Georgia Income Tax

Georgia (Country) Personal Income Tax — Individuals and Self-Employed Skill v0.1

JURISDICTION WARNING. This skill covers the COUNTRY of Georgia (Sakartvelo / GE), a sovereign state in the South Caucasus — NOT the US state of Georgia. Currency is the Georgian Lari (GEL). The tax authority is the Revenue Service of Georgia (rs.ge). If the client is in the US state of Georgia, STOP and use the US Georgia state skill instead.

Section 1 — Quick Reference

Quick Reference

Field	Value
Country	Georgia (Sakartvelo), South Caucasus
Tax	Personal Income Tax (PIT) — flat rate
Currency	GEL (Georgian Lari) only
Tax year	Calendar year (1 January – 31 December) [PwC, Tax administration]
Primary legislation	Tax Code of Georgia (Law No. 3591, in force since 1 January 2011, as amended)
Supporting legislation	Law of Georgia on Funded Pension (No. 3303-რს, in force 1 January 2019; amended by Law No. 4312 of 27 June 2024)
Tax authority	Revenue Service of Georgia (sakhelmtsifo shemosavlebis samsakhuri), under the Ministry of Finance
Filing portal	rs.ge (Revenue Service e-portal)
Annual filing deadline	Before 1 April of the following year [PwC, Tax administration]
Validated by	Pending — requires sign-off by a qualified Georgian tax professional
Validation date	Pending
Skill version	0.1

Personal Income Tax Rate (2025)

• Flat rate — no progressive brackets — Georgia applies a single FLAT rate of personal income tax. There are NO progressive brackets. (PwC, Taxes on personal income)

Personal Income Tax Rate (2025) (PwC, Taxes on personal income / Income determination)

Income type	Rate	Base
Standard personal income (employment, business, most other)	20%	Taxable personal income — residents on worldwide income; non-residents on Georgian-source income only [PwC, Taxes on personal income]
Residential rental income (individual, NOT claiming deductions)	5%	Gross rental income; if deductions are claimed instead, the 20% rate applies [PwC, Income determination]
Capital gain — sale of vehicle, or apartment/house with attached land plot (non-business individual)	5%	Gain where not exempt; >2-year holding is generally exempt [PwC, Income determination]

Special Individual-Entrepreneur Regimes (instead of 20% PIT)

Special Individual-Entrepreneur Regimes (instead of 20% PIT) (PwC, Taxes on personal income)

Status	Rate	Base / Cap	Source
Small Business Status	1% of gross turnover; 3% on turnover above GEL 500,000	Annual turnover up to GEL 500,000; status revoked from 1 Jan of the third year if the cap is exceeded for two consecutive years	PwC, Taxes on personal income
Micro Business Status	0% (exempt)	Annual turnover below GEL 30,000, no employees	PwC, Taxes on personal income

Agritourism / wine tourism GEL 700,000 variant: the standard small-business turnover cap is GEL 500,000; a higher cap of GEL 700,000 applies to wine tourism / agrotourism activity. Verify against a primary source before relying on it.

Withholding Taxes on Passive Income (Final WHT)

Withholding Taxes on Passive Income (Final WHT) (PwC, Corporate — withholding taxes)

Payment	Rate	Notes	Source
Dividends to individuals	5%	Final WHT	PwC, Corporate — withholding taxes
Interest to individuals / non-residents without PE	5%	Final WHT	PwC, Corporate — withholding taxes
Royalties	5%	Domestic WHT rate	PwC, Corporate — withholding taxes
Service fees to non-residents	10%	Domestic WHT rate	PwC, Corporate — withholding taxes
Interest / royalties / other Georgian-source income to non-residents in offshore / "black-listed" jurisdictions	15%	Penal rate	PwC, Corporate — withholding taxes

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown regime (standard vs Small/Micro Business Status)	Standard individual taxed at flat 20% PIT [PwC]
Foreign-source income of a Georgian resident	Treat as taxable at 20% until the specific income type is confirmed exempt — do NOT assume exemption
Unknown pension participation	Assume employee is enrolled (2% employee + 2% employer) unless over the age cut-off or validly opted out
Unknown VAT status	Assume VAT registration required once rolling 12-month turnover crosses GEL 100,000
Unknown rental-income basis	Default to 5% only if the individual is NOT claiming deductions; otherwise 20%
Unknown capital-gains holding period	Default to taxable at 5% unless a >2-year holding (exemption) is documented
Unknown residency	STOP — do not apply resident worldwide treatment without confirming the 183-day test

