Georgia Social Contributions

Georgia (Country) Social Contributions & Funded Pension Skill v0.1

JURISDICTION WARNING. This skill is for Georgia the country (GE — capital Tbilisi, ISO GE, currency GEL). It is NOT for the U.S. state of Georgia. Search engines and training data heavily conflate the two. If a client mentions USD, the IRS, Atlanta, or a U.S. SSN, STOP — this is the wrong skill.

Section 1 -- Quick reference

• Read this whole section — Read this whole section before computing or classifying anything.
• Country — Georgia (the country, Caucasus) — ISO GE
• Currency — GEL (Georgian lari) only
• Primary Legislation (pension) — Law of Georgia "On Funded Pension", effective 1 January 2019 (matsne doc. 4280127) (matsne doc. 4280127)
• Primary Legislation (PIT) — Tax Code of Georgia (income tax / payroll withholding) (Tax Code of Georgia)
• Pension Authority — Pension Agency of Georgia — LEPL Pension Fund (pensions.ge)
• Tax Authority (PIT) — Revenue Service of Georgia (rs.ge)
• Classic social security (health/unemployment) — NONE — Georgia has no payroll-tax-funded social-security system (PwC, Individual — Other taxes)
• Funded pension — employee — 2% of taxable gross salary (matsne 4280127)
• Funded pension — employer — 2% of taxable gross salary (matsne 4280127)
• Funded pension — state co-contribution — 2% up to GEL 24,000 annual income; 1% from GEL 24,000–60,000; 0% above GEL 60,000 (matsne 4280127; PwC)
• Funded pension — self-employed (opt-in) — 4% of income, voluntary (matsne 4280127; PwC)
• Personal income tax (PIT) — Flat 20%, no brackets, withheld at source (PwC, Individual — Taxes on personal income)
• Tax year — Calendar year (PwC, Individual — Tax administration)
• Monthly declaration deadline — 15th day of the month following the salary-payment month (PwC, Corporate — Tax administration)
• Pension transfer deadline — No later than the 15th of the month following the salary-payment month (F-Chain, 1 May 2025 rules)
• Annual individual return — Due 1 April of the following year (income not taxed at source) (PwC, Individual — Tax administration)
• Late-payment interest — 0.05% of the unpaid amount per overdue day (Tax Code of Georgia; PwC/GSL)
• Validated by — Pending — requires sign-off by a qualified Georgian tax adviser
• Validation date — Pending

Funded pension contribution stack (the ONLY mandatory employment social-insurance levy) (matsne 4280127; PwC Individual — Other taxes)

Annual taxable income band	Employee	Employer	State	Total credited to individual account
Up to GEL 24,000	2%	2%	2%	6%
GEL 24,000 – 60,000 (portion in band)	2%	2%	1%	5%
Above GEL 60,000 (portion in band)	2%	2%	0%	4%

• Arithmetic check — 2 + 2 + 2 = 6; 2 + 2 + 1 = 5; 2 + 2 + 0 = 4. (matsne 4280127; PwC Individual — Other taxes)
• NOTE on tiers — Employee and employer each pay a flat 2% on the full taxable salary — there is no upper ceiling on the 2%+2% portion. Only the state share is income-tiered/capped (matsne 4280127). The GEL 24,000 / 60,000 thresholds apply to annual income; whether they are applied per-month-prorated or reconciled annually is [RESEARCH GAP — reviewer to confirm against rs.ge guidance]. (matsne 4280127)

Conservative defaults

Ambiguity	Default
Employee age / enactment-status unknown	Treat as MANDATORY participant (under 60 / women under 55) — apply 2% employee + 2% employer on full taxable salary (matsne 4280127)
State co-contribution share uncertain	Apply 2% only up to GEL 24,000, 1% from 24,000–60,000, ZERO above 60,000 — never assume a state top-up above GEL 60,000
Self-employed participation unknown	Treat as VOLUNTARY / OFF by default; apply 4% only if the individual has elected in (matsne 4280127)
Any health / unemployment / "social security" payroll levy	Do NOT model one — none exists in Georgia (PwC)
Currency unstated	Assume GEL; if USD/IRS appears, STOP — wrong jurisdiction

Section 2 -- Required inputs and refusal catalogue

Required inputs

Minimum viable -- confirmation that the engagement concerns Georgia the country (not the U.S. state), the employee's taxable gross monthly salary in GEL, and whether the worker is an employee or self-employed.

