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Corporate property tax in Georgia

Discover the details of corporate property taxes in Georgia: who pays, what is taxed, and how to submit declarations on time.
March 26, 2024
Giorgi Zhuzhunashvili, Lawyer, Tax Practice Partner
March 31 is the final day for filing declarations and paying corporate property tax.

Taxpayers

  • Legal entities (companies) registered according to Georgian legislation
  • Foreign companies (non-residents) registered outside Georgia but owning property within Georgian territory

Taxable Property

Fixed asset (a tangible asset that a person uses for manufacturing goods, supplying goods/rendering services, for renting out (including leasing out) and/or for administrative purposes, the useful life of which is longer than a year), as well as unassembled equipment, unfinished construction

Tax Base

It is determined as the average value of fixed assets. The average value is calculated according to the rules set forth in Articles 202.1−41 of the Georgian Tax Code as the sum of the book value of the object at the beginning and end of the year, divided by 2.

The value of the object at the end of the year is determined taking into account depreciation. Depreciation rates are set forth in Article 111 of the Georgian Tax Code. In accordance with Article 112 of the Georgian Tax Code, a company may apply accelerated depreciation rates for certain groups of fixed assets if provided for in the company’s accounting policy.

Special Features

  • For companies with the status of "International Company," property tax (excluding land tax) is not paid for property used or intended for use in business activities.
  • For companies registered in the Free Industrial Zone (FIZ), property located in the FIZ is not subject to property tax.

Tax Rate

Not exceeding 1%

Filing Procedure

Declarations must be submitted electronically through the taxpayer’s tax portal on rs.ge.

Responsibility

  • For late submission of tax declarations (including cases where no tax is due but there is a mark in the tax portal indicating the need to submit a property tax declaration): a warning or a fine of 100 GEL.
  • For late payment of tax: a penalty of 0.05% per day from the amount of unpaid tax.
  • For failure to pay tax on time: a fine ranging from 10% to 50% of the amount of unpaid tax.
JUST Advisors, the company’s tax lawyers, are ready to provide consultations on taxation issues, tax planning, avoidance of double taxation, and offer services for obtaining special tax statuses. The professional accounting service, JUST Finance, ensures impeccable accounting, timely preparation, and submission of tax, financial, and statistical reports.

Professional services for businesses in Georgia — in a language you understand.

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MARIA GUSEINOVA
Leading Manager of Commercial Department