Section 2 — Required Inputs and Refusal Catalogue

Required Inputs

• Minimum viable inputs — Minimum viable — bank statement for the full tax year (CSV, PDF, or pasted text) in GEL, plus confirmation of (1) tax residency (183-day test), and (2) which regime applies: standard 20% PIT, Small Business Status (1%/3%), or Micro Business Status (0%).
• Recommended inputs — Recommended — Individual Entrepreneur registration certificate and status confirmation, all sales invoices, monthly turnover declarations already filed, funded-pension participation status, VAT registration confirmation, prior-year annual declaration.
• Ideal inputs — Ideal — complete income/turnover ledger split into cash / POS / bank-transfer lines (as required for the Small Business monthly form), asset register, advance-instalment payment confirmations, and any foreign-source income documentation.
• Refusal if minimum missing — Refusal if minimum is missing — SOFT WARN. No bank statement at all = hard stop. Bank statement without invoices/declarations = proceed with reviewer warning: "This computation was produced from a bank statement alone. The reviewer must verify the applicable regime, confirm turnover splits (cash/POS/transfer) for Small Business Status, and confirm that funded-pension and VAT obligations are correctly reflected."

Refusal Catalogue

• R-GE-1 — Wrong Georgia — Confirm this is the COUNTRY of Georgia (Sakartvelo), not the US state. The two have entirely different tax systems. If this is the US state, stop and use the US Georgia state skill.
• R-GE-2 — Residency unknown — Tax residency (183+ days physical presence in any continuous 12-month period ending in the current tax year) determines whether the individual is taxed on worldwide or only Georgian-source income. Confirm residency before computing. ([PwC, Residence])
• R-GE-3 — Companies / legal entities — This skill covers individuals, the self-employed, and registered Individual Entrepreneurs only. Georgian LLCs (შპს) and other legal persons file corporate tax (the Estonian-model distributed-profits regime). Escalate to a qualified Georgian accountant.
• R-GE-4 — Capital gains / property disposals — Capital-gains treatment on property/vehicle sales depends on holding-period exemptions (>2 years) and business vs non-business character. Confirm the facts before applying the 5% rate; escalate complex disposals. ([PwC, Income determination])
• R-GE-5 — Foreign-source / cross-border income — Treatment of a resident's foreign-source income varies by category and treaty. Do not assume exemption. Escalate to a qualified Georgian accountant for cross-border facts.
• R-GE-6 — Arrears / enforcement — Client has outstanding tax arrears or is subject to Revenue Service enforcement. Late-payment interest accrues under the Tax Code [RESEARCH GAP — exact rate not confirmed from a primary source]. Do not advise; escalate to a qualified Georgian accountant immediately.
• R-GE-7 — VAT return requested — This skill covers personal income tax only. For Georgian VAT (18%), use the georgia-vat skill if available, or escalate.

Section 3 — Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. Do not second-guess. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name or description as it appears in the bank statement. Georgian statements may show descriptions in Georgian (Mkhedruli) script, transliteration, or English; common transliterations are given. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules.

Regime note. The treatment of business income depends on the regime. Under Small Business Status, business receipts go into the monthly turnover declaration (cash / POS / transfer lines) taxed at 1% (3% above GEL 500,000) — there is no expense deduction. Under standard 20% PIT, business profit is income minus allowable deductions. Patterns below tag the destination as "Turnover (SBS)" or "Income (20%)" where it matters.

3.1 Income Patterns (Credits on Bank Statement)

3.1 Income Patterns (Credits on Bank Statement)

Pattern	Destination	Treatment	Notes
Client name + TRANSFER, DEPOSIT, PAYMENT, ჩარიცხვა (charitskhva), გადარიცხვა (gadaritskhva)	Turnover (SBS) / Income (20%)	Business income	If VAT-registered, 18% VAT is excluded from income/turnover
HONORARI, FEES, SERVICE FEE, მომსახურება (momsakhureba)	Turnover (SBS) / Income (20%)	Business / service income	Typical self-employed receipt
STRIPE PAYOUT, STRIPE TRANSFER	Turnover (SBS) / Income (20%)	Platform payout	Match to underlying invoices
PAYPAL, WISE PAYOUT, PAYONEER	Turnover (SBS) / Income (20%)	Platform payout	Verify against invoices
UPWORK, FIVERR, FREELANCE	Turnover (SBS) / Income (20%)	Freelance platform	Net of platform commission
SALARY, ANAZGHAureba, ხელფასი (khelpasi), EMPLOYER [name]	Employment income	NOT self-employment	Employer normally withholds 20% PIT + 2% pension at source
KIRA, RENT, ქირა (kira)	Rental income	Residential rental	5% if no deductions claimed, else 20%
INTEREST, INTERESI, პროცენტი (protsenti)	Investment income	Interest	Usually subject to 5% final WHT at source
DIVIDEND, DIVIDENDI, დივიდენდი	Investment income	Dividend	Usually 5% final WHT at source
TAX REFUND, RS.GE REFUND, დაბრუნება (dabruneba)	EXCLUDE	Not income	Refund of prior tax
GRANT, GOVERNMENT, სახელმწიფო (sakhelmtsipo)	Check nature	Capital grants EXCLUDE; revenue grants = income	Confirm with reviewer

