Georgia Payroll

Georgia Payroll Skill v0.1

Tier 2 — Research-verified. Rates and structure are cross-verified across PwC Worldwide Tax Summaries (Georgia, Individual & Corporate), the Law of Georgia "On Funded Pension" (matsne.gov.ge), the Tax Code of Georgia, Mondaq/Eurofast and Georgian practitioner sources (TPsolution, CXC Global). Official Georgian-language statute PDFs were not directly text-extracted line-by-line; figures rely on the English consolidations on matsne.gov.ge plus Big-4 and specialist summaries. Every figure below carries an inline source or a [RESEARCH GAP — reviewer to confirm] marker. A qualified Georgian tax adviser / authorised accountant must validate this skill before production use.

CRITICAL DISAMBIGUATION. Jurisdiction code GE = the country / Republic of Georgia (Sakartvelo, Caucasus), currency GEL (Georgian lari). This skill has nothing to do with the US state of Georgia (USD, Form G-7, ~5.19% flat state rate). If a request concerns the US state, this is the WRONG skill — escalate.

Section 1 -- Quick Reference

Quick Reference table

Field	Value
Country	Georgia (Republic of Georgia / Sakartvelo — Caucasus, NOT the US state)
Jurisdiction code	GE
Currency	GEL (Georgian lari) only
Standard pay frequency	Monthly
Tax year	Calendar year (1 January -- 31 December). Source: PwC WWTS Georgia, Tax administration.
Has personal income tax?	Yes -- flat 20% on gross employment income, withheld at source (PAYE). Source: PwC WWTS Georgia, Corporate: Other taxes.
Personal income tax (salary)	20% flat on gross salary. No tax-free personal allowance; no progressive bands. Source: PwC WWTS Georgia.
Funded pension -- employer	2% of gross salary. Source: Law on Funded Pension Art. 3(6); PwC WWTS Georgia, Individual: Other taxes.
Funded pension -- employee (withheld)	2% of gross salary. Source: Law on Funded Pension Art. 3(6).
Funded pension -- state co-contribution	2% if annual income < GEL 24,000; 1% on the GEL 24,000--60,000 portion; 0% above GEL 60,000 (paid by the Government, not the employer). Source: Law on Funded Pension Art. 3(6).
Other employer social/payroll tax	None -- there is no general employer social-security or payroll tax in Georgia beyond the 2% funded pension. Source: PwC WWTS Georgia, Corporate: Other taxes.
Tax authority	Revenue Service of Georgia (Sakartvelos Shemosavlebis Samsakhuri), Ministry of Finance
Pension administrator	LEPL Pension Agency (pensions.ge)
Filing portal	rs.ge / eservices.rs.ge
Primary forms	Monthly withholding (PIT) declaration; annual individual income tax declaration; funded-pension transfer to the Pension Agency
Monthly declaration deadline	By the 15th of the month following the payment month; PIT payment due on the day wages are paid. Source: PwC WWTS Georgia, Tax administration; TPsolution.
Validated by	Pending -- requires sign-off by a qualified Georgian tax adviser / authorised accountant
Skill version	0.1

Legislation table

Law	Scope	Source
Tax Code of Georgia (Law No. 3591, 2010, as amended)	PIT withholding, declarations, penalties	matsne.gov.ge
Law of Georgia "On Funded Pension" (2018; in force from 1 Jan 2019)	Mandatory funded pension contributions	matsne.gov.ge

Confidence Tier Definitions

Every rule in this skill is tagged with a confidence tier:

• [T1] Tier 1 -- Deterministic. Apply exactly as written. No reviewer judgement required.
• [T2] Tier 2 -- Reviewer Judgement Required. Flag the issue and present options. A qualified Georgian tax adviser must confirm before filing.
• [T3] Tier 3 -- Out of Scope / Escalate. Skill does not cover this. Do not guess. Escalate and document the gap.

Section 2 -- Personal Income Tax (PIT) Withholding -- PAYE

• PIT flat rate and withholding at source — Employment income is taxed at a flat 20%, withheld at source by the employer at the moment of salary payment and remitted to the Revenue Service. There is no progressive bracket for employment income, and no GENERAL tax-free personal allowance — but Tax Code Article 82 does grant specific exemptions to defined categories (see "No allowances, no cap adjustment"). (Tax Code of Georgia Art. 82; PwC WWTS Georgia. Corrected by Gvantsa Amiridze (ACCA, Georgia))

PIT formula [T1]

