Income Tax for Individual Entrepreneurs
Reminder: filing declarations and paying taxes by April 1
March 21, 2024
Giorgi Zhuzhunashvili, Lawyer, Tax Practice Partner
March 31 is the last day for filing declarations and paying income tax for individual entrepreneurs regarding income derived from activities not classified as small business activities.
Taxpayer
An individual entrepreneur receiving income from a source in Georgia.
Income from a Source in Georgia
Income or profit from the supply of goods from the territory of Georgia, as well as services/work provided/performed from the territory of Georgia.
In this regard, the Tax Service does not consider:
In this regard, the Tax Service does not consider:
- Citizenship, Residence/Location, or Tax Residency of the Client
- Source of Payment (within Georgia or payment from abroad)
Taxable Base
Taxable income earned by the individual entrepreneur from economic activity, reduced by economically justified expenses and the amount of income tax paid in advance.
Tax Rate
20%
Tax Payment Deadline
By April 1 of the following year. Advance payments amounting to ¼ of the tax paid for the previous year must be made by the following deadlines:
- No later than May 15 — 25%
- No later than July 15 — 25%
- No later than September 15 — 25%
- No later than December 15 — 25%
Declaration Filing Procedure
To pay the tax, you will need a tax account on rs.ge, for which a tax number is required for activation.
Responsibility
- For late payment of declared tax: fines at a rate of 0.05% per day on the amount of unpaid tax within the deadline
- For late filing of the tax declaration:
- If the delay period does not exceed 2 months — a fine of 5% of the amount of tax unpaid within the deadline,
- If the delay period exceeds 2 months — a fine of 10% of the amount of tax unpaid within the deadline
Contact JUST Advisors for assistance in filing tax declarations:
- Based on power of attorney, we can obtain a tax number
- Activate the tax account
- Calculate taxes
- Prepare and submit tax declarations
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MARIA GUSEINOVA
Leading Manager of Commercial Department
Leading Manager of Commercial Department