3.2 Expense Patterns (Debits) — Deductible only under standard 20% PIT (NOT under Small/Micro Business Status)

3.2 Expense Patterns (Debits) — Deductible only under standard 20% PIT (NOT under Small/Micro Business Status)

Pattern	Category	Treatment (20% regime)	Notes
OFFICE RENT, KIRA (commercial)	Office rent	Deductible	Dedicated business premises
ACCOUNTANT, AUDIT, BUKHRALTERI	Accountancy fees	Deductible
LAWYER, ADVOKATI, LEGAL	Legal fees	Deductible	Must be business-related
OFFICE SUPPLIES, STATIONERY	Office supplies	Deductible
MARKETING, GOOGLE ADS, META ADS, FACEBOOK	Marketing/advertising	Deductible
BANK FEE, SAKOMISIO, საკომისიო	Bank charges	Deductible	Business account only
STRIPE FEE, PAYPAL FEE, TRANSACTION FEE	Payment processing fees	Deductible
GOOGLE WORKSPACE, MICROSOFT 365, ADOBE, ANTHROPIC, OPENAI, GITHUB	Software subscription	Deductible	Recurring = operating expense
INTERNET, MAGTICOM, SILKNET, TELEKOM	Telecoms/broadband	Deductible (business portion)	Default 0% if mixed personal/business
MOBILE, GEOCELL, MAGTI, BEELINE	Phone	Deductible (business portion)	Business use only; default 0% if mixed

Under Small Business Status (1%/3%) and Micro Business Status (0%), tax is on turnover, so expense deductibility is irrelevant — record expenses for bookkeeping only.

3.3 Expense Patterns (Debits) — NOT Deductible (and irrelevant under SBS/Micro)

3.3 Expense Patterns (Debits) — NOT Deductible (and irrelevant under SBS/Micro)

Pattern	Category	Treatment	Notes
RESTAURANT, CAFE, ENTERTAINMENT	Entertainment	Generally NOT deductible	Confirm with reviewer under 20% regime
PERSONAL, GROCERIES, SUPERMARKET, NIKORA, CARREFOUR, SPAR	Personal expenses	NOT deductible	Private living costs
FINE, PENALTY, JARIMA, ჯარიმა	Fines/penalties	NOT deductible	Public policy
RS.GE PAYMENT, INCOME TAX, PIT	Tax payments	NOT deductible	Tax cannot reduce its own base
DRAWINGS, PERSONAL WITHDRAWAL, ATM (personal)	Drawings	NOT deductible	Not an expense

3.4 Exclusions (Neither Income nor Expense)

3.4 Exclusions (Neither Income nor Expense)

Pattern	Treatment	Notes
INTERNAL TRANSFER, OWN ACCOUNT, BETWEEN ACCOUNTS	EXCLUDE	Own-account transfer
LOAN, SESEKHI, სესხი (principal movement)	EXCLUDE	Loan principal, not income/expense
PENSION CONTRIBUTION, FUNDED PENSION, საპენსიო (sapensio)	Pension contribution	2% employee contribution — tracked separately, not a business expense
VAT PAYMENT, DGG, დღგ (VAT)	EXCLUDE	VAT liability payment, not expense
PIT ADVANCE, INSTALMENT	Advance tax paid	Credit against annual liability — not an expense

3.5 Georgian Banks — Statement Format Reference

3.5 Georgian Banks — Statement Format Reference

Bank	Common Patterns	Notes
Bank of Georgia (saqartvelos banki)	ჩარიცხვა, გადარიცხვა, საკომისიო, TRANSFER	PDF/CSV; descriptions often bilingual GE/EN; dates DD/MM/YYYY
TBC Bank	TRANSFER, PAYMENT, FEE, ქირა, ხელფასი	PDF/CSV; clean English exports available via internet bank
Liberty Bank	TRANSFER, DEPOSIT, CHARGE	PDF; commonly used for salary/state payments
ProCredit Bank	TRANSFER, SEPA, FEE	PDF/CSV; business-focused
Wise / Revolut (foreign)	TRANSFER, CONVERSION, FEE	CSV; multi-currency — convert non-GEL to GEL at the transaction-date rate

Section 4 — Worked Examples

All amounts in GEL. All tax figures are estimates pending professional review.

Example 1 — Standard self-employed individual, 20% PIT

Input line: 12/03/2025 ; TBC TRANSFER IN ; SHPS ALPHA ; PAYMENT INV-2025-007 ; +5,000.00 ; GEL

Reasoning: Business receipt for a standard (non-SBS) self-employed individual. Not VAT-registered. The full GEL 5,000 is business income taxed at the flat 20% PIT after allowable deductions. [PwC, Taxes on personal income]

Classification: Income (20% regime) = GEL 5,000. If this individual's annual taxable profit is, say, GEL 5,000 net, PIT = 5,000 × 20% = GEL 1,000.