• PIT formula — PIT = Gross salary × 20% (PwC WWTS Georgia, Corporate: Other taxes; Tax Code of Georgia)
• No allowances, no cap adjustment — There is no GENERAL tax-free band, no standard deduction, and no marital/dependant adjustment for salary. But it is wrong to tell a taxpayer that no relief exists at all: Tax Code Article 82 grants specific personal exemptions to defined categories — for example individuals engaged in agricultural production, and certain protected categories, on taxable income up to GEL 3,000 / GEL 6,000 in a calendar year. Check Article 82 against the taxpayer's circumstances before concluding there is no relief. (Tax Code of Georgia Art. 82; rs.ge Persons Tax FAQ. Corrected by Gvantsa Amiridze (ACCA, Georgia))
• PIT payment and declaration timing — PIT payment is due on the day wages are paid; the monthly withholding declaration is filed by the 15th of the following month via rs.ge. (PwC WWTS Georgia, Tax administration; Tax Code)

Other PIT rates (context — NOT employment income) [T1 / informational]

Other PIT rates table

Income type	Rate	Note	Source
Residential rental (individual, no deductions claimed)	5% flat on gross	Optional; otherwise 20% on net. Not employment income.	PwC WWTS Georgia, Individual: Income determination
Small-business status individual entrepreneur	1% of turnover (3% if standard turnover > GEL 500,000/yr; wine-tourism/agrotourism threshold is GEL 700,000)	Self-employed / IE regime, not employees.	PwC WWTS Georgia, Individual
Micro-business status individual	0% (exempt)	Annual turnover < GEL 30,000, no employees. Not employment income.	PwC WWTS Georgia, Individual

These special regimes apply to self-employed individuals, not to employees. Do not apply them to a payroll computation. If a "salary" turns out to be IE turnover, this is [T3] — out of scope for payroll.

Section 3 -- Funded Pension Contributions

• Mandatory funded pension overview — A mandatory funded pension has been in force since 1 January 2019. For each participating employee it is funded by three sources: the employer (2%), the employee (2%, withheld by the employer), and the State (a co-contribution on a sliding scale). (Law on Funded Pension Art. 3(6); PwC WWTS Georgia, Individual: Other taxes)

Funded pension rate table [T1]

Funded pension rate table

Source	Rate	Base	Who pays / how	Source
Employer	2%	Employee gross salary	Employer, on top of gross	Law on Funded Pension Art. 3(6); PwC
Employee	2%	Employee gross salary	Withheld from gross by employer	Law on Funded Pension Art. 3(6)
State co-contribution	2% / 1% / 0% (see schedule)	Participant's annual income	Government of Georgia	Law on Funded Pension Art. 3(6)
Combined employer + employee (private)	4%	Gross salary	2% employer + 2% employee	derived from Art. 3(6)

• Arithmetic check for private combined rate — Arithmetic check: private contributions = employer 2% + employee 2% = 4% of gross. The State portion is paid by the Government and is not an employer or employee cost. ([T1])

State co-contribution schedule [T1]

• State co-contribution basis — The State co-contribution is based on the participant's annual salary/income and is tiered. Thresholds reset each calendar year. (Law on Funded Pension Art. 3(6))

State co-contribution schedule table (Law on Funded Pension Art. 3(6))

Annual income band (GEL)	State co-contribution rate
Up to 24,000	2%
Portion from 24,000 to 60,000	1%
Above 60,000	0% (no State contribution)

Arithmetic check (state co-contribution worked): [T1]

• Annual income GEL 20,000 (< 24,000): 20,000 × 2% = GEL 400/yr.
• Annual income GEL 36,000: (24,000 × 2%) + (12,000 × 1%) = 480 + 120 = GEL 600/yr.
• Annual income GEL 70,000: (24,000 × 2%) + (36,000 × 1%) + (10,000 × 0%) = 480 + 360 + 0 = GEL 840/yr (the GEL 60,000+ portion gets 0%).

Contribution base for the private 2% + 2% [T2]

[RESEARCH GAP — reviewer to confirm]. Authoritative sources confirm the GEL 24,000 / GEL 60,000 threshold schedule only for the STATE co-contribution. Whether the employee/employer 2% base is itself capped (e.g. at GEL 60,000) for very high earners, or computed on full gross salary, is not pinned to a primary source. Conservative default (CD2): compute the 2% + 2% on full gross salary unless verified otherwise. Verify cap treatment with the Pension Agency (pensions.ge) or the Law's implementing regulations before finalising payroll for high earners.