Recommended -- employee's age at the law's entry into force (1 Jan 2019) / current age, annual taxable income (to apply the state co-contribution tiers), and whether the employee has opted out (age-40+ window) or is in the voluntary-only group (60/55+ at enactment).

Ideal -- payroll register, the unified monthly income-tax declaration filed with rs.ge, Pension Agency statement of individual account, and bank statements showing PIT and pension transfers.

Refusal catalogue

• R-GE-SC-1 -- Wrong Georgia (U.S. state) — Trigger: references to USD, the IRS, Atlanta, a U.S. SSN, or "Georgia state income tax." Message: "This skill covers the country of Georgia (GE). For the U.S. state of Georgia, use a U.S. state payroll skill — do not apply these rates."
• R-GE-SC-2 -- Pension arrears / historical contributions — Trigger: unpaid pension contributions from prior periods. Message: "Late pension/PIT amounts accrue 0.05% per overdue day under the Tax Code of Georgia, and specific declaration fines apply. Do not quantify arrears without a Revenue Service / Pension Agency statement. Escalate to a qualified Georgian adviser."
• R-GE-SC-3 -- Participation-status edge cases — Trigger: employee near the 60/55 age boundary, claiming an opt-out, or a returning/re-enrolling participant. Message: "Mandatory vs voluntary participation and the age-40+ opt-out window (3–5 months after joining) are case-specific. Confirm the worker's status with the Pension Agency before computing. Escalate to a reviewer."
• R-GE-SC-4 -- Expat / treaty / totalisation questions — Trigger: foreign worker, social-security totalisation, or treaty relief. Message: "Georgia has no classic social-security system, so totalisation does not apply in the usual sense; expat funded-pension treatment is case-specific. Escalate to a qualified Georgian adviser."
• R-GE-SC-5 -- Specific penalty quantification — Trigger: request for exact GEL fines for non-filing/non-payment. Message: "The 0.05%/day late interest is confirmed, but exact GEL declaration fines are not reliably sourced here [RESEARCH GAP]. Do not state a precise fine; direct the client to rs.ge / the current Tax Code of Georgia."

Section 3 -- Payment pattern library

Deterministic pre-classifier for bank statement transactions related to Georgian payroll, PIT, and pension. Match by case-insensitive substring on the counterparty/reference. PIT and pension transfers EXCLUDE from any VAT return — they are statutory payroll/withholding obligations, not business supplies.

3.1 Funded pension transfers (employee 2% + employer 2%)

Funded pension transfers pattern table

Pattern	Treatment	Notes
PENSION AGENCY, საპენსიო სააგენტო	EXCLUDE -- pension contribution	Transfer to LEPL Pension Fund
PENSION FUND, LEPL PENSION FUND	EXCLUDE -- pension contribution	Same
საპენსიო, SAPENSIO, PENSIO	EXCLUDE -- pension contribution	Georgian-language reference
FUNDED PENSION, დაგროვებითი პენსია	EXCLUDE -- pension contribution	"Funded/accumulated pension"
PENSION 2%, PENSION CONTRIB	EXCLUDE -- pension contribution	Explicit rate/contribution reference

3.2 Pension transfers appearing on specific Georgian banks

Bank pension transfer descriptions

Bank	Typical debit description	Treatment
TBC Bank	"PENSION AGENCY" or "საპენსიო სააგენტო"	EXCLUDE -- pension contribution
Bank of Georgia (BOG)	"PENSION FUND" or "PENSIO"	EXCLUDE -- pension contribution
Liberty Bank	"PENSION AGENCY GE" or "PENSIO"	EXCLUDE -- pension contribution
Wise / Revolut	Rare — pension transfers usually from local GEL accounts	If present, EXCLUDE

