxable person, except for the case provided for by subparagraph „a“ of this paragraph, has the right to receive a VAT deduction on the fixed asset only in the declaration for the last reporting period of each calendar year, in proportion to the share of the amount of taxable transactions in respect of which it has the right to receive a VAT deduction in the total turnover during the year.

6. For the purposes of paragraph 5 of this Article, the amount of VAT to be cancelled annually (in the case of subparagraph „a“ of paragraph 5 of this Article) or to be credited (in the case of subparagraph „b“ of paragraph 5 of this Article) shall be calculated:

a) in respect of an immovable thing – over 10 calendar years from the year of putting into operation, in the amount of one tenth of the VAT amount;

b) in respect of other fixed assets – over 5 calendar years from the year of putting into operation, in the amount of one fifth of the VAT amount.

7. Paragraphs 1 to 6 of this Article shall not apply if, during a calendar year, in non-separable transactions (transactions in respect of which a person has the right to receive a VAT credit and transactions in respect of which it does not have that right and the separation of these transactions is impossible), the amount of transactions in respect of which it does not have the right to receive a VAT credit is less than 5 per cent of the total turnover amount. In such a case, the taxable person shall have the right to receive a VAT credit in full.

8. In the cases provided for by subparagraph „b“ of paragraph 3 of Article 160 of this Code and by subparagraph „b“ of paragraph 2 of Article 160¹, the provisions provided for by paragraphs 5 and 6 of this Article shall apply to the extent that they would have applied, respectively, in the case of the acquisition of a building/structure or repair services from another person.

9. The amount taxed with VAT in accordance with paragraph 2 of Article 163 of this Code shall be included in the VAT turnover amount provided for by this Article.

10. At the time of registration/deregistration as a VAT payer or of the supply of fixed assets, the amount of VAT to be credited/cancelled in respect of fixed assets shall be determined by tax years in proportion to the use of these fixed assets in VAT-taxable transactions. The procedure for the application of this paragraph shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 178. Restrictions on the right to VAT deduction🔗

VAT deduction shall not be effected:

a) on the amount of VAT attributed to the value of expenses incurred for social purposes or for entertainment events or of representation expenses, except where the supply of goods/services effected within the framework of such events is subject to VAT;

b) taking into account Articles 174–177 of this Code, on the amounts of VAT attributed to the value of expenses incurred for goods/services used or intended to be used in a taxable transaction in respect of which the person has no right to VAT deduction;

c) on the basis of a tax invoice that does not allow the identification of the seller of the goods/services or is not issued in accordance with the procedure established by the tax legislation of Georgia;

d) on the basis of a tax invoice in which 3 years have elapsed since the end of the calendar year in which the taxable transaction reflected therein was effected. If VAT deduction is effected in the 3rd year from the effecting of the taxable transaction, the limitation period determined by paragraphs 1, 3 and 5 of Article 4 of this Code shall be extended by 1 year in respect of the parties participating in the taxable transaction (within the framework of this transaction). At the same time, VAT deduction shall be effected no later than by the declaration corresponding to the last reporting period of the year in which this right arose (including by an amended declaration);

e) by a false document, as well as by a tax invoice reflecting a fictitious transaction or a transaction without goods.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 4022 of 15 December 2023 – website, 28.12.2023.

Article 179. Adjustment of the VAT amount🔗

1. The amount subject to VAT and, accordingly, the amount of VAT to be deducted shall be adjusted if the circumstances/factors on the basis of which the amount subject to VAT was determined at the time of effecting the taxable transaction have changed.

2. Adjustment of the amount of a taxable transaction shall be effected in the reporting period in which the circumstance giving rise to the adjustment occurs.

3. The amount of VAT to be deducted shall not be cancelled and shall not be adjusted in the case of writing off commodity-material assets or the existence of loss of goods in accordance with the procedure established by this Code.

4. The cases of adjustment of the amount subject to VAT, as well as the procedure for issuing and submitting a document, shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 180. Tax Invoice🔗

1. Unless otherwise provided by this Code, in the case of the supply of goods or provision of services by a taxable person registered as a VAT payer to another taxable person, a tax invoice shall be issued. In cases determined by the Minister of Finance of Georgia, a tax invoice in simplified form may be issued.

2. A tax invoice shall be issued in written or electronic form.

3. When a taxable person registered as a VAT payer supplies goods or provides services to a final consumer, a tax invoice shall be issued upon the consumer's request.

4. If a person records the provision of services or the supply of goods (guaranteed capacity, electricity, gas, water, thermal energy, cooling energy or other similar goods) by cyclical accruals, when settlement with the consumer is made not according to the calendar month, but according to the volume of goods supplied/services rendered during a certain period (cycle), which may cover both the reporting period and the period preceding the reporting period, a tax invoice may be issued according to such period (cycle).

5. The forms, details, rules for its issuance, accounting and use (including restrictions on use) of a tax invoice (including a tax invoice in simplified form), as well as individual cases when, in the case of supply of goods/provision of services, a tax invoice is not issued, shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 181. Refund of the VAT amount🔗

1. A taxable person shall have the right to a refund of the VAT amount if, in the reporting period, the VAT amount to be credited exceeds the VAT amount to be charged.

2. A grant recipient who, within the framework of a grant contract, acquired goods and/or services shall have the right to credit or refund the VAT paid for these goods/services, on the basis of the submission to the tax authority of a tax invoice or, in the case of reverse charge taxation, of a document confirming the payment of VAT to the budget.

3. In the case provided for by paragraph 2 of this Article, the crediting or refunding of VAT shall be effected if the grant recipient submitted the relevant document to the tax authority within 3 months from the end of the month in which the taxable transaction was carried out.

4. In the cases provided for by paragraphs 1–3 of this Article, the refund of the VAT amount shall be effected in accordance with the procedure established by Article 63 of this Code.

5. A foreign national, when taking goods acquired in Georgia out of the territory of Georgia, shall have the right to refund the VAT amount paid on these goods.

6. In the case provided for by paragraph 5 of this Article, the refund of the VAT amount shall be effected:

a) on the basis of a special receipt issued by the authorised seller of the goods;

b) if the removal of the goods from the territory of Georgia occurs within 3 months of their acquisition and the value of the acquired goods, according to one receipt, exceeds GEL 200 (excluding VAT).

7. The procedure for refunding the VAT amount, the criteria which the authorised seller of goods must satisfy, as well as the list of goods to which paragraphs 5 and 6 of this Article do not apply, shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 181¹. Recovery of the VAT amount for a taxable person of a European Union Member State🔗

1. A taxable person of a European Union Member State shall be entitled to recover the amount of VAT paid upon the purchase of goods (except immovable property)/services in Georgia or upon the import of goods, if the said person meets all of the following conditions:

a) the person has no fixed establishment in Georgia or his/her place of business and/or permanent residence is not in Georgia;

b) the goods/services purchased by the person in Georgia or the imported goods are used in VAT-taxable transactions;

c) in the case of carrying out a similar transaction, a person registered as a VAT payer in Georgia would, in accordance with this Code, have been entitled to credit the VAT paid.

2. A taxable person of a European Union Member State shall be obliged, for the purpose of recovering the VAT amount, to appoint an authorised representative, who, within the scope of the recovery of the VAT amount provided for by this Article, shall bear the obligations provided for by this Code for a taxpayer.

3. The rules and conditions for the recovery of the VAT amount provided for by paragraphs 1 and 2 of this Article, as well as the criteria which the authorised representative must meet, shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 182. Excise taxpayer🔗

1. The excise taxpayer is a person who:

a) produces excisable goods in Georgia;

b) imports excisable goods into Georgia;

c) exports excisable goods;

d) supplies natural gas (in gaseous state) to motor vehicles;

d1 (deleted – 12.06.2020, No. 6343);

e) (deleted – 22.06.2016, No. 5445);

f) provides the service of termination of an international call received from a non-resident or resident person in a mobile or fixed network;

g) supplies goods imported by it and indicated in codes 2401, 2403 11 000 00, 2403 19 and 2403 91 000 00 of the National Commodity Nomenclature of Foreign Economic Activity.

2. In respect of goods produced in Georgia from the customer's raw materials, the manufacturer of the goods shall be considered the excise taxpayer.

3. In the cases provided for by subparagraphs „a“–„d“ and „g“ of the first paragraph of this article, a person shall be considered the excise taxpayer only in respect of the said operations.

4. When excisable goods are sold at auction, by direct sale or by other means, within the framework of a measure to secure the collection of a tax debt or for the purpose of collecting another monetary obligation (except sanctions imposed under criminal and administrative procedure), as well as when the subject of the security of a claim (excisable goods) is transferred into the ownership of the creditor within the framework of a measure to secure the performance of a contractual obligation, the acquirer and/or recipient of the excisable goods shall be considered the excise taxpayer in respect of this operation, if the said operation is subject to excise taxation in accordance with Article 190¹ of this Code.

5. Upon privatisation of excisable goods converted into state ownership, the acquirer of the excisable goods shall be considered the excise taxpayer in respect of this operation.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 1¹ December 2014 No. 2874 – website, 23.12.2014.

Law of Georgia of 22 June 2016 No. 5445 – website, 29.06.2016.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 16 October 2019 No. 5129 – website, 23.10.2019.

Law of Georgia of 12 June 2020 No. 6343 – website, 19.06.2020.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 11 November 2025 No. 1024 – website, 14.11.2025.

Article 183. Object of taxation🔗

The object of excise taxation is:

a) a taxable operation;

b) import of excisable goods;

c) export of excisable goods.

Article 184. Taxable transaction, time of taxable transaction🔗

1. Transactions subject to excise tax and the moment of performance of taxable transactions are:

a) the moment of supply by the manufacturer of excisable goods produced in Georgia and/or of removal from the enterprise's warehouse for sale;

b) the moment of transfer to the customer of excisable goods produced in Georgia by the manufacturer using the customer's raw materials;

c) the moment of commencement of use of excisable goods of own production for the production of non-excisable goods;

d) the moment of supply of natural gas (in gaseous state) to motor vehicles;

d1 (removed – 12.06.2020, No. 6343);

e) the moment of provision of international call termination services in a mobile or fixed network in Georgia;

f) the moment of supply of goods indicated in codes 2401, 2403 11 000 00, 2403 19 and 2403 91 000 00 of the National Commodity Nomenclature of Foreign Economic Activity.

2. (removed – 20.12.2011, No. 5556).

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 1¹ December 2014 No. 2874 – website, 23.12.2014.

Law of Georgia of 22 June 2016 No. 5445 – website, 29.06.2016.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 16 October 2019 No. 5129 – website, 23.10.2019.

Law of Georgia of 12 June 2020 No. 6343 – website, 19.06.2020.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Article 185. Determination of the amount of a taxable transaction, import of excisable goods and export of excisable goods🔗

1. The amount of a transaction subject to excise taxation, import of excisable goods and export of excisable goods shall be determined:

a) (removed – 19.04.2011, No. 4547);

b) for an alcoholic beverage – by the volume of the alcoholic beverage or by the volume of pure alcohol in the alcoholic beverage or by the percentage of alcohol content;

c) for tobacco products (except for tobacco products provided for by subparagraph „c1“ of this paragraph) − by the quantity or weight of the tobacco products and/or by the retail sale price;

c¹) for tobacco raw materials, tobacco waste – by the weight of the tobacco raw materials, tobacco waste;

d) for petroleum products – by the weight (volume) of the petroleum products;

e) for a light motor vehicle (except for a sports-purpose vehicle) and for a motorcycle (including a moped) – by their age and engine displacement;

f) for natural gas (in gaseous state) – by the volume of the gas;

f¹) for natural gas condensate and/or liquefied natural gas – by weight;

g) in the case of provision of international call termination services in a mobile or fixed network in Georgia − by the duration of the call.

h) for electronic cigarette liquid − by the volume of the liquid.

1¹. In the case provided for by paragraph 2, 3 or 4 of Article 54 of the Customs Code of Georgia, the amount of import of excisable goods shall be determined in accordance with the rule established by the same paragraph for calculating the amount of import duty.

2. In the provision of international mobile communication services (except for international call termination services in a mobile or fixed network in Georgia), the amount received from such services provided to a non-resident enterprise shall not be taken into account in the amount of the taxable transaction.

Law of Georgia of 19 April 2011 No. 4547 - website, 05.05.2011.

Law of Georgia of 1¹ December 2014 No. 2874 - website, 23.12.2014.

Law of Georgia of 1² December 2014 No. 2949 - website, 23.12.2014.

Law of Georgia of 22 June 2016 No. 5445 - website, 29.06.2016.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 15 November 2017 No. 1378 - website, 17.11.2017.

Law of Georgia of 2 October 2019 No. 5075 – website, 07.10.2019.

Law of Georgia of 16 October 2019 No. 5129 – website, 23.10.2019.

Law of Georgia of 12 June 2020 No. 6343 – website, 19.06.2020.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 16 May 2023 No. 2882 – website, 23.05.2023.

Law of Georgia of 1 April 2026 No. 1477 – website, 01.04.2026.

Article 186. Import of excisable goods and time of import🔗

1. Import of excisable goods is the placing of such goods under the procedure of release into free circulation in accordance with the Customs Code of Georgia.

2. Import of excisable goods shall be considered effected if, in accordance with the Customs Code of Georgia, such goods are placed under the procedure of release into free circulation.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 187. Export of excisable goods and time of export🔗

1. Export of excisable goods is the placing of such goods under the export procedure in accordance with the Customs Code of Georgia.

2. Export of excisable goods shall be considered effected if, in accordance with the Customs Code of Georgia, such goods are placed under the export procedure.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 188. Excise rates on excisable goods (except alcoholic beverages)🔗

1. Excisable goods specified in this paragraph shall be taxed at the following excise rates:

No.

Code according to the HS

Name of goods

Unit of measurement

Excise rate (GEL)

1

(removed - 23 December 2017, No. 1935)

2

(removed - 23 December 2017, No. 1935)

3

Tobacco, tobacco products

2401

Raw tobacco, tobacco waste

1 kg

30

2402 10 000 01 – – Cigars, cigars with cut ends, containing tobacco

1 piece

2.1

2402 10 000 02 – – Cigarillos (thin cigars), containing tobacco

20 pieces

2.4

2402 20

Cigarettes, containing tobacco

20 pieces

2.75

Locally produced cigarettes, containing tobacco, up to 35 million packs/packages annually

20 pieces

1.3

2403 11 000 00

− − Water-pipe tobacco, for the subheading of this group

according to Note 1

1 kg

30

2403 19

− − Other

1 kg

30

2403 91 000 00

− − Homogenised or reconstituted tobacco

1 kg

30

2403 99 100 00

− − − Chewing or snuff (burley) tobacco

1 kg

30

2404 11 000 00 – – Containing tobacco or reconstituted tobacco

20 pieces/sticks

2.70

2404 12 000 00 – – Other, containing nicotine

1 ml

1.2

2404 19 900 00 – – – Other

1 ml

1.2

4

(removed - 1 April 2026, No. 1477)

41

Motorcycles (including mopeds) (according to the difference between the year of the taxable transaction and the year of manufacture of the motorcycle (including moped), and in the case of import – according to the difference between the year of registration of the customs declaration and the year of manufacture of the motorcycle (including moped)), per 1 cm3 of engine volume

8711 (except side-car provided for by heading 8711)

a) Up to 1 year

1 cm3

1.5

b) 1 year

1 cm3

1.3

c) 2 years

1 cm3

0.7

d) 3 years

1 cm3

0.7

e) 4 years

1 cm3

0.7

f) 5 years

1 cm3

0.7

g) 6 years

1 cm3

0.8

h) 7 years

1 cm3

0.8

i) 8 years

1 cm3

0.8

j) 9 years

1 cm3

0.8

k) 10 years

1 cm3

1.0

l) 11 years

1 cm3

1.3

m) 12 years

1 cm3

1.5

n) 13 years

1 cm3

1.8

o) 14 years

1 cm3

2.1

p) More than 14 years

1 cm3

2.4

5

Petroleum gases and natural gas (except those transported by pipeline)

2709 00 100 00 – Natural gas condensate

1 t

300

2711 11 000 00 – – Natural gas (liquefied)

1 t

300

2711 12 – – Propane

1 t

300

2711 13 – – Butanes

1 t

300

2711 14 000 00 – – Ethylene, propylene, butylene and butadiene

1 t

300

2711 19 000 00 – – Other

1 t

300

2711 21 000 00 – – Natural gas (in gaseous state)

1000 m3

200

290¹ 10 000 00 – Saturated

1 t

300

290¹ 23 000 00 – – Butene (butylene) and its isomers

1 t

300

6

Petroleum products, petroleum distillates and used petroleum products

2710 12 – – Light distillates and products

1 t

500

2710 19 110 00 – – – – For specific processing operations

1 t

440

2710 19 150 00 – – – – For chemical transformation processes, except those specified in subheading 2710 19 110 00

1 t

440

2710 19 210 00 – – – – – – Jet fuel

1 t

440

2710 19 250 00 – – – – – – other

1 t

440

2710 19 290 00 – – – – – – other

1 t

440

2710 19 310 00 – – – – – for specific processes of processing

1 t

400

2710 19 350 00 – – – – – for chemical transformation processes, other than those specified in subheading 2710 19 310 00

1 t

400

2710 19 430 00 – – – – – – with a sulphur content not exceeding 0.001 % by mass

1 t

400

2710 19 460 00 – – – – – – with a sulphur content exceeding 0.001 % by mass but not exceeding 0.002 % by mass

1 t

400

2710 19 470 00 – – – – – – with a sulphur content exceeding 0.002 % by mass but not exceeding 0.1 % by mass

1 t

400

2710 19 480 00 – – – – – – with a sulphur content exceeding 0.1 % by mass

1 t

400

2710 19 710 00 – – – – – for specific processes of processing

1 t

800

2710 19 750 00 – – – – – for chemical transformation processes, other than those specified in subheading 2710 19 710

1 t

800

2710 19 810 00 – – – – – – engine oils, compressor lubricating oil, turbine lubricating oil

1 t

800

2710 19 830 00 – – – – – – liquids for hydraulic purposes

1 t

800

2710 19 850 00 – – – – – – light-coloured oils, vaseline oil

1 t

800

2710 19 870 00 – – – – – – oil for gears and oil for reduction gears

1 t

800

2710 19 910 00 – – – – – – compositions for working metals, oils for lubricating moulds, anti-corrosion oils

1 t

800

2710 19 930 00 – – – – – – electrical insulating oils

1 t

800

2710 19 990 00 – – – – – – other lubricating oils and other oils

1 t

800

2710 20 110 00 – – – with a sulphur content not exceeding 0.001 % by mass

1 t

400

2710 20 160 00 – – – with a sulphur content exceeding 0.001 % by mass but not exceeding 0.1 % by mass

1 t

400

2710 20 190 00 – – – with a sulphur content exceeding 0.1 % by mass

1 t

400

2710 20 900 00 – – other

1 t

800

2710 91 000 00 – – containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or polybrominated biphenyls (PBBs)

1 t

800

2710 99 000 00

waste petroleum products – bilge water (water contaminated with oil), tank (petroleum product storage tank) washings

1 t

100

other waste petroleum products

1 t

800

7

biodiesel

3826 00

biodiesel and its mixtures which do not contain, or contain in an amount of less than 70 % by mass, petroleum or petroleum products obtained from bituminous rocks

1 t

150

8

liquid pyrolysis product

3911 90

liquid pyrolysis product

1 t

400

9

oils and other products distilled at high temperature from coal tars

2707 99 110 00 – – – – unrefined light oils of which 90 % by volume or more distils at a temperature of up to 200° C

1 t

350

2707 99 190 00 – – – – other

1 t

350

2707 99 200 00 – – – sulphuretted light oils; anthracene

1 t

350

2707 99 500 00 – – – basic products

1 t

350

2707 99 990 00 – – – – other

1 t

350

10

thinner, solvent, anti-detonator

2707 10 000 00 – benzole

1 t

400

2707 20 000 00 – toluole

1 t

400

2707 30 000 00 – xylole

1 t

400

2707 50 000 00

– Aromatic hydrocarbon mixtures, other, of which 65 vol.% or more (including losses) distils at a temperature up to 250°C by the ISO 3405 method (equivalent to the ASTM D 86 method)

1 t

400

2707 99 800 00 – – – Phenols

1 t

400

2712 20 100 00 – – Synthetic paraffin wax with a molecular mass of 460 or more but not more than 1560

1 t

400

2712 20 900 00 – – Other

1 t

400

290² 11 001 00 – – – For use as fuel

1 t

400

290² 11 009 00 – – – For other purposes

1 t

400

290² 19 001 00 – – – Cycloterpenes

1 t

400

290² 19 009 00 – – – Other

1 t

400

290² 20 000 00 – Benzene

1 t

400

290² 30 001 00 – – For use as fuel

1 t

400

290² 30 009 00 – – For other purposes

1 t

400

2905 11 000 00 – – Methanol (methyl alcohol)

1 t

400

2905 12 000 00 – – Propan-1-ol (propyl alcohol) and propan-2-ol (isopropyl alcohol)

1 t

400

2905 13 000 00 – – Butan-1-ol (n-butyl alcohol)

1 t

400

2905 14 100 00 – – – 2-Methylpropan-2-ol (tert-butyl alcohol)

1 t

400

2905 14 900 00 – – – Other

1 t

400

2905 16 200 00 – – – Octan-2-ol

1 t

400

2905 16 850 00 – – – Other

1 t

400

3811 11 100 00 – – – Based on tetraethyl lead

1 t

400

3811 11 900 00 – – – Other

1 t

400

3811 19 000 00 – – Other

1 t

400

3811 21 000 00 – – Obtained from bituminous rocks, containing petroleum or petroleum products

1 t

400

3811 29 000 00 – – Other

1 t

400

3811 90 000 00 – Other

1 t

400

3814 00 100 00 – Based on butyl acetate

1 t

400

3814 00 900 00 – Other

1 t

400

11

Lubricating materials and preparations

3403 11 000 00 – – Preparations for the treatment of textile materials, leather, furskins or other materials

1 t

800

3403 19 100 00

– – – Containing 70 wt.% or more of petroleum products obtained from petroleum or bituminous rocks as a non-essential component

1 t

800

3403 19 200 00

– – – Lubricating preparations based on a bio-base (1) with a carbon content of not less than 25 wt.%, which are biodegradable to a level of not less than 60%

1 t

800

3403 19 800 00 – – – Other

1 t

800

3403 91 000 00 – – Preparations for the treatment of textile materials, leather, furskins or other materials

1 t

800

3403 99 000 00 – – Other

1 t

800

12

(Removed – 15 December 2023, No. 4022)

13

Ethers, acyclic aldehydes

2909 19 100 00 – – – tert-Butyl ethyl ether (ethyl-tertio-butyl-ether, ETBE)

1 t

400

2909 19 900 00 – – – Other

1 t

400

2912 11 000 00 – – Methanal (formaldehyde)

1 t

400

Note:

1. The supply of the goods indicated in column 3 of this table, specified in codes 2401, 2403 11 000 00, 2403 19 or 2403 91 000 00 of the National Commodity Nomenclature of Foreign Economic Activity, shall be permitted only if it is packaged in primary packaging of a net mass of 50 or 100 grams, except for the case determined by the Order of the Minister of Finance of Georgia for supply for the purpose of manufacturing tobacco products. For the purposes of this Code, the packaging of the goods provided for by this paragraph in primary packaging is not the production of excisable goods.

2. (Deleted – 23.12.2017, No. 1935).

3. (Deleted – 01.04.2026, No. 1477).

4. (Deleted – 01.04.2026, No. 1477).

5. (Deleted – 01.04.2026, No. 1477).

1¹. For the purpose of calculating the amount of excise:

a) for cigarettes specified in code 2402 20 of the National Commodity Nomenclature of Foreign Economic Activity, with a tobacco content, per 20 sticks, the excise rate is the sum of the excise rate determined by paragraph 1 of this Article and 20 percent of the retail sale price of these goods;

a¹) for locally produced cigarettes specified in code 2402 20 of the National Commodity Nomenclature of Foreign Economic Activity, of up to 35 million packs/packets annually, with a tobacco content, per 20 sticks, the excise rate is the sum of the excise rate determined by paragraph 1 of this Article and 15 percent of the retail sale price of these goods;

b) for capsules and similar products (with a tobacco content) specified in code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity, per 20 units, and for sticks intended for obtaining an aerosol without a combustion process, per 20 sticks, the excise rate is the sum of the excise rate determined by paragraph 1 of this Article and 20 percent of the retail sale price of these goods;

c) for 20 sticks of the goods specified in code 2402 10 000 02 of the National Commodity Nomenclature of Foreign Economic Activity, the excise rate is the sum of the excise rate determined by paragraph 1 of this Article and 30 percent of the retail sale price of these goods.

Note: For the purpose of this paragraph, the retail sale price of the goods shall be determined by the manufacturer/importer of these goods on the basis of the retail sale prices submitted to the tax authority and other information available to the tax authority no later than 1 December of each year and shall apply from 1 January of the following year for a period of 1 year.

1². For the purpose of calculating the amount of excise on cigarettes specified in code 2402 20 of the National Commodity Nomenclature of Foreign Economic Activity, as well as on goods specified in codes 2402 10 000 02 and 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity, the retail sale price and the rules for its determination shall be determined by the Minister of Finance of Georgia.

2. (Deleted – 19.04.2011, No. 4547).

3. The rate for electronic communication services is:

a) (Deleted – 22.06.2016, No. 5445);

b) for the service of termination of an international call in a mobile network in Georgia − 15 tetri per minute;

c) for the service of termination of an international call in a fixed network in Georgia – 8 tetri per minute.

4. (Removed – 22.06.2016, No. 5445).

5. (Removed – 23.12.2017, No. 1935).

6. (Removed – 23.12.2017, No. 1935).

7. (Removed – 23.12.2017, No. 1935).

8. (Removed – 12.06.2020, No. 6343);

9. The excise rate for a light motor vehicle for sports purposes provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity is 100 GEL.

10. The excise rate for a classic motor vehicle provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity is 1.0 GEL per 1 cm3 of engine volume.

11. For cigarettes of local production indicated in code 2402 20 of the National Commodity Nomenclature of Foreign Economic Activity, of up to 35 million packs/packages annually, the rules and conditions for applying the excise rate provided for by this Article, as well as the rules for quoting, shall be determined by a Resolution of the Government of Georgia.

12. The excise rate for a light motor vehicle provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity, from 0 to 6 years of age inclusive, is 1.50 GEL per 1 cm3 of engine volume, unless otherwise provided by this Article.

13. The excise rate for a light motor vehicle provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity, more than 6 years of age, is 4.50 GEL per 1 cm3 of engine volume.

14. The excise rate determined by paragraph 12 of this Article for a light motor vehicle provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity, from 0 to 6 years of age inclusive, shall be reduced by 60 per cent in the case of a left-hand drive hybrid light motor vehicle.

15. The excise rate for a light motor vehicle provided for by paragraph 12 of this Article, from 0 to 6 years of age inclusive, which has the steering wheel on the right side or has it relocated, shall be three times the excise rate determined by the same paragraph.

16. The excise rate for a light motor vehicle provided for by paragraph 13 of this Article, more than 6 years of age, which has the steering wheel on the right side or has it relocated, shall be three times the excise rate determined by the same paragraph.

17. For an electric light motor vehicle provided for by commodity position 8703 of the National Commodity Nomenclature of Foreign Economic Activity, which has the steering wheel on the right side or has it relocated, the excise rate shall be 3,000 GEL.

18. For the purposes of this Article, the age of a light motor vehicle (except a motor vehicle for sports purposes) shall be determined as the difference between the year of the taxable transaction and the year of manufacture of the light motor vehicle, and in the case of import – the difference between the year of registration of the customs declaration and the year of manufacture of the light motor vehicle.

Law of Georgia of 19 April 2011 No. 4547 – website, 05.05.2011.

Law of Georgia of 24 June 2011 No. 4935 – website, 30.06.2011.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 30 July 2013 No. 906 – website, 20.08.2013.

Law of Georgia of 1¹ December 2014 No. 2874 – website, 23.12.2014.

Law of Georgia of 1² December 2014 No. 2949 – website, 23.12.2014.

Law of Georgia of 11 December 2015 No. 4615 – website, 22.12.2015.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 13 April 2016 No. 4941 – website, 19.04.2016.

Law of Georgia of 22 June 2016 No. 5445 – website, 29.06.2016.

Law of Georgia of 16 December 2016 No. 97 – website, 23.12.2016.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 15 November 2017 No. 1378 – website, 17.11.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Law of Georgia of 29 May 2019 No. 4616 – website, 30.05.2019.

Law of Georgia of 2 October 2019 No. 5075 – website, 07.10.2019.

Law of Georgia of 16 October 2019 No. 5129 – website, 23.10.2019.

Law of Georgia of 12 June 2020 No. 6343 – website, 19.06.2020.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 16 May 2023 No. 2882 – website, 23.05.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 29 May 2024 No. 4203 – website, 13.06.2024.

Law of Georgia of 13 December 2024 No. 134 – website, 29.12.2024.

Law of Georgia of 26 November 2025 No. 1114 – website, 28.11.2025.

Law of Georgia of 1 April 2026 No. 1477 – website, 01.04.2026.

Article 188¹. Excise rates on alcoholic beverages🔗

1. Alcoholic beverages provided for by this paragraph shall be taxed at the following excise rates:

Name/description of goods

Unit of measurement

Rate

1

Beer

1 litre/1%Vol

0.12

2

Other fermented beverage with alcohol content exceeding 5%

1 litre

5

3

Other fermented beverage with alcohol content of 5% or less than 5%

1 litre

0.6

4

Intermediate alcoholic beverage

1 litre

5

5

Beverage with high concentration of ethyl alcohol

(except goods provided for by codes 2208 20, 2208 60, 2208 90 330 00, 2208 90 380 00, 2208 90 480 00 and 2208 90 710 00 of the National Commodity Nomenclature of Foreign Economic Activity)

1 litre of pure alcohol

22.5

6

Goods provided for by code 2207 of the National Commodity Nomenclature of Foreign Economic Activity

1 litre of pure alcohol

7.5

7

Goods provided for by codes 2208 20, 2208 60, 2208 90 330 00, 2208 90 380 00 00, 2208 90 480 00 and 2208 90 710 00 of the National Commodity Nomenclature of Foreign Economic Activity

1 litre of pure alcohol

15

Note: As indicated in this table:

a) "Beer" includes the goods specified in code 2203 of the National Commodity Nomenclature of Foreign Economic Activity, as well as the goods provided for by codes 2206 00 590 01 and 2206 00 890 01 (a mixture of one or more non-alcoholic beverages and beer specified in code 2206 of the National Commodity Nomenclature of Foreign Economic Activity), in which the alcohol content exceeds 0.5%;

b) "Other fermented beverage" includes the goods specified in codes 2205 and 2206 of the National Commodity Nomenclature of Foreign Economic Activity (except beer and wine):

b.a) in which the alcohol content exceeds 1.2% and does not exceed 10%;

b.b) in which the alcohol content exceeds 10% and does not exceed 15%, provided that the alcohol contained in the product is obtained entirely by fermentation;

c) "Intermediate alcoholic beverage" includes the goods specified in codes 2205 and 2206 of the National Commodity Nomenclature of Foreign Economic Activity (except beer, wine and other fermented beverages), in which the alcohol content exceeds 1.2% and does not exceed 22%;

d) "Beverage with high concentration of ethyl alcohol" includes:

d.a) the goods specified in code 2208 of the National Commodity Nomenclature of Foreign Economic Activity, in which the alcohol content exceeds 1.2%;

d.b) the goods specified in codes 2205 and 2206 of the National Commodity Nomenclature of Foreign Economic Activity, in which the alcohol content exceeds 22%.

2. Wine includes the goods specified in codes 2204 and 2205 of the National Commodity Nomenclature of Foreign Economic Activity produced using grapes, in which the alcohol content exceeds 1.2% and does not exceed 18%, provided that the alcohol contained in the final product is obtained entirely by fermentation and without additives.

3. The amount of excise payable on goods provided for by the first column of the table in paragraph 1 of this article shall be the product of the corresponding excise rate, the quantitative indicator of the volume of the goods, and the percentage indicator of the alcohol content in the said goods.

4. The amount of excise payable on goods provided for by columns 2–4 of the table in paragraph 1 of this article shall be the product of the corresponding excise rate and the quantitative indicator of the volume of the said goods.

5. The amount of excise payable on goods provided for by columns 5–7 of the table in paragraph 1 of this article shall be the product of the corresponding excise rate and the quantitative indicator of the volume of pure alcohol in the said goods.

Law of Georgia No. 1935 of 23 December 2017 – website, 29 December 2017.

Article 189. Offset of excise🔗

1. Unless otherwise provided by this Article, a person carrying out a taxable operation or the export of excisable goods shall be entitled to receive a tax offset in the amount of excise paid or payable on other excisable goods (raw materials) used for the production of the supplied (including transferred, removed from a warehouse for sale or exported) excisable goods, or to recover the excise in accordance with the procedure established for the refund of overpaid amounts, but not more than the excise calculated on the excisable goods produced therefrom.

2. The procedure for the offset or refund of excise referred to in paragraph 1 of this Article shall apply to other excisable goods (raw materials) imported by the manufacturer for the production of excisable goods.

3. Under paragraphs 1 and 2 of this Article, the offset or refund of excise shall be effected where the manufacturer submits an invoice and/or a customs declaration confirming the payment of excise by him to the manufacturer of the excisable goods (raw materials) and/or upon the import of the excisable goods (raw materials).

3¹. In the case provided for by Article 190¹ of this Code, the basis for receiving an excise offset shall be the amount of excise accrued on the operations provided for by the same Article and reflected in the excise declaration.