Participation rules [T1]

• Mandatory participation — Participation is mandatory for employees. (Law on Funded Pension)
• Voluntary opt-out for pre-2019 60/55 — Voluntary opt-out is available only for those who had reached 60 (men) / 55 (women) before the law's entry into force (1 Jan 2019). For such persons participation is voluntary. (Law on Funded Pension; CD3)
• Self-employed pension contribution — Self-employed individuals contribute 4% of annual income (no employer component, since there is no employer). (Self-employed is not payroll — see Section 6 refusal catalogue.) (PwC WWTS Georgia, Individual: Other taxes; Law on Funded Pension)

Section 4 -- Gross-to-Net Computation Order

• Gross-to-net computation order — 1. Determine gross salary (khelfasi), in GEL. 2. PIT = gross × 20% (withheld from gross). 3. Employee funded pension = gross × 2% (withheld from gross). 4. Net pay = gross − PIT − employee pension = gross × (1 − 0.20 − 0.02) = gross × 0.78. 5. Employer funded pension = gross × 2% (paid on top of gross). 6. Total employer cash cost = gross + employer pension = gross × 1.02. 7. State co-contribution is added to the employee's pension account by the Government (per the Section 3 schedule); it is NOT an employer or employee cash cost. (PwC WWTS Georgia (PIT 20% withholding); Law on Funded Pension Art. 3(6) (2% + 2%))
• Arithmetic check multipliers — Arithmetic check: net multiplier = 1 − 0.20 − 0.02 = 0.78; employer cost multiplier = 1 + 0.02 = 1.02. ([T1])
• Pension-exempt employee computation — For an employee who is exempt from the funded pension (60+/55+ before 1 Jan 2019 and has not opted in), drop the 2% lines: net = gross × 0.80; employer cost = gross (no employer pension). ([T1])

Section 5 -- Conservative Defaults

Conservative defaults table (research conservative_defaults)

#	Default assumption	Rationale / source
CD1	Employer total statutory on-cost = 2% of gross (the funded-pension employer share) — there is no other employer payroll/social tax in Georgia.	Georgia has no general employer social-security tax. PwC WWTS Georgia, Corporate.
CD2	Compute the employee/employer 2% + 2% on full gross salary; do not assume a GEL 60,000 cap on the private share — the GEL 24,000/60,000 thresholds are confirmed only for the STATE co-contribution. Flag [T2].	Threshold schedule confirmed for State portion only; private cap unverified. [RESEARCH GAP]
CD3	Assume mandatory enrolment for the employee, except those aged 60+ (men) / 55+ (women) before 1 Jan 2019, for whom participation is voluntary.	Law on Funded Pension (mandatory participation).
CD4	Treat the statutory GEL 20/month private-sector minimum wage as non-binding; use the agreed contractual salary as the payroll base.	The 1999 statutory minimum is obsolete and not enforced. CXC Global; wage.is.
CD5	Treat the income as standard employment income (PAYE) unless told otherwise; do not apply small-business/micro-business/IE regimes to payroll.	Those regimes apply to self-employed individuals, not employees. PwC WWTS Georgia.

Section 6 -- Required Inputs and Refusal Catalogue

Required inputs before computing any payroll [T1]

• required inputs 1-4 — Ask for any unknown item. Do not compute until items 1--4 are confirmed. 1. Employer TIN (9- or 11-digit tax identification number) and registration with the Revenue Service. 2. Pay period and payment date (PIT is due on the payment date; the withholding declaration is filed by the 15th of the following month). 3. Gross salary for the period, in GEL. If only a net figure is known, flag for gross-up (iterative) and present as estimate only [T2]. 4. Funded-pension status of the employee: enrolled (mandatory) or exempt/opted-out under the 60/55 pre-2019 rule (CD3) [T2 if unclear].

Refusal Catalogue [T1]

Refusal catalogue table

Trigger	Action
Request concerns the US state of Georgia (USD, Form G-7, state withholding)	STOP. Wrong jurisdiction. This skill is the COUNTRY of Georgia (GEL). Escalate to the correct US-state skill [T3].
Gross salary not provided (only "net" or "budget")	Gross-up required (gross = net / 0.78 for an enrolled employee; / 0.80 if pension-exempt). Present as estimate only and flag [T2].
Payment date / pay period unknown	STOP. Declaration timing depends on the payment date.
Worker is a self-employed individual / individual entrepreneur (small-business 1%/3%, micro-business 0%, or 4% self-employed pension)	OUT OF SCOPE for payroll. Escalate to the relevant Georgia skill / adviser [T3].
Income is not employment income (dividends, interest, rent, services)	OUT OF SCOPE for this skill. The 5% rental rate, withholding on dividends/interest etc. are separate [T3].
Funded-pension cap treatment for a high earner materially affects the result	Apply CD2 (full gross), flag [T2] / [RESEARCH GAP], and require Pension Agency confirmation.

Section 7 -- Transaction / Payment Pattern Library (Deterministic)

Map bank-statement narrations (often Georgian / transliterated) to payroll classifications. All patterns [T1] unless flagged. Georgian banks: TBC Bank, Bank of Georgia, Liberty Bank, Basis Bank, Credo Bank, ProCredit Georgia.