Example 2 — Small Business Status receipt (1% turnover tax)

Input line: 05/04/2025 ; BANK OF GEORGIA ; CLIENT BETA ; momsakhureba ; +8,000.00 ; GEL

Reasoning: Individual Entrepreneur with Small Business Status. Tax is on turnover, not profit: 1% on annual turnover up to GEL 500,000. This GEL 8,000 receipt goes on the monthly turnover declaration (transfer line). [PwC, Taxes on personal income]

Classification: Turnover (SBS) = GEL 8,000. Tax on this receipt = 8,000 × 1% = GEL 80. No expense deduction applies.

Example 3 — Small Business Status above the GEL 500,000 cap (3%)

Reasoning: A Small Business Status holder reaches GEL 520,000 of annual turnover. The first GEL 500,000 is taxed at 1% and the GEL 20,000 excess at 3%. [PwC, Taxes on personal income]

Computation:

• 500,000 × 1% = GEL 5,000
• 20,000 × 3% = GEL 600
• Total turnover tax = GEL 5,600

If turnover exceeds GEL 500,000 for two consecutive years, Small Business Status is revoked from 1 January of the third year. Flag for reviewer.

Example 4 — Residential rental income (5%, no deductions)

Input line: 01/02/2025 ; LIBERTY BANK ; TENANT ; kira tebervali ; +1,200.00 ; GEL

Reasoning: Individual rents out residential space and does NOT claim deductions, so the preferential 5% rate applies to gross rent. (If deductions were claimed, the 20% rate would apply.) [PwC, Income determination]

Classification: Rental income = GEL 1,200/month → GEL 14,400/year. Tax = 14,400 × 5% = GEL 720 for the year.

Example 5 — Employee salary with funded pension (2% + 2%)

Reasoning: An enrolled employee earns gross salary GEL 3,000/month. Employer withholds 20% PIT and the 2% employee funded-pension contribution; the employer also pays a 2% employer contribution (employer cost, not deducted from the employee). The state adds a co-contribution depending on the annual income band. [PwC; National Bank of Georgia]

Computation (one month, GEL 3,000 gross):

• Employee funded pension (2%): 3,000 × 2% = GEL 60
• PIT (20% of gross salary): 3,000 × 20% = GEL 600 [RESEARCH GAP — confirm whether the 2% employee pension reduces the PIT base; this example applies PIT to gross. Reviewer to confirm the precise ordering under the Tax Code.]
• Employer funded pension (2%, employer cost): 3,000 × 2% = GEL 60 (not deducted from employee)
• Employee net pay ≈ 3,000 − 600 − 60 = GEL 2,340

State co-contribution: this employee's annualised income is 36,000, which falls in the GEL 24,000–60,000 band, so the state adds 1% (= GEL 30 on this month's GEL 3,000). [PwC, Other taxes]

Example 6 — Dividend received (5% final WHT)

Input line: 20/06/2025 ; TBC ; SHPS GAMMA ; dividend ; +4,750.00 ; GEL

Reasoning: Dividend paid to an individual is subject to 5% final withholding tax. If GEL 4,750 was received net after 5% WHT, the gross was 4,750 / 0.95 = GEL 5,000 and GEL 250 WHT was withheld at source. No further PIT is due — it is final. [PwC, Corporate — withholding taxes]

Classification: Investment income, final WHT settled. Exclude from PIT base. Confirm whether the figure is gross or net with the reviewer.

Section 5 — Tier 1 Rules (When Data Is Clear)

5.1 Flat Rate of Personal Income Tax

• Flat rate of PIT — Personal income is subject to a single flat rate of 20%. There are no progressive brackets and no general tax-free personal allowance. Do not invent brackets. (Tax Code of Georgia [PwC, Taxes on personal income])

5.2 Residency and Scope

• Residency test and scope — Tax residency = physical presence of 183 days or more in any continuous 12-month period ending in the current tax year. Residency is determined per tax period; days do not carry forward. Residents are taxed on worldwide income; non-residents only on Georgian-source income. Foreign-source income of a resident is, under Georgia's territorial-leaning rules, often exempt in practice — but treatment varies by income type. Default to taxable at 20% until the specific type is confirmed exempt. (Tax Code of Georgia [PwC, Residence])

5.3 Small Business Status (Individual Entrepreneur)

5.3 Small Business Status (Individual Entrepreneur) (Tax Code of Georgia; rs.ge preferential-tax guidance. Corrected by Gvantsa Amiridze (ACCA, Georgia))

Condition	Rule
Tax base	Gross turnover (not profit)
Rate up to the turnover cap	1%
Turnover cap	GEL 500,000/year standard; GEL 700,000/year for wine tourism and agrotourism
Rate above the cap	3%, charged on the excess only — not on total turnover
Revocation	If turnover exceeds the cap for two consecutive years, status is revoked from 1 January of the third year
Filing	Monthly turnover declaration by the 15th of the following month (zero declaration required even with no income; missing one incurs a GEL 100 fine per declaration)