4. If other excisable and non-excisable goods are simultaneously produced from excisable goods (raw materials), the offset shall be effected in proportion to the quantity of excisable goods produced, but not more than the excise calculated on such excisable goods.

5. In the case of the import or purchase of excisable goods subject to marking, a person shall be entitled to receive a tax offset in the amount of excise paid or payable on such excisable goods (raw materials), or to recover the excise in accordance with the procedure established for the refund of overpaid amounts.

6. (Removed - 22.06.2016, No. 5445).

7. (Removed - 22.06.2016, No. 5445).

8. After a light motor vehicle specified in code 8703 of the National Commodity Nomenclature of Foreign Economic Activity, or a motorcycle (including a moped) specified in code 8711, is placed under the procedure of release into free circulation, if this vehicle is cleared under the export procedure within 180 calendar days and leaves the territory of Georgia, the importer shall be entitled, in accordance with the established procedure, to recover the excise paid on this vehicle in the amount of 100 per cent.

Law of Georgia of 24 June 2011 No. 4935 - website, 30.06.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 22 June 2016 No. 5445 - website, 29.06.2016 .

Law of Georgia of 15 November 2017 No. 1378 - website, 17.11.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 190. Procedure for Payment of Excise🔗

1. The reporting period for excise shall be a calendar month.

2. Excise shall be payable no later than the 15th day of the month following the reporting period in which the taxable transaction is performed, except for the case provided for by paragraph 3 of this Article.

3. Upon import of goods, excise shall be paid in accordance with the procedure established for import duty.

4. (deleted – 20 December 2011, No. 5557).

Law of Georgia No. 4547 of 19 April 2011 - website, 5 May 2011.

Law of Georgia No. 4754 of 14 June 2011 - website, 28 June 2011.

Law of Georgia No. 4935 of 24 June 2011 - website, 30 June 2011.

Law of Georgia No. 5557 of 20 December 2011 - website, 28 December 2011.

Law of Georgia No. 1886 of 26 December 2013 - website, 30 December 2013.

Article 190¹. Taxation by excise in certain cases🔗

1. Within the framework of a measure to secure the collection of a tax debt, or for the purpose of collecting another monetary obligation (except sanctions imposed under criminal and administrative procedure), the sale of excisable goods by auction, direct sale or other means, as well as, within the framework of a measure to secure the performance of a contractual obligation, the transfer into the ownership of the creditor of the object of securing the claim (excisable goods) shall be subject to excise tax in accordance with this Article.

1¹. The privatisation of excisable goods transferred into state ownership shall be subject to excise tax in accordance with this Article.

2. Of this Article:

a) the operation of paragraph 1 shall not apply to:

a.a) excisable goods sold/transferred, if they are not produced by the owner of these goods;

a.b) excisable goods marked with excise stamps, if the excise tax has been paid upon the purchase of the excise stamps;

a.c) excisable goods received into ownership by a natural person, if such person does not subsequently supply these goods and/or use them in the production of other goods;

b) the operation of paragraph 1¹ shall not apply to:

b.a) goods marked with excise stamps and subject to excise tax;

b.b) excisable goods received into ownership by a natural person, if such person does not subsequently supply these goods and/or use them in the production of other goods.

3. In the case provided for by this Article, the excise taxpayer shall submit an excise declaration in respect of the excisable goods determined by paragraphs 1 and 1¹ of this Article:

a) in the case of supply − not later than the 15th day of the month following the month of supply;

b) in the case of use in the production of non-excisable goods − not later than the 15th day of the month following the month of use in the production of non-excisable goods;

c) in the case of use in the production of other excisable goods − not later than the 15th day of the month following the month of supply of the other excisable goods produced.

4. In the case provided for by this Article, the excise taxpayer shall pay the excise due to the budget within the time limit established by paragraph 3 of this Article for submitting the excise declaration.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 11 November 2025 No. 1024 – website, 14.11.2025.

Article 190². Taxation by excise of a person having the status of a special enterprise🔗

The object of excise taxation for a person having the status of a special enterprise, as well as the rules for calculating, declaring and paying excise tax, shall be determined by a Resolution of the Government of Georgia.

Law of Georgia of 6 June 2018 No. 2476 – website, 21.06.2018.

Article 191. Submission of declaration🔗

1. An excise declaration, indicating the taxable transactions carried out, shall be submitted to the tax authority for each reporting period, no later than the 15th day of the month following the reporting period, by:

a) a manufacturer of excisable goods;

b) an excise taxpayer provided for by subparagraphs „d“, „f“ and „g“ of paragraph 1 of Article 182 of this Code;

c) an excise taxpayer provided for by paragraphs 6 and 7 of Article 192 of this Code, upon the occurrence of the obligation of excise taxation provided for by the same paragraphs.

1¹. In order to benefit from the tax relief provided for by subparagraph „g“ of paragraph 5 of Article 194 of this Code, an excise taxpayer shall submit an excise declaration to the tax authority for each reporting period, no later than the 15th day of the month following the reporting period.

2. The procedure for submitting an excise declaration and the declaration form shall be determined by the Minister of Finance of Georgia.

Law of Georgia No. 6547 of 22 June 2012 – website, 04.07.2012.

Law of Georgia No. 3581 of 1 May 2015 – website, 15.05.2015.

Law of Georgia No. 5445 of 22 June 2016 – website, 29.06.2016 .

Law of Georgia No. 1182 of 30 June 2017 – website, 13.07.2017.

Law of Georgia No. 1935 of 23 December 2017 – website, 29.12.2017.

Law of Georgia No. 5129 of 16 October 2019 – website, 23.10.2019.

Law of Georgia No. 6343 of 12 June 2020 – website, 19.06.2020.

Article 192. Excise Marks🔗

1. Except for the cases provided for by paragraphs 1¹ and 1² of this Article, before the performance of an excise-taxable operation and/or import of goods, as well as in the cases provided for by Article 190¹ of this Code, before transfer to the person acquiring and/or receiving the goods, the following shall be subject to mandatory marking with excise marks:

a) excise-taxable alcoholic beverages;

b) tobacco products (including raw tobacco, tobacco waste);

c) liquids with or without nicotine content, intended for consumption with electronic cigarettes.

1¹. In the case of privatization of alcoholic beverages transferred into state ownership, the mandatory marking of excise goods with excise marks shall be carried out by the person acquiring and/or receiving the excise goods immediately upon completion of transportation of these goods from the relevant body to the place of storage.

1². In the case of import of goods specified in codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, the procedure for mandatory marking of excise goods with excise marks by the importer shall be determined by an Order of the Minister of Finance of Georgia.

2. The following shall be exempt from mandatory marking with excise marks, except for cases established by the Minister of Finance of Georgia:

a) goods of local production intended for export;

b) goods to be supplied to a free trade point;

c) goods imported and intended for official use by foreign diplomatic and equivalent representations, and for personal use by the diplomatic and administrative-technical personnel of these representations (including family members living with them);

d) goods imported and intended for personal use by citizens of foreign countries employed to ensure the fulfillment of obligations provided for by international treaties of Georgia (in the construction of the Baku–Tbilisi–Ceyhan and Baku–Tbilisi–Erzurum pipelines) (including family members living with them);

e) goods returned in accordance with the Customs Code of Georgia that are subject to mandatory marking with excise marks;

f) alcoholic beverages poured into containers with a capacity of 0.05 liters or less, or into containers with a volume of more than 10 liters (except beer);

g) imported alcoholic beverages of up to 4 liters – in the case of postal consignment;

g¹) alcoholic beverages imported by a passenger – within the limit amount provided for by subparagraph „b2“ of paragraph 5 of Article 194 of this Code;

h) import of goods specified in codes 2401, 2403 11 000 00, 2403 19 and 2403 91 000 00 of the National Commodity Nomenclature of Foreign Economic Activity;

i) imported (including in the case of a postal item) 200 cigarettes or 50 cigars or 50 cigarillos or 200 tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity or 10 pieces of capsules and similar products or 250 grams of other tobacco products, or a set of the types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product contained therein (the percentage indicator in relation to the respective threshold amount) does not exceed 100.

3. It is prohibited:

a) to carry out a taxable transaction and/or import with goods subject to marking with excise marks without marking with excise marks (except for goods provided for by paragraph 2 of this Article), as well as to transfer to the person acquiring and/or receiving the goods in the cases provided for by Article 190¹ of this Code;

b) to supply to the retail network excisable alcoholic beverage (except beer) intended for pouring and/or poured into vessels of a volume exceeding 10 litres.

3¹. An excise mark may be in material or immaterial form. In the cases established by the Minister of Finance of Georgia, the service of mandatory marking with excise marks shall be performed by a person selected by the Revenue Service in accordance with the procedure determined by a Resolution of the Government of Georgia.

4. On the territory of Georgia, manufacturers and importers (declarants) of goods subject to mandatory marking with excise marks, as well as excise taxpayers provided for by paragraphs 4 and 5 of Article 182 of this Code, shall pay the nominal value of the excise mark. The nominal value, the procedure for its payment and the marking of goods shall be determined by an Order of the Minister of Finance of Georgia.

5. The tax/customs authorities shall, in accordance with the established procedure, carry out the seizure of goods subject to mandatory marking with excise marks imported without an excise mark, in violation of the rules, or accepted for sale. From the moment of seizure, the goods shall be considered state property and their privatisation or destruction shall be carried out in accordance with the procedure established by the Minister of Economy and Sustainable Development of Georgia.

6. For the purposes of this Title, the shortage of excise marks in any form (loss, destruction and other cases, except force majeure cases) shall be considered as import and supply by the importer of goods of the corresponding type of excise mark, and on the part of the local manufacturer – as supply by it of goods of the corresponding type of excise mark, and shall be taxed at the highest excise rate established for 1 piece/litre of goods of the corresponding type of excise mark produced/imported by the person.

7. If, within 6 months from the receipt of excise marks by a person, no import of goods/excise-taxable operation is carried out, the excise marks shall be subject to return. On the very day following the expiry of the 6-month period, the failure to return the excise marks shall, for the purposes of this Title, be deemed to be the domestic supply of goods subject to mandatory marking with excise marks and shall accordingly be taxed with excise, and in the subsequent period, upon the carrying out of an import of goods marked with unreturned excise marks/an excise-taxable operation, the excise accrued for payment shall be recalculated in proportion to the amount of the actually carried out import/excise-taxable operation.

Note: The rules for the application of this paragraph in the case provided for by paragraph 1² of this Article shall be determined by an Order of the Minister of Finance of Georgia.

8. The transfer of excise marks to another person shall be inadmissible, except where the importer of goods subject to mandatory marking with excise marks transfers the excise marks to a foreign manufacturer of excisable goods for affixing to the goods.

Law of Georgia No. 4754 of 14 June 2011 – website, 28.06.2011.

Law of Georgia No. 4935 of 24 June 2011 – website, 30.06.2011.

Law of Georgia No. 5557 of 20 December 2011 – website, 28.12.2011.

Law of Georgia No. 2946 of 12 December 2014 – website, 24.12.2014.

Law of Georgia No. 4680 of 18 December 2015 – website, 29.12.2015.

Law of Georgia No. 97 of 16 December 2016 – website, 23.12.2016.

Law of Georgia No. 1182 of 30 June 2017 – website, 13.07.2017.

Law of Georgia No. 1935 of 23 December 2017 – website, 29.12.2017.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Law of Georgia No. 5129 of 16 October 2019 – website, 23.10.2019.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Law of Georgia No. 1165 of 17 December 2021 – website, 28.12.2021.

Law of Georgia No. 2768 of 5 April 2023 – website, 18.04.2023.

Law of Georgia No. 4022 of 15 December 2023 – website, 28.12.2023.

Law of Georgia No. 1024 of 11 November 2025 – website, 14.11.2025.

Article 192¹. Mandatory marking of non-excisable goods🔗

1. The Minister of Finance of Georgia shall be entitled to determine the list of non-excisable goods subject to mandatory marking and the conditions of marking.

2. The service of mandatory marking in material and non-material form shall be performed by a person selected by the Revenue Service in accordance with the procedure determined by a Resolution of the Government of Georgia.

3. Upon mandatory marking, the nominal value of the marking shall be paid. The nominal value and the procedure for its payment shall be determined by an Order of the Minister of Finance of Georgia.

Law of Georgia No. 5557 of 20 December 2011 – website, 28.12.2011.

Law of Georgia No. 6817 of 14 July 2020 – website, 22.07.2020.

Article 193. Tax Invoice🔗

Upon sale of excisable goods, the excise taxpayer shall, upon request, issue and deliver to the recipient of the goods the tax invoice provided for by Article 180 of this Code.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 194. Rules regulating exemption from excise🔗

1. Exemption from excise exists with the right to deduction and without the right to deduction.

2. Exemption of a transaction with the right to deduction means that the transaction is not subject to excise assessment (is not taxed) and the right to deduction applies.

3. Exemption of a transaction without the right to deduction means that the transaction is not subject to excise assessment (is not taxed) and the right to deduction does not apply.

4. The rules for applying exemption from excise shall be determined by Order of the Minister of Finance of Georgia.

5. The following are exempt from excise without the right to deduction:

a) alcoholic beverages produced by a natural person for own consumption;

b) import by a passenger of 200 cigarettes or 50 cigars or 50 cigarillos or 200 sticks of tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity or 10 capsules and similar products or 250 grams of other tobacco products, or import of a set of types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product included therein (the percentage indicator in relation to the respective maximum amount) does not exceed 100, or import of goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, totaling 50 ml, which is transported when carrying a passenger in baggage and/or hand luggage and which is not intended for economic activity;

b¹) in the case of a postal consignment, import of 200 cigarettes or 50 cigars or 50 cigarillos or 200 sticks of tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity or 10 capsules and similar products or 250 grams of other tobacco products, or import of a set of types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product included therein (the percentage indicator in relation to the respective maximum amount) does not exceed 100, or import of goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, totaling 50 ml, as well as import of 4 litres of alcoholic beverage;

b²) import by a passenger of a total of 1 litre of alcoholic beverage with an alcohol content of 22% and more than 22%, or of undenatured ethyl alcohol with an alcohol content of 80% and more than 80%, or 2 litres of alcoholic beverage with an alcohol content of less than 22%, or import of a set of types of alcoholic beverage specified in this subparagraph (except beer and wine), if the sum of the percentage indicators of the share of each type of alcoholic beverage included therein (except beer and wine) (the percentage indicator in relation to the respective maximum amount) does not exceed 100, as well as import of 16 litres of beer, which is transported when carrying a passenger in baggage and/or hand luggage and which is not intended for economic activity;

c) fuel in the standard tank of a motor vehicle of a person entering Georgia by motor vehicle, which is structurally and technologically connected to the engine fuel supply system;

d) import of goods in accordance with the requirements established by subparagraphs „bb“ and „cc“ of Article 173 of this Code;

e) import and/or supply of goods intended for on-board delivery for the performance of international aviation flights and international maritime voyages, as well as import and/or supply of fuel, lubricants and other auxiliary means intended for on-board delivery for the performance of civil aviation flights and specialised operations (aviation works) within the state border of Georgia;

f) import and/or supply of petroleum products for the performance of oil and gas operations as defined by the Law of Georgia „on Oil and Gas“;

g) import of goods provided for by column 10 of the table of paragraph 1 of Article 188 of this Code and of goods provided for by column 13 of the same table, indicated in code 2912 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity, if these goods are used for the production of non-excisable goods.

Note: upon import of the said goods, excise shall be paid, and in the case of submission of an excise declaration, the taxpayer is entitled to recover and/or credit in the account of future tax obligations the amount of excise paid;

h) import of a light motor vehicle in accordance with subparagraphs „d.d“ and „d.e“ of Article 199 of this Code;

i) of the Customs Code of Georgia:

i.a) import of returned goods provided for by Article 107, if the said goods meet the conditions defined by the same Article for exemption from import duty, regardless of whether or not these goods are subject to import duty;

i.b) import of excisable goods obtained by processing excisable goods placed under the outward processing procedure in accordance with Article 152, if the said goods meet the conditions defined by the same Article for exemption from import duty, regardless of whether or not these goods are subject to import duty;

j) import of property of diplomatic representations and consular institutions of Georgia abroad;

k) left-hand drive electric motor vehicles provided for by commodity heading 8703 of the National Commodity Nomenclature of Foreign Economic Activity and electric motor vehicles provided for by commodity heading 8711;

k¹) a motor vehicle provided for by commodity heading 8703 of the National Commodity Nomenclature of Foreign Economic Activity, which is factory-adapted for use by a person with limited abilities, if the person carrying out the import of the motor vehicle is a person with limited abilities who needs to move by wheelchair. The procedure for applying the benefit provided for by this subparagraph shall be determined by Order of the Minister of Finance of Georgia.

Note: the benefit provided for by this subparagraph may be used by the relevant person once every 3 years;

l) alcoholic beverage (liquid) used for the production of pharmaceutical products;

m) alcoholic beverage used for the preparation of a beverage in which the alcohol content does not exceed 1.2%.

Note:

1. If the quantity of alcoholic beverage and/or tobacco products and/or goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity exceeds the maximum quantity determined by subparagraphs „b“, „b1“ or „b2“ of this paragraph, the exemption from excise provided for by this article shall apply within the above-mentioned maximum quantity of the goods.

2. The right to enjoy the tax benefits provided for by subparagraphs „b“−„b2“ of this paragraph shall arise for a natural person from the age of 18.

3. Upon importation/production of the goods provided for by subparagraphs „l“ and „m“ of this paragraph, excise shall be paid, and in the case of submission of an excise declaration, the person acquiring the goods from the importer/producer thereof is entitled to recover and/or have the paid amount of excise credited against future tax obligations.

4. For the purposes of subparagraphs „b“ and „b2“ of this paragraph, goods shall be deemed not intended for economic activity if their importation is one-time and they are intended for personal consumption by the passenger or members of his/her family and/or for gifting. At the same time, the importation of goods is one-time if, in the case of importation by air transport, there is no more than 1 case of importation of these goods within 1 calendar day, and in other cases — within 30 calendar days.

6. Exempt from excise with the right of credit shall be:

a) export of excisable goods only for the reporting period for which the taxpayer submits to the tax authority the following documents:

a.a) a tax invoice and a document confirming payment to the supplier of the amount of excise indicated in the tax invoice (in the case where other excisable goods (raw materials) produced by another person were used for the production of the exported excisable goods);

a.b) a customs declaration on the release of goods for export;

b) supply of Georgian goods for sale in a free trade point;

c) transfer of a person's property (excisable goods) into the ownership of the state, an autonomous republic or a municipality in favour of the state, autonomous republic's republican or municipal budget for enforcement, including within the framework of a measure to secure the payment of tax arrears, as well as sale/transfer of a person's property (excisable goods) for the purpose of enforcing sanctions imposed under criminal and administrative procedure;

d) supply by a manufacturer of spirits obtained by distillation of grape wine provided for by commodity subheading 2208 20 of the National Commodity Nomenclature of Foreign Economic Activity to a manufacturer of goods provided for by the same commodity subheading, for the production of goods;

e) production by a manufacturer, using the customer's raw materials, of spirits obtained by distillation of grape wine provided for by commodity subheading 2208 20 of the National Commodity Nomenclature of Foreign Economic Activity, and transfer thereof to the customer, if the customer uses this goods for the production of goods provided for by the same commodity subheading.

Note: In the case of enjoyment of the tax benefit provided for by subparagraph "d" or "e" of this paragraph, if the acquirer/customer of spirits obtained by distillation of grape wine provided for by commodity subheading 2208 20 of the National Commodity Nomenclature of Foreign Economic Activity does not use this goods for the production of goods provided for by the same commodity subheading, the acquirer of the goods/customer shall be considered the excise taxpayer in relation to the acquired/transferred goods. In this case, the moment of commencement of the use of the goods by the acquirer/customer in other activity shall be considered the time of performance of the taxable operation.

7. Import of goods and/or supply of goods and/or provision of services shall be exempt from excise with the right to offset, if the said is carried out within the framework of international treaties ratified by the Parliament of Georgia and in force, and in accordance with these treaties such import of goods and/or supply of goods and/or provision of services is exempt from excise.

Law of Georgia of 22 March 2011 No. 4470- website, 01.04.2011.

Law of Georgia of 19 April 2011 No. 4547 - website, 05.05.2011.

Law of Georgia of 31 May 2011 No. 4720 - website, 10.06.2011.

Law of Georgia of 14 June 2011 No. 4754 - website, 28.06.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 15 November 2017 No. 1378 - website, 17.11.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 29 May 2019 No. 4616 – website, 30.05.2019.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 17 December 2021 No. 1165 – website, 28.12.2021.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 15 June 2023 No. 3272 – website, 04.07.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Article 195. Taxpayer🔗

The taxpayer of import tax shall be a person who moves goods across the customs border of Georgia, except for export.

Law of Georgia of 2012

27 March

No. 5942 – website, 12.04.2012.

Article 196. Object of Taxation🔗

The object of taxation with import tax shall be the customs value of goods at the crossing of the customs border of Georgia, unless otherwise provided by this Code.

Law of Georgia of 2012

27 March

No. 5942 – website, 12.04.2012.

Article 197. Import tax rates🔗

1. The customs value of the following goods shall be taxed at the 12 per cent rate of import tax:

No.

Code

Name of goods

1

0105

Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls

2

0201

Meat of bovine animals, fresh or chilled

3

0202

Meat of bovine animals, frozen

4

0204

Meat of sheep or goats, fresh, chilled or frozen

5

0205 00

Meat of horses, asses, mules or hinnies, fresh, chilled or frozen

6

0206

Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen

7

0207

Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen

8

0208

Other meat and edible meat offal, fresh, chilled or frozen

9

0210

Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal

10

0401 10 100 00 – – in immediate packings of a net content not exceeding 2 l

11

0401 20 110 00 – – – in immediate packings of a net content not exceeding 2 l

12

0401 20 910 00 – – – in immediate packings of a net content not exceeding 2 l

13

0401 40 100 00 – – – in immediate packings of a net content not exceeding 2 l

14

0401 50 110 00 – – – in immediate packings of a net content not exceeding 2 l

15

0401 50 310 00 – – – in immediate packings of a net content not exceeding 2 l

16

0401 50 910 00 – – – in immediate packings of a net content not exceeding 2 l

17

0402 10 110 00 – – – in immediate packings of a net weight not exceeding 2.5 kg

18

0402 10 910 00 – – – in immediate packings of a net weight not exceeding 2.5 kg

19

0402 21 110 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

20

0402 21 910 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

21

0402 29 150 00 – – – – – in immediate packings of a net weight not exceeding 2.5 kg

22

0402 29 910 00 – – – – – in immediate packings of a net weight not exceeding 2.5 kg

23

0402 91 100 01 – – – – in immediate packings of a net weight not exceeding 2.5 kg

24

0402 91 300 01 – – – – in immediate packings of a net weight not exceeding 2.5 kg

25

0402 91 510 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

26

0402 91 910 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

27

0402 99 100 01 – – – – in immediate packings of a net weight not exceeding 2.5 kg

28

0402 99 310 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

29

0402 99 910 00 – – – – in immediate packings of a net weight not exceeding 2.5 kg

30

0403

Yoghurt, buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, whether or not containing added sugar or other sweetening matter, whether or not flavoured, whether or not containing added fruit, nuts or cocoa

31

0407

Birds' eggs, in shell, fresh, preserved or cooked

32

0408

Birds' eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter

33

0409 00 000 00

Natural honey

34

0410

Insects and other edible products of animal origin, not elsewhere specified or included

35

0701

Potatoes, fresh or chilled

36

0702 00 000 00

Tomatoes, fresh or chilled

37

0703

Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled

38

0704

Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled

39

0706

Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled

40

0707 00

Cucumbers and gherkins, fresh or chilled

41

0708

Leguminous vegetables, shelled or unshelled, fresh or chilled

42

0709

Other vegetables, fresh or chilled

43

0710

Vegetables (uncooked or cooked by steaming or boiling in water), frozen

44

0711

Vegetables provisionally preserved, but unsuitable in that state for immediate consumption

45

0712 20 000 00 – Onions

46

0712 31 000 00 – – Mushrooms of the genus Agaricus

47

0712 32 000 00 – – Wood ears (Auricularia spp.)

48

0712 33 000 00 – – Jelly fungi (Tremella spp.)

49

0712 34 000 00 – – Shiitake (Lentinus edodes)

50

0712 39 000 00 – – Other

51

0713

Dried leguminous vegetables, shelled, whether or not skinned or split

52

0714

Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith

53

0802

Other nuts, fresh or dried, whether or not shelled or peeled

54

0803

Bananas, including plantains, fresh or dried

55

0805

Citrus fruit, fresh or dried

56

0806

Grapes, fresh or dried

57

0807

Melons (including watermelons) and papaws (papayas), fresh

58

0808

Apples, pears and quinces, fresh

59

0809

Apricots, cherries, peaches (including nectarines), plums and sloes, fresh

60

0810

Other fruit, fresh

61

0811

Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter

62

0812

Fruit and nuts, provisionally preserved, but unsuitable in that state for immediate consumption

63

0813

Fruit, dried, other than that of headings 0801 to 0806; mixtures of nuts or dried fruits of this Chapter

64

0902

Tea, whether or not flavoured

65

1101 00

Wheat or meslin flour

66

1102

Cereal flours other than of wheat or meslin

67

1103

Cereal groats, meal and pellets

68

1105

Flour, meal, powder, flakes, granules and pellets of potatoes

69

1106

Flour, meal and powder of the dried leguminous vegetables of heading 0713, of sago or of roots or tubers of heading 0714 or of the products of Chapter 8

70

1108

Starches; inulin

71

1109 00 000 00

Wheat gluten, whether or not dried

72

1512 19 900 00 – – – Other

73

160¹ 00

Sausages and similar products, of meat, meat offal, blood or insects; food preparations based on these products

74

160² 10 00 – Homogenised preparations

75

160² 20 – Of any animal's liver

76

160² 31 – – Of turkeys

77

160² 32 – – Of fowls of the species Gallus domesticus

78

160² 39 – – Other

79

160² 41 – – Hams and cuts thereof

80

160² 42 – – Shoulders and cuts thereof

81

160² 49 – – Other, including mixtures

82

160² 50 – Of bovine animals

83

1701 12 – – Beet sugar

84

1701 91 000 00 – – Containing added flavouring or colouring matter

85

1701 99 – – Other

86

1702

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel

87

1703

Molasses resulting from the extraction or refining of sugar

88

1704

Sugar confectionery (including white chocolate), not containing cocoa

89

19

Preparations of cereals, flour, starch or milk; pastrycooks' products

90

2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid

91

2002

Tomatoes prepared or preserved otherwise than by vinegar or acetic acid

92

2003

Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid

93

2004

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006

94

2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006

95

2006 00

Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (impregnated with sugar syrup, glacé or crystallised)

96

2007

Jams, fruit jellies, marmalades, fruit or nut puree, fruit or nut paste, obtained by heat treatment, including with the addition of sugar or other sweetening substances

97

2008 19 – – other, including mixtures

98

2008 20 – pineapples

99

2008 30 – citrus fruit

100

2008 40 – pears

101

2008 50 – apricots

102

2008 60 – cherries and sour cherries

103

2008 70 – peaches, including nectarines

104

2008 80 – strawberries and wild strawberries

105

2008 91 000 00 – – palm hearts

106

2008 93 – – cranberries (Vaccinium macrocarpon, Vaccinium oxycoccos); lingonberries (Vaccinium vitis-idaea)

107

2008 97 – – mixtures

108

2008 99 – – other

109

2009

Fruit or nut juices (including grape must) and vegetable juices, unfermented and without added spirit, with or without added sugar or other sweetening substances

110

2101

Extracts, essences and concentrates of coffee, tea or maté (Paraguay tea) and preparations based on these or on coffee, tea or maté (Paraguay tea); roasted chicory and other roasted coffee substitutes and their extracts, essences and concentrates

111

2103

Products for the preparation of sauces and prepared sauces; flavourings and mixed condiments; mustard powder and prepared mustard

112

2106 90 – other

113

2201 10 190 09 – – – – other

114

2201 10 900 00 – – other

115

2201 90 000 09 – – – other

116

2201 90 000 99 – – – other

117

2202

Waters, including mineral and aerated waters, containing added sugar or other sweetening or flavouring-aromatic substances, and other non-alcoholic beverages, other than fruit, nut or vegetable juices of heading 2009

118

2203 00

Beer made from malt

119

2302 10 – of maize

120

2302 30 – of wheat

121

2302 40 – of other cereals

122

24

Tobacco and manufactured tobacco substitutes; products, with or without nicotine content, intended for inhalation without combustion; other nicotine-containing products intended for human nicotine intake (except nicotine-containing products intended for smoking cessation)

123

25

Salt; sulphur; earths and stone; plastering materials, limestone and cement

124

3402

Surface-active organic substances (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, containing or not containing soap (other than preparations of heading 3401)

125

3918

Floor coverings of plastics, self-adhesive or non-self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as specified in Note 9 to this Chapter

126

3922

Baths, showers, sinks, wash-basins, bidets, water closets, seats and covers therefor, flushing cisterns and similar sanitary and technical ware, of plastics

127

3923

Articles of plastics for the conveyance or packing of goods; stoppers, lids, caps and other closures, of plastics

128

3924

Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics

129

3925 20 000 00 – Doors and thresholds for them, windows and their frames

130

3925 30 000 00 – Shutters, blinds (including Venetian blinds) and similar articles and parts thereof

131

3925 90 – Other

132

3926 90 – Other

133

4407

Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm

134

4408

Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness not exceeding 6 mm

135

4409

Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, beaded, grooved, rebated, chamfered, V-jointed, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed

136

4413 00 000 00

Densified wood, in blocks, plates, strips or profile shapes

137

4418

Builders' joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes

138

4420

Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in Chapter 94

139

4421

Other articles, other

140

6801 00 000 00

Setts, curbstones and flagstones, of natural stone (except slate)

141

6802

Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate)

142

6804

Millstones, grindstones, grinding wheels and the like, without frameworks, for grinding, sharpening, polishing, trueing or cutting, hand sharpening or polishing stones, and parts thereof, of natural stone, of agglomerated natural or artificial abrasives, or of ceramics, with or without parts of other materials

143

6805

Natural or artificial abrasive powder or grain, on a base of textile material, of paper, of paperboard or of other materials, whether or not cut to shape or sewn or otherwise made up

144

6806

Slag wool, mineral silicate wool and similar mineral wools; exfoliated vermiculite, expanded clays, foamed slag and similar expanded mineral products; mixtures and articles of heat-insulating, sound-insulating or sound-absorbing mineral materials, other than those of heading 6811 or 6812 or of Chapter 69

145

6807

Articles of asphalt or of similar material (for example, petroleum bitumen or coal tar pitch)

146

6808 00 000 00

Panels, boards, tiles, blocks and similar articles of vegetable fibre, of straw or of shavings, chips, particles, sawdust or other waste, of wood, agglomerated with cement, plaster or other mineral binders

147

6809

Articles of plaster or of compositions based on plaster

148

6810

Articles of cement, of concrete or of artificial stone, whether or not reinforced

149

6811

Articles of asbestos-cement, of cellulose fibre-cement or the like

150

6812 91 000 00 – Clothing, clothing accessories, footwear and headgear

151

6812 99 900 00 – – – Other

152

6815

Articles of stone or of other mineral substances (including carbon fibres, articles of carbon fibres and articles of peat), not elsewhere specified or included

153

6902 10 000 00

– Containing by weight more than 50 % of the elements Mg, Ca or Cr, taken singly or together, expressed as MgO, CaO or Cr2O3

154

6902 20 100 00 – – Containing by weight 93 % or more of silica (SiO2)

155

6902 20 910 00 – – – Containing by weight more than 7 % but less than 45 % of alumina (Al2O3)

156

6902 20 990 00 – – – Other

157

6902 90 000 00 – Other

158

7113

Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal

159

7115 90 001 00 – – Of precious metal

160

7116

Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed)

161

7117

Imitation jewellery

162

7308 10 000 00 – Bridges and bridge-sections

163

7308 40 000 00

– Equipment for scaffolding, shuttering, propping or pit-propping

164

7308 90 – Other

165

7309 00 100 00 – For gases (other than compressed or liquefied gas)

166

7309 00 300 00 – – With lining or heat insulation

167

7309 00 590 00 – – – Of a capacity not exceeding 100,000 litres

168

7309 00 900 00 – For solids

169

7310

Tanks, casks, drums, cans, boxes and similar containers, of iron or steel, for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment

170

7311 00

Containers for compressed or liquefied gas, of iron or steel

171

7314

Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel

172

7315

Chains and parts thereof, of ferrous metals

173

7318

Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of ferrous metals

174

7320

Springs, leaf springs and leaves therefor, of ferrous metals

175

7321

Heating stoves, heating-and-cooking and food-preparing stoves (including subsidiary boiler stoves for central heating), deep fryers, braziers, burner rings, food warmers and similar non-electric domestic appliances and parts thereof, of ferrous metals

176

7323

Table, kitchen or other household articles and parts thereof, of ferrous metals; "wool" of ferrous metals; pot scourers, scouring or polishing pads, gloves and similar articles, of ferrous metals

Note: Of the goods provided for by commodity code 6812 99 900 00, established by line 151 of this table, only the following shall be taxed at the rate of 12 percent:

a) paper, thick cardboard and felt or felt;

b) jointing material of compressed asbestos fibre, in sheets or rolls.

2. The customs value of the following goods shall be taxed at the 5 percent import duty rate:

No.