7a. Salary credits to the employee's account

Salary credits table

Narration pattern (Georgian / common)	Classification
KHELFASI, ხელფასი	Net salary payment
KHELFASI [month/year], MONTHLY SALARY	Net monthly salary
ANAZGHAUREBA, AREMUNERATSIA, REMUNERATION	Salary / remuneration
AVANSI, SALARY ADVANCE	Salary advance — partial net payment [T2]
PREMIA, BONUS	Bonus — taxable as employment income (20% PIT + 2% pension apply) [T1]

7b. Employer remittances (debits from the company account)

Employer remittances table

Narration pattern	Classification
REVENUE SERVICE, RS.GE, SASIMOSAVLO SAMSAKHURI	PIT withholding remittance to the Revenue Service
GADASAKHADI, TAX PAYMENT	Tax payment (PIT)
SAPENSIO, PENSION AGENCY, PENSIONS.GE	Funded pension transfer (employer 2% + withheld employee 2%)
DAGROVEBITI SAPENSIO	Funded ("accumulated") pension contribution
KHELFASEBI, PAYROLL, NET WAGES	Net salary disbursement to employees

Salaries, PIT and pension contributions are never items on a VAT (VAT/DAANG) return — keep them out of georgia-vat. Source: georgia-vat.md Section 3.8 (KHELFASI / salary = EXCLUDE).

Forms [T1]

Forms table

Form	Purpose	Deadline	Portal	Source
Monthly withholding (PIT) declaration	Employer reports PIT withheld on salaries (and other withholding — dividends, interest, services)	By the 15th of the month following the payment month; PIT payment due on the day wages are paid	rs.ge / eservices.rs.ge	PwC WWTS Georgia, Tax administration; TPsolution; expathub.ge
Funded pension contribution	Employer transfers employer 2% + withheld employee 2% to the Pension Agency	Monthly, alongside payroll (Pension Agency / Revenue Service systems)	Pension Agency systems	Law on Funded Pension; PwC
Annual individual income tax declaration	Resident individuals whose income was not taxed at source must file	Before 1 April for the prior calendar year	rs.ge	PwC WWTS Georgia, Tax administration

Section 8 -- Filing Obligations

[RESEARCH GAP — reviewer to confirm] the exact monthly mechanics/timing for remitting funded-pension contributions to the Pension Agency versus filing the PIT declaration on rs.ge. The two are processed through parallel systems; confirm operational sequencing. Source: research caveat (3).

For an employee whose salary is fully taxed at source (PAYE), no annual return is generally required — the annual return is for individuals with income not taxed at source. [T1]

Section 9 -- Minimum Wage

Minimum wage table

Item	Value	Source
Private-sector statutory minimum	GEL 20/month (Presidential Decree No. 351 of 1999, unchanged)	CXC Global; wage.is
Public-sector minimum	~GEL 115/month	CXC Global
Practical position	The 1999 statutory minimum is non-binding in practice; the de facto market floor is far higher. Payroll is based on the contractual salary.	CXC Global; CD4

Georgia's statutory minimum wage is functionally obsolete. Source: CXC Global; wage.is.

Do not treat GEL 20/month as a meaningful wage floor (CD4). Use the agreed contractual salary as the payroll base.

Section 10 -- Worked Examples

All figures in GEL. Each example is recomputed end-to-end. Unless stated, the employee is enrolled in the funded pension (net = gross × 0.78; employer cost = gross × 1.02).

Example 1 -- Standard salary, GEL 2,000 gross, enrolled [T1]

• PIT = 2,000 × 20% = 400.00
• Employee funded pension = 2,000 × 2% = 40.00
• Net pay = 2,000 − 400.00 − 40.00 = 1,560.00 (= 2,000 × 0.78) ✓
• Employer funded pension = 2,000 × 2% = 40.00
• Total employer cost = 2,000 + 40.00 = 2,040.00 (= 2,000 × 1.02) ✓

Bank statement: a credit of GEL 1,560.00 narrated KHELFASI 03/2025.

Example 2 -- Mid salary, GEL 3,500 gross, enrolled [T1]

• PIT = 3,500 × 20% = 700.00
• Employee funded pension = 3,500 × 2% = 70.00
• Net pay = 3,500 − 700.00 − 70.00 = 2,730.00 (= 3,500 × 0.78) ✓
• Employer funded pension = 3,500 × 2% = 70.00
• Total employer cost = 3,570.00 (= 3,500 × 1.02) ✓

Example 3 -- Low salary, GEL 1,000 gross, enrolled [T1]

• PIT = 1,000 × 20% = 200.00
• Employee funded pension = 1,000 × 2% = 20.00
• Net pay = 1,000 − 200.00 − 20.00 = 780.00 (= 1,000 × 0.78) ✓
• Employer funded pension = 1,000 × 2% = 20.00
• Total employer cost = 1,020.00 ✓