3.3 PIT / Revenue Service payments (NOT pension -- do not confuse)

PIT / Revenue Service pattern table

Pattern	Treatment	Notes
REVENUE SERVICE, RS.GE, შემოსავლების სამსახური	EXCLUDE -- PIT/tax payment	20% PIT withholding remittance, not pension
INCOME TAX, PIT, საშემოსავლო	EXCLUDE -- income tax	Withheld at source, not pension
DECLARATION, დეკლარაცია	EXCLUDE -- tax declaration payment	Unified monthly declaration
VAT, დღგ, DGG	EXCLUDE -- VAT, not pension	Separate from payroll

3.4 Salary and payroll (exclude from pension/PIT classification)

Salary and payroll pattern table

Pattern	Treatment	Notes
SALARY, ხელფასი, KHELPASI (outgoing)	EXCLUDE -- payroll expense	Net-of-PIT-and-pension wage payment
SALARY, ხელფასი (incoming)	EXCLUDE -- employment income received	Net salary received by employee

3.5 Pension benefits received (NOT a contribution paid)

Pension benefits received pattern table

Pattern	Treatment	Notes
PENSION PAYOUT, საპენსიო გადახდა	EXCLUDE -- pension benefit received	Inbound credit, not a contribution
STATE PENSION, OLD AGE PENSION	EXCLUDE -- pension income	Not a contribution

Section 4 -- Worked examples

Bank-statement classifications and computations for a hypothetical Tbilisi employer and its employees. All amounts in GEL. PIT is a flat 20% withheld at source; funded pension is 2% employee + 2% employer (matsne 4280127; PwC).

Example 1 -- Low salary, mandatory participant (annual ≤ GEL 24,000)

Input line: 15.02.2025 ; PENSION AGENCY ; DEBIT ; PENSION FEB 2025 EMP+EE ; -40.00 ; GEL

Facts: Monthly taxable salary GEL 1,000 (annual GEL 12,000 ≤ 24,000). Employee aged 32 — mandatory participant.

Reasoning: Employee pension 2% × 1,000 = GEL 20. Employer pension 2% × 1,000 = GEL 20. Combined transfer to the Pension Agency = GEL 40 (matches the line). PIT 20% × 1,000 = GEL 200, remitted separately to rs.ge. State co-contribution 2% × 1,000 = GEL 20/month credited by the government (not a bank movement). Net pay to employee = 1,000 − 200 (PIT) − 20 (employee pension) = GEL 780.

Check: 200 + 20 + 780 = 1,000. ✓

Classification: EXCLUDE from VAT — funded pension contribution (employer 2% + employee 2%).

Example 2 -- Mid salary, middle state tier (annual GEL 24,000–60,000)

Input line: 15.04.2025 ; REVENUE SERVICE ; DEBIT ; MONTHLY DECLARATION MAR 2025 ; -600.00 ; GEL

Facts: Monthly taxable salary GEL 3,000 (annual GEL 36,000 — middle state tier). Employee aged 41, mandatory participant (no opt-out elected).

Reasoning: The line is the PIT remittance: 20% × 3,000 = GEL 600 (matches). Employee pension 2% × 3,000 = GEL 60; employer pension 2% × 3,000 = GEL 60 (a separate Pension Agency transfer of GEL 120). State co-contribution on annual GEL 36,000 = 2% × 24,000 + 1% × 12,000 = 480 + 120 = GEL 600/year (≈ GEL 50/month). Net pay = 3,000 − 600 − 60 = GEL 2,340.

Check: 600 + 60 + 2,340 = 3,000. ✓

Classification: EXCLUDE from VAT — PIT withholding remittance (NOT a pension transfer).

Example 3 -- High salary, state share capped (annual > GEL 60,000)

Input line: 15.06.2025 ; PENSION FUND ; DEBIT ; PENSION MAY 2025 ; -240.00 ; GEL

Facts: Monthly taxable salary GEL 6,000 (annual GEL 72,000 > 60,000). Employee aged 29, mandatory participant.