Code

Name of goods

1

0203

Meat of swine, fresh, chilled or frozen

2

0406

Cheese and curd

3

1806 31 000 00 – – with filling

4

1806 32 – – without filling

5

1806 90 – other

6

3305

Preparations for use on the hair

7

3307

Preparations for pre-shaving, shaving or after-shaving use, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; room deodorants, whether or not perfumed, whether or not having disinfectant properties

8

3401

Soap; organic surface-active substances and preparations for use as soap, in the form of bars, cakes or moulded articles, whether or not containing soap; organic surface-active substances and skin-washing preparations in the form of liquid or cream, put up for retail sale, whether or not containing soap; paper, cotton wool, felt or felt and non-woven materials, impregnated or coated with soap or detergent

9

3405

Waxes and creams for footwear, polishes and mastics for furniture, floors, car bodies, glass or metals, scouring pastes and powders and similar preparations (including paper, cotton wool, felt or felt, non-woven materials, cellular plastics or cellular rubber, impregnated or coated with such preparations), other than waxes of heading 3404

10

3916

Monofilament of plastics with a cross-section exceeding 1 mm, rods, sticks and profile shapes, whether or not surface-worked but not otherwise worked

11

3917 10 – artificial casings (for sausage products) of hardened proteins or of cellulose materials

12

3917 21 100 00

– – – seamless and cut into pieces, the length of which exceeds the maximum cross-sectional dimension, with a worked or unworked surface, but otherwise unworked

13

3917 21 900 09 – – – – other

14

3917 22 100 00

– – – seamless and cut into pieces, the length of which exceeds the maximum cross-sectional dimension, with a worked or unworked surface, but otherwise unworked

15

3917 22 900 09 – – – – other

16

3917 23 100 00

– – – seamless and cut into pieces, the length of which exceeds the maximum cross-sectional dimension, with a worked or unworked surface, but otherwise unworked

17

3917 23 900 09 – – – – other

18

3917 29 000 09 – – – other

19

3917 31 000 09 – – – other

20

3917 32 000 00 – – – other, not reinforced or not combined with other materials, without fittings

21

3917 33 000 09 – – – other

22

3917 39 000 09 – – – other

23

3917 40 000 09 – – – other

24

3919

Plates, sheets, film, foil, tape, strips and other flat forms, of plastics, self-adhesive, in rolls or not in rolls

25

3920

Plates, sheets, film and strips or tape, of plastics, other, non-cellular and not reinforced, not laminated, without a backing layer and not similarly combined with other materials

26

3921

Plates, sheets, film, strips or tape, of plastics, other

27

3925 10 000 00 – Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 litres

28

3926 10 000 00 – Office or school supplies

29

3926 20 000 00 – Articles of apparel and clothing accessories (including gloves, mittens and mitts)

30

3926 30 000 00 – Fittings and mountings for furniture, for means of transport or similar articles

31

3926 40 000 00 – Statuettes and other ornamental articles

32

7308 20 000 00 – Towers and lattice masts

33

7308 30 000 00 – Doors, windows and their frames and thresholds for doors

34

8544 11 – – Of copper

35

8544 19 000 00 – – other

36

8544 20 000 00 – Coaxial cable and other coaxial electric conductors

37

8544 30 000 09 – – other

3. The goods specified in this Part shall be taxed at the following import duty rates (euro/%vol/HL means that the amount of import duty payable per hectolitre (100 litres) equals the product of the import duty rate and the indicator of the percentage alcohol content in the given goods):

No.

Code

Name of goods

Import

duty

rate

1

2204 10 – sparkling wines

1.5 euro/lit

2

2204 21 – – in containers of a capacity of 2 litres or less

0.5 euro/lit

3

2204 22 – – in containers of a capacity exceeding 2 litres but not exceeding 10 litres

0.2 euro/lit

4

2204 29 – – other

0.2 euro/lit

5

2204 30 – grape must, other

0.2 euro/lit

6

2205 10 – in containers of a capacity of 2 litres or less

0.5 euro/lit

7

2205 90 – other

0.2 euro/lit

8

2206 00

Other fermented beverages (for example, cider, perry (pear cider), mead); mixtures of fermented beverages and mixtures of fermented beverages and non-alcoholic beverages, not named or listed elsewhere

0,5 euro/lit

9

2207

Ethyl alcohol, undenatured, with an alcohol concentration of 80 % vol or more; ethyl alcohol and other denatured spirits of any concentration

3 euro/lit

10

2208 20 – spirit infusions obtained as a result of distillation (rectification) of grape wine or grape marc

1.5 euro/%vol/HL

11

2208 30 – Whisky

1.5 euro/%vol/HL

12

2208 40 – Rum and tafia

1.5 euro/%vol/HL

13

2208 50 – Gin and Geneva

1.5 euro/%vol/HL

14

2208 60 – Vodka

1.5 euro/%vol/HL

15

2208 70 – Liqueurs

1.5 euro/%vol/HL

16

2208 90 – Other

1.5 euro/%vol/HL

17

2209 00

Vinegar and substitutes for vinegar obtained from acetic acid

0,4 euro/lit

4. Goods temporarily imported into the customs territory of Georgia shall, for each full and incomplete calendar month of their presence in the customs territory of Georgia from the date of registration of the customs declaration, be taxed at 3 per cent of the amount of import duty that would be payable on the date of registration of the customs declaration for temporary importation upon placing such goods under the import procedure. The said amount shall be paid not later than the 15th day of the month following each month, and the last payment shall be made on the day of completion of the temporary importation procedure of the goods. The declarant shall be entitled to pay the entire amount payable at once.

5. The total amount of the sums referred to in paragraph 4 of this Article and subject to payment (excluding interest) shall not exceed the amount of import duty that would be payable on the date of registration of the customs declaration for temporary importation upon placing such goods under the import procedure.

6. Upon placing a passenger car falling under heading 8703 of the National Commodity Nomenclature of Foreign Economic Activity under the import procedure, the import duty rate shall be GEL 0.05 for each cubic centimetre of the vehicle engine capacity plus 5 per cent of the amount of import duty for each year of operation of the vehicle.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012

Law of Georgia of 27 December 2013 No. 1898 – website, 30.12.2013

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Law of Georgia of 16 October 2019 No. 5129 – website, 23.10.2019

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023

Article 198. Rule for calculation and payment of tax🔗

1. Import tax shall be calculated based on the customs value of goods, except for cases provided for by paragraphs 3 and 6 of Article 197 of this Code.

2. Import tax shall be paid in accordance with the procedure established for the payment of import duty.

3. From the placement of a light motor vehicle specified in code 8703 of the National Commodity Nomenclature of Foreign Economic Activity under the release into free circulation procedure, if this vehicle is processed under the export procedure within 180 calendar days and leaves the territory of Georgia, the importer is entitled to recover, in accordance with the established procedure, the import tax paid on this vehicle in the amount of 100 percent.

2012 of Georgia

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 199. Exemption from tax🔗

The following shall be exempt from import tax:

a) import of goods for the purpose of liquidation of a natural disaster and catastrophe, as well as for the purpose of humanitarian aid;

b) import of the goods provided for by a grant agreement, in accordance with the procedure determined by a Resolution of the Government of Georgia;

c) import of the goods financed by grants or by a concessional credit issued by a state body of a foreign country and/or an international organisation, which contains a grant element of not less than 25 per cent. The Ministry of Finance of Georgia shall calculate the grant element in accordance with a Resolution of the Parliament of Georgia;

d) by a natural person:

d.a) once per calendar day, import of food products corresponding to groups 02, 04, 06−12, 15−21 and commodity positions 0302−0307, 2201−2202 of the National Commodity Nomenclature of Foreign Economic Activity, with a total value of up to 500 GEL and a total weight of up to 30 kg (including in the case of a postal consignment), which are not intended for economic activity;

d.b) once in 30 calendar days, import of goods provided for by groups 28–97 of the National Commodity Nomenclature of Foreign Economic Activity, with a value of up to 500 GEL and a total weight of up to 30 kg, which are not intended for economic activity;

d.c) import by a passenger of 200 cigarettes or 50 cigars or 50 cigarillos or 200 sticks of tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity or 10 capsules and similar products or 250 grams of other tobacco products (except raw tobacco), or import of a set of the types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product contained therein (the percentage indicator in relation to the respective maximum amount) does not exceed 100, or import of goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, totalling 50 ml, which are transported in baggage and/or hand baggage when carrying a passenger and which are not intended for economic activity;

d.c¹) import by a passenger of a total of 1 litre of alcoholic beverage with an alcohol content of 22% and more than 22% or of undenatured ethyl alcohol with an alcohol content of 80% and more than 80% or of 2 litres of alcoholic beverage with an alcohol content of less than 22%, or import of a set of types of alcoholic beverage (except beer and wine) specified in this subparagraph, if the sum of the percentage indicators of the share of each type of alcoholic beverage (except beer and wine) contained therein (the percentage indicator in relation to the respective maximum amount) does not exceed 100, or import of 4 litres of wine and 16 litres of beer, which are transported in baggage and/or hand baggage when carrying a passenger and which are not intended for economic activity;

d.d) import, by a natural person who has entered Georgia after having stayed abroad for more than 6 months each time, of goods corresponding to groups 28–97 (except group 87) of the National Commodity Nomenclature of Foreign Economic Activity, of the value of 15,000 GEL, which are not intended for economic activity, and, in the case of a diplomatic official recalled from a work assignment by way of rotation from a diplomatic representation or consular institution of Georgia abroad, additionally of goods intended for his/her personal use (one vehicle, refrigerator, computer and television per family);

d.e) upon entering Georgia for permanent residence (which is confirmed by a relevant document issued in accordance with the procedure established by the Ministry of Justice of Georgia), import of goods (including furniture, household goods, one vehicle per family) which are not intended for economic activity;

d.f) in the case of a postal consignment, import of goods corresponding to groups 28–97 of the National Commodity Nomenclature of Foreign Economic Activity, of a value of up to 300 GEL and a total weight of up to 30 kg, which are not intended for economic activity, as well as import of 200 cigarettes or 50 cigars or 50 cigarillos or 200 sticks of tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity, or 10 capsules and similar products, or 250 grams of other tobacco products (except raw tobacco), or import of a set of the types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product contained therein (the percentage indicator in relation to the respective maximum quantity) does not exceed 100, or import of goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, totalling 50 ml, as well as import of 4 litres of all types of alcoholic beverages;

d.g) in the case of importation by air transport, import of goods corresponding to groups 28–97 of the National Commodity Nomenclature of Foreign Economic Activity, of a value of up to 3,000 GEL and a total weight of up to 30 kg, which are not intended for economic activity;

e) import of baby food products and those diabetic food products which are marked as such for wholesale and retail supply; import of X-ray films, insulin syringes (needles), glucometers, diagnostic test systems; in accordance with subparagraph „a“ of Article 173 of this Code, import of goods intended for the treatment/medical purposes of tobacco dependence, determined by a joint order of the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and the Minister of Finance of Georgia;

f) Import of goods intended for on-board delivery for the performance of international aviation flights and international maritime voyages, as well as import of fuel, lubricants and other auxiliary means intended for on-board delivery for the performance of civil aviation flights and specialised operations (aviation works) within the state border of Georgia;

g) Import of equipment and machinery, means of transport, spare parts and materials intended for the conduct of oil and gas operations provided for by the Law of Georgia "on Oil and Gas";

h) Goods and/or means of transport gratuitously seized, confiscated, ownerless and transferred into state ownership, which, in accordance with the procedure established by the legislation of Georgia, have passed into the disposal or ownership of the State;

i) Import of tobacco raw materials until 1 January 2028;

j) Import of goods in accordance with the requirements of subparagraphs "w" and "bb"–"ff" of Article 173 of this Code, and temporary importation of goods provided for by subparagraphs "bb" and "cc" of the same Article;

j¹) Temporary importation of goods into Georgia in order to ensure the fulfilment of the obligations provided for by the international treaties of Georgia (in particular, the construction of the Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines);

j²) Temporary importation of goods fully exempt from customs duty in accordance with the customs legislation of Georgia;

k) Customs procedures applied to goods/re-export (except for the importation and temporary importation of goods provided for by this Article) in accordance with the requirements established by the Customs Code of Georgia, as well as placement of goods in a free trade point;

l) Import of goods produced in a free industrial zone from the free industrial zone. The Minister of Finance of Georgia shall be entitled to establish the criteria for considering goods as produced in a free industrial zone;

m) Import of goods returned in accordance with Article 107 of the Customs Code of Georgia;

n) in the case of a postal consignment (except for the case provided for by subparagraph "d.f" of this Article), the import of goods corresponding to groups 28–97 of the National Commodity Nomenclature of Foreign Economic Activity, with a value of up to 300 GEL and a total weight of up to 30 kg, as well as the import of 200 cigarettes or 50 cigars or 50 cigarillos or 200 sticks of tobacco products provided for by code 2404 11 000 00 of the National Commodity Nomenclature of Foreign Economic Activity or 10 pieces of capsules and similar products or 250 grams of other tobacco products (except raw tobacco), or the import of a set of types of tobacco products specified in this subparagraph, if the sum of the percentage indicators of the share of each type of tobacco product included therein (the percentage indicator in relation to the respective maximum quantity) does not exceed 100, or the import of goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, totaling 50 ml, as well as the import of 4 litres of all types of alcoholic beverages;

o) the import of goods provided for by commodity headings 1704 90 510 00, 2207 10 000 00, 2501 00 310 00, 2501 00 510 00, 2506, 2507, 2508, 2509, 2511, 2522, 2524, 2525, 2526 (except 2526 20 000 00), 6805 20 000 00 and 6805 30 000 09 of the National Commodity Nomenclature of Foreign Economic Activity;

p) electric vehicles provided for by commodity heading 8703 of the National Commodity Nomenclature of Foreign Economic Activity;

q) the import from the said State of goods originating in the territory of a participating State of the International Agreement of 15 April 1994 "On the Creation of a Free Trade Zone", regardless of the route of movement of the goods (notwithstanding the passage through the territory of a State not party to the said Agreement when goods move from the territory of the exporting country);

r) goods exempted from customs obligation provided for by the Customs Code of Georgia, in accordance with the conditions determined by the same Code.

Note:

1. If the quantity of alcoholic beverages and/or tobacco products and/or goods provided for by codes 2404 12 000 00 and 2404 19 900 00 of the National Commodity Nomenclature of Foreign Economic Activity, imported by a natural person or imported by postal consignment, exceeds the maximum quantity provided for by subparagraph "d.c", "d.f" or "n" of this Article, the exemption from import tax provided for by the same Article shall apply within the above-specified maximum quantity of goods.

2. The right to benefit from tax preferences in respect of excisable goods provided for by subparagraphs "d.c" and "d.f" of this Article shall arise for a natural person from the age of 18.

3. For the purposes of subparagraphs „d.c“ and „d.c1“ of this Article, goods shall be considered not intended for economic activity if their import is one-time and they are intended for consumption by the passenger personally or by his family members, or/and for gifting. At the same time, the import of goods is one-time if, in the case of import by air transport, there occurs not more than 1 instance of the import of these goods within 1 calendar day, and in other cases — within 30 calendar days.

Law of Georgia of 22 March 2011 No. 4470- website, 01.04.2011.

Law of Georgia of 31 May 2011 No. 4720 - website, 10.06.2011.

Law of Georgia of 14 June 2011 No. 4754 - website, 28.06.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 2012

of 10 April

No. 6015 – website, 30.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 June 2012 No. 6439 – website, 22.06.2012.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012.

Law of Georgia of 6 September 2013 No. 1046 – website, 23.09.2013.

Law of Georgia of 4 October 2013 No. 1447 - website, 16.10.2013.

Law of Georgia of 27 December 2013 No. 1897 - website, 30.12.2013.

Law of Georgia of 1² December 2014 No. 2952 - website, 23.12.2014.

Law of Georgia of 18 December 2015 No. 4680 - website, 29.12.2015.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 10 December 2019 No. 5444 – website, 13.12.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 17 December 2021 No. 1165 – website, 28.12.2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Law of Georgia of 15 June 2023 No. 3272 – website, 04.07.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 200. Meaning of terms for the purposes of this Title🔗

1. Property – taxable property and land.

2. Land – agricultural, non-agricultural and forest lands.

3. Agricultural land:

a) arable land (including land occupied by perennial plantings);

b) hayfield;

c) pasture;

d) homestead land.

4. Non-agricultural land – land that is not agricultural land.

4¹. (Deleted – 28 December 2012, No 189).

5. Newly developed agricultural land:

a) non-agricultural plot that is transformed (converted) into an agricultural plot. Such lands include:

a.a) fallow lands;

a.b) lands to be developed by means of amelioration (irrigation and drainage);

a.c) lands occupied by shrubs to be developed by clearing and uprooting;

a.d) slopes to be developed by terracing;

a.e) recultivation lands disturbed during mineral extraction and construction, with restoration of agrobiological productivity;

b) low-intensity agricultural plots that are transformed (converted) into high-intensity agricultural-purpose (arable and occupied by perennial plantings) land plots, waterlogged and salinized lands.

6. Location of taxable property – the place where immovable property is actually located, and movable property is registered in accordance with the procedure established by the legislation of Georgia. If there is no place of registration of movable property, the place where the movable property is actually located shall be considered the location of the taxable property.

7. State-owned land – land owned by the State, an autonomous republic or a municipality.

8. Amelioration infrastructure − irrigation, drainage and dual-regulation systems, reservoirs, pumping stations, independent hydrotechnical structures.

Law of Georgia of 10 December 2010 No 3968-LHG I, No 74, 24 December 2010, Art. 449

Law of Georgia of 20 December 2011 No 5556 – website, 30 December 2011

Law of Georgia of 15 May 2012 No 6211 – website, 29 May 2012

Law of Georgia of 28 December 2012 No 189 – website, 29 December 2012

Law of Georgia of 12 December 2014 No 2946 – website, 24 December 2014

Law of Georgia of 8 June 2016 No 5382 – website, 17 June 2016

Law of Georgia of 25 June 2019 No 4854 – website, 2 July 2019

Law of Georgia of 15 July 2020 No 6942 – website, 28 July 2020

Article 201. Property tax payer and object of taxation🔗

1. The payer of property tax is:

a) a resident enterprise/organisation:

a.a) on assets recorded on its balance sheet as fixed assets and/or investment property, on uninstalled equipment, on construction in progress, as well as on property leased out by it;

a.b) on immovable property, a yacht (boat), a helicopter, an aircraft and other means of transport received (taken into possession) within the framework of a measure to secure the performance of a contractual obligation;

a.c) on immovable property, a yacht (boat), a helicopter, an aircraft and other means of transport acquired at an auction, by direct sale or in another manner within the framework of the enforcement of a monetary obligation (except for sanctions imposed under criminal and administrative procedure);

b) a non-resident enterprise – on property located in the territory of Georgia as defined by paragraph 1 of this Article (including property located in the territory of Georgia granted under a lease, rent, usufruct or other similar type of contract);

c) a natural person:

c.a) on immovable property owned by it (including construction in progress, a building or structure or part thereof), yachts (boats), helicopters, aircraft and passenger cars defined by code 8703 of the National Commodity Nomenclature of Foreign Economic Activity;

c.b) on property received under leasing from a non-resident;

c.c) in the case of carrying out economic activity, on assets recorded on its balance sheet as fixed assets, on uninstalled equipment, as well as on property leased out by it.

2. For the purposes of paragraph 1 of this Article, a person is a payer of property tax in respect of an object of taxation that is in its possession and/or use and is registered in the name of a deceased person, except where the use of the property is effected under a lease, rent, usufruct or other similar type of contract.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 16 December 2016 No. 97 – website, 23.12.2016.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 202. Rate of Property Tax🔗

1. For an enterprise/organization, the annual property tax rate shall be determined in an amount not exceeding 1 percent of the value of the taxable property. For the purposes of this paragraph, the value of taxable property is the average annual residual balance sheet value (calculated based on the average value of assets at the beginning and end of the calendar year), which in the cases listed below must be increased only in relation to immovable property:

a) for assets acquired before 2000 – 3 times;

b) for assets acquired from 2000 to 2004 – 2 times;

c) for assets acquired in 2004 – 1.5 times;

d) for those assets for which there is no information on their acquisition – by the amount determined by subparagraph "a" of this paragraph.

2. The valuation of taxable property provided for by subparagraphs "a"–"d" of the first paragraph of this article shall not apply to:

a) an enterprise, if it records immovable property carried on its balance sheet using the revaluation method and has audited financial statements. At the same time, the audited financial statements may be used only for a period of 4 years;

b) state enterprises determined by the Government of Georgia.

3. For an enterprise/organization, except for the case provided for by paragraph 3¹ of this article, the annual tax rate on taxable property leased out under leasing shall be determined in an amount not exceeding 1 percent of the average annual residual balance sheet value of the taxable property (calculated based on the average value of assets at the beginning and end of the calendar year). For the purposes of this paragraph, the balance sheet value of taxable property leased out under leasing is the value existing at the moment of transfer of the property, and for each subsequent year, the value of the property shall be considered to be the residual balance sheet value that this property would have had if it had not been transferred under leasing.

3¹. For a leasing company, the annual tax on taxable property leased out under leasing shall, throughout the entire leasing period, be determined in an amount not exceeding 0.6 percent of the initial balance sheet value existing at the moment of the first leasing out of the taxable property by it.

4. (was declared invalid – Judgment of the Constitutional Court of Georgia of 28 December 2017 No. 2/7/667 – website, 9 January 2018)

4¹. In the cases provided for by the rules approved by Order of the Minister of Finance of Georgia, the tax authority is entitled, during a tax audit, to determine the value of taxable property for a taxpayer at market price. The said provision shall not apply to the cases provided for by paragraph 2 of this article. If the market price of the taxable property exceeds its balance sheet value:

a) the principal amount of property tax shall be assessed to the person on the difference in the value of the taxable property. At the same time, a penalty shall be imposed on the said amount only from the 30th day after the day of delivery of the tax claim, and the said difference shall not be considered a tax reduction;

b) The person shall apply the indicated market price to the relevant taxable property during the following 3 tax years.

5. The annual tax rate on the taxable property of a natural person is differentiated according to the income received by the taxpayer's family during the tax year and is determined in the following amounts:

a) for families with income up to 100,000 GEL – not less than 0.05 percent and not more than 0.2 percent of the market value of the taxable property at the end of the tax period;

b) for families with income of 100,000 GEL or more – not less than 0.8 percent and not more than 1 percent of the market value of the taxable property at the end of the tax period.

6. For the purposes of this Title, taking into account paragraph 7 of this Article, all income received by the family of a natural person during the tax year shall be included in income, including benefit, without taking into account tax preferences, namely:

a) taxable income received from economic activity, except for the case provided for by subparagraph „d“ of this paragraph;

b) any income, including benefit, which is not related to economic activity;

c) accrued salary;

d) for a person with small business status:

d.a) 25 percent of the taxable income subject to taxation under the special regime;

d.b) taxable income that does not belong to income taxable under the special regime for small business;

e) for a natural person carrying out trade in the market territory:

e.a) 15% of income received from the sale of goods in the market territory;

e.b) taxable income that does not belong to the income provided for by subparagraph „e.a“ of this paragraph.

7. For the purposes of paragraph 6 of this Article:

a) the following shall not be included in income:

a.a) the value of property received from family members by inheritance, gift, or on the basis of divorce;

a.b) income received by a natural person (including by a first-order heir, in aggregate, of his/her own and the decedent's) from the sale of a residential apartment (house) held in his/her ownership for more than 2 years;

a.c) income received from the initial sale of property provided for by subparagraph „m“ of paragraph 1 of Article 82 of this Code;

a.d) income received by a fixed tax payer and a person with micro business status from the indicated economic activity;

a.e) income exempt from income tax in accordance with subparagraphs „b1“ and „b2“ of paragraph 1 of Article 82 of this Code;

a.f) benefit received by an employee from the use of the employer's vehicle for personal use;

b) in relation to a citizen of Georgia who is a non-resident natural person, income shall be determined according to income received from a source in Georgia.

8. The tax liability on taxable property shall be determined by the rate in effect as of 31 December of the tax year.

9. The calculation of the property tax of an individual on taxable property shall be carried out during the tax period in proportion to the time for which this property is in his/her ownership.

Law of Georgia of 7 December 2010 No. 3882-LHG I, No. 72, 22.12.2010, Art. 428

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011

Law of Georgia of 13 October 2011 No. 5118 – website, 31.10.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 1² December 2014 No. 2950 – website, 23.12.2014

Law of Georgia of 8 June 2016 No. 5387 – website, 24.06.2016

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Judgment of the Constitutional Court of Georgia of 28 December 2017 No. 2/7/667 – website, 09.01.2018

Law of Georgia of 4 May 2018 No. 2327 – website, 11.05.2018

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Law of Georgia of 19 December 2019 No. 5627 – website, 26.12.2019

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020

Article 203. Payer of property tax on land and object of taxation🔗

The payer of property tax on land is a person as of 1 April of the tax year:

a) on land in his/her ownership;

b) on land in state ownership which he/she uses or possesses;

c) on a land plot in his/her possession and/or use, registered in the name of a deceased person, except where the use of the land plot is carried out on the basis of a lease, rent, usufruct or other similar contract.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Article 204. Property tax rate on land🔗

1. Annual base rates of property tax on agricultural and forest lands are differentiated by administrative-territorial units and land categories and are established per 1 hectare, in GEL:

a) For arable land (including land occupied by perennial plantings) and household land:

Administrative

unit

name

Base

rate (GEL / ha)

Arable

and

household land

1. Tbilisi (except Tbilisi settlements (villages), Marneuli 100

2. Bolnisi, Gardabani, Tbilisi settlements (villages): Tsavkisi, Kojori, Tabakhmela, Shindisi, Dideba, Kveseti, Samadlo, Kiketi, Nasagurali, Akhaldaba, Didi Lilo, Varketili

95

3. Rustavi, Batumi, Gagra, Gali, Gudauta, Gulripshi, Ochamchire, Sokhumi, Tkvarcheli

94

4. Kobuleti, Khelvachauri, Gurjaani, Dedoplistskaro

87

5. Telavi, Lagodekhi, Sighnaghi

86

6. Kvareli, Gori, Mtskheta, Akhmeta, Dmanisi, Eredvi, Tigva, Tbilisi settlements (villages): Dighomi, Mshralkhevi, townlet Zahesi, Gldani, Didgori, Zurgovana, Telovana, Dzveli Vedzisi, Agaraki, Tkhinvali, from the village of Gldani to the Avchala settlement – garden plots, Giorgitsminda – garden plots, garden plots adjacent to Mukhiani, the "Avshiani" settlement adjacent to Khevdzmari, Lotkini settlement – nursery farm, settlement adjacent to Resi, existing settlement of Tbilisi Sea

82

7. Kaspi, Tetri Tskaro, Samtredia

81

8. Sagarejo, Kareli, Khashuri

79

9. Kurta, Tsalka

77

10. Abasha, Zugdidi

77

11. Akhalkalaki, Akhaltsikhe

77

12. Martvili, Senaki, Khobi, Poti

76

13. Ninotsminda

76

14. Akhalgori, Vani, Zestafoni, Lanchkhuti, Ozurgeti

73

15. Baghdati, Terjola, Khoni, Kutaisi

71

16. Tsalenjikha, Tskaltubo, Chkhorotsku

67

17. Sachkhere, Tsageri, Tskhinvali

65

18. Ambrolauri, Dusheti, Tianeti, Adigeni, Borjomi

61

19. Aspindza, Tkibuli, Khulo, Keda

60

20. Shuakhevi, Kharagauli, Chiatura, Lentekhi, Oni, Chokhatauri, Mestia, Stepantsminda, Java

56

b) For hayfields and pastures:

Administrative

unit

name

Base

rate (GEL / ha)

Hayfield

Pasture

1. Abasha, Akhalkalaki, Gori, Batumi, Bolnisi, Gagra, Gali, Gardabani, Gudauta, Gulripshi, Gurjaani, Dmanisi, Zugdidi, Tbilisi, Tetri Tskaro, Telavi, Lagodekhi, Lanchkhuti, Marneuli, Mtskheta, Ninotsminda, Ozurgeti, Ochamchire, Rustavi, Samtredia, Senaki, Sighnaghi, Sokhumi, Kutaisi, Kobuleti, Kvareli, Tsalka, Tskaltubo, Khelvachauri, Khobi, Poti

20

16

2. Dedoplistskaro

20

7

3. Adigeni, Aspindza, Akhalgori, Baghdati, Borjomi, Vani, Zestafoni, Terjola, Tianeti, Kaspi, Martvili, Sagarejo, Sachkhere, Tkibuli, Kareli, Keda, Shuakhevi, Chokhatauri, Chkhorotsku, Tsalenjikha, Kharagauli, Khashuri, Khoni, Khulo, Akhaltsikhe

19

15

4. Ambrolauri, Dusheti, Lentekhi, Mestia, Oni, Kazbegi, Tsageri, Tskhinvali, Chiatura, Java

16

10

5. Akhmeta

16

5

c) For forest lands used in agricultural activity – in the corresponding amount established by subparagraphs "a" and "b" of this paragraph;

d) The tax rate shall be determined by a decision of the representative body of the municipality, the amount of which shall not exceed 150 percent of the annual base rate established by this paragraph.

1¹. (removed – 28.12.2012, No. 189).

2. Property tax rates on non-agricultural land for a specific land plot, taking into account the location of the land plot, shall be calculated as follows:

a) the base tax rate is established at 0.24 GEL per square meter of land per year;

b) by a decision of the representative body of the municipality − the Sakrebulo, the corresponding base rate is multiplied by the territorial coefficient. At the same time, the territorial coefficient may not be more than 1.5.

3. Land allocated to a person using natural resources for the use of natural resources on the basis of the relevant licence or in another form established by the legislation of Georgia shall be taxed at not more than 3 GEL per hectare.

4. Tax liability on land shall be determined according to the rates in force as of 1 April of the tax year.

5. For the purposes of taxation with property tax, the list of information to be submitted to the tax authority by the National Agency of Public Registry, other registering bodies, as well as municipalities, and the procedure for submitting this information to the tax authority shall be established by the Government of Georgia.

Law of Georgia of 7 December 2010 No. 3882-LHG I, No. 72, 22.12.2010, Art. 428

Law of Georgia of 10 December 2010 No. 3968-LHG I, No. 74, 24.12.2010, Art. 449

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015

Law of Georgia of 25 June 2019 No. 4854 – website, 02.07.2019

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020

Article 205. Calculation and Payment of Property Tax🔗

1. A calendar year shall be deemed the tax period for property tax.

2. An enterprise/organisation shall submit a property tax declaration to the relevant tax authority not later than 1 April of the calendar year and shall pay the property tax within the same period, except for the case provided for by paragraph 7 of this Article. The data in the declaration on taxable property shall be entered according to the previous tax year, and on taxable land – according to the current tax year.

3. An enterprise/organisation shall pay the tax on property in the form of a current payment, in the amount of the annual tax of the previous tax year, not later than 15 June of the tax year.

4. If the amount of the expected tax obligation for the current tax year in the property tax on property, including taking into account tax benefits, decreases by not less than 50 per cent compared to the previous tax year, and the taxpayer notifies the relevant tax authority thereof not later than 1 June of the current year, the taxpayer shall have the right to reduce or not pay at all the amount of the current payment.

5. If, according to the submitted actual annual results, a decrease in the amount of the expected tax obligation by not less than 50 per cent is not confirmed and the taxpayer has not paid the current payment in full during the reporting year, it shall pay a penalty in accordance with this Code for the period from the established date of the deadline for payment of the current payment until the date of submission of the tax declaration.

6. If the tax rate changes compared to the previous tax period, the taxpayer shall have the right to pay the current payment according to the rate in effect for the current year.

7. An enterprise/organisation shall pay the property tax on land not later than 15 November of the calendar year.

8. If the taxpayer enterprise/organisation exists only for an incomplete calendar year, it shall pay the tax on property in proportion to that period.

9. If a legal entity was founded after the beginning of the calendar year, it shall not bear the obligation to pay the current payment for the relevant tax period. At the same time, the amount of the current payment for the next tax period shall be determined by the full amount of the annual tax of the previous tax year.

10. A person in the process of dissolution (a dissolved company) shall be obliged, within 5 working days from the registration of the commencement of the liquidation process, to notify the tax authority in writing of the dissolution and, within the same period, to submit a property tax declaration.

10¹. The taxpayer shall, within 15 days from the entry into legal force of the court ruling on declaring admissible the application on insolvency and on opening the bankruptcy regime, issued by the court in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors", submit to the tax authority the unsubmitted declarations corresponding to the full/incomplete tax period(s) prior to the opening of the bankruptcy regime. At the same time, after the opening of the bankruptcy regime, the taxpayer shall not submit property tax declarations corresponding to the full/incomplete tax period(s).

11. The tax authority shall calculate the property tax of a natural person on the basis of the submitted declaration.

12. A natural person shall submit the property tax declaration to the tax authority no later than 1 November of the calendar year. The data in the declaration on the taxable property shall be entered according to the past tax year, and on the taxable land – according to the current tax year.

13. A natural person shall be entitled not to submit a property tax declaration if:

a) taking into account the benefits established by this Code, no tax obligation arises for him/her for the tax period. At the same time, if the natural person was a declarant for property tax according to the past tax year, he/she shall notify the tax authority of the decision not to submit the declaration in the form established by the Minister of Finance of Georgia, no later than 1 November of the tax year;

b) for the period preceding the reporting year, a property tax declaration has been submitted or property tax has been assessed by the tax authority. Based on the data of the previous reporting year, the tax authority shall assess the property tax to the taxpayer programmatically. In this case, it shall be considered that the taxpayer has carried out tax reporting, and the tax authority has submitted to him/her a tax claim, according to which the tax obligation for the respective period is equal to the last declared (assessed) one. At the same time, if the declaration is subsequently made for the said periods, it shall be considered a corrected declaration.

13¹. When the tax authority assesses property tax on land on the basis of information (data) provided by the National Agency of Public Registry, another registering authority, as well as a municipal body, the person shall be released from the obligation to submit a property tax declaration on land. In this case, on the basis of the said information (data), a tax claim shall be submitted to the person in the manner established by the Minister of Finance of Georgia.