Note: there is no general tax-free allowance — PIT applies from the first lari of salary. But Tax Code Art. 82 grants specific exemptions to defined categories (e.g. agricultural production; certain categories up to GEL 3,000 / GEL 6,000 a year) — check it before telling a taxpayer no relief exists. [T1]

Example 4 -- High salary, GEL 8,000 gross/month, enrolled [T1] / [T2]

• PIT = 8,000 × 20% = 1,600.00
• Employee funded pension (CD2: full gross) = 8,000 × 2% = 160.00
• Net pay = 8,000 − 1,600.00 − 160.00 = 6,240.00 (= 8,000 × 0.78) ✓
• Employer funded pension = 8,000 × 2% = 160.00
• Total employer cost = 8,160.00 (= 8,000 × 1.02) ✓

[T2] / [RESEARCH GAP]. Annualised, GEL 8,000/month = GEL 96,000/yr, which is above GEL 60,000. The State co-contribution would be 0% on the portion above GEL 60,000. Whether the private 2% + 2% is itself capped at GEL 60,000 of annual salary is unconfirmed — CD2 computes on full gross; confirm with the Pension Agency. Source: research caveat (1).

Example 5 -- Pension-exempt employee (60+/55+ before 1 Jan 2019), GEL 2,500 gross [T1]

• Employee is exempt from the funded pension and has not opted in (CD3). Drop both 2% lines.
• PIT = 2,500 × 20% = 500.00
• Employee funded pension = 0.00
• Net pay = 2,500 − 500.00 = 2,000.00 (= 2,500 × 0.80) ✓
• Employer funded pension = 0.00
• Total employer cost = 2,500.00 (no employer pension) ✓

Example 6 -- State co-contribution illustration (not a cash cost), annual GEL 36,000 [T1]

For an enrolled employee earning GEL 3,000/month (= GEL 36,000/yr):

• Employee contributes 36,000 × 2% = GEL 720/yr; employer contributes 36,000 × 2% = GEL 720/yr (CD2, full gross).
• State co-contribution = (24,000 × 2%) + (12,000 × 1%) = 480 + 120 = GEL 600/yr (paid by the Government to the employee's pension account).
• Total annual additions to the pension account ≈ 720 + 720 + 600 = GEL 2,040 — but only the GEL 720 employer share is an employer cash cost, and only the GEL 720 employee share is withheld from net pay. The State GEL 600 is neither. [T1]

Section 11 -- Tier 1 Rules (Deterministic)

Tier 1 Rules table

#	Rule	Source
T1-1	PIT on salary is a flat 20% of gross, withheld at source (PAYE). No tax-free allowance, no progressive bands, no marital/dependant adjustment.	PwC WWTS Georgia, Corporate: Other taxes; Tax Code
T1-2	PIT payment is due on the day wages are paid; the monthly withholding declaration is filed by the 15th of the following month via rs.ge.	PwC WWTS Georgia, Tax administration; TPsolution
T1-3	Mandatory funded pension: employer 2% + employee 2% of gross salary, in force since 1 Jan 2019; employee 2% is withheld, employer 2% is on top of gross.	Law on Funded Pension Art. 3(6)
T1-4	State co-contribution: 2% if annual income < GEL 24,000; 1% on the GEL 24,000--60,000 portion; 0% above GEL 60,000; thresholds reset each calendar year. Paid by the Government, not the employer.	Law on Funded Pension Art. 3(6)
T1-5	Net pay = gross × 0.78 for an enrolled employee (gross × 0.80 if pension-exempt). Total employer cash cost = gross × 1.02 (gross × 1.00 if pension-exempt).	derived from T1-1 + T1-3
T1-6	There is no general employer social-security or payroll tax beyond the 2% funded pension — total mandatory employer on-cost is just 2%.	PwC WWTS Georgia, Corporate: Other taxes
T1-7	Funded-pension participation is mandatory for employees; voluntary opt-out only for those aged 60 (men) / 55 (women) before 1 Jan 2019.	Law on Funded Pension
T1-8	The tax year is the calendar year. Resident individuals whose income was NOT taxed at source must file an annual PIT declaration before 1 April.	PwC WWTS Georgia, Tax administration
T1-9	Self-employed individuals contribute 4% of annual income to the funded pension (no employer component). Not payroll.	PwC WWTS Georgia, Individual: Other taxes

Context rates (for cross-skill reference; not payroll) [T1]