Reasoning: Employee pension 2% × 6,000 = GEL 120; employer pension 2% × 6,000 = GEL 120; combined transfer = GEL 240 (matches). The 2%+2% applies to the FULL salary — there is no ceiling on the employee/employer portion. State co-contribution: 2% × 24,000 + 1% × 36,000 + 0% above 60,000 = 480 + 360 = GEL 840/year; nothing on the income above GEL 60,000. PIT 20% × 6,000 = GEL 1,200. Net pay = 6,000 − 1,200 − 120 = GEL 4,680.

Check: 1,200 + 120 + 4,680 = 6,000. ✓

Classification: EXCLUDE from VAT — funded pension contribution (employer 2% + employee 2%).

Example 4 -- Self-employed voluntary opt-in (4%)

Input line: 20.03.2025 ; საპენსიო სააგენტო ; DEBIT ; VOLUNTARY PENSION 2024 ; -2,000.00 ; GEL

Facts: Self-employed individual entrepreneur, annual income GEL 50,000, has elected to participate in the funded pension.

Reasoning: Self-employed participation is VOLUNTARY (default off). Since this individual opted in, the rate is 4% of income: 4% × 50,000 = GEL 2,000 (matches). State co-contribution follows the same tiers: 2% × 24,000 + 1% × 26,000 = 480 + 260 = GEL 740/year. If the individual had NOT opted in, no pension contribution would be due (matsne 4280127).

Check: 4% × 50,000 = 2,000. ✓

Classification: EXCLUDE from VAT — voluntary self-employed funded pension contribution.

Example 5 -- Revenue Service payment that is NOT pension

Input line: 14.05.2025 ; შემოსავლების სამსახური ; DEBIT ; VAT APR 2025 ; -1,800.00 ; GEL

Facts: The reference says "VAT" (დღგ), not pension or PIT.

Reasoning: Matches the Revenue Service pattern (3.3) but the reference is VAT, not pension or PIT withholding. This is a VAT remittance (standard rate 18%, registration threshold GEL 100,000 turnover — GSL/PwC), entirely separate from the funded pension. Do NOT classify as a social/pension contribution.

Classification: EXCLUDE from social-contribution classification — VAT payment (handle under a VAT skill).

Example 6 -- Ambiguous pension debit (arrears / penalty)

Input line: 15.09.2025 ; PENSION AGENCY ; DEBIT ; ARREARS + INTEREST ; -510.00 ; GEL

Facts: Irregular amount; reference mentions "ARREARS + INTEREST."

Reasoning: Matches the Pension Agency pattern (3.1) but the amount is irregular and references interest. Late amounts accrue 0.05%/day under the Tax Code of Georgia, so this likely bundles overdue contribution principal with interest. The split cannot be derived without a Pension Agency / Revenue Service statement. Flag for reviewer.

Classification: EXCLUDE from VAT. Flag for reviewer — request a statement to split contribution principal from late interest. Specific GEL fines are [RESEARCH GAP — reviewer to confirm].

Section 5 -- Tier 1 rules

Apply exactly as written when the data is clear and the engagement is confirmed to be Georgia the country.

Rule 1 -- There is NO classic social security

• No classic social security — Georgia has no payroll-tax-funded health, unemployment, or social-security fund. The ONLY mandatory employment social-insurance levy is the funded pension. Do not model any other social contribution. (PwC, Individual — Other taxes)

Rule 2 -- Funded pension formula

• Funded pension formula — employee_pension = 2% × taxable_gross_salary employer_pension = 2% × taxable_gross_salary state_cocontribution = 2% × min(annual_income, 24,000) + 1% × clamp(annual_income − 24,000, 0, 36,000) + 0% × max(annual_income − 60,000, 0) The 2% employee and 2% employer apply to the FULL taxable salary (no ceiling). Only the state share is tiered/capped at GEL 60,000. (matsne 4280127)