14. A natural person shall pay property tax on property and land no later than 15 November of the calendar year.

15. The procedure for calculating and paying property tax shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Law of Georgia No. 5556 of 20 December 2011 – website, 30 December 2011.

Law of Georgia No. 6211 of 15 May 2012 – website, 29 May 2012.

Law of Georgia No. 6330 of 25 May 2012 – website, 8 June 2012.

Law of Georgia No. 6395 of 5 June 2012 – website, 19 June 2012.

Law of Georgia No. 7169 of 18 September 2020 – website, 25 September 2020.

Law of Georgia No. 2768 of 5 April 2023 – website, 18 April 2023.

Law of Georgia No. 4022 of 15 December 2023 – website, 28 December 2023.

Article 206. Exemption from tax🔗

1. Depending on the relevant object of taxation, the following are exempt from property tax:

a) taxable property of a natural person (except land), if the income received by the family of this person during the year preceding the current calendar year does not exceed GEL 40,000;

b) (removed – 24 June 2011, No. 4963);

c) (removed – 24 June 2011, No. 4963);

d) communication routes, power transmission lines, as well as cable lines of electronic communication networks;

e) property of an organization, as well as property leased to the organization, except land and property used by the organization for economic activity;

f) property used for carrying out oil and gas operations (activities) as defined by the Law of Georgia “On Oil and Gas”;

g) that part of a land plot in state ownership which has been transferred to a budgetary organization, except land used for economic activity;

h) land areas of organizations for the protection of nature and historical monuments, on which are located structures recognized by the state as historical, cultural and/or architectural monuments, if they are not used for economic activity that does not include the sale of entrance tickets;

i) lands occupied by natural parks, botanical and dendrological gardens, municipal parks of culture and recreation, cemeteries, zoological gardens and/or parks, oceanariums, squares, alleys, protected areas, forestry organizations, as well as open departmental parks, gardens and forest-gardens, except plots used for economic activity on this territory;

i¹) a land plot or part thereof having the status of a windbreak (field-protective) strip;

j) city reservoirs and their water areas; those lands which are used for transport and underground communications, if they are not used for the production of agricultural products and economic activity;

k) lands occupied by reservoirs intended for supplying the population with drinking water, for power plants and irrigation systems and their functioning, and sanitary-protective and technical zones of these facilities;

l) land plots used for carrying out oil and gas operations (activities) as defined by the Law of Georgia “On Oil and Gas”, if they are not used for another purpose;

m) a land plot of agricultural designation, the fertile layer of which is damaged by half or more as a result of a natural disaster (hurricane, hail, drought, flood, landslide, etc.), which is confirmed by a certificate issued by the representative body of the municipality;

n) property located in the territories established by the Law of Georgia “On Occupied Territories” – temporarily, until the conflict is resolved and the economic situation is settled;

n¹) land in the possession/ownership of a person, which is located adjacent to the territories established by the Law of Georgia “On Occupied Territories”, as a result of which the person cannot use the given land plot, which is confirmed by a certificate issued by the executive body of the municipality or a person authorized by it;

n²) property in the possession/ownership of a person and the land attached to it, if he/she cannot use this property due to its use for residence by forcibly displaced persons − refugees, and this property is registered as an object of compact (organized) settlement of refugees, which is confirmed by a certificate issued by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia;

o) unused hayfields, pastures, reclamation and reserve lands of agricultural designation in state ownership;

p) those lands which are used as zones of aerodromes, airports, heliports and air navigation safety and for underground communications, as well as land plots attached for the purpose of prospective development of seaports, if they are not used for economic activity;

q) natural and legal persons who have received newly developed agricultural lands – within 5 years from receipt;

r) families of citizens settled on the territory of a deserted village, as well as in accordance with state settlement measures, on the agricultural land plot existing on this territory – within 5 years from settlement;

s) agricultural land plots of up to 5 hectares in the ownership of a natural person as of 1 March 2004.

Note: the benefit provided by this subparagraph also extends to cases of receipt of the said property by gift/inheritance by a member of a household or a first/second degree heir, as well as receipt of this property by an agricultural cooperative from its members (shareholders) in the form of a contribution (share);

s¹) agricultural land plot of up to 5 hectares in the ownership of a forcibly displaced natural person as of 1 January 2011;

t) amelioration infrastructure transferred to a primary water user − a legal entity of private law in accordance with the procedure established by Georgian legislation, and the part of the land plot on which the amelioration infrastructure is attached;

u) persons with limited abilities whose abilities were limited as a result of the Second World War, and persons equated with them, in respect of land plots received through privatization;

v) land plot in the ownership of a person having the status of a person permanently residing in a high mountain settlement, located on the territory of a high mountain settlement;

w) land plots of scientific-research, educational, experimental-selection, experimental, variety testing designation, which are used for scientific and educational purposes and on which works are financed from the budget;

x) land plots used for the performance of their main functions by budget-funded boarding houses/shelters for persons aged 60 and over 60 and/or persons with disabilities, upbringing institutions for persons with disabilities (including children) and/or children/adolescents deprived of care, or day centres, legal entities of public law – general education institutions (schools); land plots used by children's upbringing institutions, special boarding schools, children's villages and early and preschool upbringing and education institutions, which provide care and upbringing of children and their education free of charge, if they are not used for economic activity;

y) an agricultural land plot on which more than half of the expected harvest was destroyed as a result of a natural disaster (hurricane, hail, drought, flood, landslide and others) or another force majeure circumstance, which is confirmed by a certificate issued by an authorised person (persons) of the executive body of the municipality;

z) property located in a free industrial zone;

aa) a biological asset;

bb) property received under leasing from a resident of Georgia;

cc) property used for medical activity, except land owned by medical institutions or given under leasing to such institutions;

dd) land plots used for medical activity, attached to medical institutions;

ee) until 1 January 2026, property related to hotel services of an entrepreneurial entity of a tourist zone;

ff) movable property owned by a person employed in the activity (agriculture) provided for by code 01 of the "National Classifier of Types of Economic Activity of Georgia", as well as movable property given under leasing to such a person, which this person uses in the same activity;

ff¹) until 1 January 2028, property (except land) owned by an agricultural cooperative and used in agricultural activity, and movable property given under leasing to it for the same activity;

gg) property (including land plots) used in general education activity by a legal entity of public law – a public school authorised in accordance with the procedure established by the Minister of Education, Science and Youth of Georgia;

gg¹) an object of taxation (land plot) determined in proportion to the area held in co-ownership by a natural person living in a multi-apartment building;

gg²) land plots attached to residential houses and/or garages located within the administrative boundaries of a municipality, within the maximum area established by the representative body of the municipality – the Sakrebulo;

gg³) goods provided for by commodity heading 8903 of the National Commodity Nomenclature of Foreign Economic Activity;

gg⁴) property of a person in bankruptcy regime in accordance with the procedure established by the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors";

gg⁵) immovable property in the ownership/use of a higher educational institution founded by the State, transferred free of charge by a state body and/or a municipality, which is used in educational activity and/or for the provision of services related to educational activity;

gg⁶) property in the ownership of an enterprise of a high-mountain settlement, located on the territory of the same high-mountain settlement – within 10 calendar years from the granting of the relevant status (including the calendar year of granting of the status).

2. The established tax benefit shall not apply to a land plot (or part thereof) transferred by a person to another person under lease, usufruct, rent or another similar form, and/or to buildings/structures (or part thereof) transferred in the same form by an enterprise/organisation, except where the immovable property is transferred by a higher educational institution founded by the State and the transferred immovable property is used in higher educational activity and/or for the provision of services related to higher educational activity.

3. If, after the expiry of the deadline for submitting the declaration, a person has transferred a land plot under lease, usufruct, rent or another similar form, the tax benefit shall no longer apply to that person. At the same time, the person shall be obliged to submit a declaration to the tax authority by the end of the reporting year and to pay the tax in accordance with the tax claim.

Law of Georgia of 15 December 2010 No. 4061-LHG I, No. 75, 27.12.2010, Art. 469

Law of Georgia of 17 December 2010 No. 4142-LHG I, No. 76, 29.12.2010, Art. 515

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 13 October 2011 No. 5118 – website, 31.10.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 5 June 2012 No. 6395 – website, 19.06.2012

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012

Law of Georgia of 12 July 2013 No. 817 – website, 05.08.2013

Law of Georgia of 26 December 2013 No. 1873 – website, 28.12.2013

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 26 July 2014 No. 2540 – website, 06.08.2014

Law of Georgia of 1² December 2014 No. 2953 – website, 23.12.2014

Law of Georgia of 16 July 2015 No. 4037 – website, 28.07.2015

Law of Georgia of 8 June 2016 No. 5382 – website, 17.06.2016

Law of Georgia of 8 June 2016 No. 5372 – website, 24.06.2016

Law of Georgia of 22 June 2016 No. 5491 – website, 29.06.2016

Law of Georgia of 23 March 2017 No. 499 – website, 27.03.2017

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Law of Georgia of 5 July 2018 No. 3109 – website, 11.07.2018

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020

Law of Georgia of 15 July 2020 No. 6942 – website, 28 July 2020.

Law of Georgia of 18 September 2020 No. 7169 – website, 25 September 2020.

Law of Georgia of 16 March 2021 No. 342 – website, 18 March 2021.

Law of Georgia of 22 July 2021 No. 809 – website, 26 July 2021.

Law of Georgia of 2 November 2021 No. 970 – website, 5 November 2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27 December 2022.

Law of Georgia of 30 November 2023 No. 3829 – website, 15 December 2023.

Law of Georgia of 26 June 2025 No. 845 – website, 3 July 2025.

Law of Georgia of 12 November 2025 No. 1061 – website, 14 November 2025.

Article 207. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 – website, 19 October 2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30 December 2011.

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 207¹. (repealed)🔗

Law of Georgia of 8 November 2011 No. 5202 – website, 22 November 2011.

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 208. (repealed)🔗

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 209. (repealed)🔗

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 210. (repealed)🔗

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 211. (repealed)🔗

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 212. (repealed)🔗

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 213. (repealed)🔗

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 214. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 – website, 19 October 2011.

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 214¹. (repealed)🔗

Law of Georgia of 30 June 2017 No. 1182 – website, 13 July 2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 215. (repealed)🔗

Law of Georgia of 14 June 2011 No. 4754 – website, 28 June 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 216. (repealed)🔗

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 217. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 – website, 19 October 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 30 June 2017 No. 1182 – website, 13 July 2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 218. (repealed)🔗

Law of Georgia of 14 June 2011 No. 4754 – website, 28 June 2011.

Law of Georgia of 13 October 2011 No. 5120 – website, 19 October 2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22 November 2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30 December 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29 May 2012.

Law of Georgia of 13 May 2016 No. 5092 – website, 1 June 2016.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 219. (repealed)🔗

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 12 June 2012 No. 6439 – website, 22 June 2012.

Law of Georgia of 2² June 2012 No. 6550 – website, 29 June 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 220. (repealed)🔗

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 221. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 – website, 19 October 2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30 December 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 12 December 2014 No. 2946 – website, 24 December 2014.

Law of Georgia of 30 June 2017 No. 1182 – website, 13 July 2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 222. (repealed)🔗

Law of Georgia of 20 December 2011 No. 5556 – website, 30 December 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 223. (repealed)🔗

Law of Georgia of 14 June 2011 No. 4754 – website, 28 June 2011.

Law of Georgia of 2012

27 March

No. 5942 – website, 12 April 2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25 June 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 224. (repealed)🔗

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 16 December 2016 No. 97 - website, 23.12.2016.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 224¹. (repealed)🔗

Law of Georgia of 16 December 2016 No. 97 - website, 23.12.2016.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 225. (repealed)🔗

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 226. (repealed)🔗

Law of Georgia of 31 May 2011 No. 4720 - website, 10.06.2011.

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 226¹. (repealed)🔗

Law of Georgia of 19 April 2011 No. 4547 - website, 05.05.2011.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 227. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 - website, 19.10.2011.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 228. (repealed)🔗

Law of Georgia of 27 March 2012 No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 229. (repealed)🔗

of Georgia 2012

of 27

March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 230. (repealed)🔗

Law of Georgia of 27 March 2012 No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 231. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 - website, 19.10.2011.

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 232. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 - website, 19.10.2011.

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 233. (repealed)🔗

of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 234. (repealed)🔗

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 235. (Deleted)🔗

Law of Georgia No. 4754 of 14 June 2011 - website, 28.06.2011

Georgia 2012

of the year, 27 March

Law No. 5942 – website, 12.04.2012

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019

Article 236. (Deleted)🔗

Law of Georgia No. 4754 of 14 June 2011 - website, 28.06.2011

Georgia 2012

of the year, 27 March

Law No. 5942 – website, 12.04.2012

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019

Article 237. (Deleted)🔗

Georgia 2012

of the year, 27 March

Law No. 5942 – website, 12.04.2012

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019

Article 238. Securing the Collection of Tax Debt by the Tax Authority🔗

1. The tax authority shall have the right, in order to secure the collection of tax debt, to implement the following measures:

a) tax lien/mortgage;

b) recovery against a third party;

c) seizure of property;

d) sale of seized property;

e) submission of a collection order to a bank account;

f) withdrawal of cash from the taxpayer's cash register;

g) (repealed).

2. The tax authority shall choose the sequence of implementation of the measures for securing the collection of tax debt, unless otherwise provided by this Code.

3. The procedure for implementing the measures provided for by this Chapter shall be determined by an order of the Minister of Finance of Georgia.

4. If a contract on the electronic exchange of information (including information on measures for securing the collection of tax debt) has been concluded between the Revenue Service and the registering authority and/or a banking institution, it is permissible to implement the measures provided for by this Chapter using electronic-technological means, under the conditions defined by the contract.

5. In proceedings in accordance with the Law of Georgia "On Rehabilitation and Collective Satisfaction of Creditors", the measures provided for by this Article shall be applied against an enterprise only for the purpose of collecting tax debt arising after the court judgment on declaring the insolvency application admissible enters into legal force.

6. Upon cancellation of a tax debt, any measure provided for by this Chapter that was initiated to secure its collection shall be cancelled, unless otherwise provided by this Code.

7. The measures provided for by this Chapter may be cancelled:

a) by decision of the Minister of Finance of Georgia or the Head of the Revenue Service;

b) in the case provided for by paragraph 8 of this Article – by decision of the head of the tax authority. At the same time, the measure provided for by Article 239 of this Code may not be cancelled by the head of the tax authority if, for the purpose of deferral of collection of the tax debt, the person's property is encumbered with a tax lien/mortgage.

8. By decision of the head of the tax authority, the collection of a recognized tax debt may be deferred for not more than 3 years, if, in order to secure the collection of the taxpayer's recognized tax debt, a suretyship contract has been concluded, a bank guarantee or an insurance policy has been submitted, and/or the person's property is encumbered with a tax lien/mortgage, the value of which secures the collection of the recognized tax debt. The accrual of penalty shall not be suspended by the deferral of collection of the recognized tax debt.

8¹. By decision of the tax authority, the collection of a recognized tax debt, without the submission of the security measure provided for by paragraph 8 of this Article, may be deferred for not more than 1 year, if the amount of the recognized tax debt does not exceed GEL 50,000.

9. A contract on the deferral of the collection of the recognized tax debt shall be concluded with the taxpayer, which shall reflect the deadlines and conditions for payment of the recognized tax debt.

10. If the taxpayer has not fulfilled the conditions provided for by the contract on the deferral of the collection of the recognized tax debt, the decision of the tax authority on the deferral of the collection of the recognized tax debt shall be revoked.

11. (Repealed – 6 March 2024, No. 4056).

11¹. If a person wishes to pay off the amount of the recognized tax debt (to the extent that the tax lien/mortgage extends over his property), for securing the collection of which, on the basis of paragraph 5 of Article 239 of this Code, a tax lien/mortgage has been extended over his property, it is possible, under the procedure and conditions established by paragraphs 8–10 of this Article, for a contract (schedule) to be concluded with him on the said tax debt. In this case, the measures provided for by Articles 241 and 242 of this Code in respect of the said property may be cancelled by decision of the head of the tax authority.

12. When applying the measures provided for by this Article in respect of a central depository of securities licensed under Georgian legislation, a securities market intermediary, a banking institution as a securities market intermediary, a brokerage company, a Legal Entity of Public Law – Pension Fund of Georgia, a central depository licensed under the legislation of a foreign country, a financial institution licensed under the legislation of a foreign country within the framework of carrying out intermediary activity on the securities market, a notary or a payment service provider, as a payer, it is inadmissible to apply the said measures to those assets (securities and funds) which it holds for the benefit of its clients (in the case of the Legal Entity of Public Law – Pension Fund of Georgia – participants/pension recipients) and/or which are not its property and belong to its client's assets. Such assets of a client shall be recorded separately from own assets, in accordance with Georgian legislation.

12¹. The measures for securing the collection of tax debt provided for by this Chapter shall not apply to financial collateral (the object of financial collateral) provided for by the Law of Georgia "On Financial Collateral, Netting and Derivatives".

12². The measures provided for by this Chapter to secure the collection of tax arrears, except for the measure provided for by Article 243 of this Code, shall not apply to the settlement account of a participant of a system provided for by the Law of Georgia on Payment Systems and Payment Services.

123. On the basis of an application of the National Bank of Georgia, the measures provided for by this Chapter to secure the collection of tax arrears shall be immediately suspended or shall not be applied in respect of a commercial bank in resolution regime, in accordance with the Organic Law of Georgia on the National Bank of Georgia and the Law of Georgia on the Activities of Commercial Banks, for the period specified in the application of the National Bank of Georgia, which shall not exceed 90 days. If the resolution regime ends earlier than the period specified in the application of the National Bank of Georgia, the National Bank of Georgia shall be obliged to notify the tax authority thereof, which shall be entitled to resume the measures to secure the collection of tax arrears.

124. The measures provided for by this Chapter to secure the collection of tax arrears shall not apply to the assets included in the pool of collateral assets defined by subparagraph „b“ of paragraph 1 of Article 2 of the Law of Georgia on Mortgage-Secured Bonds.

125. When applying the measures provided for by this Article to the service provider defined by paragraph 1 of Article 20 of the Law of Georgia on Conversion into Securities, as a payer, it shall be inadmissible to direct the said measures at the funds which are funds due to a special purpose securitisation entity and which the service provider segregates from its own and other clients' assets in accordance with paragraph 2 of the same Article.

126. The measures provided for by this Chapter to secure the collection of tax arrears shall apply to the assets of a sub-fund of an umbrella fund defined by the Law of Georgia on Investment Funds only if the purpose of these measures is to secure the collection of tax arrears arising in connection with the activities of the said sub-fund. Such assets shall be accounted for separately from another sub-fund (other sub-funds) of the umbrella fund, in accordance with the legislation of Georgia.

127. The measures provided for by this Chapter for securing the collection of a tax debt shall extend to the assets of the division of a securitization special purpose entity (securitization division) established in accordance with the Law of Georgia “On Conversion into Securities” only if the purpose of these measures is to secure the collection of a tax debt arising in connection with the activity of the said securitization division. Such assets shall be recorded separately from the other division (divisions) of the securitization special purpose entity, in accordance with the legislation of Georgia.

128. The measures provided for by this Chapter for securing the collection of a tax debt shall not extend to the pension assets defined by the Law of Georgia “On Accumulative Pension”.

1³. (Removed).

1⁴. The measures provided for by this Chapter for securing the collection of a tax debt shall not extend to the pension assets provided for by the Law of Georgia “On Voluntary Private Pension”.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 25 May 2012 No. 6312 – website, 12.06.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015

Law of Georgia of 21 April 2017 No. 649 – website, 10.05.2017

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Law of Georgia of 23 December 2017 No. 1898 – website, 11.01.2018

Law of Georgia of 20 December 2019 No. 5658 – website, 31.12.2019

Law of Georgia of 20 December 2019 No. 5677 – website, 31.12.2019

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020

Law of Georgia of 29 November 2022 No. 2113 – website, 16.12.2022

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023

Law of Georgia of 28 June 2023 No. 3350 – website, 19.07.2023

Law of Georgia of 16 November 2023 No. 3723 – website, 07.12.2023

Law of Georgia of 15 December 2023 No. 3940 – website, 27.12.2023

Law of Georgia of 6 March 2024 No. 4056 – website, 14.03.2024

Law of Georgia of 27 June 2024 No. 4324 – website, 12.07.2024

Article 239. Tax lien/mortgage🔗

1. Tax lien/mortgage is the right of the State to secure the collection of tax arrears from the property of the taxpayer or another obligated person.

2. The right to register a tax lien/mortgage arises simultaneously with the occurrence of tax arrears and from the moment of registration with the registering authority, and extends, within the amount of the tax arrears, to the property owned by the person and/or recorded on their balance sheet (except for property received under leasing), including property acquired after the occurrence of the tax arrears. The right of tax lien/mortgage may be exercised in the case provided for by Article 265 of this Code.

3. A notice on the exercise of the right of tax lien/mortgage shall be sent to the taxpayer/obligated person and to the relevant registering authority, which shall be obliged to register the tax lien/mortgage right no later than the next working day following the day of receipt of the notice.

4. As a result of the sale of property encumbered by a tax lien/mortgage in accordance with the procedure established by Georgian legislation, all rights in rem arising after the registration of the tax lien/mortgage shall be terminated, while other lien/mortgage rights registered before the registration of the tax lien/mortgage shall remain in force.

5. If property encumbered by a tax lien/mortgage is sold or transferred in any way to another owner without termination of the tax lien/mortgage right, the tax lien/mortgage right shall continue to extend to this property against its new owner. The seizure of the said property and its sale shall be carried out in accordance with Articles 241 and 242 of this Code.

6. If, before the registration of a tax lien/mortgage, the lien/mortgage right of banking institutions, microfinance organizations, insurance organizations, international and financial institutions of developed countries as defined by subparagraph "e" of Article 1 of the Law of Georgia "On the Activity of Commercial Banks" is registered over the person's property and the said property is sold, the claims of the above-mentioned financial institutions shall first be satisfied from the proceeds in the part of the obligation arising before the registration of the tax lien/mortgage, and thereafter the claim for tax arrears. The tax lien/mortgage shall not extend to the new owner of this property. If the tax arrears are not fully covered by the remaining amount, the unpaid tax arrears shall remain in force against the person whose property was encumbered by the tax lien/mortgage.

6¹. If, before the registration of a tax lien/mortgage on a person's property, a commercial bank, a microfinance organization, an insurance organization or an international financial institution and a financial institution of developed countries as defined by subparagraph „e“ of Article 1 of the Law of Georgia “On the Activities of Commercial Banks” transfers a claim secured by a tax lien/mortgage to a special purpose entity for securitization established in accordance with the Law of Georgia “On Transformation into Securities”, and the realization of this property takes place, the proceeds shall first satisfy the claims of the securitization special purpose entity in the part of the obligation arising before the registration of the tax lien/mortgage, and thereafter − the claim of the tax debt. The tax lien/mortgage shall not extend to the new owner of this property. If the remaining amount does not fully cover the tax debt, the unfulfilled tax debt remains in force with respect to the person whose property was encumbered with the tax lien/mortgage.

7. The priority of the claim of the tax lien/mortgage in accordance with the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors” after the completion of the proceedings shall be determined in the same manner as existed before the commencement of the proceedings in accordance with the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors”.

8. (Removed – 28.12.2012, No. 189).

9. The right of the tax lien/mortgage shall be terminated:

a) by the authorized body defined by Article 242 of this Code, in the case of realization of the property encumbered with the tax lien/mortgage for the purpose of covering the tax debt;

b) if the taxpayer, with the written consent of the tax authority, realized the property or part thereof and fully directed the proceeds to cover the tax debt;

c) in the case of transfer of the property into state ownership in the manner established by the legislation of Georgia;

d) in the case of realization of the property encumbered with the tax lien/mortgage in accordance with the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors”;

d¹) in the case provided for by paragraph 5 of Article 40¹ of the Law of Georgia “On Enforcement Proceedings”;

e) if, through the implementation of the procedures provided for by Article 265 of this Code, no tax debt arises;

f) (Removed – 28.12.2012, No. 189);

g) in other cases provided for by this Code.

Law of Georgia of 24 June 2011 No. 4963 - website, 30.06.2011.

Law of Georgia of 28 October 2011 No. 5169 - website, 11.11.2011.

Law of Georgia of 30 March 2012 No. 5978 – website, 19.04.2012.

Law of Georgia of 8 May 2012 No. 6145 – website, 17.05.2012.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012.

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Law of Georgia of 15 December 2023 No. 3940 – website, 27 December 2023

Law of Georgia of 6 March 2024 No. 4056 – website, 14 March 2024

Article 240. Recovery against a third party🔗

1. For the purpose of recovering the recognised tax arrears of a taxpayer, the tax authority shall be entitled to submit a tax claim to a third party and to secure the recovery of the tax from that person's property, if the taxpayer's property is so small that the implementation by the tax authority of other measures to secure the recovery of the tax arrears could not ensure the settlement of the recognised tax arrears and it is established by a court judgment or on the basis of other evidence that the third party owes a debt of the taxpayer the payment deadline of which has fallen due.

2. Upon full or partial performance of the claim, the taxpayer's tax arrears shall be extinguished or reduced accordingly.

3. In the event of non-performance by a third party within 30 days of receipt of the tax claim, the tax authority shall be entitled to apply to that person the measures provided for by subparagraphs „a“ and „c“–„f“ of paragraph 1 of Article 238 of this Code.

3¹. In addition to the cases provided for by paragraphs 1–3 of this Article, the tax authority shall be entitled to apply the measures provided for by subparagraphs „a“ and „c“–„f“ of paragraph 1 of Article 238 of this Code to an authorised person carrying out the sale of goods provided for by paragraphs 1 and 2 of Article 161¹ of this Code, if that person fails to perform the obligation provided for by the same Article to pay the VAT amount into the budget.

4. The tax authority shall choose the sequence of implementation of measures to secure the recovery of the tax arrears against a third party.

Law of Georgia of 15 May 2012 No. 6211 – website, 29 May 2012

Law of Georgia of 14 July 2020 No. 6817 – website, 22 July 2020

Article 241. Imposition of attachment on property🔗

1. The tax authority shall be entitled, without a court judgment, to impose attachment on any property owned by a person and/or recorded on that person's balance sheet (except property received under leasing), within the scope of securing the collection of a recognised tax debt. The authorised person of the tax authority shall issue an individual administrative-legal act on the imposition of attachment on property.

1¹. On the basis of a contract concluded between the tax authority and the National Bureau of Enforcement, the tax authority may entrust the National Bureau of Enforcement with the implementation of the procedures for imposing attachment on the property of a taxpayer.

2. For the purposes of this Code, the imposition of attachment on property is the inventory of a person's property prohibiting the disposal of this property (alienation by the person of the property in any form, pledge, mortgage, usufruct, servitude or encumbrance with a structure, conclusion of contracts of loan for use, hire and lease, transfer to another's temporary or permanent possession). The representative of the tax authority shall record the attached items in the act of imposition of attachment on property.

2¹. In the case provided for by paragraph 1¹ of this Article, the tax authority shall send the individual administrative-legal act issued on the imposition of attachment on property to the National Bureau of Enforcement, for the purpose of securing the imposition of attachment on the property of the person indicated therein, which shall, in accordance with the procedure established by the legislation of Georgia, ensure the implementation of the procedures for imposing attachment on property.

3. With the written consent of the tax authority, it shall be permissible for a person to dispose of the attached property if the proceeds are fully directed to covering the tax debt. If, with the consent of the tax authority, the property or part thereof was sold and the proceeds were fully directed to covering the tax debt, the attachment imposed on the property shall be lifted.

4. The act of imposition of attachment on property shall be signed by the representative of the tax authority/National Bureau of Enforcement, the custodian of the property, the taxpayer/obligated person and other persons who attended the imposition of attachment on the property. If these persons refused to sign, a corresponding note shall be made in the act.

5. The tax authority/National Bureau of Enforcement shall immediately send the act on the imposition of attachment on property to the relevant registering authority.

6. When assessing the attached property, an expert or an auditor may be invited.

7. If there is a risk of alienation of property by a person, which will complicate or make impossible the enforcement of a tax debt, the tax authority shall have the right to immediately attach the property (including bank accounts), regardless of whether the tax debt has been recognised. In this case, the attachment may be effected by sealing. The tax authority shall be authorised, on the basis of a contract concluded with the National Bureau of Enforcement, to instruct the National Bureau of Enforcement to attach the taxpayer's property (except bank accounts) and, for that purpose, to carry out sealing procedures.

8. In the case provided for by paragraph 7 of this Article, where the tax authority or the National Bureau of Enforcement carries out the procedures for attaching property, it shall, within 48 hours of the attachment, submit to the court a motion for confirmation of the attachment of the person's property (including bank accounts). The court shall, within 5 days, consider the said motion in an oral hearing and issue a ruling on the full or partial satisfaction of the motion or on the rejection of the motion. The failure of a party to appear at the court hearing or the impossibility of summoning it shall not result in the postponement of the consideration of the motion of the tax authority or the National Bureau of Enforcement. If, within the said period, the tax authority or the National Bureau of Enforcement does not submit a motion to the court or the court does not issue a ruling confirming the attachment of the person's property (including bank accounts), the attachment shall be considered lifted, and the seal placed on the property shall be removed.

9. The attachment placed on property shall be lifted in the cases provided for by paragraph 9 of Article 239 of this Code.

10. Attachment of a bank account implies restriction by the tax authority of the person's right to dispose of the funds existing in or credited to its bank account within the scope of the attachment, except where the person pays to the budget the amounts of tax, penalty and fine provided for by this Code or pays the amount of the state fee in a case to be considered by the Constitutional Court of Georgia or the common courts. The decision of the tax authority on the attachment of the taxpayer's bank account shall indicate the person's identification number and the amount.

10¹. The liquidator of a banking institution, the special manager of a commercial bank, the liquidator of a payment service provider registered in accordance with the Law of Georgia on Payment Systems and Payment Services shall be authorised to transfer attached accounts to another banking institution, another registered payment service provider and/or the National Bank of Georgia in accordance with the Law of Georgia on the Activities of Commercial Banks, the Law of Georgia on Payment Systems and Payment Services and the Law of Georgia on the Activities of Microbanks.

10². In the cases provided for by the Law of Georgia “On Holding Dematerialized Securities”, the Law of Georgia “On the Securities Market”, the Law of Georgia “On Investment Funds”, the Law of Georgia “On the Activities of Commercial Banks” and the Law of Georgia “On the Activities of Microbanks”, the liquidator or the special manager is entitled to transfer the seized securities accounts unchanged to another account operator or to a financial institution with the relevant authority.

11. In the case provided for by paragraph 10 of this article, a person shall not be entitled to open a bank account in the same or another banking institution.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Judgment of the Constitutional Court of Georgia of 28 December 2017 No. 2/8/734 – website, 09.01.2018

Law of Georgia of 23 December 2017 No. 1898 – website, 11.01.2018

Law of Georgia of 27 June 2018 No. 2640 – website, 06.07.2018

Law of Georgia of 20 December 2019 No. 5658 – website, 31.12.2019

Law of Georgia of 9 September 2022 No. 1808 – website, 23.09.2022

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023

Law of Georgia of 16 November 2023 No. 3723 – website, 07.12.2023

Article 242. Realization of Seized Property🔗

1. The court shall consider, in accordance with the procedure established by the Administrative Procedure Code of Georgia, an application of the tax authority or of the National Bureau of Enforcement (in the case of the implementation by the National Bureau of Enforcement of the procedures for the attachment of property) for the realization of the seized property of a person or for its direct transfer into State ownership. The tax authority/National Bureau of Enforcement shall be entitled to request the direct transfer into State ownership of the seized property of the debtor only if the recognized tax debt is equal to or exceeds the market value of the property.

2. In the case of a tax debt recognized as a result of a public notice, the tax authority shall apply to the court with an application for the realization of the seized property of the person 10 days after the expiry of the time limit for appealing the tax claim.

3. The realization by way of auction of the property of the debtor encumbered by a tax lien/mortgage and seized shall be carried out by a legal entity of public law within the governance sphere of the Ministry of Justice of Georgia – the National Bureau of Enforcement, on the basis of a judge's order, in accordance with the procedure established by the Law of Georgia on Enforcement Proceedings, except for the property provided for by paragraph 4 of this Article, the realization of which shall be carried out by the tax authority.

4. The realization of seized perishable goods may be carried out immediately. The attachment of perishable goods and their realization shall be carried out without a court judgment.

5. From the proceeds received as a result of the sale of the property, the following shall be covered in the first place:

a) the enforcement fee and enforcement costs – in the case of realization of the property by the National Bureau of Enforcement;

b) the costs related to the removal and storage of the property, and in the case of realization of the property provided for by paragraph 3 of this Article – also the amounts related to the realization of the property;

c) the amounts of tax;

d) the amounts of fine and penalty interest.

6. The funds remaining after the amounts covered in the first place from the proceeds received as a result of the sale of the property shall be returned to the taxpayer within 5 working days.

7. The relevant tax authority shall be immediately notified of the realization of the seized property of the debtor in accordance with the procedure provided for by paragraph 3 of this Article, and the documentation confirming its realization shall be submitted to it, after which the tax authority shall ensure the implementation of the appropriate measures provided for by this Code in respect of the taxpayer (debtor) and the new owner of the realized property.

Law of Georgia of 10 December 2010 No. 3969-LHG I, No. 72, 22.12.2010, Art. 433

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011

Article 243. Submission of a collection order to a bank account🔗

1. In the cases provided for by this Code, the tax authority shall have the right, within the limits of the recognised tax debt, to write off from the person's bank accounts (except for a deposit (term) account) by a collection order the amounts of tax, penalty and fine and to credit them to the relevant budget.