5.4 Micro Business Status

5.4 Micro Business Status (Tax Code of Georgia [PwC, Taxes on personal income])

Condition	Rule
Tax	0% (exempt) on business income
Turnover cap	Below GEL 30,000 per year
Employees	None permitted

5.5 Rental and Capital-Gains Rates

5.5 Rental and Capital-Gains Rates (Tax Code of Georgia [PwC, Income determination])

Item	Rate
Residential rental income, individual NOT claiming deductions	5% on gross rent
Residential rental income, deductions claimed	20%
Gain on sale of vehicle or apartment/house with land (non-business, not exempt)	5%
Same asset held >2 years	Generally exempt [confirm holding-period mechanics — see caveats]

5.6 Withholding Taxes (Final)

5.6 Withholding Taxes (Final) (Tax Code of Georgia [PwC, Corporate — withholding taxes])

Payment	Rate
Dividends to individuals	5% (final)
Interest to individuals / non-residents without PE	5% (final)
Royalties	5%
Service fees to non-residents	10%
Income to non-residents in black-listed jurisdictions	15%

5.7 Mandatory Funded Pension

5.7 Mandatory Funded Pension (Law of Georgia on Funded Pension (No. 3303-რს) [National Bank of Georgia; PwC, Other taxes])

Contributor	Rate	Cap
Employee	2%	No cap
Employer	2%	No cap
State co-contribution	2% if annual income < GEL 24,000; 1% if GEL 24,000–60,000; 0% above GEL 60,000	State co-contribution ceases once accumulated annual income reaches GEL 60,000 [PwC, Other taxes — GEL 24,000/60,000 thresholds sourced to PwC, not directly confirmed from the NBG English page]
Self-employed (voluntary)	4% of annual income (own contribution; no separate employer share)	—

• Scheme structure — The scheme operates on a 2% + 2% + up to 2% basis on gross (untaxed) salary income. (Law of Georgia on Funded Pension (No. 3303-რს) [National Bank of Georgia; PwC, Other taxes])
• Arithmetic check — Arithmetic check (employee + employer columns): employee 2% + employer 2% = 4% mandatory payroll cost, plus a state co-contribution of 0–2% on top. There is no aggregate "total" cap on the employee or employer 2% — only the state co-contribution is income-capped at GEL 60,000.
• Participation — Participation: mandatory for employees who had NOT reached age 60 (men) / 55 (women) when the law took effect (1 January 2019); older employees and the self-employed participate voluntarily.

5.8 No General Social Security

• No general social security — Georgia has NO general social security / social insurance contributions. The funded pension is the only mandatory payroll-linked levy. ([PwC, Other taxes])

5.9 VAT Interaction

5.9 VAT Interaction (Tax Code of Georgia [Andersen in Georgia])

Item	Rule
Standard VAT rate	18%
Mandatory registration threshold	GEL 100,000 of taxable turnover in any continuous 12-month period (register within 2 business days of exceeding)
VAT declaration	Monthly, by the 15th of the following month
Effect on income	VAT collected on sales is NOT income; for a VAT-registered person, report income/turnover net of VAT

The GEL 100,000 VAT threshold is independent of the GEL 500,000 Small Business Status cap. A Small Business Status holder can still be required to register for VAT.

5.10 Filing, Instalments, and Penalties

5.10 Filing, Instalments, and Penalties (Tax Code of Georgia [PwC, Tax administration])

Item	Detail
Annual individual income tax declaration	Due before 1 April of the year following the tax year (commonly cited as 31 March / by 1 April) [PwC — exact wording: "before 1 April"]
Self-employed PIT advance instalments	Four instalments: 15 May, 15 July, 15 September, 15 December [PwC, Tax administration]
Small Business / Individual Entrepreneur turnover declaration	Monthly, by the 15th of the following month; zero declaration required [JustAdvisors]
Property/asset-sale (capital gain) declaration	By the 15th day of the month following the transaction month (monthly basis since January 2024) [PwC, Tax administration]
Monthly VAT declaration	By the 15th of the following month [Andersen in Georgia]
Employer PIT/pension monthly reporting & remittance	Generally by the 15th of the following month [PwC, Tax administration]
Late filing penalty	5% of tax due if ≤2 months late; 10% of tax due if >2 months late; nil if tax due is zero
Late payment interest	0.05% per day on the principal tax debt, from the day after the payment deadline

Section 6 — Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Regime Selection (Standard vs Small vs Micro Business Status)

• Regime selection guidance — Choosing 1% Small Business Status vs 20% standard PIT depends on margins, expense levels, and turnover trajectory. Confirm the Individual Entrepreneur is correctly registered and that the chosen status is active for the tax year. Conservative default: standard 20% PIT until status registration is confirmed. Flag for reviewer: confirm registration, active status, and turnover proximity to the GEL 30,000 (Micro) / GEL 500,000 (Small) caps.