Rule 3 -- PIT is a flat 20%, withheld at source

• PIT flat 20% — Employers withhold 20% PIT on gross salary (PAYE-style) and remit it with the unified monthly income-tax declaration. There are no progressive brackets. (PwC, Individual — Taxes on personal income)

Rule 4 -- Net pay computation

• Net pay computation — net_pay = gross_salary − PIT(20%) − employee_pension(2%) Employer pension (2%) is an employer on-cost paid in addition to gross salary, not deducted from the employee. The state co-contribution is credited by the government and is not a bank movement. (matsne 4280127)

Rule 5 -- Pension base equals the PIT base

• Pension base equals PIT base — Funded pension is computed on taxable salary — the same base as PIT. (matsne 4280127)

Rule 6 -- Participation is mandatory for working-age employees

• Mandatory participation — Mandatory for all employees who were under age 60 (women under 55) at the law's entry into force (1 Jan 2019); participation begins automatically on the first employer contribution. (matsne 4280127; PwC)

Rule 7 -- Voluntary groups

• Voluntary groups — Persons aged 60/55+ at enactment, and self-employed individuals, participate voluntarily. Self-employed opt-in rate is 4% of income. (matsne 4280127)

Rule 8 -- Opt-out window (age 40+)

• Opt-out window — Employees aged 40 or older before the effective date may withdraw, but only within the window after 3 months and before 5 months from joining. (matsne 4280127)

Rule 9 -- Monthly compliance

• Monthly compliance — PIT and the unified monthly income-tax declaration are due by the 15th of the month following the salary-payment month; pension contributions must be transferred no later than the same 15th. (PwC, Corporate — Tax administration; F-Chain 2025)

Rule 10 -- Single declaration since 1 May 2025

• Single declaration since 1 May 2025 — From 1 May 2025, employers no longer file a separate pension declaration — pension data is auto-populated in the Pension Agency system from the income-tax declaration filed with the Revenue Service, and the pension declaration auto-closes once the transferred amount matches. (F-Chain, 1 May 2025)

Rule 11 -- Calendar tax year; annual return 1 April

• Calendar tax year; annual return 1 April — The tax year is the calendar year. Annual individual income tax returns (for income not taxed at source) are due by 1 April of the following year. (PwC, Individual — Tax administration)

Rule 12 -- Late interest

• Late interest — Late payment of tax/contributions accrues interest at 0.05% of the unpaid amount per overdue day. (Tax Code of Georgia; PwC/GSL)

Section 6 -- Tier 2 catalogue

Flag these for reviewer judgement.

T2-1 -- Employee near the 60/55 age boundary

• Employee near the 60/55 age boundary — Trigger: Worker's age at 1 Jan 2019 enactment is close to 60 (men) / 55 (women). Issue: Above that age at enactment → participation is voluntary, not mandatory. Action: Confirm enactment-date age with the Pension Agency before treating as mandatory. Flag for reviewer.

T2-2 -- Age-40+ opt-out election

• Age-40+ opt-out election — Trigger: Worker was 40+ before the effective date and may have used the 3–5 month opt-out window. Issue: A valid withdrawal means no further employee/employer pension is due for that worker. Action: Verify the opt-out status; do not withhold pension if a valid opt-out exists. Flag for reviewer.

T2-3 -- State co-contribution tier application (monthly vs annual)

• State co-contribution tier application — Trigger: Income straddles the GEL 24,000 / 60,000 annual thresholds. Issue: Whether the tiers are prorated monthly or reconciled annually is [RESEARCH GAP — reviewer to confirm against rs.ge guidance]. Action: Compute the employer/employee 2%+2% normally; flag the state-share tiering for reviewer reconciliation.

T2-4 -- Self-employed participation election

• Self-employed participation election — Trigger: Self-employed individual asks whether to/has opted into the pension. Issue: Participation is voluntary at 4%; default is OFF until election. Action: Confirm whether an election was made before applying 4%. Flag for reviewer.

T2-5 -- Pension/PIT arrears

• Pension/PIT arrears — Trigger: Unpaid pension or PIT from prior periods. Issue: 0.05%/day interest accrues; exact GEL declaration fines are [RESEARCH GAP]. Action: Do not quantify without a Revenue Service / Pension Agency statement. Escalate to a qualified Georgian adviser.