2. The decision of the tax authority on the write-off of the amount of tax and sanction (including customs sanction) from the person's bank account shall be sent to this person electronically.

3. In the collection order of the tax authority, the person's identification number and the amount to be written off shall be indicated.

4. In the event of an increase or decrease of the recognised tax debt, the tax authority shall have the right to make the corresponding correction of the amount in the collection order submitted to the banking institution.

5. The liquidator of a banking institution, the special manager of a commercial bank, the liquidator of a payment service provider registered in accordance with the Law of Georgia "On Payment Systems and Payment Services" shall be entitled to transfer those accounts on which a collection order has been submitted by the tax authority to another banking institution, another registered payment service provider and/or the National Bank of Georgia in accordance with the Law of Georgia "On the Activities of Commercial Banks", the Law of Georgia "On Payment Systems and Payment Services" and the Law of Georgia "On the Activities of Microbanks".

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 23 December 2017 No. 1898 – website, 11.01.2018

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Law of Georgia of 20 December 2019 No. 5658 – website, 31.12.2019

Law of Georgia of 9 September 2022 No. 1808 – website, 23.09.2022

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023

Article 244. Withdrawal of cash from a person's cash desk🔗

1. If the measure provided for by Article 243 of this Code is insufficient to cover the recognised tax debt, the tax authority shall have the right, without a judge's order, to carry out the withdrawal of cash from the cash desk (place of storage of cash) of the taxpayer/other obligated person in the amount necessary to cover the recognised tax debt.

2. Cash withdrawn from a person's cash desk or other storage shall be deposited on the same day in a banking institution to the relevant account of the budget, and if this is impossible – on the next working day.

3. The implementation of the measure provided for by this Article in the residential apartment of a natural person shall be inadmissible without a judge's order.

Article 245. (removed)🔗

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Article 246. Sham counterparty of a taxpayer🔗

1. A person shall be considered a sham counterparty of a taxpayer if that person is used for the purpose of evading a measure to secure the collection of an expected or existing tax debt.

2. Recognition of a person as a sham counterparty of a taxpayer shall be effected on the basis of a court judgment.

3. A court shall consider the tax authority's application for recognition of a person as a sham counterparty of a taxpayer in accordance with the procedure established by the Administrative Procedure Code of Georgia.

4. The tax authority shall be entitled, together with the submission to the court of an application for recognition of a person as a sham counterparty of a taxpayer, to extend a tax lien/mortgage over the property of that person within the limits of the taxpayer's tax debt. If the court does not satisfy the tax authority's application for recognition of a person as a sham counterparty of a taxpayer, the tax lien/mortgage shall be terminated.

5. The tax authority shall be entitled, for the purpose of collecting the recognised tax debt of the taxpayer, to apply to the sham counterparty of the taxpayer the measures to secure the collection of a tax debt provided for by this Chapter.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 247. (Removed)🔗

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Article 248. Securing the fulfilment of a tax obligation by a taxpayer🔗

1. The means of securing the fulfilment of a tax debt by a taxpayer are:

a) surety;

b) bank guarantee;

c) insurance policy.

2. The Minister of Finance of Georgia shall be entitled, for the purpose of securing the payment of import or export duties, to determine other types of guarantee.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Article 249. Suretyship🔗

1. Under a suretyship contract, the surety shall be jointly and severally obligated to cover in full the tax debt of the taxpayer, if the taxpayer fails to pay this debt within the established term. Suretyship shall be formed by a contract concluded between the surety and the tax authority.

2. A surety may be either a legal entity or a natural person. Several persons may be sureties for the same obligation. In such a case, they shall be liable as joint and several debtors, even if they did not assume the suretyship jointly.

3. In the event of failure by the surety to perform its obligations, the tax authority shall have the right to demand from any participant of the suretyship contract payment of the taxpayer's tax debt and, for the purpose of its collection, to apply the measures provided for by this Code to secure the collection of tax debt.

4. The provisions of the civil legislation of Georgia shall apply to the legal relations defined by this article, unless otherwise provided by the tax legislation of Georgia.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 250. Bank Guarantee🔗

1. By virtue of a bank guarantee, a banking institution (guarantor), at the request of the taxpayer, shall assume a written obligation to cover, within the scope of the assumed obligation, the taxpayer's tax debt on the basis of a written request from the tax authority.

2. The guarantor may not reclaim the bank guarantee.

3. In the event of failure by the guarantor to perform its obligations, the tax authority shall have the right to demand from any participant of the bank guarantee contract payment of the taxpayer's tax debt and, for the purpose of its collection, to apply the measures provided for by this Code to secure the collection of tax debt.

4. The provisions of the civil legislation of Georgia shall apply to the legal relations defined by this article, unless otherwise provided by the tax legislation of Georgia.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 251. (Repealed)🔗

Law of Georgia No. 4754 of 14 June 2011 – website, 28.06.2011.

Of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 252. Write-off of tax debt🔗

1. Tax debt shall be written off in accordance with the procedure established by the Minister of Finance of Georgia:

a) if it is established that the person has no property and/or assets;

b) in the cases provided for by Articles 57 and 58 of this Code;

c) if the person has not submitted tax reporting during the last 6 calendar years and the legislation of Georgia no longer provides for its legal form;

d) in the case of liquidation of a budgetary organization;

e) if a legal entity has been removed from the Register of Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities and the Register of Political Unions of Citizens (Parties) in accordance with the procedure established by the legislation of Georgia;

f) in the case provided for by paragraph 4 of Article 106 of the Law of Georgia “On Rehabilitation and Collective Satisfaction of Creditors”, when the acquirer (acquirers) of the insolvency estate of a private law entrepreneurial legal entity as a single property complex is (are) registered as the sole partner (partners) of this enterprise

1¹. In addition to the cases provided for by paragraph 1 of this Article, the tax debt of a budgetary organization may be written off by a decision of the Government of Georgia in accordance with the procedure established by the Government of Georgia.

2. If a person whose tax debt has been written off continues economic activity, the accrual of the previously written-off tax obligation and/or the imposition of a sanction shall be resumed in respect of that person, except for the cases provided for by subparagraph “f” of paragraph 1 of this Article and paragraph 1¹.

Law of Georgia of 24 June 2011 No. 4963 - website, 30.06.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 27 May 2016 No. 5144 - website, 04.06.2016.

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020.

Article 253. Procedure for the repayment of recognised tax debt🔗

1. Recognised tax debt shall be repaid in the following sequence:

a) the amount of tax;

b) fine;

c) penalty interest.

2. Taking into account the sequence referred to in paragraph 1 of this Article, the procedure for the repayment of recognised tax debt shall be established by the Minister of Finance of Georgia by Order.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Article 254. Securing tax arrears during a tax dispute period🔗

1. For the purposes of this Article, disputed tax arrears is the amount of tax and/or sanction (including customs sanction) assessed against a person, which is not recognized and is appealed in accordance with the procedure established by this Code.

2. The obligation to pay disputed tax arrears shall be considered suspended from the day the tax dispute is initiated until its completion.

3. In order to secure disputed tax arrears, the tax authority shall have the right to impose attachment on:

a) the person's property;

b) the person's bank accounts within the scope of the disputed tax arrears, in the cases provided for by paragraphs 7 and 8 of Article 241 of this Code and in accordance with the procedure established by the same paragraphs.

4. During the tax dispute period, the measure provided for by paragraph 3 of this Article shall not be applied to the person and an already applied measure shall be cancelled if:

a) during the tax dispute period, in order to secure the disputed tax arrears, a suretyship contract has been concluded in accordance with the requirements of this Code, a bank guarantee or an insurance policy has been submitted;

b) the person's property is encumbered with a tax pledge/mortgage, the value of which secures the collection of the disputed tax arrears.

5. All measures initiated to secure the disputed tax arrears and the submitted means of security shall be considered cancelled if the tax dispute is resolved in favour of the taxpayer.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Article 255. General provisions relating to tax control🔗

1. The general provisions relating to tax control defined by this Title apply to all persons, unless otherwise provided by the tax legislation of Georgia.

2. Tax control of a person's activity shall be exercised only by the tax authority. Other controlling bodies and law enforcement bodies shall be prohibited from exercising tax control of a person's activity.

3. Tax control procedures shall not, within reasonable limits, disrupt the usual rhythm of a person's activity and shall not suspend that person's activity.

4. The types of tax control are current control and tax audit.

5. Tax control shall be exercised without a judge's order, except in the cases directly provided for by this Code.

6. Without a judge's order, it shall be prohibited to re-audit an already audited matter of a person's activity for the same period, except for matters in respect of which the person submits an amended tax return for the already audited period.

7. Where necessary, for the purpose of carrying out a specific tax control action, a specialist/expert may be invited.

8. An application by the tax authority on a matter defined by this Article shall be considered by a court in accordance with the procedure established by the Administrative Procedure Code of Georgia.

9. (Removed – 13.05.2016, No. 5092).

10. When a tax audit is conducted at the initiative of a taxpayer, tax control shall be exercised without a judge's order.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Article 256. General provisions relating to current control of a person's activity🔗

1. Current control procedures of a person's activity shall be carried out without prior notice, on the basis of an order of an authorised person of the tax authority.

2. The tax authority shall be entitled to use technical means for the purpose of recording current control procedures.

3. Current control of a person's activity shall be carried out during that person's working hours and/or during the time of actual work.

4. A person shall be entitled to attend the current control procedures carried out in respect of that person.

5. In the cases provided for by this Code, a record shall be drawn up on the results of current control procedures, which shall be signed by the authorised person of the tax authority carrying out the current control procedures and the taxpayer/that person's representative, as well as by other persons participating in these procedures. If a person refuses to sign the record, a corresponding note shall be made in the record.

6. The procedure for carrying out the current control procedures provided for by this Chapter shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Article 257. Chronometry🔗

1. The tax authority is entitled, for the purpose of determining, within a certain period of time, the taxpayer’s income, the volume of supply of goods/services and the number of hired natural persons, to carry out observation of the taxpayer’s economic activity and examination of this activity by way of conducting chronometry.

2. Chronometry shall be conducted by keeping continuous records during the day/night on the volume of goods/services produced and/or supplied by the taxpayer. If necessary, the authorized person of the tax authority is entitled to install meters and other technical means and, at the end of each day of conducting chronometry, to register their data.

3. Chronometry shall be conducted for not less than 7 days. The start and end dates of chronometry shall be determined by a specific calendar date and/or by the deadline for performance of the operation subject to control.

4. In the case provided for by a contract concluded by the Revenue Service with another administrative body, when conducting chronometry, a representative of this administrative body may be invited, and also, if necessary, an expert/specialist shall be invited on the basis of a contract.

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 257¹. Tax Monitoring🔗

1. The tax authority is entitled, by assigning an authorized person(s) to the place of economic activity of a taxpayer carrying out economic activity for a period of up to 6 months, to carry out tax monitoring and to use the information obtained during a tax audit for the purpose of determining the person’s tax obligation. The term for carrying out tax monitoring may be extended by agreement with the Head of the Revenue Service.

2. The purpose of tax monitoring is independent quantitative accounting of the acquisition, expenditure, losses of the main types of commodity-material assets used by the taxpayer in economic activity, as well as the supply of finished products (by types), and obtaining data on such accounting and/or identification of possible risks of concealment/hiding of the object of taxation or information related thereto.

3. The procedure for carrying out tax monitoring shall be established by the Minister of Finance of Georgia.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 258. Control purchase🔗

1. The purpose of a control purchase of goods/services is to determine the actual volume of income received by a taxpayer through the supply of goods and/or the provision of services and/or to detect a fact of violation of the legislation of Georgia.

2. The tax authority has the right to carry out a control purchase of goods/services from a taxpayer and/or to determine the price of goods/services by offering a control purchase and/or, for the purpose of detecting a fact of violation of the tax legislation of Georgia, to offer goods/services to the taxpayer for purchase.

3. An authorized person of the tax authority, when carrying out the procedure of a control purchase and/or of offering a control purchase, may act as a pseudo-consumer. The head of the tax authority is authorized for this purpose to issue pseudo-documents to the person carrying out ongoing control.

4. The tax authority has the right, when carrying out the procedure of a control purchase of goods/services from a taxpayer and/or of offering a control purchase, to use technical means of recording the procedure without a judge's order.

5. If the goods purchased through a control purchase do not leave the territory of the commercial facility and their appearance and packaging have not been damaged, then, on the basis of the control purchase report, the transaction shall be subject to cancellation (the purchased goods are returned to the seller, and the money paid – to the buyer).

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29 December 2010, Art. 506

Article 259. Control over compliance with the rules for the use of cash registers🔗

1. Authorized persons of the tax authority shall have the right, without a court judgment, to exercise control over compliance with the rules for the use of cash registers in accordance with the procedure established by the Minister of Finance of Georgia.

2. When a person carrying out economic activity settles accounts with customers in cash upon the supply of goods/services, the relevant data shall be recorded using a cash register. A person who settles accounts in cash for goods/services supplied/to be supplied to them shall be considered a customer.

3. The rules for maintaining the state register of cash registers, the operation of cash registers, registration with the tax authority, sealing of metering and counting mechanisms at filling stations, and the production of a document equated to a receipt, as well as the mandatory requisites to be entered in a cash receipt, shall be established by the Minister of Finance of Georgia.

4. The following shall be exempt from the obligation to use cash registers:

a) a person, in the part of settlement with a customer where:

a.a) a strict accounting document confirming the fact of cash settlement, approved in accordance with the procedure established by the legislation of Georgia, is used;

a.b) a tax invoice is issued for the supply of goods and/or the provision of services;

b) a natural person who does not use hired labour and sells agricultural products obtained in a personal or family household or goods produced (processed) therefrom, – in that part of the activity;

c) a natural person with micro business status, except for natural persons with micro business status carrying out individual activities determined by the Government of Georgia or carrying out activities within the administrative boundaries of an individual municipality;

c¹) a person with the status of a fixed tax payer − in the part of the activity taxable by fixed tax (except for the activity taxable at the rate provided for by subparagraph „b“ of paragraph 1 of Article 95³ of this Code);

d) a natural person carrying out economic activity who is not obliged to register as an individual entrepreneur;

e) a person who supplies goods/services and receives cash on the territory of customers (in houses, organizations, enterprises), – in that part of the activity, provided that a document equated to a receipt is issued;

e¹) a person − in cases determined by the Minister of Finance of Georgia. In these cases, the person shall be entitled to issue a document equated to a receipt in that part of the activity;

f) a person who supplies goods/services and receives cash through automated or mechanical devices, – in that part of the activity;

g) an individual entrepreneur who carries out retail trade in the form of street vending, as well as a person who sells newspapers and magazines, – in that part of the activity;

h) person – in the part of the activity defined by subparagraph „d“ of Article 99 of this Code;

i) banking institution, microfinance organisation;

i¹) payment service provider and its agent provided for by the Law of Georgia “On Payment Systems and Payment Services” – within the scope of the activity provided for by the Law of Georgia “On Payment Systems and Payment Services”;

j) organisers of a gambling club, gaming machine salon, totalisator – in this part of the activity, except for the activity carried out in the part of organising gaming machine games in a system-electronic form and organising totalisator games in a system-electronic form.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia 2012

of 24 April

No. 6053 – website, 27.04.2012.

Law of Georgia of 25 May 2012 No. 6312 – website, 12.06.2012.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Article 260. Inspection🔗

1. An authorised person of the tax authority shall be entitled, for the purpose of conducting tax control, to carry out a visual inspection of a person's territories, buildings and structures, fixed assets and commodity-material valuables.

2. Inspection of the residential apartment of a natural person shall be permissible only on the basis of a court judgment.

3. During inspection, examination of the taxpayer's documentation shall be prohibited.

4. The inspection procedure does not include visual inspection and examination of the contents of a safe, cupboard, drawer and other similar receptacle.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Article 261. Inventory🔗

1. The head of the tax authority shall be entitled, without a court judgment, to issue an order to conduct an inventory of the goods and material assets and/or fixed assets of a person holding excisable goods (the head of the tax authority shall be entitled to issue an order to conduct an inventory of the goods and material assets and/or fixed assets of a person holding non-excisable goods no more than 2 times during a calendar year, while for the 3rd time the inventory may be conducted by order of the head of the Revenue Service/his or her deputy). In order to conduct the inventory within a reasonable time, the head (director) of the taxpayer shall, within 2 working days from the delivery of the order, establish an inventory commission. The persons to be included in the inventory commission shall be those who are well familiar with the property being inventoried, know its value and primary accounting records, and also, at the request of the tax authority, employees of the tax authority and/or specialists invited by it. The inventory commission shall be obliged to fully and timely record the goods and material assets and/or fixed assets at the place of production and storage, compare the results of the recording with the relevant bookkeeping data, and enter all of this in the record of the description of the goods and material assets and/or fixed assets.

2. The head of the tax authority shall be entitled, by an order to conduct an inventory, to establish the inventory commission himself/herself and determine its composition, and also, where necessary, including where the head (director) of the taxpayer has failed to issue an order on the establishment of the inventory commission within the period established by paragraph 1 of this Article, to issue an order on the establishment of the inventory commission. When determining the composition of the inventory commission in accordance with this paragraph, the inclusion of the taxpayer's representative(s) therein shall be taken into account.

3. The head of the tax authority shall be entitled, without a court judgment, to issue an order on a selective inventory by individual types of goods and material assets and/or fixed assets. The tax authority shall be authorised, without establishing an inventory commission, to carry out a description of the actual state of the goods and material assets and/or fixed assets in the presence of the taxpayer or his or her representative. The taxpayer shall be obliged, within 2 working days, to submit the accounting (bookkeeping) data on the balances of the goods and material assets and/or fixed assets by individual types, after which the authorised person of the tax authority shall compare the actual and the relevant bookkeeping data of the goods and material assets and/or fixed assets and enter all of this in the record of the description of the goods and material assets and/or fixed assets.

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 8 November 2011 No. 5202 - website, 22 November 2011.

Article 262. Types of Tax Audit🔗

A tax audit may be a desk tax audit and a field tax audit.

Article 263. Desk Tax Audit🔗

1. A desk tax audit shall be conducted on the basis of an order of an authorized person of the tax authority, on the specific issue determined by this order.

2. When conducting a desk tax audit, the tax authority shall have the right, in accordance with the procedure established by this Code, to request the submission of accounting documentation and/or information related to taxation.

3. A desk tax audit shall be conducted without visiting the place of the person's activity, on the basis of information related to the person's taxation available at the tax authority, as well as explanations received from the taxpayer and accounting documentation.

4. If errors revealed as a result of a desk tax audit cause a change in the tax amount, the authorized person conducting the desk tax audit shall draw up a tax audit act.

Article 264. Field tax audit🔗

1. A field tax audit shall be conducted on the basis of a decision of an authorized person of the tax authority.

2. A notification shall be sent to the taxpayer, in written or electronic form, not less than 10 working days before the commencement of the audit.

3. The audit shall commence not later than 30 days after delivery of the notification to the taxpayer. If the audit could not commence within the said period, the notification shall be considered invalid.

4. A field tax audit may include a full or thematic audit of the taxpayer's activities.

5. A field tax audit may also include the current control procedures of the taxpayer's activities.

6. The term of a field tax audit may be extended by not more than 3 months. If necessary, in agreement with the Head of the Revenue Service, the term of the audit may be further extended by not more than 2 months.

7. The taxpayer shall be obliged, during a field tax audit, to create for the auditors the same working conditions as normally exist at the taxpayer's.

8. An authorized person of the tax authority shall have the right to request a duly certified copy of the accounting documentation related to the tax obligation and/or information related to taxation, and, in the event of the taxpayer's failure to comply with the said request, to seize the original of the said document, which shall be returned to the taxpayer immediately upon completion of the field tax audit. In the event of seizure of documentation, a record of seizure shall be drawn up.

9. If the continuation of a commenced tax audit is impossible due to force majeure or another circumstance, the authorized person of the tax authority shall adopt a decision on suspension of the tax audit. The tax audit shall resume immediately upon elimination of the force majeure or other circumstance. The running of the term of the tax audit shall resume from the day of continuation of the said audit.

10. If the specifics of the tax audit require the audit to be conducted in several stages, an interim act shall be drawn up after each stage.

Law of Georgia No. 5556 of 20 December 2011 - website, 30.12.2011.

Article 265. Urgent Field Tax Audit🔗

1. An urgent field tax audit shall be conducted without written notification, with court permission, if:

a) during the last tax audit, facts of significant violation of tax obligations by the taxpayer were revealed;

b) there is reliable information that renders suspicious the origin of the person's financial and material resources;

c) there is reliable information about an undocumented increase of property or another object subject to taxation;

d) the tax declarations and other documents submitted to the tax authority do not confirm the reality of the objects of taxation and the calculated taxes;

e) a tax declaration or documents necessary for calculating and/or paying tax have not been submitted;

f) the tax authority has information that the person plans to evade the fulfillment of tax obligations by leaving Georgia, transferring assets to another person, destroying, concealing, correcting or altering documents confirming a tax offence, or taking other measures.

2. The tax authority shall, within 48 hours from the start of the urgent field tax audit, apply to the court and obtain its permission to conduct the field tax audit. At the same time, if the basis for applying to the court with a request to conduct an urgent field tax audit is the precondition provided by subparagraph „f“ of paragraph 1 of this Article (the tax authority has information that the person plans to evade the fulfillment of tax obligations by transferring assets to another person), the tax authority has the right to extend the tax lien/mortgage over the taxpayer's property, specifically over the assets provided by the mentioned precondition, within the value of the same assets, regardless of whether the taxpayer has a tax debt. If the court does not grant the tax authority permission to conduct the urgent field tax audit, the tax lien/mortgage shall be terminated. In addition, the tax authority shall, after completion of the urgent field tax audit, adjust the amount of the applied tax lien/mortgage to the accrued tax debt in proportion to the amount of this debt (proportionally), indicating the asset/part of the asset over which the tax lien/mortgage right extends.

3. Before obtaining court permission, the tax authority shall not have the right to start an urgent field tax audit. Representatives of the tax authority have the right to seal only those tax documents and commodity-material valuables of the taxpayer that are necessary for conducting the urgent field tax audit.

4. If the court does not grant the tax authority permission to conduct an urgent on-site tax audit within the established period, the tax authority shall be obliged to remove the seals placed on the taxpayer's tax documents and/or commodity-material assets.

Judgment of the Constitutional Court of Georgia of 28 December 2017 No. 2/8/734 – website, 9 January 2018.

Law of Georgia of 27 June 2018 No. 2640 – website, 6 July 2018.

Article 266. (Deleted)🔗

Georgia 2012

of 27 March

Law No. 5942 – website, 12 April 2012.

Law of Georgia of 28 June 2019 No. 4906 – website, 4 July 2019.

Article 267. Tax Audit Act🔗

An act shall be drawn up on the results of the tax audit, which shall indicate:

a) all factual circumstances, evidence and arguments that were of material importance in determining the taxpayer's tax obligation. If the audit was based on an expert's conclusion, the act shall indicate the content of that conclusion;

b) the norm of the Tax Code of Georgia and/or an act of the tax legislation of Georgia by which the auditors were guided in determining the taxpayer's tax obligation;

c) the exact dates of the incurrence of the taxpayer's tax obligations (if their determination is possible), the calculation of the tax and fine, the total amount payable or receivable, the requisites of the documents (if necessary – copies) by which the incurrence of these claims and obligations is confirmed, as well as the content of the annexes to the tax audit act.

Article 268. Making a decision on the basis of a tax inspection act🔗

1. The authorized person of the tax authority shall make a decision on the assessment or non-assessment of taxes and/or sanctions on the basis of the tax inspection act, a copy of which shall be submitted to the taxpayer together with the corresponding tax claim.

2. In the event of detection of an administrative offence, the authorized person of the tax authority conducting the tax inspection shall draw up a protocol on the administrative offence.

3. In the event of detection of signs of a crime as a result of a tax inspection, the relevant materials shall be immediately sent to the appropriate investigative authority according to jurisdiction.

4. For the purpose of establishing a uniform practice of tax administration, by decision of the Minister of Finance of Georgia an auditors' council shall be created, which shall include employees of the Ministry of Finance of Georgia and the Revenue Service, as well as invited specialists.

5. If the making of a decision on the results of a tax inspection establishes a principle/method of taxation and/or of application of a sanction for an offence different from the existing one, the tax authority shall have the right to apply to the auditors' council, which shall be authorized to make a decision on the application or non-application of the said principle/method no later than 20 days from the application. The decision of the auditors' council shall be binding on the tax authority.

Article 269. Tax Offence and General Principles of Tax Liability🔗

1. A person's unlawful act (action or omission) for which liability is provided for by this Code shall be considered a tax offence. For a tax offence, liability may be imposed on a person only on the grounds and in the manner established by this Code.

2. When imposing a sanction for a tax offence, if liability for the commission of such an act has been abolished or mitigated by law, the norm established by the new law shall apply, and if liability has been introduced or aggravated, the norm in force at the time of the commission of the act shall apply.

2¹. If, before the completion of the consideration of a tax dispute, liability for the commission of such an act has been abolished or mitigated by law, the body considering the dispute shall be obliged to apply the norm established by the new law.

3. Liability for the commission of an offence provided for by this Code shall be imposed on an enterprise/organisation and a natural person. The application of a tax sanction to a person for a tax offence does not release that person from the obligation to pay due taxes.

4. The application of a tax sanction to an enterprise/organisation for a tax offence, where the relevant grounds exist, does not release its officials from administrative, criminal or other type of liability established by the legislation of Georgia.

5. Liability established by this Title shall not be imposed on a person if the tax offence is caused by the effect of force majeure. Force majeure shall be considered such an emergency or exceptional circumstance that makes impossible the performance of the obligations established by this Code and the occurrence of which does not depend on the person's will, including:

a) natural disaster (earthquake, flood, landslide, avalanche, fire and others);

b) restriction of foreign trade, declaration of a state of emergency/martial law, as well as another decision of a state body;

c) mass unrest, strike.

5¹. (removed – 1 May 2015, No. 3581).

6. Due to incorrectly reported information in a declaration/calculation, the fine provided for by this Title shall not be imposed on a person who submitted to the tax authority a corrected declaration/calculation before the delivery of the relevant decision of the court or tax authority on conducting a tax audit or before the drawing up of a protocol on a tax offence.

6¹. (removed – 28 June 2019, No. 4906).

7. The tax authority/body considering the dispute or court has the right to release a bona fide taxpayer from the sanction provided for by this Code if the offence is caused by the taxpayer's mistake/ignorance.

71. (removed – 28 June 2019, No. 4906).

8. For the purposes of this Title, an offence shall be considered as committed repeatedly if the same act was committed within 12 months from the detection of the previous offence. At the same time, an offence provided for by Article 281 of this Code shall not be considered as committed repeatedly if the person committed the offences provided for by the same Article on the same day, at territorially separate facilities.

9. An authorised person of the tax authority shall have the right, in accordance with the procedure established by the Minister of Finance of Georgia and in the established cases, without drawing up a protocol of a tax offence, to set a time limit for the person to eliminate the tax offence. During the period of validity of the said time limit, the person shall not be held liable for the same offence.

10. In the event of detection of an offence provided for by Article 288⁴ of this Code, a natural person who has availed himself/herself of the right to deduct the untaxed minimum from the joint income and to refund/offset the respective tax amount shall not be held liable under paragraph 2 of Article 275 of this Code.

11. 50 per cent of the amounts of fines assessed as a result of a tax audit shall be cancelled if the taxpayer, within 30 days from the delivery of the tax claim issued as a result of that tax audit, has paid in full to the budget the amount equal to the taxes provided for by the tax claim, as well as 50 per cent of the fines, and the person has recognised, within the same period, the amount provided for by the respective tax claim.

Law of Georgia of 20 May 2011 No. 4705 – website, 01.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 26 December 2014 No. 3015 – website, 30.12.2014.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 17 July 2015 No. 4065 – website, 29.07.2015.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 270. Tax sanction🔗

1. A tax sanction is a measure of liability for a committed tax offence.

2. A tax sanction shall be applied in the form of a warning, a penalty, a monetary fine, gratuitous confiscation of the goods of the offence and/or a vehicle, in the cases provided for by this Code.

3. For one and the same tax offence, a person may not be imposed different liability or be imposed liability repeatedly.

4. When several tax offences are detected, a tax sanction shall be applied for each offence separately. At the same time, a stricter sanction shall not absorb a less strict sanction.

5. (Removed - 28.06.2019, No 4906).

6. No penalty shall be accrued on a tax sanction.

7. For the commission of a tax offence provided for by Article 273 or 281 of this Code, by paragraph 1 or paragraph 11 of Article 286, or by Article 2885 or 291 (except where these actions are committed repeatedly), a warning may be applied instead of a monetary fine.

7¹. (Removed – 28.12.2012, No 189).

8. (Removed – 08.11.2011, No 5202).

Law of Georgia of 7 December 2010 No 3880-LHG I, No 69, 15.12.2010, Art. 421

Law of Georgia of 22 March 2011 No 4470 - website, 01.04.2011

Law of Georgia of 20 May 2011 No 4705 - website, 01.06.2011

Law of Georgia of 14 June 2011 No 4754 - website, 28.06.2011

Law of Georgia of 8 November 2011 No 5202 - website, 22.11.2011

Law of Georgia of 20 December 2011 No 5556 - website, 30.12.2011

Law of Georgia 2012

of 27 March

No 5942 – website, 12.04.2012

Law of Georgia of 15 May 2012 No 6211 – website, 29.05.2012

Law of Georgia of 28 December 2012 No 189 - website, 29.12.2012

Law of Georgia of 26 December 2013 No 1886 - website, 30.12.2013

Law of Georgia of 30 June 2017 No 1182 - website, 13.07.2017

Law of Georgia of 27 December 2018 No 4225 – website, 31.12.2018

Law of Georgia of 28 June 2019 No 4906 – website, 04.07.2019

Law of Georgia of 5 April 2023 No 2768 – website, 18.04.2023

Article 271. Proceedings in a case of a tax offence🔗

1. Proceedings in a case of a tax offence shall be conducted by the tax authority. The procedure for proceedings in a case of a tax offence shall be established by the Minister of Finance of Georgia.

11. (repealed – 28.06.2019, No. 4906).

2. Upon detection of a tax offence, an authorised person of the tax authority shall draw up a protocol of the tax offence, except where the offence is recorded in an act of a tax audit.

2¹. In the event of detection of an offence provided for by Articles 277–279 of this Code, the protocol of a tax offence shall also be drawn up by the National Bureau of Enforcement.

3. (repealed – 28.06.2019, No. 4906).

4. The person authorised to draw up a protocol of a tax offence shall consider the case of the tax offence at the place of the offence and shall impose a tax sanction on the offending person on the spot. In this case, the corresponding liability shall be imposed on the person on the basis of the protocol of the tax offence, which is considered a tax claim.

5. The protocol of a tax offence shall be presented to the offending person for review, who has the right to submit explanations and comments, which shall be reflected in the protocol or attached to it. One copy of the protocol of the tax offence shall be handed or sent to the offending person.

6. If any data determined by the legislation of Georgia is not reflected in the protocol of a tax offence, or if the protocol of a tax offence has been drawn up in violation of the law, the head of the relevant body or the body considering the dispute shall adopt a decision on releasing the person from tax liability.

7. If signs of a crime are detected, the materials shall be immediately sent to the relevant investigative body according to jurisdiction.

8. In the case provided for by paragraph 7 of this Article, within 30 days from the adoption of the relevant decision by the investigative body or the court, an authorised person of the tax authority shall issue an order in the case of the tax offence. An order issued on the imposition of a tax sanction is considered a tax claim. An order issued in violation of the above time limit shall be void.

9. (repealed – 20.05.2011, No. 4705).

10. (repealed – 28.06.2019, No. 4906).

11. (repealed – 28.06.2019, No. 4906).

Law of Georgia No. 4206 of 22 February 2011 – website, 10.03.2011.

Law of Georgia No. 4705 of 20 May 2011 – website, 01.06.2011.

Law of Georgia No. 4754 of 14 June 2011 – website, 28.06.2011.

Law of Georgia No. 4963 of 24 June 2011 – website, 30.06.2011.

Law of Georgia No. 5202 of 8 November 2011 – website, 22.11.2011.

Law of Georgia No. 3581 of 1 May 2015 – website, 15.05.2015.

Law of Georgia No. 4906 of 28 June 2019 – website, 04.07.2019.

Article 272. Penalty🔗

1. A penalty is a tax sanction imposed on a person for failure to pay the amount of tax payable within the period established by the tax legislation.

1¹. In the event of detection, during customs clearance of goods provided for by paragraph 4 of Article 5 of the Customs Code of Georgia, of unpaid import duty or the amount for temporary importation of goods within the established period, the imposition of a penalty may be carried out by the authorized service of the Ministry of Internal Affairs of Georgia in accordance with the procedure established by a joint order of the Minister of Finance of Georgia and the Minister of Internal Affairs of Georgia.

2. A penalty shall be charged on the amount of tax which is the difference between the tax obligations unfulfilled by the taxpayer and the sum of overpaid taxes. Unless otherwise provided by this Code, the penalty shall be charged for each day of delay, from the day following the day of expiry of the tax payment deadline.

2¹. The charging of a penalty shall cease from the date of expiry of 3 years from the day on which the obligation to charge it arose.

3. From the entry into legal force of a ruling on recognizing as admissible an application regarding the insolvency of a person and on opening rehabilitation or bankruptcy proceedings, from revocation of the insurer's license for the relevant activity or the license for voluntary private pension activity, or from the commencement by the National Bank of Georgia of liquidation of a banking institution, microfinance organization, non-bank deposit institution − credit union, payment service provider, asset management company, investment fund or its sub-fund, authorized securitization special purpose entity or its division, until completion of the relevant regime, the charging of a penalty on tax arrears existing before the commencement/opening of the said regime shall cease. At the same time, in the case of approval of a rehabilitation plan, during its validity, no penalty shall be charged on the tax arrears provided for by the rehabilitation plan, except for the amount(s) of tax due under the rehabilitation plan.