Context rates table

Item	Rate / value	Source
Standard VAT	18%	PwC WWTS Georgia, Corporate: Other taxes; see georgia-vat.md
VAT mandatory registration threshold	GEL 100,000 turnover in any continuous 12-month period	PwC WWTS Georgia, Corporate: Other taxes
Optional rental PIT (individual, no deductions)	5% on gross residential rent	PwC WWTS Georgia, Individual: Income determination
Small-business status IE	1% of turnover (3% if standard turnover > GEL 500,000/yr; wine-tourism/agrotourism threshold is GEL 700,000)	PwC WWTS Georgia, Individual
Micro-business status individual	0% (turnover < GEL 30,000, no employees)	PwC WWTS Georgia, Individual

Section 12 -- Tier 2 Catalogue (Reviewer Judgement Required)

Tier 2 catalogue table

#	Situation	Why it needs judgement	Action
T2-1	High earner — private 2% + 2% cap treatment	GEL 24,000/60,000 thresholds confirmed only for the State portion; private cap unverified	Apply CD2 (full gross); flag [RESEARCH GAP]; confirm with Pension Agency.
T2-2	Employee may qualify for the 60/55 pre-2019 pension opt-out	Eligibility depends on age at 1 Jan 2019 and whether they opted in	Confirm date of birth and election before dropping the 2% lines.
T2-3	Net-to-gross gross-up requested	Iterative; rounding-sensitive (gross = net / 0.78 or / 0.80)	Present as estimate; flag for adviser.
T2-4	Bonus / non-cash benefit / benefit-in-kind	Taxability and pension base may vary	Default: treat cash bonus as salary (20% + pension); flag non-cash items [T2].
T2-5	Worker may be self-employed / IE rather than an employee	Wrong regime entirely (1%/3%/0% turnover tax, 4% pension)	Escalate [T3] — out of payroll scope.
T2-6	Non-resident / posted / cross-border employee	Residency, treaty and social-security coordination apply	Escalate [T3] — outside payroll scope.
T2-7	Exact penalty amounts / Tax Code article numbers	Penalty figures are periodically amended; sourced from a practitioner summary	Cross-check against the consolidated Tax Code on matsne.gov.ge before relying. [RESEARCH GAP]

Section 13 -- Excel Working Paper Template

Excel working paper template table

Cell ref	Label	Formula / source
B1	Pay period (month/year)	input
B2	Payment date	input — drives declaration timing
B3	Gross salary (khelfasi)	input
B4	Pension-enrolled? (1 = yes, 0 = exempt)	input (CD3)
B5	PIT (20%)	=ROUND(B3*0.20,2)
B6	Employee funded pension (2%)	=ROUND(B3*0.02*B4,2)
B7	Net pay	=B3-B5-B6
B8	Employer funded pension (2%)	=ROUND(B3*0.02*B4,2)
B9	Total employer cost	=B3+B8
B10	Total to remit (PIT + employee pension + employer pension)	=B5+B6+B8
B11	Memo: State co-contribution (annual, informational)	per Section 3 schedule on annualised salary — NOT a cash cost

Suggested layout for a single-employee monthly payroll working paper. GEL throughout.

Validation rows: confirm B7 = B3 × 0.78 when B4 = 1 (B3 × 0.80 when B4 = 0); confirm B7 + B5 + B6 = B3; confirm B9 = B3 × 1.02 when B4 = 1.

Section 14 -- Bank Statement / Terminology Reading Guide

Terminology reading guide table

Georgian term (transliterated)	English	Notes
khelfasi (ხელფასი)	salary / wage	gross unless context says net
anazghaureba	remuneration / pay	salary
avansi	advance / instalment	partial salary payment
premia	bonus / premium	taxable as employment income
sashemosavlo gadasakhadi	income tax	the 20% PIT
dagrovebiti sapensio	funded ("accumulated") pension	the 2% + 2% scheme
sapensio saagento	Pension Agency	pensions.ge
shemosavlebis samsakhuri	Revenue Service	rs.ge
TIN	taxpayer identification number	9 or 11 digits
naghdi	cash	cash withdrawal — exclude from payroll classification
shida gadaritskhva	internal transfer	between client's own accounts — exclude

Georgian payroll bank narrations and key terms:

Conventions. TBC Bank and Bank of Georgia export CSV with semicolons or commas; dates DD.MM.YYYY or ISO depending on setting. Convert foreign-currency salaries to GEL at the National Bank of Georgia (nbg.gov.ge) rate on the relevant date.

Section 15 -- Onboarding Fallback

If the engagement is mid-year or records are incomplete:

1. No prior withholding declarations on hand → request the rs.ge declaration history; reconcile each month's PIT against bank remittances to the Revenue Service. Do not assume prior months were correct.
2. Net-only history → reconstruct gross via the gross-to-net order (Section 4): gross = net / 0.78 (enrolled) or net / 0.80 (pension-exempt), iterating for rounding; mark all reconstructed grosses as estimates [T2].
3. Pension-enrolment status unknown → default to enrolled (CD3) unless the employee was 60+/55+ before 1 Jan 2019; confirm before dropping the 2% lines.
4. Worker type unclear (employee vs IE/self-employed) → STOP and confirm; the IE/self-employed regimes are out of payroll scope [T3].
5. High-earner pension cap uncertainty → apply CD2 (full gross), flag [T2]/[RESEARCH GAP], and ask the adviser to confirm with the Pension Agency.