T2-6 -- Expat / non-resident worker

• Expat / non-resident worker — Trigger: Foreign worker on a Georgian payroll. Issue: Funded-pension applicability and source-of-income rules are case-specific; Georgia has no totalisation framework in the usual sense. Action: Flag for reviewer / qualified Georgian adviser.

Section 7 -- Excel working paper template

GEORGIA (COUNTRY) PAYROLL / PENSION COMPUTATION -- WORKING PAPER
Client: [name]
Tax Year: [calendar year]
Prepared: [date]
JURISDICTION CONFIRMED = COUNTRY OF GEORGIA (GE), NOT U.S. STATE:  [YES/NO]

INPUT DATA
  Worker type:                   [Employee / Self-employed]
  Age at 1 Jan 2019 enactment:   [____]   (< 60 / women < 55 = mandatory)
  Participation status:          [Mandatory / Voluntary / Opted-out]
  Self-employed opt-in?:         [YES / NO / n.a.]
  Monthly taxable gross salary:  GEL [____]
  Annual taxable income:         GEL [____]

PIT (FLAT 20%)
  PIT (20% × gross):             GEL [____]

FUNDED PENSION
  Employee pension (2% × salary):   GEL [____]
  Employer pension (2% × salary):   GEL [____]   (employer on-cost)
  Self-employed (4% × income):      GEL [____]   (if opted in)
  Combined transfer to Pension Agency: GEL [____]

STATE CO-CONTRIBUTION (info only — credited by government)
  2% × min(annual, 24,000):         GEL [____]
  1% × clamp(annual−24,000,0,36,000): GEL [____]
  0% above 60,000:                  GEL 0
  Total state share (annual):       GEL [____]

NET PAY
  Net pay (gross − PIT − employee pension): GEL [____]

COMPLIANCE
  Monthly declaration due (15th of next month): [date]
  Pension transfer due (15th of next month):    [date]

REVIEWER FLAGS
  [List any Tier 2 flags + RESEARCH GAP items here]

CONSERVATIVE DEFAULTS APPLIED
  [List any defaults applied and their impact]

Section 8 -- Bank statement reading guide

How pension and PIT movements appear on Georgian bank statements

TBC Bank:

• Description: "PENSION AGENCY" / "საპენსიო სააგენტო" (pension) or "REVENUE SERVICE" / "შემოსავლების სამსახური" (PIT)
• Timing: around the 15th of the month following the salary-payment month
• Amount: pension transfer = 4% of salary (employer 2% + employee 2%); PIT = 20% of gross

Bank of Georgia (BOG):

• Description: "PENSION FUND" / "PENSIO" (pension) or "INCOME TAX" / "საშემოსავლო" (PIT)
• Timing: same monthly cycle

Liberty Bank:

• Description: "PENSION AGENCY GE" or "REVENUE SERVICE GE"
• Timing: same monthly cycle

Key identification tips:

1. Pension and PIT transfers are always outgoing (DEBIT) for the employer.
2. A combined pension transfer ≈ 4% of gross salary (2% employer + 2% employee). PIT ≈ 20% of gross.
3. The state co-contribution is NOT a bank movement — it is credited by the government to the individual account.
4. Do NOT confuse Revenue Service (rs.ge) PIT/VAT debits with Pension Agency (pensions.ge) pension transfers.
5. Georgian-language refs: საპენსიო = pension; საშემოსავლო = income tax; დღგ = VAT; ხელფასი = salary.
6. Irregular Pension Agency debits referencing "arrears" or "interest" may bundle 0.05%/day late interest — flag for reviewer.