3¹. From the entry into legal force of a ruling issued by a court on the commencement of bankruptcy proceedings, no penalty shall be charged on tax arrears arising after the commencement of the bankruptcy proceedings.

4. The penalty shall be 0.05 percent of the unpaid tax amount for each day of delay. In the event of exceeding the tax payment deadline, the day of tax payment shall be considered a day of delay.

5. (Removed – 6 March 2024, No. 4056).

6. In the cases provided for by subparagraph „a“ of paragraph 2 of Article 64 of this Code, if a tax claim was served on the person after the occurrence of the tax payment deadline, the penalty shall be charged from the 30th day after the day of service of the tax claim.

7. A penalty shall not be imposed (except for those taxes in respect of which the person is entrusted with the function of a tax agent):

a) to suppliers of goods/services – in respect of budgetary obligations arising from the failure by the purchasing organisation to reimburse the value of goods supplied/services rendered on the basis of the allocations provided for by the respective year's Law of Georgia on the State Budget of Georgia and by the budgets of municipalities, in proportion to the amount of actual financing of their value and to their share in the total volume of goods supplied/services rendered;

b) to legal entities of public law implementing projects (including the preparatory stage of a project) defined by international treaties ratified by the Parliament of Georgia, with which the Ministry of Finance of Georgia has concluded a contract "on the authority to implement the project", – in respect of tax obligations arising within the framework of these projects. The list of legal entities of public law implementing the above projects shall be approved by the Minister of Finance of Georgia.

Law of Georgia of 24 June 2011 No. 4963 - website, 30.06.2011.

Law of Georgia of 28 October 2011 No. 5169 - website, 11.11.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 5 June 2012 No. 6395 - website, 19.06.2012.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012.

Law of Georgia of 1 May 2015 No. 3581 - website, 15.05.2015.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Law of Georgia of 18 September 2020 No. 7169 – website, 25.09.2020.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Law of Georgia of 15 December 2023 No. 3940 – website, 27.12.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 6 March 2024 No. 4056 – website, 14.03.2024.

Article 273. Violation of the rule for registration as a taxpayer🔗

Violation by a person of the rule established by Georgian legislation for registration as a taxpayer –

entails the imposition of a fine on the person in the amount of GEL 500.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Article 274. Violation of the deadline for submitting a tax declaration/calculation🔗

1. Violation of the deadline established by the tax legislation of Georgia for submitting a tax declaration/calculation to the tax authority, if the period of delay does not exceed 2 months, −

entails a fine in the amount of 5 percent of the amount of tax calculated as payable on the basis of this declaration/calculation.

2. Violation of the deadline established by the tax legislation of Georgia for submitting a tax declaration/calculation to the tax authority, if the period of delay exceeds 2 months, −

entails a fine in the amount of 10 percent of the amount of tax calculated as payable on the basis of this declaration/calculation.

3. If the amount of tax calculated as payable on the basis of the tax declaration/calculation equals zero, the person shall not be imposed the fine provided for by this Article.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Article 275. Reduction of tax in a tax declaration/calculation🔗

1. Reduction of the tax amount in a tax declaration/calculation by a person, if it is caused by a change of the moment (period) of origination of the person's tax obligation by the body exercising tax control, −

entails fining of the person in the amount of 10 percent of the reduced tax amount.

2. Reduction of the tax amount in a tax declaration/calculation, except for the cases provided for by paragraphs 1, 2¹ and 2² of this article, −

entails a fine in the amount of 50 percent of the reduced tax amount.

2¹. Reduction of tax in a tax declaration/calculation, if the reduced tax amount does not exceed 5 percent of the tax amount indicated in this declaration/calculation, −

entails a fine in the amount of 10 percent of the reduced tax amount.

2². Reduction of tax in a tax declaration/calculation, if the reduced tax amount is more than 5 percent and does not exceed 20 percent of the tax amount indicated in this declaration/calculation, −

entails a fine in the amount of 25 percent of the reduced tax amount.

3. An increase of the amount calculated for reduction/to be returned in a tax declaration/calculation is considered as a reduction of tax in this declaration/calculation and, in the relevant case, entails the liability provided for by paragraphs 1−2² of this article.

4. Reduction of the tax amount in a tax declaration by a person by more than GEL 100,000 is considered as tax evasion and entails liability in the manner established by the criminal legislation of Georgia.

5. The total amount of fines imposed as a result of a tax audit in accordance with this article shall not exceed the amount of the taxes assessed as payable as a result of this tax audit

Law of Georgia of 14 June 2011 No. 4754 - website, 28.06.2011

Law of Georgia of 27 December 2011 No. 5649 - website, 09.01.2012

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018

Article 276. Violation of the rules of the activity of the gambling business🔗

The activity of a person without the sign of payment of the gambling business fee or without the sealing of the object of payment of the gambling business fee, if such an obligation is established by law, –

entails fining of the person in the amount of 100 percent of the amount payable of the gambling business fee due according to this object.

Law of Georgia of 28 December 2012 No. 189 - website, 29.12.2012

Article 277. Resistance to an authorised person of a tax authority🔗

1. Resistance to an authorised person of a tax authority or of the National Bureau of Enforcement, disregard of his/her lawful demand, which impeded the implementation of a measure provided for by the tax legislation of Georgia, –

entails the imposition of a fine on the person in the amount of GEL 800.

2. The act defined by paragraph 1 of this Article, committed repeatedly, –

entails the imposition of a fine on the person in the amount of GEL 2 000 for each subsequent repetition.

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011.

Article 278. Disposal of seized property and breaking of a seal of a tax authority or of the National Bureau of Enforcement🔗

Disposal by a person of seized property without agreement with a tax authority, or breaking of a seal affixed by a tax authority or by the National Bureau of Enforcement –

entails the imposition of a fine on the person in the amount of GEL 4 000.

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011.

Article 279. Failure to submit information to a tax authority🔗

1. In the case of a demand by a tax authority in accordance with the procedure established by this Code, failure to submit accounting documentation and/or information related to taxation, as well as failure to submit a list of property within the time limit specified by a tax authority or by the National Bureau of Enforcement –

entails the imposition of a fine on the person in the amount of GEL 400.

2. The act defined by paragraph 1 of this Article, committed repeatedly, –

entails the imposition of a fine on the person in the amount of GEL 1 000 for each subsequent repetition.

3. Provision to a tax authority of incorrect information on the write-off of inventory assets −

entails a fine in the amount of the book value of the inventory assets unconfirmed as a result of the submitted information.

4. (Removed – 28.06.2019, No. 4906).

5. (Removed – 28.06.2019, No. 4906).

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 279¹. Violation of the time limit for the submission of reporting by a multinational enterprise or submission of an incomplete report🔗

Failure to submit to a tax authority, within the established time limit, the reporting provided for by Article 70¹ of this Code, or the submission of an incomplete report, −

entails a fine in the amount of GEL 5 000.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 279². Failure by a reporting financial institution to fulfil an obligation provided for by agreements on automatic exchange of information🔗

1. Violation by a reporting financial institution of the deadline for submission to the tax authority of information provided for by agreements on automatic exchange of information −

entails a fine on the person in the amount of GEL 3,000 for each day of delay. At the same time, the total amount of the sanction calculated for the entire period of delay shall not exceed GEL 100,000.

2. Failure by a reporting financial institution, within the established deadline, to comply with a request of the tax authority to submit additional information for the purpose of clarifying information provided for by agreements on automatic exchange of information −

entails a fine on the person in the amount of GEL 10,000.

3. Repeated commission of the act provided for by paragraph 2 of this Article −

entails a fine on the person in the amount of GEL 20,000 for each subsequent repetition.

4. Submission to the tax authority, by a reporting financial institution, of information provided for by agreements on automatic exchange of information in incomplete/incorrect form −

entails a fine on the person in the amount of GEL 10,000 for each account subject to reporting that is omitted or submitted in incomplete/incorrect form in the submitted information. At the same time, the total amount of the fine imposed in accordance with this paragraph shall not exceed GEL 100,000 for each reporting period.

5. A person shall not be imposed with a fine provided for by paragraphs 1–4 of this Article if it proves that the relevant offence was caused by a reason independent of it, including if it is revealed that the person does not have the obligation to submit information provided for by agreements on automatic exchange of information.

Law of Georgia of 30 November 2022 No. 2138 – website, 15.12.2022.

Article 280. Unlawful tax offset🔗

1. Carrying out an offset as a result of a goods-less operation or a fictitious transaction or by a false VAT offset document –

entails a fine on the person in the amount of 200 per cent of the amount of the offset tax.

2. The cases and circumstances in which an operation may be considered goods-less and/or a transaction fictitious shall be determined by the Minister of Finance of Georgia.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Article 281. Violation of the rules for the use of a cash register machine🔗

1. Working without a cash register machine when settling accounts with a customer in cash –

entails a fine of 200 GEL imposed on the taxpayer (except for a natural person leasing a non-stationary trading place located on the territory of a market).

2. (Removed – 08.11.2011, No. 5202).

3. Failure to use a cash register machine when settling accounts with a customer in cash –

entails a fine of 200 GEL imposed on the taxpayer.

4. (Removed – 20.05.2011, No. 4705).

5. Showing in a receipt an amount less than actually paid –

entails a fine of 200 GEL imposed on the taxpayer.

6. (Removed – 20.05.2011, No. 4705).

7. Loss by a taxpayer of a cash register machine (except for fiscal cash register machines with a GPRS and CRYPTO module), unless it is established that this was caused by an unlawful act committed by another person, –

entails a fine of 3,000 GEL imposed on the taxpayer.

8. The act defined by paragraph 7 of this Article, committed repeatedly, within 60 days from the detection of the tax offence, –

entails a fine of 6,000 GEL imposed on the taxpayer.

8¹. (Removed – 22.06.2012, No. 6547).

9. Absence of a seal of the tax authority on a dispensing and/or metering mechanism at a motor fuel and/or gas filling and/or gas compression station, or having a damaged seal –

entails a fine of 1,500 GEL imposed on the taxpayer.

10. The act defined by paragraph 9 of this Article, committed repeatedly, –

entails a fine of 15,000 GEL imposed on the taxpayer for each subsequent repetition.

11. The Government of Georgia is entitled to establish different amounts of fine for the commission of the tax offence provided for by this Article within the administrative boundaries of a municipality, but not less than 5 per cent of the fines established by paragraphs 1–10 of this Article.

Law of Georgia of 20 May 2011 No. 4705 – website, 01.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 19 December 2019 No. 5627 – website, 26.12.2019.

Law of Georgia of 15 July 2020 No. 6942 – website, 28.07.2020.

Article 282. Violation of requirements provided for VAT🔗

1. Activity without registration as a VAT payer –

entails a fine of the person in the amount of 5 percent of the amount of VAT-taxable transactions (except exempt transactions) carried out during the period of activity without registration.

2. Failure by the supplier of goods/services to issue a tax invoice to the buyer upon the buyer's request –

entails a fine of the person in the amount of 100 percent of the VAT amount according to the taxable transaction.

3. Issuance by a person of a tax invoice reflecting a fictitious transaction/non-commodity transaction or a false tax invoice –

entails a fine of the person issuing/giving the tax invoice in the amount of 200 percent of the VAT amount indicated in the tax invoice.

4. In the case of application of the fine determined by paragraph 1 of this article, in respect of the reporting period(s) of activity without registration as a VAT payer, in relation to the VAT declaration, the fines provided by Articles 274 and 275 of this Code shall not be applied.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 283. Failure by a banking institution to fulfil an obligation🔗

1. Where funds are present in a person's bank account, failure by a banking institution, within the established time limit, to execute this person's payment order or the tax authority's collection order for the transfer of tax to the budget, except for the case provided for by paragraph 2 of this Article, –

Entails a fine in the amount of 0.15 per cent of that part of the funds present in the account which was subject to full or partial execution by the collection/payment order, for each day of delay.

2. The act defined by paragraph 1 of this Article, if it is accompanied by the transfer of funds in another direction without taking into account paragraph 1¹ of Article 54 and subparagraph „e“ of paragraph 1 of Article 71 of this Code, –

Entails a fine in the amount of 10 per cent of the amount transferred in another direction, but not less than GEL 500 and not more than the amount indicated in the collection/payment order.

3. Opening of a bank account by a banking institution for a taxpayer without the submission of the document confirming the assignment of an identification number to the taxpayer (except for a foreign enterprise and a natural person who do not carry out economic activity), as well as the opening of another account for this taxpayer when there is a decision of the tax authority on imposing an attachment on the bank account or on submitting a collection order –

Entails a fine in the amount of 10 per cent of the amount of expenditure transactions carried out on the taxpayer's accounts, but not less than GEL 500.

4. Failure by a banking institution, in accordance with the requirements of subparagraphs „a“, „b“, „c“ and „f“ of paragraph 1 of Article 71 of this Code, to submit to the tax authority information on the initial opening of bank accounts for a taxpayer or on the closing of the last account for this taxpayer within the time limits established by the tax legislation of Georgia (in the case of concluding a contract with the Revenue Service – under the conditions and within the time limits established by this contract), if this is not caused by the provision of incorrect information by the said persons to the banking institution and another organisation carrying out certain types of banking operations, –

Entails a fine in the amount of GEL 300 for each account.

4¹. Failure by a banking institution to fulfil the obligation provided for by subparagraph „c1“ of paragraph 1 of Article 71 of this Code –

Entails a fine in the amount of GEL 300 for each account.

5. Carrying out an expenditure transaction before the submission to the tax authority of information on the accounts provided for by paragraph 4 of this Article or within 2 working days from its submission –

Entails a fine in the amount of 10 per cent of the amount of the expenditure transaction, but not less than GEL 500.

6. If a contract on the electronic exchange of information (including a collection order) is concluded between the Revenue Service and a banking institution, the sanction provided for by paragraph 5 of this article shall be applied only in the event of violation of the time limits determined by the contract.

7. Failure by a banking institution to comply with a decision of a tax authority on imposing an attachment on a taxpayer's account –

shall result in a fine in the amount of 20 per cent of the amount that was transferred to another person in accordance with the taxpayer's order, but not more than the amount of the debt.

8. In the event of untimely non-compliance with a payment order of a person or a collection order of a tax authority on the debiting of funds from an account and their transfer to the budget, where funds are present in the person's account, if the payer applies in writing to the tax authority, the latter shall be obliged to charge the banking institution, in the same amount, the penalty imposed on the taxpayer as a result of this action of the banking institution. In such a case, no sanction shall be imposed on the person.

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023

Article 284. (Removed)🔗

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Article 285. (Removed)🔗

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Article 286. Transportation, sale and non-registration of goods without documents🔗

1. For entrepreneurial activity, transportation of goods without a goods waybill, failure to issue a goods waybill upon the buyer's request, or refusal to accept a goods waybill when purchasing goods, −

entails a fine in the amount of GEL 500.

1¹. For entrepreneurial activity, transportation of round timber (logs), trees or products of their primary processing without a goods waybill, failure to issue a goods waybill upon the buyer's request, or refusal to accept a goods waybill when purchasing goods, if the market value of the round timber (logs), trees or products of their primary processing transported or delivered/to be delivered without a goods waybill does not exceed GEL 1,000, −

entails a fine on the person in the amount of GEL 500 and confiscation of the goods.

1². For entrepreneurial activity, transportation of round timber (logs), trees or products of their primary processing without a goods waybill, failure to issue a goods waybill upon the buyer's request, or refusal to accept a goods waybill when purchasing goods, if the market value of the round timber (logs), trees or products of their primary processing transported or delivered/to be delivered without a goods waybill exceeds GEL 1,000 but does not exceed GEL 10,000, −

entails a fine on the person in the amount of GEL 5,000 and confiscation of the goods.

1³. For entrepreneurial activity, transportation of a pharmaceutical product subject to a reference price without a goods waybill, failure to issue it when the buyer requests the goods waybill, or refusal to accept a goods waybill when purchasing goods −

entails a fine on the person in the amount of GEL 1,000.

1⁴. Repeated commission of the act provided for by paragraph 1³ of this article −

entails a fine on the person in the amount of GEL 15,000.

1⁵. Commission of the act provided for by paragraph 1³ of this article for the third time and each subsequent commission −

entails a fine on the person in the amount of GEL 30,000.

2. The act provided for by paragraph 1 of this article, committed repeatedly, −

entails a fine on the person in the amount of GEL 5,000.

3. (removed – 28 December 2012, No. 189).

3¹. (removed – 14 July 2020, No. 6817).

3². The act provided for by paragraph 1¹ or 1² of this article, if the market value of the goods transported or delivered/to be delivered without a goods waybill exceeds GEL 10,000, −

entails a fine on the person in the amount of GEL 10,000 and confiscation of the goods.

4. Detection, at a taxpayer, of goods and material assets that are unrecorded in the accounting documentation and are without primary tax documents –

entails a fine on the person in the amount of 50 percent of the market value of these goods and material assets at the moment of detection.

5. In the cases provided for by paragraphs 1–4 of this article, the corresponding sanction shall be applied if the goods waybill does not indicate or incorrectly indicates (except when a technical error is made that cannot have a material effect on the result):

a) the date and/or number of the document's preparation;

b) the name, identification number or first and last name, personal number of the party participating in the economic operation;

c) the name and/or quantity of the goods;

d) in the case of a pharmaceutical product subject to a reference price – also the registration number of the pharmaceutical product, the unit price of the pharmaceutical product and/or the actual address of the party participating in the economic operation;

e) the name, date and number of the corresponding document confirming the origin, acquisition or import of round timber (logs) or a tree or their primary processing product;

f) the number of the special mark of each round timber (log) or tree or their primary processing product (except for cases determined by the Minister of Finance of Georgia when indicating the number of the special mark is not mandatory).

6. The liability established by paragraph 1 of this article shall not be imposed on a person:

a) in the case of transportation or supply of primary agricultural products produced in Georgia (before industrial processing – before change of the commodity code), as well as goods (electric or thermal energy, gas, water) on a regular or continuous basis;

b) in the case of transportation of goods with the corresponding documents related to crossing the customs border of Georgia;

c) in the presence of a special VAT invoice;

d) if only free distribution of advertising goods is carried out, including through a retail seller, which does not have independent consumer characteristics and is an integral part of the supply of the main goods/services;

e) during the transportation of newspapers, magazines and goods packed together with them by their publishers, except in the case of primary supply by the publisher;

f) during transportation of the corresponding goods in emergency situations and for the purpose of the necessity of providing urgent assistance (fire, rescue, urgent emergency medical assistance, supply of natural gas, water, electricity or elimination of emergency damage to sewage systems);

g) if, in accordance with the Order of the Minister of Finance of Georgia, a goods waybill is not issued in the given case.

7. The sanctions provided for by paragraphs 1, 2, 31 and 4 of this article shall not be imposed on a person with the status of a micro business, as well as a person with the status of a fixed tax payer (except for activities taxable at the rate provided for by subparagraph „b“ of paragraph 1 of Article 95³ of this Code) within the framework of activities subject to taxation under the special regime.

8. For the purposes of this article:

a) money and bank plastic cards are not goods;

b) When transporting precious metals and stones, as well as numismatic valuables, the issuance of a goods waybill is not mandatory, if the said transportation is carried out by the National Bank of Georgia or a banking institution, as well as by an authorized Legal Entity of Public Law, by a specially protected or controlled vehicle;

c) A pharmaceutical product subject to the reference price is a pharmaceutical product defined as such in accordance with the Law of Georgia "On Medicines and Pharmaceutical Activity".

9. The detection of a shortfall provided for by this Code at a taxpayer shall be deemed a supply effected at the market price at the moment of its detection. At the same time, if the shortfall of goods and material valuables is detected by the tax authority as a result of an inventory, the person shall additionally be fined in the amount of 10 percent of the market value of the said goods and material valuables.

10. The sanctions provided for by paragraphs 4 and 9 of this Article shall not apply if:

a) the amount of surplus and/or shortfall of goods and material valuables not recorded in the accounting documentation does not exceed 2 percent of the recorded goods and material valuables of the same type;

b) the taxpayer reflected information on the surplus and/or shortfall in the tax report and/or provided it to the tax authority before the commencement of an inventory or a tax audit and, according to this information, the surplus is recognized as a benefit, and the shortfall − as a supply.

11. The detection of the offence provided for by paragraph 4 of this Article, if the market value of the goods and material valuables does not exceed 1000 GEL, −

entails a fine of the person in the amount of 200 GEL.

12. The act provided for by paragraph 11 of this Article, committed repeatedly, –

entails a fine of the person in the amount of 400 GEL for each subsequent repetition.

13. For the purpose of detecting and suppressing the offences provided for by paragraphs 1−1³ of this Article, an authorized employee of the tax authority shall have the right to stop a person and a vehicle, demand from him an identity document, the documents accompanying the vehicle and the goods, conduct a visual inspection of the vehicle, as well as count the goods in order to establish compliance with the accompanying documents and use technical means to record the said procedures. In the event of non-compliance by the relevant person and the driver of the vehicle, the authorized employee of the tax authority shall have the right to apply the measures provided for by the legislation of Georgia.

14. In the cases defined by paragraphs 1−3 of this Article, the tax authority shall have the right to impose attachment on goods without a court judgment. The procedure and conditions for imposing the attachment provided for by this Article shall be determined by an Order of the Minister of Finance of Georgia.

15. (Removed - 12.12.2014, No. 2946).

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Law of Georgia of 27 March 2012 No. 5942 – website, 12.04.2012.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012.

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012.

Law of Georgia of 20 November 2013 No. 1583 – website, 03.12.2013.

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 1 December 2022 No. 2275 – website, 13.12.2022.

Law of Georgia of 22 February 2023 No. 2626 – website, 10.03.2023.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 287. (repealed)🔗

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011.

Article 288. Violation of the rules for the activity of micro and small business🔗

An act which, on the ground provided for by paragraph 4 of Article 85 or subparagraph „c“ or „d“ of paragraph 2 of Article 89 of this Code, resulted in the revocation by the tax authority of the status of micro business or the status of small business of a person –

shall entail the fining of the person in the amount of GEL 500.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Article 288¹. Violation of the rules for activity by a special trading company🔗

1. Exceeding, by a special trading company, of the income provided for by subparagraph „d.c“ of paragraph 4 of Article 241 of this Code over the limit amount established by the same subparagraph –

shall entail a fine in the amount of 10 per cent of the exceeded amount.

2. Purchase by a special trading company of Georgian goods for the purpose of further supply –

shall entail a fine in the amount of 50 per cent of the market value of the purchased goods.

3. Provision of services by a special trading company to a Georgian enterprise and/or to a permanent establishment of a foreign enterprise in Georgia –

shall entail a fine in the amount of 50 per cent of the amount of compensation received and/or to be received from such services.

4. Supply by a special trading company of a fixed asset used in economic activity for a period of up to 2 years –

shall entail a fine in the amount of 50 per cent of the amount of compensation received and/or to be received from such goods.

Law of Georgia of 13 October 2011 No. 5120 – website, 19.10.2011.

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Article 288². Violation of the rules of activity subject to taxation by fixed tax🔗

1. Carrying out of an activity subject to taxation by fixed tax by a person having the status of a payer of fixed tax during the period of suspension of the activity subject to taxation by fixed tax −

entails the imposition of a fine on the person in the amount of GEL 200.

2. Addition of an object of taxation of an activity subject to taxation by fixed tax by a person having the status of a payer of fixed tax without notification to the tax authority −

entails the imposition of a fine on the person in the amount of GEL 200.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Article 288³. Supply, transportation of non-excisable goods subject to mandatory marking without marking🔗

Supply, transportation of non-excisable goods subject to mandatory marking without marking −

entails the imposition of a fine on the manufacturer in the amount of the market value of the non-excisable goods subject to mandatory marking detected without marking, but not less than GEL 500.

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Article 288⁴. Failure to submit, late submission and/or incorrect submission of information on payments and withheld tax by reporting month🔗

1. Excessive refund to an employee, within the untaxed minimum, of an amount and/or excessive crediting to the tax liability account, caused by failure to submit, late submission and/or incorrect submission to the tax authority of information on payments and withheld tax by reporting month, –

entails the imposition of a fine on the person obliged to submit the information in the amount of double the amount excessively refunded and/or excessively credited to the tax liability account.

2. The fine provided for by this Article shall not apply if the information on payments and withheld tax by reporting month was submitted to the tax authority before the adoption of a decision on the refund of the untaxed minimum.

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 26 December 2014 No. 3015 – website, 30.12.2014.

Article 288⁵. Failure to submit information on hired persons in the register of hired persons🔗

Failure by a person to submit information on hired persons in the register of hired persons −

entails the imposition of a fine on the person in the amount of GEL 200 for each hired person.

Law of Georgia of 5 April 2023 No. 2768 – website, 18.04.2023.

Article 289. (repealed)🔗

Law of Georgia of 7 December 2010 No. 3880-LHG I, No. 69, 15.12.2010, Art. 421

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011

Law of Georgia of 13 October 2011 No. 5120 – website, 19.10.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 17 July 2015 No. 4065 – website, 29.07.2015

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Article 290. (repealed)🔗

Law of Georgia of 13 October 2011 No. 5120 – website, 19.10.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia 2012

of 27 March

Law No. 5942 – website, 12.04.2012

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019

Article 290¹. (repealed)🔗

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025

Article 290². (repealed)🔗

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025

Article 291. Other fines🔗

Failure by a person to fulfil an obligation provided for by this Code, for which liability is provided for by the same Code, but the amount of the fine is not determined, –

shall entail a fine in the amount of GEL 100.

Article 292. Essence of a tax agreement🔗

1. A tax agreement may be concluded between the Revenue Service and a taxpayer for the purpose of:

a) reduction of the taxpayer's tax arrears/part of the tax arrears;

b) reduction of the amount of the fee and/or the fine and penalty interest related thereto, the administration of which is carried out by the tax authority.

2. The operation of this Article shall not apply to the current payables accrued in accordance with Articles 155 and 205 of this Code.

3. In the case provided for by subparagraph „b“ of paragraph 1 of this Article, Articles 293−295 of this Code shall apply accordingly.

Law of Georgia of 20 May 2011 No. 4705 - website, 01.06.2011.

Law of Georgia of 24 June 2011 No. 4935 - website, 30.06.2011.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 15 May 2012 No. 6212 – website, 29.05.2012.

Law of Georgia of 26 December 2013 No. 1886 - website, 30.12.2013.

Law of Georgia of 20 March 2015 No. 3407 – website, 26.03.2015.

Law of Georgia of 30 June 2017 No. 1182 - website, 13.07.2017.

Article 293. Execution of a tax agreement🔗

1. A taxpayer applies to the Revenue Service with an application on the execution of a tax agreement, which is authorized to:

a) refuse to execute a tax agreement with the taxpayer;

b) submit the application together with the attached materials to the Minister of Finance of Georgia for consideration at a sitting of the Government of Georgia.

2. The decision on the execution of a tax agreement is taken by the Government of Georgia, which determines the amount and the term of payment of the sum payable by the taxpayer in accordance with the tax agreement.

3. The taxpayer shall fulfil the obligation provided for by the tax agreement within the term determined by this agreement.

4. After the execution of the tax agreement, the Head of the Revenue Service is authorized to take a decision on the partial or full cancellation/non-application of measures to secure the collection of the tax debt against the taxpayer.

5. After the fulfilment of the terms of the tax agreement, the taxpayer's tax debt is reduced by an individual administrative-legal act of the Head of the Revenue Service.

6. In the event of non-fulfilment, within the established term, of the obligation provided for by the tax agreement, the tax agreement shall be considered cancelled and the taxpayer shall be imposed a fine in the amount of 10 per cent of the unpaid sum.

7. After the execution of the tax agreement, it is inadmissible to reduce the amount accrued by a declaration for the relevant tax period by submitting a corrected tax declaration.

8. After the execution of a tax agreement on the reduction of the amount additionally accrued (tax debt) as a result of tax control, it is inadmissible:

a) for a controlling/law enforcement body to verify the checked tax period or issue and/or to accrue a tax/sanction to the taxpayer, except for a tax period or issue related to a person that has merged with the taxpayer after the execution of a tax agreement with it;

b) for the taxpayer to initiate or resume a dispute on the basis of newly discovered/newly revealed circumstances or evidence.

9. In the event of cancellation of the tax agreement, the rights and obligations of the tax authority and the taxpayer arising as a result of this agreement shall be terminated.

10. The rule for the execution of a tax agreement shall be determined by a Resolution of the Government of Georgia.

Law of Georgia No. 4206 of 22 February 2011 – website, 10.03.2011

Law of Georgia No. 4705 of 20 May 2011 – website, 01.06.2011

Law of Georgia No. 4935 of 24 June 2011 – website, 30.06.2011

Law of Georgia No. 4963 of 24 June 2011 – website, 30.06.2011

Law of Georgia No. 5556 of 20 December 2011 – website, 30.12.2011

Law of Georgia No. 6212 of 15 May 2012 – website, 29.05.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017

Article 294. Form of tax agreement🔗

1. The tax agreement act shall be concluded between the Revenue Service and the taxpayer.

2. The tax agreement shall indicate:

a) the name of the taxpayer, identification number or first name and surname, personal number, as well as other details (if necessary);

b) the content and conditions of the reached agreement;

c) the time limit and procedure for appealing the tax agreement.

Article 295. Appeal of tax agreement🔗

A taxpayer may appeal a tax agreement if the tax agreement was concluded by an unauthorized person.

Article 296. General provisions🔗

1. A tax dispute may be considered in the system of the Ministry of Finance of Georgia and in court.

2. This Title establishes the procedure for considering a tax dispute in the system of the Ministry of Finance of Georgia.

3. At any stage of a tax dispute in the system of the Ministry of Finance of Georgia, the applicant shall have the right to apply to court.

4. The procedure for conducting a tax dispute in court shall be determined by the administrative procedural legislation of Georgia.

Article 297. Bodies Reviewing Tax Disputes🔗

1. In the system of the Ministry of Finance of Georgia, the bodies reviewing tax disputes are the Revenue Service and the Dispute Review Council under the Ministry of Finance of Georgia (hereinafter – dispute reviewing bodies).

2. The Dispute Review Council is a body reviewing tax disputes under the Ministry of Finance of Georgia.

3. In the system of the Ministry of Finance of Georgia, a tax dispute is two-stage and begins with the submission of a complaint to the Revenue Service, except for the case provided for by paragraph 3¹ of this Article.

3¹. The preliminary decision provided for by the first paragraph of Article 47 of this Code shall not be appealed to the Revenue Service. A person has the right to appeal the preliminary decision provided for by the first paragraph of Article 47 of this Code to the Dispute Review Council under the Ministry of Finance of Georgia.

4. The Government of Georgia determines the composition of the Dispute Review Council.

5. The dispute reviewing bodies have regulations approved by the Government of Georgia, which determine the procedure for reviewing complaints and interacting with complainants.

6. The Dispute Review Council has a staff, which ensures the preparation of complaints received by the Council for review, the provision to complainants of information related to proceedings, and the formalization of decisions adopted by the Council.

7. The staff of the Dispute Review Council has the right, by decision of its head, to hold a preparatory meeting with the parties to the dispute in order to clarify the circumstances related to the complaint.

Law of Georgia of 30 May 2018 No. 2391 – website, 12 June 2018.

Article 298. Principles of Tax Dispute🔗

1. The dispute reviewing body, when reviewing a complaint, is guided by the principles of fairness, objectivity, equality of the parties and impartiality.

2. As a result of a tax dispute in the system of the Ministry of Finance of Georgia, it is inadmissible to aggravate the complainant's tax obligations, except for the case of an audit conducted within the same dispute with the taxpayer's consent.

Article 299. Initiation of a tax dispute🔗

1. A decision adopted by a tax authority in respect of a person on the basis of this Code may be appealed to the dispute-reviewing body in accordance with the procedure established by this Chapter.

2. A tax inspection act and a decision adopted on its basis shall be appealed together with the tax claim issued on the basis of these documents. A tax offence report/order shall be appealed in accordance with the procedure established by this Chapter.

3. (Removed - 13.05.2016, No. 5092).

3¹. A decision adopted by the Revenue Service on a taxpayer's complaint in relation to the offences provided for by Articles 273 and 281 of this Code shall be appealed to a court.

4. A person shall be entitled to appeal a decision of a tax authority within 30 days of its delivery.

5. A person shall be entitled to consider a violation of the time limit established for the adoption of a decision by a tax and/or dispute-reviewing body as a refusal to satisfy his/her application and to appeal it in accordance with the procedure established by this Chapter. The time limit for appealing a decision issued in violation of the time limit shall be counted from its delivery to the person.

6. After the expiry of the 30-day time limit, the initiation of a dispute shall be permissible on the basis of newly discovered or newly revealed circumstances or evidence.

7. Circumstances or evidence shall be considered newly discovered or newly revealed if the complainant did not know and could not have known about them before the adoption of the decision unfavourable to him/her and if their timely submission would have resulted in the adoption of a decision favourable to the complainant.

8. The initiation of a dispute shall also be permissible if it is established that the appealed decision was not sent to the complainant. In such a case, the time limit for appeal shall be counted from the day when the appealed decision became known to the complainant.

9. A complaint shall, as a rule, be submitted to the dispute-reviewing body in electronic form. The form of the complaint shall be determined by the regulations approved by the Government of Georgia.

10. A decision of a tax authority may be appealed also after the expiry of the time limit for submitting a complaint, if the complainant proves that the violation of the appeal time limit was caused by a reason independent of him/her.