Section 16 -- Reference Material

Reference material table

Item	Value	Source
PIT (salary) rate	20% flat on gross; no allowance	PwC WWTS Georgia, Corporate: Other taxes
Funded pension — employer	2% of gross	Law on Funded Pension Art. 3(6); PwC
Funded pension — employee (withheld)	2% of gross	Law on Funded Pension Art. 3(6)
Funded pension — State	2% (< GEL 24,000) / 1% (24,000--60,000) / 0% (> 60,000), annual	Law on Funded Pension Art. 3(6)
Self-employed funded pension	4% of annual income	PwC WWTS Georgia, Individual: Other taxes
Net pay multiplier (enrolled / exempt)	0.78 / 0.80	derived
Employer cost multiplier (enrolled / exempt)	1.02 / 1.00	derived
Monthly withholding declaration deadline	15th of following month; PIT due on payment day	PwC WWTS Georgia, Tax administration; TPsolution
Annual individual return deadline	Before 1 April (income not taxed at source)	PwC WWTS Georgia, Tax administration
Tax year	Calendar year	PwC WWTS Georgia, Tax administration
Standard VAT / registration threshold	18% / GEL 100,000 in any 12 months	PwC WWTS Georgia, Corporate: Other taxes
Small-business status cap	GEL 500,000 standard annual turnover (1%, 3% above); GEL 700,000 for wine tourism / agrotourism	PwC WWTS Georgia, Individual
Micro-business status cap	GEL 30,000 annual turnover, no employees (0%)	PwC WWTS Georgia, Individual
Private-sector statutory minimum wage	GEL 20/month (1999; obsolete/non-binding)	CXC Global; wage.is

Penalties [T2]

Penalties table

Violation	Amount / rate	Source
Failure to submit a required (marked) tax declaration	GEL 100 per month per declaration (even a nil declaration)	Tax Code of Georgia (Art. ~274); TPsolution; countman.ge — [RESEARCH GAP]
Understatement / unpaid tax penalty	up to 50% of the principal unpaid/understated tax	Tax Code of Georgia (Art. ~275); TPsolution — [RESEARCH GAP]
Late-payment interest	0.05% of unpaid tax per day of delay	Tax Code of Georgia (Art. ~272); TPsolution — [RESEARCH GAP]

[RESEARCH GAP — reviewer to confirm]. Figures below are from a Georgian practitioner source (TPsolution) and should be cross-checked against the consolidated Tax Code on matsne.gov.ge, as penalty figures are periodically amended (article numbers are approximate). Source: research caveat (2).

Authorities and legislation

• Revenue Service of Georgia — Revenue Service of Georgia (Sakartvelos Shemosavlebis Samsakhuri), Ministry of Finance — rs.ge; e-services eservices.rs.ge. (rs.ge)
• LEPL Pension Agency — LEPL Pension Agency — pensions.ge. (pensions.ge)
• Tax Code of Georgia — Tax Code of Georgia (Law No. 3591, 2010, as amended) — PIT withholding, declarations, penalties. (matsne.gov.ge)
• Law of Georgia On Funded Pension — Law of Georgia "On Funded Pension" (2018; in force 1 Jan 2019) — mandatory funded pension. (matsne.gov.ge)

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 (funded pension contributions). https://taxsummaries.pwc.com/georgia/individual/other-taxes
3. PwC Worldwide Tax Summaries — Georgia, Individual: Tax administration. https://taxsummaries.pwc.com/georgia/individual/tax-administration
4. PwC Worldwide Tax Summaries — Georgia, Corporate: Other taxes (VAT; payroll PIT withholding 20%). https://taxsummaries.pwc.com/georgia/corporate/other-taxes
5. Law of Georgia "On Funded Pension" — Legislative Herald of Georgia. https://www.matsne.gov.ge/en/document/view/4280127
6. Tax Code of Georgia — Legislative Herald of Georgia. https://matsne.gov.ge/en/document/view/1043717
7. Mondaq (Eurofast) — "Georgia's Pension Evolution: From Mandatory Participation to Tailored Investment Strategies." https://www.mondaq.com/employee-benefits-compensation/1433340/georgias-pension-evolution-from-mandatory-participation-to-tailored-investment-strategies
8. TPsolution — "Monthly and Annual Tax Reporting Obligations in Georgia." https://tpsolution.ge/tax-reporting-obligations-in-georgia/
9. CXC Global — "Payroll and benefits in Georgia" (minimum wage). https://www.cxcglobal.com/global-hiring-guide/georgia/payroll-and-benefits-in-georgia/

Reviewer note on tax year / 2026. No 2026-specific changes were confirmed; figures reflect 2025 and were current as of the PwC review dated 21 Jan 2026. Re-confirm before applying to a 2026 payroll. Source: research caveat (4).