6.2 Foreign-Source Income of Residents

• Foreign-source income guidance — Treatment varies by income type; some foreign-source income is exempt under Georgia's source rules, but this is not automatic. Conservative default: treat as taxable at 20% until the specific category is confirmed exempt. Flag for reviewer: confirm category-by-category treatment and any applicable treaty.

6.3 Rental Income — 5% vs 20%

• Rental income guidance — The 5% rate applies only where the individual does NOT claim deductions; claiming deductions forces the 20% rate. Conservative default: 5% on gross residential rent if no deductions are claimed. Flag for reviewer: confirm whether deductions are being claimed and whether the property is residential.

6.4 Capital-Gains Exemption Holding Period

• Capital gains holding period guidance — Gains on a vehicle or apartment/house with land held >2 years are generally exempt; otherwise 5% applies. Conservative default: taxable at 5% unless the >2-year holding is documented. Flag for reviewer: confirm acquisition date, holding period, and non-business character. [Exact >2-year mechanics — see caveats.]

6.5 Funded-Pension Participation and PIT-Base Ordering

• Funded-pension participation guidance — Confirm whether the worker is enrolled (age cut-off, opt-out status for the self-employed). Confirm the precise interaction between the 2% employee contribution and the 20% PIT base. Conservative default: assume enrolment; apply PIT to gross salary. Flag for reviewer: confirm enrolment and PIT-base ordering. [RESEARCH GAP — see Section 5.7 / Example 5.]

6.6 VAT Registration Trigger

• VAT registration trigger guidance — Monitor rolling 12-month turnover against the GEL 100,000 threshold; registration is due within 2 business days of crossing it. Flag for reviewer: confirm whether and when the threshold was crossed and that registration was timely.

Section 7 — Excel Working Paper Template

GEORGIA (COUNTRY) PERSONAL INCOME TAX — WORKING PAPER
Tax Year: 2025
Client: ___________________________
Residency (183-day test): Resident / Non-resident
Regime: Standard 20% PIT / Small Business 1%(3%) / Micro Business 0%
Currency: GEL

A. BUSINESS INCOME / TURNOVER
  A1. Client payments (net of 18% VAT if registered)   ___________
  A2. Platform payouts (Stripe, PayPal, Wise, etc.)    ___________
  A3. Other business income                            ___________
  A4. TOTAL business income / turnover                 ___________

B. DEDUCTIONS  (STANDARD 20% REGIME ONLY — leave blank for SBS/Micro)
  B1. Office rent                                      ___________
  B2. Accountancy / legal fees                         ___________
  B3. Software subscriptions                           ___________
  B4. Marketing / advertising                          ___________
  B5. Bank / payment processing fees                   ___________
  B6. Telecoms (business %)                             ___________
  B7. Other allowable expenses                         ___________
  B8. TOTAL deductions                                 ___________

C. NET BUSINESS PROFIT (A4 - B8)  [20% regime]         ___________

D. OTHER INCOME
  D1. Employment income (gross salary)                 ___________
  D2. Residential rental income (gross)                ___________
  D3. Capital gains (vehicle / property, if taxable)   ___________
  D4. Dividends / interest / royalties (note: 5% final
      WHT usually settled at source — exclude if final) ___________

E. TAX COMPUTATION (pass to deterministic engine)
  STANDARD 20% PIT:
    E1. PIT base (C + D1 + applicable other)           ___________
    E2. PIT @ 20%                                       ___________
  SMALL BUSINESS STATUS:
    E3. Turnover up to 500,000 @ 1%                     ___________
    E4. Turnover above 500,000 @ 3%                     ___________
  RENTAL @ 5% (if no deductions): D2 × 5%               ___________
  CAPITAL GAIN @ 5% (if taxable): D3 × 5%               ___________

F. FUNDED PENSION (employees / voluntary self-employed)
  F1. Employee 2% of gross salary                      ___________
  F2. Employer 2% of gross salary (employer cost)      ___________
  F3. State co-contribution (2%/1%/0% by income band)  ___________
  F4. Self-employed voluntary 4% (if applicable)       ___________

G. CREDITS / PAYMENTS
  G1. PIT advance instalments paid                     ___________
  G2. WHT already withheld at source (final items)     ___________
  G3. Tax due / refund                                 ___________

REVIEWER FLAGS:
  [ ] COUNTRY of Georgia confirmed (not US state)?
  [ ] Residency (183-day) confirmed?
  [ ] Regime (20% / SBS / Micro) confirmed and registered?
  [ ] Foreign-source income treatment confirmed?
  [ ] Rental 5% vs 20% basis confirmed?
  [ ] Capital-gains holding period (>2yr exemption) confirmed?
  [ ] Funded-pension enrolment and PIT-base ordering confirmed?
  [ ] VAT registration (GEL 100,000) status confirmed?
  [ ] Small Business monthly declarations filed (cash/POS/transfer)?