11. An appeal against a decision of a tax authority shall not suspend its operation.

Law of Georgia of 20 May 2011 No. 4705 - website, 01.06.2011.

Law of Georgia of 8 November 2011 No. 5202 - website, 22.11.2011.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Law of Georgia of 13 May 2016 No. 5092 - website, 01.06.2016.

Law of Georgia of 21 April 2017 No. 649 - website, 10.05.2017.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 300. Acceptance of a Complaint for Proceedings🔗

1. The dispute-reviewing body shall not accept a complaint for proceedings if it does not meet the following procedural requirements:

a) the complaint does not indicate the complainant's identification/personal number;

b) the complaint does not indicate the complainant's contact details;

c) the essence of the claim is not clear from the complaint;

d) the complaint is not accompanied by a copy of the appealed decision or of a document related to its issuance (if such exists);

e) the pages of the complaint or of the documents attached thereto are not numbered;

f) the complaint or the documentation attached thereto is not legible;

g) the complaint or the document attached thereto is not drawn up in the state language of Georgia;

h) the complaint is unsigned;

i) the complaint is submitted by a representative and is not accompanied by a document confirming the authority to represent.

2. If the complaint does not meet the procedural requirements, the complainant shall be notified thereof in writing and shall be given not less than 5 days to correct the defect in the complaint. The dispute-reviewing body is entitled, in the event of a reasoned request of the complainant, to extend the time limit given for correcting the defect.

3. The dispute-reviewing body is entitled, notwithstanding the existence of a defect, to accept the complaint for proceedings if it does not substantially impede the consideration of the complaint.

Law of Georgia of 21 April 2017 No. 649 – website, 10.05.2017.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 301. Refusal to Consider a Complaint🔗

The dispute-reviewing body shall not consider a complaint if:

a) the complainant refuses to continue the dispute;

b) the subject matter of the claim exceeds the matters within the jurisdiction of the dispute-reviewing body;

c) the complaint is submitted by an unauthorized person;

d) there is no subject matter of the dispute;

e) the time limit for submitting the complaint has expired;

f) the complaint does not meet the procedural requirements and the complainant has not corrected the defect within the time limit set by the dispute-reviewing body;

g) there is a decision adopted by the same body in respect of the same complainant on the same subject matter of the dispute;

h) (removed – 14.07.2020, No. 6817).

i) the complainant has applied to a court on the same subject matter of the dispute;

j) the complainant has died;

k) the appealed tax claim reflects a recognized tax debt. The complaint shall not be considered in the part of the recognized tax debt;

l) the complainant cannot be located;

m) the complaint is anonymous;

n) a tax agreement has been concluded on the appealed tax debt.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 302. Consideration of a complaint🔗

1. The body considering the dispute shall consider the complaint within 20 days.

2. The body considering the dispute shall consider the complaint only within the scope of the complainant's request.

3. Unless otherwise provided by this Chapter, the Dispute Review Council shall consider the complaint within the scope of the subject of the dispute appealed in the Revenue Service.

4. The body considering the dispute or its apparatus shall have the right to request the complainant or the tax authority to submit additional information/documentation concerning the complaint, in which case the consideration of the complaint shall be suspended.

5. The complaint shall be considered with the participation of the complainant.

6. Bodies considering a dispute shall have the right to consider the complaint remotely, using technical means. They shall also have the right to consider the complaint in the absence of the complainant, if the factual circumstances related to the subject of the dispute are fully established from the materials in the case.

7. The complainant shall be notified of the time and place of the oral consideration of the complaint by the means available to the body considering the dispute, including by telephone, insured or electronic mail, short text message, and others.

8. In the event of the impossibility of contacting the complainant, his being untraceable, or the complainant's failure to appear at the oral consideration of the complaint, the complaint shall be considered in his absence.

9. The complainant shall have the right to defend his interests in person or through an authorized representative.

10. During the hearing, the complainant and/or his representative shall have the right to attend the hearing in person or remotely, using technical means.

Law of Georgia of 5 January 2021 No. 83 – website, 06.01.2021.

Article 303. Suspension of consideration of a complaint🔗

1. The body considering the dispute shall be entitled, on its own initiative or upon a reasoned motion of a party, to suspend the consideration of the complaint in order to obtain additional information and/or documentation.

2. When suspending the consideration of the complaint, the body considering the dispute shall be entitled to instruct the complainant and/or the tax authority to submit additional information or documentation on the issues to be considered within the scope of the complaint.

3. If the performance of the instruction of the body considering the dispute is not possible within the established time limit, the body considering the dispute shall be notified thereof within a reasonable time.

4. The total duration of the suspension of consideration of the complaint on the ground of obtaining additional information and/or documentation shall not exceed 45 days.

5. In the event of failure to hold a session of the Dispute Review Council, the chairperson of the council or his deputy, and in their absence – a member present at the council session, shall have the right to adopt a decision on suspending the consideration of the complaint to be considered at the said council session for not more than 30 days, of which the complainant shall be notified.

Article 304. Decision of the dispute-reviewing body🔗

1. The dispute-reviewing body is entitled to:

a) satisfy the complaint;

b) partially satisfy the complaint;

c) not satisfy the complaint;

d) leave the complaint unexamined;

e) adopt an interim decision and suspend the examination of the complaint;

f) (removed - 14.07.2020, No. 6817).

2. An interim decision of the dispute-reviewing body shall be appealed together with the final decision.

2¹. If the appealed decision/tax claim is issued in accordance with a decision adopted by the dispute-reviewing body, the dispute-reviewing body adopts a decision on refusal to satisfy the complaint. The said issue shall be examined by the body in accordance with whose decision the appealed decision/tax claim was issued.

3. In proportion to the annulled part of the decision of the tax authority, those acts issued by the same body which served as the basis for the issued appealed decision shall be annulled.

4. Decisions of the dispute-reviewing body shall, as a rule, be sent to the parties electronically.

5. If the ground for annulment of the appealed decision of the tax authority was a disciplinary misconduct of an employee of that body, for the purpose of proper response to the said fact, the dispute-reviewing body shall provide the relevant body with information for deciding the issue of the liability of that person.

6. If the ground for full or partial satisfaction of a complaint by the Disputes Review Council is a provision existing in the tax legislation of Georgia which gives rise to different interpretations, the Council's decision shall note a recommendation on introducing an amendment to the normative act, which shall be sent to the relevant body for response.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Article 305. Appeal of a decision🔗

1. In the event of adoption by the Revenue Service of a decision unfavourable to the complainant, that complainant has the right to appeal the decision to the Disputes Review Council or to a court within 20 days of its delivery.

2. The complainant has the right to appeal the decision of the Disputes Review Council to a court within 20 days of its delivery.

3. Submission of a complaint within the period established for appealing to a tax authority or any other state body shall be considered compliance with the appeal period.

4. The burden of proof regarding violation of the appeal period by the complainant shall be borne by the tax authority.

5. Failure by the complainant to extend a tax dispute within the established period shall be considered recognition of the appealed tax liability.

Law of Georgia of 20 December 2011 No. 5556 - website, 30.12.2011.

Article 306. Entry into force and execution of a judgment🔗

1. The judgment of the dispute-reviewing body shall enter into force on the 21st day after its delivery to the complainant, if it is not appealed.

2. Execution of a judgment of the dispute-reviewing body that has entered into force shall be mandatory.

3. The complainant shall be entitled to apply to the dispute-reviewing body and provide it with information on the obstruction of the execution of the judgment by the administrative body.

4. Non-execution of an interim or final judgment of the dispute-reviewing body or unlawful obstruction of execution shall be considered a disciplinary misconduct and shall entail the liability provided for by the legislation of Georgia.

5. The execution of a judgment may be deferred on the basis of a reasoned written request of the body executing the judgment and a judgment of the dispute-reviewing body.

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011.

Article 307. Interpretation of a judgment🔗

1. The complainant and the tax authority shall be entitled to apply to the dispute-reviewing body for the purpose of interpreting the judgment rendered by it.

2. When interpreting a judgment, the dispute-reviewing body shall be guided by the same time limits as are established for the consideration of a complaint.

3. The interpretation is an integral part of the judgment and shall be sent to the persons and bodies participating in the dispute.

4. After the execution of the judgment, its interpretation shall not be permitted.

Article 308. Renewal of a dispute🔗

1. Within the system of the Ministry of Finance of Georgia, renewal of a dispute shall be permitted only in the case of a newly discovered or newly revealed circumstance, within 6 years from the rendering of the judgment.

2. Only the complainant shall have the right to apply to the dispute-reviewing body with a request for renewal of the dispute.

3. The complainant shall apply, on the basis of a newly discovered or newly revealed circumstance, to the last dispute-reviewing body which considered on the merits the subject of the dispute indicated by the complainant.

Article 309. Transitional provisions🔗

1. (Removed – 20.12.2012, No. 118).

2. (Removed – 20.12.2012, No. 118).

3. (Removed – 20.12.2012, No. 118).

3¹. (Removed - 13.05.2016, No. 5092).

3². (Removed - 13.05.2016, No. 5092).

3³. (Removed - 13.05.2016, No. 5092).

4. (Removed – 20.12.2012, No. 118).

5. (Removed – 08.11.2011, No. 5202).

6. (Removed - 18.12.2015, No. 4680).

7. (Removed - 26.12.2013, No. 1886).

8. (Removed).

9. (Removed).

10. (Removed - 28.06.2019, No. 4906).

10¹. For worked oil products (bilge water (water polluted with oil) and/or washings of oil product tank storages), processing commodity operations (except the inward processing commodity operation) shall not be applied, subject to the condition that the processed goods are taken out of the territory of Georgia.

11. (Removed - 28.06.2019, No. 4906).

1². The supply of goods/provision of services by a partnership established before 7 August 2009 to its own member in exchange for a share shall not be taxed with VAT and profit tax.

1³. The Government of Georgia shall be instructed, upon the introduction of amendments to the Forest Code of Georgia concerning the lands occupied by hunting farms in relation to the types determined by forest use, to prepare the relevant amendment concerning the taxation of the said lands with property tax.

1⁴. A bad debt arising from economic activity carried out in the occupied territory shall be written off by agreement with the Government of Georgia, without taking into account the documents defined by subparagraphs „a“–„d“ of paragraph 29 of Article 8 of this Code.

1⁵. Until 1 January 2028, a natural person who does not use the labour of a hired person and carries out economic activity from a non-stationary trading place located in the territory of a market (bazaar), including from a counter, shall be exempt from the obligation to use a cash register, except for a natural person who has been granted the status of small business or who is registered or is obliged to register as a VAT payer in accordance with this Code.

1⁶. In the case of organising totalisator games in a system-electronic form, the object of taxation with income/profit tax for a person in the part of the said activity shall be the sum of bets received during each reporting month under this activity, which shall be taxed at the rate of 7% (except for the income/profit received by the organiser of system-electronic totalisator games as a result of the participation of foreign country nationals in system-electronic totalisator games). In this case, the person shall be obliged, no later than the 15th day of the month following the reporting month, to submit a declaration in the form established by the Minister of Finance of Georgia and to pay the relevant tax within the same period.

17. In the event of alienation of a hotel built by an entrepreneurial entity of a tourist zone within the framework of an investment, the provisions of subparagraph „c“ of paragraph 11 of Article 18, subparagraph „q“ of paragraph 1 and paragraph 2 of Article 99, and subparagraph „ee“ of paragraph 1 of Article 206 of this Code shall extend to the new owner.

18. The benefits established by subparagraph „q“ of paragraph 1 of Article 99 of this Code and by paragraph 17 of this Article shall not apply if the entrepreneurial entity of a tourist zone or, in the event of alienation of a hotel built by an entrepreneurial entity of a tourist zone within the framework of an investment, the new owner no longer ensures the functioning of the hotel.

19. (Deleted – 28.06.2019, No. 4906).

20. (Deleted – 28.06.2019, No. 4906).

21. (Deleted – 28.06.2019, No. 4906).

22. (Deleted – 28.06.2019, No. 4906).

2³. (Deleted – 14.07.2020, No. 6817).

2⁴. Until 1 January 2028, a natural person who carries out the activity provided for by code 55.2 of the "National Classification of Economic Activities of Georgia", namely, the short-term letting of a residential place in his/her ownership, shall, upon application to the tax authority, be taxed with fixed income tax, if he/she is not voluntarily registered as a VAT payer or, in the part of this activity, the total amount of transactions carried out by him/her during any continuous 12 calendar months does not exceed GEL 100,000.

25. In the part of the activity provided for by paragraph 24 of this Article, the area of the residential place intended for short-term letting shall be considered as the object of taxation with income tax for a natural person.

26. The rate of the fixed income tax shall be determined according to the object of taxation (room) and shall amount to GEL 10 per 1 square metre per calendar month. The Government of Georgia shall be entitled, taking into account the location and/or seasonality of the object of taxation, on the basis of a request of a local self-government body, to reduce and/or increase the rate of the fixed income tax.

27. The fixed income tax shall be paid according to the object of taxation:

a) for the period from 1 January to 31 March inclusive – not later than 15 April;

b) for the period from 1 April to 30 June inclusive – not later than 15 July;

c) for the period from 1 July to 30 September inclusive – not later than 5 October;

d) for the period from 1 October to 31 December inclusive – not later than 15 January.

Note: at the same time, the accrued fixed income tax shall not be subject to subsequent recalculation.

28. The transition to the fixed income tax shall be carried out on the basis of an application of the taxpayer. The period of taxation with the fixed income tax may cover both a full calendar year and one or more calendar months, which may not be continuous.

29. During the period of taxation with the fixed income tax:

a) a person hired in connection with the short-term letting of residential space by a natural person shall be exempt from income tax, and accordingly, the person providing the residential space for short term – from the obligation of a tax agent;

b) in the part of fixed income tax, the tax benefits established by this Code in respect of income tax shall not be taken into account;

c) a natural person shall be exempt from the obligation to use a cash register.

30. If, during the period of taxation with fixed income tax, the object of taxation with fixed income tax provided for by paragraph 24 of this Article is leased and the lessee uses this property in the same type of activity:

a) the lessee shall be exempt from profit/income tax on the income received from the short-term letting of residential space;

b) a person hired by the lessee in connection with the short-term letting of residential space shall be exempt from income tax, and accordingly, the lessee – from the obligation of a tax agent;

c) the lessee shall be exempt from the obligation to use a cash register in this part of the activity.

31. The procedure for switching to fixed income tax and for tax reporting shall be determined by the Minister of Finance of Georgia.

32. The short-term letting of residential space by a natural person during the period of taxation with fixed income tax shall not be considered a VAT-taxable transaction.

33. From 1 January 2011, natural persons shall not be charged the fine provided for by Article 274 of this Code for violation of the deadline for submitting the 2007 property tax declaration according to the object of taxation provided for by Article 203 of this Code.

34. For 2011, the object of taxation (land plot) determined in proportion to the area held in co-ownership by a natural person living in a multi-apartment building shall be fully exempt from property tax.

35. For the purposes of profit and property taxes, the norms of the Tax Code of Georgia in force before 1 January 2010 shall apply to fixed assets subject to depreciation leased before 1 January 2010.

36. (Removed – 14.07.2020, No. 6817).

37. Without taking into account the requirements of Article 252 of this Code, the following shall be subject to write-off in accordance with the procedure established by the Minister of Finance of Georgia:

a) recognized tax arrears that arose before 1 January 2013 and exist as of the moment of write-off, and the penalty accrued thereon, if the person, for the period after 1 January 2013 (before the write-off of the amount), has not submitted to the tax authority a tax declaration/calculation (except for the property tax declaration/calculation of the person, as well as declaration and/or assessment carried out under paragraph 1 of Article 176¹ of this Code or paragraphs 58 and 59 of Article 309) or, on the basis of a tax declaration/calculation submitted to the tax authority (except for the property tax declaration/calculation of the person, as well as declaration and/or assessment carried out under paragraph 1 of Article 176¹ of this Code or paragraphs 58 and 59 of Article 309), the amount of tax assessed as payable equals zero (except where, under the submitted tax declaration/calculation, the amount of total income is greater than zero and/or the amount to be credited exceeds the assessed amount); the rule for writing off tax arrears provided for by this subparagraph shall apply until 1 January 2021;

a¹) recognized tax arrears that arose before 1 January 2013 and exist as of the moment of write-off, and the penalty accrued thereon, if the person, for the period after 1 January 2013 (before the write-off of the amount), has not submitted to the tax authority a tax declaration/calculation (except for the property tax declaration/calculation of the person, as well as declaration and/or assessment carried out under paragraph 1 of Article 161¹ of this Code or paragraphs 58 and 59 of Article 309) or, on the basis of a tax declaration/calculation submitted to the tax authority (except for the property tax declaration/calculation of the person, as well as declaration and/or assessment carried out under paragraph 1 of Article 161¹ of this Code or paragraphs 58 and 59 of Article 309), the amount of tax assessed as payable equals zero (except where, under the submitted tax declaration/calculation, the amount of total income is greater than zero and/or the amount to be credited exceeds the assessed amount);

b) (removed – 21.07.2018, No. 3263);

c) a fine imposed/assessed on a natural person before 1 January 2013 on the basis of Article 281 of this Code and Article 139 of the Tax Code of Georgia in force until 1 January 2011, and unpaid before the entry into force of this subparagraph;

d) recognized tax arrears of a natural person that arose before 1 January 2021 and exist as of the moment of write-off, and the penalty accrued thereon.

38. Wages accrued and not paid before 1 January 2008 shall be taxed at the 12 percent income tax rate.

39. (removed – 22.06.2012, No. 6547).

40. (removed – 01.05.2015, No. 3581).

41. (removed – 13.05.2016, No. 5092).

42. (removed – 12.11.2025, No. 1061).

43. (removed – 20.12.2012, No. 118).

44. (removed – 14.07.2020, No. 6817).

45. Notwithstanding the requirements of Article 252 of this Code, the Revenue Service is entitled, in accordance with the procedure established by the Minister of Finance of Georgia, to write off a tax arrears, the penalty and fine accrued thereon, if it is not considered as recognised under the tax legislation of Georgia, and in connection with the accrual of the amount of the said arrears no notification/tax demand of the tax authority was submitted to the taxpayer and the limitation period for its submission has expired.

46. During a tax audit of a tax period (periods) from 1 January 2005 to 1 June 2006, the taxation regime applicable to international transportation and services related thereto (including freight forwarding services) shall be determined taking into account the amendments made to the Tax Code of Georgia (Legislative Herald of Georgia, No 41, 30.12.2004, Art. 200) by the Law of 28 April 2006 No 2955 (Legislative Herald of Georgia, No 11, 01.05.2006, Art. 84). The operation of this paragraph shall not apply to a tax liability accrued and recognised based on a tax audit completed before the entry into force of this same paragraph.

47. The operation of the 10-year period for carrying forward losses determined by Article 122 of this Code shall apply to losses incurred in 2010 and subsequent years.

48. The operation of paragraph 4 of Article 142 of this Code shall not apply to amounts accrued and unpaid before 1 January 2011.

49. During a tax audit of a tax period (periods) after 1 January 2006, the taxation regime applicable to income received/receivable in the form of a contractual penalty and other fines shall be determined taking into account paragraph 13 of Article 136 of this Code. The operation of this paragraph shall not apply to a tax liability accrued and recognised based on a tax audit completed before the entry into force of this same paragraph.

50. Notwithstanding the requirements of Article 252 of this Code, the following shall be subject to write-off in accordance with the procedure established by the Minister of Finance of Georgia:

a) property tax accrued and unpaid in respect of property located in the territories established by the Law of Georgia "On Occupied Territories", the penalty and fine accrued thereon;

b) property tax accrued and unpaid in respect of land in the possession/ownership of a person, the penalty and fine accrued thereon, if the land is located adjacent to the territories established by the Law of Georgia "On Occupied Territories", as a result of which the person cannot use the given land plot, which is confirmed by a certificate issued by a local self-government body;

c) the property tax accrued on the property in a person's possession/ownership and on the land attached thereto, whether unpaid, as well as the penalty and fine accrued thereon, if he/she cannot use this property because of its use for residential purposes by forcibly displaced persons − refugees, and this property is registered as an object of compact (organised) settlement of refugees, which is confirmed by a certificate issued by the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia.

51. In the event of fulfilment, before 1 January 2014, of the obligation to declare property tax in respect of a part of land of agricultural designation, a natural person shall be exempt from the corresponding fine established by this Code.

52. When conducting a tax audit of a tax period/periods existing before the determination by the authorised body of the maximum threshold amount of a loss:

a) the loss norm established by the authorised body shall be applied only where the taxpayer, in the said tax period/periods, applied the loss norm in an amount exceeding that established by the authorised body;

b) if the taxpayer, in the said tax period, applied the loss norm in an amount equal to or less than that established by the authorised body, the shortfall existing within the limits of the applied loss norm shall not be considered a deficiency;

c) no account shall be taken of an adjustment of a tax liability, made after the establishment of the loss norm by the authorised body, in connection with the taxpayer's application of the maximum threshold amount of the loss, if the taxpayer applied, as the loss norm, an amount less than that established by the authorised body for the loss or did not apply it at all.

53. The operation of paragraph 52 of this Article shall not extend to a tax liability accrued and recognised on the basis of a tax audit completed before the entry into force of the same paragraph.

54. Goods imported for the purposes of training (exercises) provided for by the Memorandum on Facilitating the Crossing of Borders by Transport of Vital Civil Designation, signed in Brussels on 30 October 2007, shall be exempt from import duties.

55. The tax obligations, benefits and restrictions of an investor and a contractor provided for by the Law of Georgia on the Promotion of the Olympic Movement shall be determined by this Code and the Law of Georgia on the Promotion of the Olympic Movement.

56. In the cases provided for by the Law of Georgia on the Promotion of the Olympic Movement, a representative body of local self-government shall, within the scope of its competence, be entitled to introduce a different rate of a local tax imposed by this Code in a part of the territory of a self-governing unit, within the threshold rates determined by a Resolution of the Government of Georgia.

57. The operation of subparagraphs „gg“ and „gg1“ of paragraph 1 of Article 82, subparagraph „u“ of paragraph 1 of Article 99, paragraph 5¹ of Article 153, paragraph 2 of Article 161¹, subparagraph „d“ of paragraph 3 of Article 165¹, subparagraph „d“ of paragraph 2 of Article 165², paragraph 5 of Article 168, paragraph 10¹ of Article 205, subparagraph „gg4“ of paragraph 1 of Article 206 and paragraph 3¹ of Article 272 of this Code shall not extend to persons who, in accordance with the Law of Georgia „On Electricity and Natural Gas“, carry out the activity of electricity distribution.

58. For a natural person (except for a natural person registered as a VAT payer at the moment of receiving income) or a non-resident enterprise (except where the relevant income is attributable to a permanent establishment of the non-resident in Georgia):

a) interest unpaid by the end of 2012, which was deducted as an expense in the 2006 tax period, shall be deemed paid for tax purposes at the end of 2012;

b) interest unpaid by the end of 2012, which was deducted as an expense in the 2007 tax period, shall be deemed paid for tax purposes by 1 July 2013;

c) interest unpaid by the end of 2013, which was deducted as an expense in the 2008 tax period, shall be deemed paid for tax purposes at the end of 2013;

d) interest unpaid by the end of 2014, which was deducted as an expense in the 2009 tax period, shall be deemed paid for tax purposes at the end of 2014;

e) interest unpaid by the end of 2015, which was deducted as an expense in the 2010 tax period, shall be deemed paid for tax purposes at the end of 2015.

59. In the case provided for by paragraph 58 of this Article, the person shall bear the obligations of a tax agent and of taxation at the rate of 5 per cent of the relevant amount, while in the event of actual payment in a subsequent period, the relevant income shall not be taxed at the source of payment.

60. (Removed - 13.05.2016, No. 5092).

61. Penalty interest shall be accrued on the unpaid tax amount at the rate of 0.06 per cent for the period from 1 January 2013 to 30 June 2015 inclusive, while the penalty interest determined by paragraph 4 of Article 272 of this Code − 0.05 per cent − shall be accrued on the unpaid tax amount from 1 July 2015. In this case, when determining the amount of penalty interest for non-payment of tax, the provisions of paragraphs 2 and 2¹ of Article 269 of this Code shall not apply.

62. The limitation period determined by paragraphs 1, 3, 5, 8 and 9 of Article 4 of this Code, as well as the period determined by subparagraph „f“ of paragraph 1 of Article 43 and paragraph 3 of Article 72 of this Code, shall be:

a) in the period from 1 January 2015 to 1 January 2016 − 5 years;

b) in the period from 1 January 2016 to 1 January 2017 − 4 years.

63. (Removed - 14.07.2020, No. 6817).

64. A tax agreement concluded on the basis of a decision adopted before 31 December 2013 retains legal force, and the provisions of Chapter XLI of the Tax Code of Georgia in force at the moment of adoption of the respective decision shall apply to it.

65. In accordance with Article 10 of the Law of Georgia “On State Support of National Cinematography”, recognition as income of the amount paid within the framework of state funding shall be carried out at the moment of taking the national film into exploitation, but not later than the moment of drawing up the act on completion of the film and confirmation of the targeted spending of the funding.

66. A person, in accordance with the Law of Georgia “On State Support of National Cinematography”, shall record a national film produced with the support of state funding as an intangible asset. It has the right, from the moment of taking the film into exploitation, to fully deduct amortisation charges on the intangible asset.

67. A person who, in accordance with the Law of Georgia “On State Support of National Cinematography”, produces a national film with the support of state funding, shall be obliged to:

a) choose the rate of deduction of amortisation charges on the intangible asset in the tax year in which the asset was put into exploitation, and not change the chosen rate of deduction for the given asset for periods subsequent to the tax year of its being put into exploitation;

b) in the case of full deduction of amortisation charges, apply the same method in respect of all national films produced subsequently, but it has the right to change the chosen rate of full deduction of amortisation charges 5 years after its choice.

68. (removed - 14.07.2020, No. 6817).

69. (removed - 14.07.2020, No. 6817).

70. (removed - 14.07.2020, No. 6817).

71. (removed - 14.07.2020, No. 6817).

72. (removed - 14.07.2020, No. 6817).

73. (removed - 14.07.2020, No. 6817).

74. (removed - 14.07.2020, No. 6817).

75. (removed - 14.07.2020, No. 6817).

76. (removed - 14.07.2020, No. 6817).

77. (removed - 14.07.2020, No. 6817).

78. (removed - 14.07.2020, No. 6817).

79. The supply of immovable property, as well as the provision of construction and installation services related to the property supplied by the supplier of the immovable property, shall be exempt from VAT with the right of deduction, if all of the following conditions are fulfilled:

a) the supply of the immovable property and the provision of construction and installation services related thereto were carried out in the period from 1 January 2015 to 1 January 2029;

b) the supplied immovable property is located in a facility which meets one of the following conditions:

b.a) the facility is envisaged by a construction permit in force as of 8 August 2008;

b.b) as of 8 August 2008, the design documentation (architectural project) for the facility was agreed with the authorised body, and the construction permit was issued subsequently;

b.c) in respect of the object provided for by subparagraph "b.a" or "b.b" of this paragraph, in the period after 8 August 2008 the design documentation (architectural design) was changed or the existing building was demolished and a new construction permit was issued;

c) the supplier of the immovable property is the holder of the construction permit issued in respect of the object provided for by subparagraph "b" of this paragraph (it may not be the holder of the construction permit/design documentation (architectural design) provided for by subparagraph "b" of this paragraph);

d) for the acceptance into operation of the object in which the supplied immovable property is located, the authorised body issues an individual administrative-legal act before 1 January 2029;

e) the object in which the supplied immovable property is located is intended wholly or partly for residential purposes;

f) the object in which the supplied immovable property is located is included in the list provided for by paragraph 81 of this Article.

Note: For the purposes of this paragraph, if, in the period from 8 August 2008 to 1 January 2015, the right of ownership over the immovable property located in an object included in the list provided for by paragraph 81 of this Article, as an object under construction, was registered in the public register in the name of the acquirer, the construction and installation services rendered by the supplier of the property in connection with the supply of this property shall be considered part of the supply of the immovable property, and the moment of completion of the construction and installation services shall be considered the time of supply.

80. For a person carrying out the supply of immovable property exempted from VAT with the right to deduction in accordance with paragraph 79 of this Article, the construction and installation services rendered in connection with the object included in the list provided for by paragraph 81 of this Article shall be exempted from VAT with the right to deduction.

81. In order to apply the benefits provided for by paragraphs 79 and 80 of this Article, the list of objects that meet the requirements established by subparagraphs "b" and "e" of paragraph 79 of this Article shall be determined by the executive body of the municipality.

81¹. A person is entitled to apply to the executive body of the municipality requesting the inclusion of an object in his/her ownership in the list provided for by paragraph 81 of this Article. The executive body of the municipality shall include this object in the said list if, at the time of the person's application, this object meets the requirements of subparagraphs "b" and "e" of paragraph 79 of this Article.

81². On the basis of the tax benefits provided for by paragraphs 79 and 80 of this Article, in respect of an exempt taxable transaction carried out in reporting periods from 1 January 2015 to 1 January 2026, the limitation period determined by Article 4 of this Code for the respective reporting period shall be:

a) in respect of an exempt taxable transaction carried out in the reporting period from 1 January 2015 to 1 January 2016 — 14 years;

b) in respect of an exempt taxable transaction carried out in the reporting period from 1 January 2016 to 1 January 2017 — 13 years;

c) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2017 to 1 January 2018 − 12 years;

d) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2018 to 1 January 2019 − 11 years;

e) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2019 to 1 January 2020 − 10 years;

f) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2020 to 1 January 2021 − 9 years;

g) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2021 to 1 January 2022 − 8 years;

h) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2022 to 1 January 2023 − 7 years;

i) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2023 to 1 January 2024 − 6 years;

j) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2024 to 1 January 2025 − 5 years;

k) in respect of an exempted taxable transaction carried out in the reporting period from 1 January 2025 to 1 January 2026 − 4 years.

82. (removed – 28.06.2019, No. 4906).

83. The release from liability provided for by paragraph 82 of this article shall not apply to a person in respect of whom the tax sanctions applied for tax offences were enforced before the entry into force of paragraph 82 of this same article.

84. For reporting periods before 1 July 2015, a document confirming the payment to the budget of the VAT amount upon reverse charge taxation or upon temporary importation of goods shall be considered a credit document.

85. The Minister of Finance of Georgia shall ensure, before 1 January 2016, the issuance of an order to establish the rule provided for by paragraph 5 of Article 81 of this Code.

86. Forgiveness, to a debtor, of a debt arising from the supply of electricity by an electricity enterprise carrying out electricity distribution activities in the periods from 13 June 1997 to 1 January 2000 and from 1 November 2001 to 1 January 2005 shall not be considered as compensation for the value of the supplied goods.

87. The following shall be exempt from taxation by income tax:

a) the benefit received by a natural person as a result of the forgiveness of a debt arising from the supply of electricity in the periods from 13 June 1997 to 1 January 2000 and from 1 November 2001 to 1 October 2005;

b) by a natural person affected as a result of the natural disaster that occurred in the city of Tbilisi on 13-14 June 2015:

b.a) the benefit received as a result of the forgiveness of a loan obligation by a financial institution;

b.b) the benefit arising as a result of the receipt of goods/services free of charge in the period from 14 June 2015 to 1 January 2016;

c) the benefit received by a natural person as a result of the forgiveness (write-off) of a loan issued to the natural person before 1 January 2019, as well as of the interest and fine accrued on that loan, if the forgiveness (write-off) of the corresponding obligation in favour of the said natural person was effected by a commercial bank or a microfinance organisation.

Note:

1. For the purposes of subparagraph "b" of this paragraph, the list of natural persons affected by the natural disaster that occurred in the city of Tbilisi on 13-14 June 2015 shall be established by the Government of the Tbilisi Municipality.

2. The operation of subparagraph "c" of this paragraph shall not extend to cases of forgiveness of a loan obligation by a lessor to a lessee or to interdependent persons defined by Article 19 of this Code.

871. The benefit received by a student from the amount paid by the Ministry of Education, Science and Youth of Georgia for the purpose of redeeming the tuition fee payable as of 1 August 2023 by students with financial debt/whose status has been suspended on the basis of financial debt at higher educational institutions operating in Georgia in the form of a legal entity of private law, as well as the benefit received by a higher educational institution through the write-off of the tuition fee payable as of 1 August 2023 by a student with financial debt/whose status has been suspended on the basis of financial debt, shall be exempt from income tax.

88. A financial institution shall be entitled to deduct from its total income the value of the (forgiven) loan obligation provided for by subparagraph "b.a" of paragraph 87 of this Article. At the same time, the value of the (forgiven) loan obligation provided for by subparagraph "b.a" of paragraph 87 of this Article shall not be included by the financial institution in its total income.

88¹. A commercial bank or a microfinance organisation shall be entitled to deduct from its total income the amount forgiven (written off) to a natural person as provided for by subparagraph "c" of paragraph 87 of this Article, except where:

a) the reserve for possible loan losses has been deducted from the total income for the relevant period;

b) the interest and fine accrued on the loan have not been included in the total income for the relevant period.

Note: Taking into account the restriction defined by this paragraph, the value of the obligation forgiven (written off) to a natural person as provided for by subparagraph "c" of paragraph 87 of this Article shall not be included by a commercial bank or a microfinance organisation in its total income.

89. If the Government of Georgia, in accordance with an international treaty ratified by the Parliament of Georgia and entered into force, has an obligation to release or assume the performance of the tax obligation arising as a result of the supply of goods and/or provision of services (except where the international treaty directly provides for reimbursement by the Government of Georgia of tax obligations), it is considered that the supply of goods and/or provision of services carried out within the framework of this treaty is exempt from VAT with the right to offset, and the income received as a result of carrying out the said operations is exempt from income/profit tax.