Section 17 -- Test Suite

Each test states inputs and the recomputed expected output. Reviewers should rerun every figure. All amounts in GEL. "Enrolled" means net = gross × 0.78, employer cost = gross × 1.02.

Test 1 -- Standard salary, enrolled

Input: Gross GEL 2,000, paid March 2025, enrolled. Expected: PIT 400.00. Employee pension 40.00. Net 1,560.00. Employer pension 40.00. Total employer cost 2,040.00. Total to remit 480.00.

Test 2 -- Mid salary, enrolled

Input: Gross GEL 3,500, paid June 2025, enrolled. Expected: PIT 700.00. Employee pension 70.00. Net 2,730.00. Employer pension 70.00. Total employer cost 3,570.00. Total to remit 840.00.

Test 3 -- Low salary, enrolled

Input: Gross GEL 1,000, paid May 2025, enrolled. Expected: PIT 200.00 (no tax-free allowance). Employee pension 20.00. Net 780.00. Employer pension 20.00. Total employer cost 1,020.00. Total to remit 240.00.

Test 4 -- High salary, enrolled [T2]

Input: Gross GEL 8,000/month (GEL 96,000/yr), paid April 2025, enrolled, CD2 full-gross pension base. Expected: PIT 1,600.00. Employee pension 160.00. Net 6,240.00. Employer pension 160.00. Total employer cost 8,160.00. Flag: private 2%+2% cap above GEL 60,000 unconfirmed [RESEARCH GAP]; State co-contribution 0% above GEL 60,000.

Test 5 -- Pension-exempt employee (60+/55+ before 1 Jan 2019)

Input: Gross GEL 2,500, not enrolled (CD3 exemption). Expected: PIT 500.00. Employee pension 0.00. Net 2,000.00 (= 2,500 × 0.80). Employer pension 0.00. Total employer cost 2,500.00. Total to remit 500.00.

Test 6 -- State co-contribution band check (annual)

Input: Annual salary GEL 36,000, enrolled. Expected: State co-contribution = (24,000 × 2%) + (12,000 × 1%) = GEL 600/yr (Government-paid, not a cash cost). Employee/employer private share = 36,000 × 2% = GEL 720/yr each (CD2).

Test 7 -- State co-contribution above GEL 60,000

Input: Annual salary GEL 70,000, enrolled. Expected: State co-contribution = (24,000 × 2%) + (36,000 × 1%) + (10,000 × 0%) = 480 + 360 = GEL 840/yr; the portion above GEL 60,000 attracts 0% State contribution.

Test 8 -- Wrong jurisdiction guard

Input: Request references "Georgia Form G-7" / USD state withholding. Expected: REFUSE — this is the US state of Georgia, not the Republic of Georgia (GE/GEL). Escalate to the correct US-state skill [T3].

PROHIBITIONS

• NEVER confuse the country of Georgia (GE, GEL, lari) with the US state of Georgia (USD) — the US state's rates and forms (e.g. Form G-7) must NOT appear in this skill.
• NEVER apply a tax-free personal allowance or progressive bands to Georgian salary PIT — it is a flat 20% from the first lari.
• NEVER add an employer social-security or payroll tax beyond the 2% funded pension — there is no other employer on-cost in Georgia.
• NEVER drop the funded-pension 2% + 2% for an employee unless they qualify for the 60/55 pre-2019 opt-out (CD3) — participation is otherwise mandatory.
• NEVER assume the private employee/employer 2% is capped at GEL 60,000 — that schedule is confirmed only for the STATE co-contribution; apply CD2 (full gross) and flag [RESEARCH GAP].
• NEVER treat the State co-contribution as an employer or employee cash cost — it is paid by the Government.
• NEVER apply the small-business (1%/3%), micro-business (0%) or 4% self-employed pension regimes to an employee's payroll — those are self-employed/IE regimes [T3].
• NEVER treat the obsolete GEL 20/month statutory minimum wage as a binding floor — use the contractual salary (CD4).
• NEVER miss the monthly withholding declaration (15th of the following month) or the on-payment-date PIT payment.
• NEVER guess any figure marked [RESEARCH GAP — reviewer to confirm] — verify against matsne.gov.ge / the Pension Agency.
• NEVER present payroll computations as definitive — always label as estimated and direct to a qualified Georgian tax adviser / authorised accountant.

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 qualified Georgian tax adviser or authorised accountant in Georgia) before implementation.

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