Section 8 — Bank Statement Reading Guide

Georgian Bank Statement Formats

Georgian Bank Statement Formats

Bank	Format	Key Fields	Notes
Bank of Georgia	PDF, CSV	Date, Description, Debit, Credit, Balance	Bilingual GE/EN; description holds counterparty + reference
TBC Bank	PDF, CSV	Date, Description, Amount, Balance	Clean English exports via internet bank
Liberty Bank	PDF	Date, Particulars, Withdrawals, Deposits	Often used for salary/state payments
ProCredit Bank	PDF, CSV	Date, Description, Amount, Balance	Business-focused; SEPA references
Wise / Revolut	CSV	Date, Counterparty, Amount, Currency, Reference	Multi-currency — convert to GEL at transaction-date rate

Key Georgian Banking / Tax Terms

Key Georgian Banking / Tax Terms

Term (transliteration)	Georgian	English	Classification Hint
gadaritskhva	გადარიცხვა	Transfer	Check direction for income/expense
charitskhva	ჩარიცხვა	Credit / deposit	Potential income
khelpasi	ხელფასი	Salary	Employment income
kira	ქირა	Rent	Rental income (5% / 20%)
momsakhureba	მომსახურება	Service	Business / service income
sakomisio	საკომისიო	Commission / fee	Bank charge (deductible under 20% regime)
protsenti	პროცენტი	Interest	Interest income (5% WHT)
dividendi	დივიდენდი	Dividend	Dividend (5% final WHT)
sapensio	საპენსიო	Pension	Funded-pension contribution
DGG / dghg	დღგ	VAT	Exclude from income
jarima	ჯარიმა	Fine / penalty	Not deductible
seskhi	სესხი	Loan	Principal movement — exclude

Section 9 — Onboarding Fallback

If the client provides a bank statement but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3)
2. Mark all Tier 2 items as "PENDING — reviewer must confirm"
3. Apply conservative defaults (Section 1)
4. Generate the working paper (Section 7) with clear flags
5. Present the following questions to the client:

ONBOARDING QUESTIONS — GEORGIA (COUNTRY) INCOME TAX
1. Is this the COUNTRY of Georgia (Sakartvelo), not the US state? (confirm)
2. Tax residency: were you physically present 183+ days in any continuous 12-month period ending in this tax year?
3. Regime: standard 20% PIT, Small Business Status (1%/3%), or Micro Business Status (0%)? Are you a registered Individual Entrepreneur?
4. Approximate annual turnover (relevant to the GEL 30,000 / 100,000 / 500,000 thresholds)?
5. Are you VAT-registered (turnover over GEL 100,000 in any 12-month period)?
6. Employment income: any salary? If so, are you enrolled in the funded pension (born before/after the age cut-off)?
7. Rental income: any residential rent received? Do you intend to claim deductions (20%) or not (5%)?
8. Capital gains: did you sell a vehicle or apartment/house with land? Acquisition date / holding period?
9. Passive income: dividends, interest, royalties? (these usually carry 5% final WHT at source)
10. Foreign-source income: any income from outside Georgia?
11. PIT advance instalments paid this year (15 May / 15 Jul / 15 Sep / 15 Dec)?

Section 10 — Reference Material

Key Legislation and Authority References

Key Legislation and Authority References

Topic	Reference
Flat 20% PIT; Small/Micro Business Status	Tax Code of Georgia (Law No. 3591) [PwC, Taxes on personal income]
Residency (183-day rule)	Tax Code of Georgia [PwC, Residence]
Rental and capital-gains 5% rates	Tax Code of Georgia [PwC, Income determination]
Withholding taxes (5% / 10% / 15%)	Tax Code of Georgia [PwC, Corporate — withholding taxes]
Funded pension (2%+2%+state)	Law on Funded Pension No. 3303-რს [National Bank of Georgia; matsne.gov.ge]
VAT (18%, GEL 100,000 threshold)	Tax Code of Georgia [Andersen in Georgia]
Deadlines and instalments	Tax Code of Georgia [PwC, Tax administration; JustAdvisors]
Minimum wage	Presidential Decree No. 351 (1999): GEL 20/month private, GEL 115/month public [CXC Global] — effectively obsolete; market wages far higher
Penalties / late-payment interest	Tax Code of Georgia — late filing 5% of tax due (≤2 months) / 10% (>2 months), nil if no tax is due; late payment 0.05% per overdue day