90. Monetary funds transferred free of charge by an enterprise/individual entrepreneur to the state and/or to a self-governing unit in connection with the natural disaster that occurred in the city of Tbilisi on 13-14 June 2015 shall be subject to deduction from aggregate income.

91. The tax benefit provided for by subparagraph “a.f” of paragraph 2 of Article 82 of this Code, in force until 1 January 2016, applies to persons residing in the cities, villages, communities and towns indicated in the list defined by the annex to the law provided for by Article 6 of the Law of Georgia “On Social-Economic and Cultural Development of High Mountain Regions” in force until 1 January 2016 (except for settlements included in the list of high mountain settlements approved by Resolution No. 671 of 30 December 2015 of the Government of Georgia “On Approval of the List of High Mountain Settlements”) and provided for by the same subparagraph.

92. If a resident enterprise (except for the case provided for by paragraph 142 of this Article) distributes dividends from the net profit received in the reporting periods from 1 January 2008 to 1 January 2017, it has the right to offset the amount of profit tax accrued and paid according to these periods, but not more than the amount payable according to the object of taxation by profit tax provided for by paragraph 1 of Article 98¹ of this Code.

92¹. Distribution of profit received before 1 January 2017 by a permanent establishment of a non-resident enterprise shall not be taxed with profit tax.

93. The amount to be offset provided for by paragraph 92 of this Article shall be calculated by the formula − A×B / (C-D), where: A is the amount of funds to be distributed in the form of dividends; B is the amount of profit tax accrued and paid according to the reporting periods from 1 January 2008 to 1 January 2017; C is the amount of net profit received in the reporting periods from 1 January 2008 to 1 January 2017; D is the value of shares/interest of this enterprise transferred by the enterprise to a partner in exchange for dividends at the expense of net profit received in the reporting periods from 1 January 2008 to 1 January 2017.

93¹. In the case provided for by subparagraph „f“ of paragraph 3 of Article 98² of this Code, a person shall be entitled, before the distribution of dividends for reporting periods from 1 January 2008 to 1 January 2017, to have the profit tax accrued and paid in accordance with paragraph 92 of this Article credited.

93². In the case of the exercise by a person of the right provided for by paragraph 93¹ of this Article:

a) upon the distribution of dividends for reporting periods from 1 January 2008 to 1 January 2017, the credit provided for by paragraph 92 of this Article shall be reduced by the amount of profit tax credited in accordance with paragraph 93¹ of this same Article;

b) upon receipt of consideration (upon actual receipt of the amount) as a result of the provision of a right of participation in capital (share/interest), a person shall be entitled, in the reporting period of the actual receipt of the amount, to have the previously paid profit tax credited, but not more than the profit tax calculated in accordance with the amount of the consideration.

94. A banking institution, credit union, microfinance organisation, and lending entity shall be taxed with profit tax according to the object of taxation provided for by paragraph 12 of Article 97 of this Code from 1 January 2023.

94¹. An insurance organisation shall be taxed with profit tax according to the object of taxation provided for by paragraph 1 of Article 97 of this Code from 1 January 2024.

95. Until 1 January 2023, the object of taxation with profit tax of a commercial bank, credit union, insurance organisation, microfinance organisation and lending entity shall be the difference between the total income received during the calendar year and the amounts of deductions provided for by this Code.

95¹. Until 1 January 2024, the object of taxation with profit tax of an insurance organisation shall be the difference between the total income received during the calendar year and the amounts of deductions provided for by this Code.

95². Until 1 January 2024, a legal entity carrying out licensed insurance activity shall be entitled to deduct from the total income of the reporting year the „insurance/incurred losses, net“ of the same reporting period calculated in accordance with the procedure established by the National Bank of Georgia, except for income from recourse and from salvaged property.

96. (Repealed – 14.07.2020, No. 6817).

97. The rate of mobile communication service determined by paragraph 3 of Article 188 of this Code shall be 8 per cent until 1 January 2017, and 3 per cent from 1 January 2017 to 1 January 2018.

98. For goods supplied/services rendered in the period after 1 January 2017, in respect of which the consideration/a part of the consideration was paid before 1 January 2017 (before the supply of the goods/rendering of the services), the moment of the supply of the goods/rendering of the services shall be deemed to be the time of the taxable transaction. At the same time, the consideration/a part of the consideration paid in the period after 1 January 2017 for the same transaction before the supply of the goods/rendering of the services shall be subject to VAT in accordance with paragraph 2 of Article 163 of this Code.

99. For the purposes of Article 98¹ of this Code:

a) The distribution of a dividend received from a person provided for by paragraph 94 of this Article from profits attributable to periods after 1 January 2008 shall not be considered a distribution of profit;

b) The distribution of a dividend to a person provided for by paragraph 94 of this Article from profits attributable to periods after 1 January 2008 shall be considered a distribution of profit.

99¹. For the purposes of Article 98¹ of this Code:

a) The distribution of a dividend received from a person provided for by paragraph 94¹ of this Article from profits attributable to periods from 1 January 2008 to 1 January 2024 shall not be considered a distribution of profit;

b) The distribution of a dividend to a person provided for by paragraph 94¹ of this Article from profits attributable to periods from 1 January 2008 to 1 January 2017, as well as the distribution before 1 January 2024 of a dividend to a person provided for by paragraph 94¹ of this Article from profits attributable to periods from 1 January 2017 to 1 January 2024, shall be considered a distribution of profit.

99². A dividend paid by a resident enterprise shall not be taxed at the source of payment and shall not be included in the total income of the person receiving the dividend, if this dividend has been received by the resident enterprise as a result of the distribution of profit attributable to 2023 or subsequent periods of the same year by a person provided for by paragraph 94 of this Article.

100. Before 1 October 2019, a light vehicle provided for by commodity heading 8703 of the SES ESN shall be taxed at the excise rate in force before 1 June 2019, if:

a) transportation of the vehicle by sea began before 1 June 2019 and it was brought into the customs territory of Georgia by sea not later than 31 August 2019;

b) the vehicle was brought into the customs territory of Georgia before 1 June 2019.

101. Co-financing received by a person from a Legal Entity of Public Law included in the system of the Ministry of Economy and Sustainable Development of Georgia – Produce in Georgia, in accordance with Resolution No. 365 of the Government of Georgia of 30 May 2014 on approval of the state program 'Produce in Georgia', within the framework of the micro and small entrepreneurship part of the state program 'Produce in Georgia', during the term of validity of this Resolution, shall not be subject to reflection in total income.

102. For the reporting periods of 2014−2016, in the case of enjoyment of the tax benefits provided for by subparagraphs 'f' and 'q' of the first paragraph of Article 99 of this Code in force in the respective reporting period, the limitation period provided for by Article 4 of this Code for the respective reporting period shall be extended by 1 year.

103. For the purposes of Article 98¹ of this Code (except for the case provided for by paragraph 103¹ of this Article):

a) The distribution of a dividend from net profit received in the reporting period from January 1, 2008 to January 1, 2017 shall be considered a profit distribution, while the subsequent distribution thereof by the recipient of this dividend, being a person defined by paragraph 3 of Article 2 of the Law of Georgia on Entrepreneurs (except for an individual enterprise and a person exempt from profit tax in accordance with this Code), shall not be considered a profit distribution;

b) The subsequent distribution of a dividend received in reporting periods before January 1, 2017 shall not be considered a profit distribution.

Article 103¹. For the purposes of Article 98¹ of this Code, by an insurance organization:

a) The distribution of a dividend from net profit received in the reporting period from January 1, 2015 to January 1, 2024 shall be considered a profit distribution;

b) The subsequent distribution of a dividend received in reporting periods before January 1, 2024 shall not be considered a profit distribution.

Article 104. The object of taxation by enterprise profit tax is the difference between the total income received during the calendar year and the amounts of deductions provided for by this Code, if during the respective calendar year it received the status of a person provided for by paragraph 94 of this Article (it was established that it is a person provided for by paragraph 94 of this Article). In this case:

a) accruals made on the basis of the profit tax declaration submitted during the respective calendar year according to the object of taxation provided for by paragraph 1 of Article 97 of this Code shall be cancelled;

b) for the period before receiving the status of a person provided for by paragraph 94 of this Article (before being considered a taxpayer of this category), current payables shall not be accrued according to the time limits provided for by Article 155 of this Code.

Article 105. The object of taxation by enterprise profit tax is the difference between the total income received during the calendar year and the amounts of deductions provided for by this Code, if during the respective calendar year it lost the status of a person provided for by paragraph 94 of this Article (it was established that it is no longer a person provided for by paragraph 94 of this Article).

Article 106. If an enterprise, which from January 1, 2017 is taxed according to the objects of taxation provided for by paragraphs 1 and 3 of Article 97 of this Code, was founded in the period from December 1 to December 31, 2016 inclusive, its first tax period is the period from the day of foundation to the end of 2016, according to which it shall submit the profit tax declaration to the tax authority before April 1, 2018.

Article 107. In respect of long-term contracts concluded before January 1, 2018, for VAT taxation purposes, the norms in force before January 1, 2018 shall apply.

Article 108. A person with the status of small business shall submit a tax declaration to the tax authority for the tax period from January 1 to July 1, 2018 no later than April 1, 2019.

109. An individual entrepreneur who was granted the status of small business in the period from 1 July 2018 to 1 January 2019 shall be obliged to submit a tax declaration to the tax authority for the incomplete tax period (the period from 1 January 2018 until the month in which the status was granted) no later than 1 April 2019.

110. A person having the status of small business shall not be imposed the fine provided for by Article 274 of this Code for the violation of the deadline established for submitting to the tax authority the tax declaration determined by paragraph 1¹ of Article 93 of this Code for the reporting periods from 1 July 2018 to 1 January 2019.

111. (deleted – 12.11.2025, No. 1061).

112. During 6 calendar months from 1 May 2020, as well as during 6 calendar months from 1 December 2020, an employer shall be entitled to reduce (not pay into the budget) the income tax withheld and payable from a salary of up to 750 GEL paid to an employee, if the salary received by that employee from the same employer during 1 calendar month does not exceed 1500 GEL.

Note: The tax benefit provided for by this paragraph shall not apply to:

a) a budgetary organization;

b) the National Bank of Georgia;

c) a national regulatory body;

d) an enterprise more than 50% of the shares/interest of which is owned by the State or a municipality;

e) an enterprise founded/subsidiary by the enterprise provided for by subparagraph „d“ of this Note, if that enterprise owns more than 50% of the shares/interest of the enterprise founded/subsidiary by it.

113. A person shall be entitled to tax with VAT the lease/leasing service provided during 6 calendar months (reporting period) from 1 March 2020, as well as during 6 calendar months (reporting period) from 1 December 2020, in the reporting period in which the compensation amount/part of the amount for that service is actually paid.

114. The Minister of Finance of Georgia/Head of the Revenue Service shall be entitled to extend, for individual taxpayers, until no later than 1 January 2021, the deadline determined by this Code for the payment of income tax and/or property tax payable in 2020 (including in February, March, April and May 2020). In such case, the penalty provided for by this Code shall not be charged to the taxpayer.

114¹. The Minister of Finance of Georgia/Head of the Revenue Service shall be entitled to extend, until no later than 1 July 2021, the deadline determined by this Code for the payment of income tax payable in November and December 2020, for the taxpayer who carries out the activity provided for by subparagraph „a“ of paragraph 115 of this Article in the town of Bakuriani of Borjomi Municipality, the village of Gudauri of Kazbegi Municipality, the resort of Goderdzi located in Khulo Municipality or the town of Mestia of Mestia Municipality. In the aforementioned case, the penalty provided for by this Code shall not be charged to the taxpayer.

115. The following is exempt from property tax, the declaration of which is provided for by this Code in 2020 or 2021, under the “National Classification of Economic Activities of Georgia” (NACE 006-2016):

a) property used in the activity provided for by code 55.1 (hotels and similar accommodation) and/or code 55.2 (holiday and other short-stay accommodation);

b) property used in the activity provided for by code 56.1 (restaurants and mobile food service activities);

c) property used in the activity provided for by code 56.3 (beverage serving activities);

d) property used in the activity provided for by code 79 (travel agencies, tour operators and other reservation service and related activities).

Note: The tax benefit provided for by this paragraph shall also apply to property transferred under lease, leasing or another similar form, if this property is used in any activity defined by this same paragraph.

115¹. Property used in the activities defined by subparagraphs “a”–“d” of paragraph 115 of this article is exempt from property tax, the declaration of which is provided for by this Code in 2022, except for land. In this case, an enterprise/organization shall not be exempt from payment of the property tax in the form of the current payable provided for by paragraph 3 of Article 205 of this Code, and this payable shall be collected in the amount of the annual tax of the past tax year, notwithstanding the tax benefit provided for by this paragraph, no later than 15 June of the tax year.

Note: The tax benefit provided for by this paragraph shall also apply to property transferred under lease, leasing or another similar form, if this property is used in any activity defined by this same paragraph.

116. Provision of incorrect information to the tax authority, which resulted in the unjustified issuance to the employee of the compensation related to the spread of the novel coronavirus in Georgia as defined by Resolution No. 286 of 4 May 2020 of the Government of Georgia “On Approval of the Targeted State Programme for Mitigation of Damage Caused by the Infection Caused by the Novel Coronavirus (SARS-COV-2) (COVID-19)”, entails a fine of the employer in the double amount of the compensation issued on the basis of this information.

117. If a leasing contract is concluded before 1 January 2022, the amount subject to VAT of the operation of leasing out property is the full amount of the leasing payments provided for by the contract (including the benefit provided for by the contract), and VAT taxation shall be carried out in proportion to the amount payable, in stages, according to the reporting periods in which the payment of the corresponding amount is provided for. At the same time, if the amount, in full or in part, is paid earlier than provided for by the contract, the payment of VAT corresponding to the paid amount shall be carried out according to the reporting period of payment of this amount.

118. An enterprise that has received the status of a person provided for by paragraph 94 of this Article (it has been established that it is a person provided for by paragraph 94 of this Article):

a) shall be obliged, out of the net profit received in those reporting periods from 1 January 2017 until the receipt of the status when the person was taxed with profit tax according to the objects of taxation provided for by the first and 3rd paragraphs of Article 97 of this Code, to subject the distribution of a dividend in the reporting periods following the receipt of the respective status to profit tax in the manner established by the Minister of Finance of Georgia;

b) shall be entitled, in the reporting periods following the receipt of the status, in accordance with the provisions of Articles 98² and 98³ of this Code, to credit and, in the manner established by this Code, to recover the amount of profit tax paid for those reporting periods from 1 January 2017 until the receipt of the status when the person was taxed with profit tax according to the objects of taxation provided for by the first and 3rd paragraphs of Article 97 of this Code. The procedure for crediting and recovering the amount of profit tax shall be determined by the Minister of Finance of Georgia.

119. If an enterprise that has lost the status of a person provided for by paragraph 94 of this Article (it has been established that it is no longer a person provided for by paragraph 94 of this Article) distributes, in the reporting periods following the loss of the status, a dividend out of the net profit received in those reporting periods from 1 January 2017 until the loss of the status when the person was taxed with profit tax according to the object of taxation provided for by paragraph 95 of this Article, it shall be entitled to credit the amount of profit tax accrued and paid for those periods, but not more than the amount payable according to the object of taxation with profit tax provided for by the first paragraph of Article 98¹ of this Code.

120. The amount of profit tax to be credited provided for by paragraph 118 of this Article, out of the net profit received in those reporting periods when the person was taxed with profit tax according to the object of taxation provided for by paragraph 95 of this Article, shall be calculated by the following formula − A×B/(C-D), where: A is the amount of the funds to be distributed as a dividend, B − the amount of profit tax accrued and paid for the reporting periods from 1 January 2017 until the loss of the status; C − the amount of net profit received in the reporting periods from 1 January 2017 until the loss of the status; D is the value of the shares/interest of this enterprise transferred by the enterprise to a partner in lieu of a dividend at the expense of the net profit received in the reporting periods from 1 January 2017 until the loss of the status.

121. In the conduct of proceedings on a customs offence provided for by the Customs Code of Georgia, for the purposes of paragraph 9 of Article 163 of the Customs Code of Georgia, tax offences detected before 1 September 2019 on the basis of Articles 277, 279, 289 and 290 of this Code shall be taken into account.

122. If a tax debt of a taxpayer has been written off in accordance with the procedure established by the tax legislation, and if, before the write-off of the tax debt, the payment of the amount of the said tax and sanction, including in the form of compensation for damage, has been imposed by a court judgment on the same taxpayer and/or on a person authorised to manage/represent this taxpayer and/or on the founder in favour of the state/state budget/tax authority, after the write-off of the tax debt the obligation imposed by the court judgment and unfulfilled shall be considered cancelled and the enforcement proceedings initiated on its basis shall be terminated.

123. The provisions provided for by paragraph 9¹ of Article 174 of this Code, which was in force before 1 January 2021, shall apply to the case of the supply, in the period after 2021, of a fixed asset acquired before 1 January 2021.

124. Before 1 January 2021, in addition to the grounds provided for by paragraph 2 of Article 61 of this Code, information on the taxation of the sale of goods with VAT in the case provided for by Article 176¹ of this Code shall also constitute a ground for tax assessment.

125. The Minister of Finance of Georgia shall have the right, before 1 January 2021, to determine individual cases in which the tax authority is authorised to cancel the registration of a person as a VAT payer. In this case, the registration as a VAT payer shall be cancelled from the date of the decision by the tax authority.

126. Before 1 January 2021, in the case provided for by paragraph 2, 3 or 4 of Article 54 of the Customs Code of Georgia, the amount of import shall be determined in accordance with the procedure established by the same paragraph for the calculation of the amount of import tax.

127. Before 1 January 2021, the following shall be exempt from VAT with the right to deduction:

a) supply of electricity and guaranteed capacity, except for the supply of electricity to a consumer provided for by the Law of Georgia “On Energy and Water Supply” who purchases electricity for own consumption, as well as transmission and/or dispatch services;

b) supply of goods produced in Georgia intended for medicinal/medical purposes. For the purposes of this subparagraph, the list of goods intended for medicinal/medical purposes shall be determined by a joint order of the Minister of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Protection of Georgia and the Minister of Finance of Georgia.

128. Until 1 January 2021, except for the cases provided for by subparagraphs „a“–„f“ of paragraph 3 of Article 174 of this Code, no VAT credit shall be effected by the credit documents provided for by subparagraphs „e“ and „g“ of paragraph 2 of Article 173 of this Code, which are not reflected by the taxpayer (buyer/recipient of the credit) in the VAT declaration submitted no later than the end of the reporting period of the taxable transaction, according to the reporting period of December of the calendar year of the taxable transaction, or no later than within 3 calendar years, in the adjusted declaration of the same period.

129. Until 1 January 2021, except for the cases provided for by paragraphs 1–3 of Article 240 of this Code, the tax authority shall be entitled to carry out the measures provided for by subparagraphs „a“ and „c“–„f“ of paragraph 1 of Article 238 of this Code in respect of the authorised person carrying out the sale of goods provided for by paragraphs 1 and 2 of Article 176¹ of this Code, if that person fails to fulfil the obligation to pay the VAT amount to the budget provided for by the same Article.

130. The taxpayer shall be entitled to reduce (not remit to the budget) the income tax deferred in accordance with paragraph 114 of this Article (income tax for the payment of which the time limit determined by this Code has been extended), if it carries out any of the activities provided for by paragraph 115 of this Article. The rules for the application of this paragraph shall be determined by Order of the Minister of Finance of Georgia.

131. Paragraph 2 of Article 164¹ and subparagraph „ee“ of paragraph 4 of Article 172 of this Code shall apply to the importation of goods carried out from 1 January 2028. At the same time, in the case of importation of goods before 1 January 2028, the amount subject to VAT (the value of goods for customs purposes) includes the import duty payable in Georgia arising from the importation of goods, except for VAT.

132. Until 1 January 2028, the importation of goods shall be exempt from VAT in accordance with the requirements of subparagraphs „d“ and „n“ of Article 199 of this Code, taking into account the note to the same Article, except for the importation of goods from a free industrial zone.

133. The distribution of dividends from the net profit received in a reporting period before 1 January 2022 from the said activity by a person organising gambling in a systemic-electronic form shall be considered a distribution of profit and shall be taxed in accordance with paragraph 10 of Article 97 of this Code.

134. On the basis of Article 109 of this Code, as a result of the abolition of the rule in force until 1 January 2023 for the deduction of reserves for possible loan losses from the aggregate income by a banking institution, a credit union or a microfinance organisation, the taxable profit/income resulting from the difference in reserve balances arising in the 2023 reporting period shall be taxed at 15 per cent. The Minister of Finance of Georgia shall be entitled to determine the rules for the application of this paragraph.

135. Within the framework of the matches of the final stage of the 2023 European Under-21 Football Championship of the Union of European Football Associations (hereinafter – UEFA) and the events related thereto:

a) income received by UEFA and the Georgian Football Federation shall be exempt from profit tax;

b) the supply of goods and/or the provision of services by UEFA and the Georgian Football Federation shall be exempt from VAT with the right of deduction;

c) upon the importation of goods by UEFA and the Georgian Football Federation, import duties shall not be paid;

d) UEFA and the Georgian Football Federation shall be exempt from property tax in respect of property used in Georgia.

136. Income received by a designated person within the framework of the matches of the final stage of the 2023 European Under-21 Football Championship of UEFA and the events related thereto shall be exempt from income/profit tax.

Note: A designated person is any non-resident person designated by UEFA or the Georgian Football Federation, including a member of a foreign country's national football team or a member of the personnel (for example, a player, a coach and others), an employee of UEFA or the Georgian Football Federation.

137. UEFA and the Georgian Football Federation shall not have the obligation of a tax agent provided for by Article 154 of this Code within the framework of the matches of the final stage of the 2023 European Under-21 Football Championship of UEFA and the events related thereto. At the same time, the provision of services to UEFA and the Georgian Football Federation within the framework of the said events shall not be subject to reverse charge taxation with VAT.

138. The organisation and holding of the matches of the final stage of the 2023 European Under-21 Football Championship of UEFA does not create a permanent establishment in Georgia.

139. Exempt from VAT with the right of deduction are:

a) the supply of goods and/or the provision of services by a person to UEFA, the Georgian Football Federation and/or a designated person, which is directly or indirectly related to the matches of the final stage of the 2023 European Under-21 Football Championship of UEFA and the events related thereto;

b) the sale of tickets for the matches of the final stage of the 2023 European Under-21 Football Championship of UEFA and the events related thereto.

140. The Minister of Finance of Georgia shall be authorised to determine the rules for enjoying the tax benefits provided for by paragraphs 135–139 of this Article.

141. The norms defined by this Code relating to the relations provided for by the Law of Georgia "On Voluntary Private Pension" shall apply to payments made from 1 January 2025 by those legal entities which carried out voluntary private pension activity until 1 January 2025.

142. If an insurance organisation distributes a dividend from the net profit received in the reporting periods from 1 January 2015 to 1 January 2024, it has the right to offset the amount of profit tax accrued and paid for these periods, but not more than the amount payable under the object of profit taxation provided for by paragraph 1 of Article 98¹ of this Code.

143. The offset amount provided for by paragraph 142 of this Article shall be calculated using the formula − A×B / (C-D), where: A is the amount of funds to be distributed as a dividend; B is the amount of profit tax accrued and paid for the reporting periods from 1 January 2015 to 1 January 2024; C is the amount of net profit received in the reporting periods from 1 January 2015 to 1 January 2024; D is the value of the shares/interests of this insurance organisation transferred by the insurance organisation to a partner in exchange for a dividend at the expense of the net profit received in the reporting periods from 1 January 2015 to 1 January 2024.

144. The tax authority is entitled, in accordance with the procedure established by a subordinate normative act of the Government of Georgia, to write off the unpaid amount of the fee provided for by Article 5 of the Law of Georgia “On Fees for the Use of Natural Resources” payable by a person for the use for the purpose of bottling underground fresh water, and the related unpaid fine and penalty, where the person has not used the respective licence (with or without an appropriately approved development plan) before 1 December 2023, namely, has not bottled underground fresh water. The operation of this paragraph shall extend to a person if one of the following conditions is satisfied:

a) as of 1 December 2023, the respective person no longer holds the licence issued for bottling underground fresh water;

b) the respective person applies, before 1 April 2024, to the body issuing the licence for bottling underground fresh water for the revocation of this licence and, from 1 December 2023 to 1 April 2024 inclusive, does not use the said licence, namely, does not bottle underground fresh water.

145. The Government of Georgia is entitled to establish the procedure provided for by paragraph 144 of this Article.

146. In the case of transfer, before 1 January 2028, to a Georgian enterprise of the right of ownership over all assets (including an interest/share) of a foreign enterprise registered in a country with preferential taxation:

a) the income/benefit received by this foreign enterprise and its partner natural person within the framework of the said transaction, which is considered, for the purposes of this Code, as income received from a source in Georgia, shall be exempt from profit/income tax;

b) the bringing/import of the asset/goods into Georgia shall be exempt from import duty. The procedure and conditions for the application of this subparagraph shall be determined by the Minister of Finance of Georgia;

c) A Georgian enterprise, in relation to an asset received within the framework of this operation, shall be exempt from property tax until 1 January 2030.

Note:

1. This paragraph applies if:

a) 100 per cent of the share/shares in a foreign enterprise registered in a country with preferential taxation and in a Georgian enterprise is owned by the same natural person (group of natural persons);

b) an asset is transferred which the foreign enterprise registered in a country with preferential taxation owns as of the date of entry into force of this paragraph.

2. In the case provided for by this paragraph, for the receiving party of the asset the value of the asset is the same as its value for the transferring party at the moment of transfer of this asset.

147. The tax benefits of entities having the status of innovative startup, innovative small and medium-sized company, or company providing research and development services, as provided for by the Law of Georgia "On Innovations", shall be determined by the Law of Georgia "On Innovations".

Law of Georgia of 15 December 2010 No. 4061-LHG I, No. 75, 27.12.2010, Art. 469

Law of Georgia of 17 December 2010 No. 4114-LHG I, No. 76, 29.12.2010, Art. 506

Law of Georgia of 22 February 2011 No. 4206 – website, 10.03.2011

Law of Georgia of 19 April 2011 No. 4549 – website, 02.05.2011

Law of Georgia of 31 May 2011 No. 4720 – website, 10.06.2011

Law of Georgia of 14 June 2011 No. 4754 – website, 28.06.2011

Law of Georgia of 24 June 2011 No. 4935 – website, 30.06.2011

Law of Georgia of 24 June 2011 No. 4963 – website, 30.06.2011

Law of Georgia of 13 October 2011 No. 5120 – website, 19.10.2011

Law of Georgia of 13 October 2011 No. 5118 – website, 31.10.2011

Law of Georgia of 8 November 2011 No. 5202 – website, 22.11.2011

Law of Georgia of 6 December 2011 No. 5372 – website, 20.12.2011

Law of Georgia of 9 December 2011 No. 5452 – website, 22.12.2011

Law of Georgia of 20 December 2011 No. 5582 – website, 28.12.2011

Law of Georgia of 20 December 2011 No. 5556 – website, 30.12.2011

Law of Georgia 2012

of 27 March

No. 5942 – website, 12.04.2012

Law of Georgia of 30 March 2012 No. 5976 – website, 19.04.2012

Law of Georgia 2012

of 10 April

No. 6015 – website, 30.04.2012

Law of Georgia of 15 May 2012 No. 6211 – website, 29.05.2012

Law of Georgia of 15 May 2012 No. 6176 – website, 29.05.2012

Law of Georgia of 25 May 2012 No. 6330 – website, 08.06.2012

Law of Georgia of 5 June 2012 No. 6395 – website, 19.06.2012

Law of Georgia of 12 June 2012 No. 6446 – website, 25.06.2012

Law of Georgia of 22 June 2012 No. 6547 – website, 04.07.2012

Law of Georgia of 20 December 2012 No. 118 – website, 29.12.2012

Law of Georgia of 28 December 2012 No. 189 – website, 29.12.2012

Law of Georgia of 28 June 2013 No. 784 – website, 28.06.2013

Law of Georgia of 26 December 2013 No. 1886 – website, 30.12.2013.

Law of Georgia of 2 May 2014 No. 2368 – website, 16.05.2014.

Law of Georgia of 26 July 2014 No. 2540 – website, 06.08.2014.

Law of Georgia of 1² December 2014 No. 2950 – website, 23.12.2014.

Law of Georgia of 1² December 2014 No. 2952 – website, 23.12.2014.

Law of Georgia of 12 December 2014 No. 2946 – website, 24.12.2014.

Law of Georgia of 26 December 2014 No. 3015 – website, 30.12.2014.

Law of Georgia of 20 March 2015 No. 3407 – website, 26.03.2015.

Law of Georgia of 1 May 2015 No. 3581 – website, 15.05.2015.

Law of Georgia of 22 July 2015 No. 4092 – website, 31.07.2015.

Law of Georgia of 18 December 2015 No. 4680 – website, 29.12.2015.

Law of Georgia of 4 March 2016 No. 4842 – website, 09.03.2016.

Law of Georgia of 13 May 2016 No. 5092 – website, 01.06.2016.

Law of Georgia of 8 June 2016 No. 5406 – website, 17.06.2016.

Law of Georgia of 22 June 2016 No. 5445 – website, 29.06.2016.

Law of Georgia of 22 June 2016 No. 5491 – website, 29.06.2016.

Law of Georgia of 16 December 2016 No. 97 – website, 23.12.2016.

Law of Georgia of 22 December 2016 No. 196 – website, 29.12.2016.

Law of Georgia of 17 May 2017 No. 850 – website, 02.06.2017.

Law of Georgia of 30 June 2017 No. 1182 – website, 13.07.2017.

Law of Georgia of 23 December 2017 No. 1935 – website, 29.12.2017.

Law of Georgia of 30 May 2018 No. 2391 – website, 12.06.2018.

Law of Georgia of 5 July 2018 No. 3109 – website, 11.07.2018.

Law of Georgia of 21 July 2018 No. 3263 – website, 01.08.2018.

Law of Georgia of 27 December 2018 No. 4225 – website, 31.12.2018.

Law of Georgia of 29 May 2019 No. 4616 – website, 30.05.2019.

Law of Georgia of 28 June 2019 No. 4906 – website, 04.07.2019.

Law of Georgia of 19 December 2019 No. 5626 – website, 26.12.2019.

Law of Georgia of 20 December 2019 No. 5651 – website, 27.12.2019.

Law of Georgia of 22 May 2020 No. 5971 – website, 25.05.2020.

Law of Georgia of 14 July 2020 No. 6817 – website, 22.07.2020.

Law of Georgia of 5 January 2021 No. 83 – website, 06.01.2021.

Law of Georgia of 14 December 2021 No. 1082 – website, 17.12.2021.

Law of Georgia of 17 December 2021 No. 1165 – website, 28.12.2021.

Law of Georgia of 22 December 2021 No. 1191 – website, 28.12.2021.

Law of Georgia of 22 December 2021 No. 1205 – website, 28.12.2021.

Law of Georgia of 23 June 2022 No. 1706 – website, 30.06.2022.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 9 February 2023 No. 2590 – website, 24.02.2023.

Law of Georgia of 18 May 2023 No. 2983 – website, 29.05.2023.

Law of Georgia of 28 June 2023 No. 3350 – website, 19.07.2023.

Law of Georgia of 15 December 2023 No. 3958 – website, 25.12.2023.

Law of Georgia of 15 December 2023 No. 4014 – website, 27.12.2023.

Law of Georgia of 15 December 2023 No. 4022 – website, 28.12.2023.

Law of Georgia of 29 May 2024 No. 4197 – website, 04.06.2024.

Law of Georgia of 27 June 2024 No. 4364 – website, 11.07.2024.

Law of Georgia of 24 June 2025 No. 719 – website, 27.06.2025.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

Article 309¹. Legal regulation related to persons declared incapable by a court before 1 April 2015 during the transitional period🔗

1. The tax obligation of a person declared incapable by a court before 1 April 2015 shall be performed at the expense of the property of the incapable person by his/her guardian, until the individual assessment of this incapable person is carried out.

2. The tax debt of a person declared incapable by a court before 1 April 2015 shall be considered a hopeless tax debt and shall be written off, if his/her property is insufficient to cover the tax debt, until the individual assessment of this incapable person is carried out.

3. From the day of taking a decision as a result of the individual assessment of a person declared incapable by a court before 1 April 2015, the written-off tax debt shall be restored, unless otherwise determined by a court judgment.

4. The tax debt of a person declared incapable by a court before 1 April 2015 is the tax debt existing as of the date of his/her being declared incapable.

Law of Georgia of 20 March 2015 No. 3349 - website, 31.03.2015.

Article 310. Final provisions🔗

1. This Code shall enter into force from 1 January 2011.

2. Upon the entry into force of this Code, the following shall be declared invalid:

a) Tax Code of Georgia (Legislative Herald of Georgia, No. 41, 30.12.2004, Art. 200) for tax periods beginning from 1 January 2011;

b) Customs Code of Georgia (Legislative Herald of Georgia, No. 39, 09.08.2006, Art. 280) for tax periods beginning from 1 January 2011.

3. The procedural provisions of this Code shall apply from 1 January 2011 also to those tax periods which end before 1 January 2011.

4. The operation of subparagraph "y" of Article 173 and subparagraph "r" of Article 199 of this Code shall be suspended until 1 January 2028.

Law of Georgia of 30 September 2020 No. 7204 – website, 05.10.2020.

Law of Georgia of 17 December 2021 No. 1165 – website, 28.12.2021.

Law of Georgia of 16 December 2022 No. 2439 – website, 27.12.2022.

Law of Georgia of 12 November 2025 No. 1061 – website, 14.11.2025.

President of Georgia M. Saakashvili

Tbilisi,

17 September 2010.

No. 3591–IIs