Sources

1. PwC Worldwide Tax Summaries — Georgia, Individual: Taxes on personal income — https://taxsummaries.pwc.com/georgia/individual/taxes-on-personal-income
2. PwC Worldwide Tax Summaries — Georgia, Individual: Other taxes (pension, VAT, social security) — https://taxsummaries.pwc.com/georgia/individual/other-taxes
3. PwC Worldwide Tax Summaries — Georgia, Individual: Income determination — https://taxsummaries.pwc.com/georgia/individual/income-determination
4. PwC Worldwide Tax Summaries — Georgia, Individual: Tax administration — https://taxsummaries.pwc.com/georgia/individual/tax-administration
5. PwC Worldwide Tax Summaries — Georgia, Individual: Residence — https://taxsummaries.pwc.com/georgia/individual/residence
6. PwC Worldwide Tax Summaries — Georgia, Corporate: Withholding taxes — https://taxsummaries.pwc.com/georgia/corporate/withholding-taxes
7. National Bank of Georgia — Funded Pension Scheme — https://nbg.gov.ge/en/page/funded-pension-scheme
8. Legislative Herald of Georgia (matsne.gov.ge) — On Funded Pension — https://www.matsne.gov.ge/en/document/view/4280127
9. Andersen in Georgia — Rules for Mandatory and Voluntary VAT Registration — https://ge.andersen.com/rules-for-mandatory-and-voluntary-vat-registration-in-georgia/
10. JustAdvisors — Small Business in Georgia 2025: Updated Tax Declaration — https://en.justadvisors.ge/blog/finance/deklaration_pe_2025
11. CXC Global — Georgia Payroll & Benefits guide (minimum wage) — https://www.cxcglobal.com/global-hiring-guide/georgia/payroll-and-benefits-in-georgia/

Research caveats (reviewer to confirm against primary sources): (1) exact penalty / late-payment interest amounts under the Tax Code of Georgia; (2) precise treatment/exemption of resident foreign-source income by category; (3) capital-gains exemption holding-period (>2 years) mechanics for property/vehicles; (4) whether the annual-return deadline is "31 March" or "before 1 April" (PwC says "before 1 April"); (5) the GEL 24,000 / 60,000 state pension co-contribution thresholds are sourced to PwC, not directly confirmed from the NBG English page (which states only the 2%+2%+2% principle); (6) the agritourism GEL 700,000 small-business variant; (7) whether the 2% employee pension contribution reduces the 20% PIT base. No FX rate was fixed — convert GEL at current rates as needed.

Test Suite

Input: Resident, standard regime, net business profit GEL 40,000, no other income. Expected: PIT base = GEL 40,000. PIT = 40,000 × 20% = GEL 8,000.

Input: Individual Entrepreneur, Small Business Status, annual turnover GEL 120,000. Expected: Turnover tax = 120,000 × 1% = GEL 1,200 (filed across monthly declarations). No expense deduction.

Input: Small Business Status, annual turnover GEL 520,000. Expected: 500,000 × 1% = 5,000; 20,000 × 3% = 600; total = GEL 5,600. Flag two-consecutive-year revocation risk.

Input: Micro Business Status, turnover GEL 22,000, no employees. Expected: Tax = GEL 0 (exempt). Confirm turnover stays below GEL 30,000.

Input: Individual, residential rent GEL 14,400/year, no deductions claimed. Expected: Tax = 14,400 × 5% = GEL 720.

Input: Dividend GEL 5,000 gross paid to an individual. Expected: WHT = 5,000 × 5% = GEL 250, final. Net received GEL 4,750. Excluded from PIT base (final WHT).

Input: Employee gross salary GEL 3,000/month, enrolled. Expected: Employee 2% = GEL 60; employer 2% = GEL 60; PIT 20% of gross = GEL 600; net pay ≈ GEL 2,340 (subject to PIT-base ordering caveat). Annualised income GEL 36,000 → state co-contribution 1%.

Input: Client is in Atlanta, Georgia, USA. Expected: STOP. This skill is for the country of Georgia only. Redirect to the US Georgia state skill.

PROHIBITIONS

• NEVER confuse the COUNTRY of Georgia (GE) with the US state of Georgia — confirm jurisdiction first
• NEVER invent progressive brackets — Georgian PIT is a single flat 20%
• NEVER apply expense deductions under Small Business Status or Micro Business Status — those regimes tax turnover, not profit
• NEVER assume a resident's foreign-source income is exempt without confirming the specific income type
• NEVER apply the 5% rental rate when the individual is claiming deductions (then it is 20%)
• NEVER treat the 5% / 10% / 15% withholding items as additional PIT when they are final WHT settled at source
• NEVER omit the funded pension for an enrolled employee (2% employee + 2% employer)
• NEVER state a penalty or late-payment interest figure as fact — those are RESEARCH GAPS pending confirmation
• NEVER include VAT collected on sales as income for a VAT-registered person
• NEVER present tax calculations as definitive — always label as estimated, pending professional review

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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