Section 9 -- Onboarding fallback

If the client provides only a bank statement and no other information:

1. Confirm jurisdiction — verify the currency is GEL and references are to rs.ge / Pension Agency, not the IRS / U.S. Georgia. If USD/IRS, STOP (R-GE-SC-1).
2. Scan for Pension Agency debits — identify outgoing payments matching Section 3.1/3.2. A combined transfer ÷ 0.04 estimates gross salary (2% + 2% = 4%).
3. Scan for Revenue Service debits — PIT remittances ≈ 20% of gross salary; reconcile against pension-derived salary estimate.
4. Reverse-engineer participation — if pension debits exist, the worker is participating (mandatory or voluntary). If none, the worker may be opted-out, voluntary-off, or pre-1 May 2019 exempt — flag.
5. Flag for reviewer: "Pension/PIT classification derived from bank-statement amounts only. Worker age, participation status, and the state co-contribution tiers have not been independently verified. Reviewer must confirm before filing the monthly declaration."

Section 10 -- Reference material

Contribution & rate summary (2025)

Contribution & rate summary (2025)

Item	Rate / value	Source
Funded pension — employee	2% of taxable salary	matsne 4280127; PwC
Funded pension — employer	2% of taxable salary	matsne 4280127; PwC
Funded pension — state (≤ GEL 24,000)	2%	matsne 4280127; PwC
Funded pension — state (GEL 24,000–60,000)	1%	matsne 4280127; PwC
Funded pension — state (> GEL 60,000)	0%	matsne 4280127; PwC
Funded pension — self-employed (voluntary)	4% of income	matsne 4280127; PwC
Personal income tax (PIT)	Flat 20%	PwC Individual — Taxes on personal income
Corporate income tax (Estonian/distributed-profits model)	15% (20% for banks/credit/microfinance institutions from 1 Jan 2023)	GSL; PwC Corporate
Dividend/interest WHT (individuals/non-residents)	5%	GSL; PwC Corporate — Withholding taxes
VAT standard rate	18%	GSL; PwC Corporate — Other taxes
Late-payment interest	0.05% per overdue day	Tax Code of Georgia; PwC/GSL

Thresholds (2025)

Thresholds (2025)

Threshold	Value	Effect	Source
State co-contribution upper-tier start	GEL 24,000 annual income	State share drops from 2% to 1% above this	matsne 4280127; PwC
State co-contribution cut-off	GEL 60,000 annual income	No state share above this; only 2% + 2% continue	matsne 4280127; PwC
Mandatory-pension age exemption	Age 60 (men) / 55 (women) at enactment	Above this at enactment = voluntary only	matsne 4280127
Pension opt-out age	Age 40+ before effective date	May withdraw within the 3-to-5-month window after joining	matsne 4280127
VAT registration threshold	GEL 100,000 taxable turnover in any continuous 12 months	Mandatory VAT registration	GSL; PwC
Micro Business PIT exemption	Turnover under GEL 30,000, no employees	Business income PIT-exempt	PwC Individual
Small Business turnover regime	Turnover under GEL 500,000 (GEL 700,000 for wine tourism / agrotourism)	1% turnover tax (3% on excess above GEL 500,000)	PwC Individual; GSL

Forms / declarations

Forms / declarations

Form	Purpose	Deadline	Source
Unified monthly income-tax declaration (rs.ge)	Reports salaries paid, PIT withheld; auto-derives pension data from 1 May 2025	15th of the month following the salary-payment month	PwC; F-Chain 2025
Pension contribution transfer (Pension Agency)	Transfer of employer 2% + employee 2% to individual accounts	No later than the 15th of the month following the salary-payment month	F-Chain 2025
Annual individual income tax return	Declare income not taxed at source (self-employed, capital gains, etc.)	1 April of the year following the tax year	PwC Individual — Tax administration

Penalties

Penalties

Penalty	Amount	Source
Late payment of tax/contributions	Interest at 0.05% of the unpaid amount per overdue day	Tax Code of Georgia; PwC/GSL
Failure to submit a required document	GEL 100 per document failure; exact declaration fines [RESEARCH GAP — reviewer to confirm against the current Tax Code of Georgia]	PwC/GSL

Minimum wage

There is no effective statutory national minimum wage. The nominal figure (Presidential Decree No. 351 of 1999) is ~GEL 20/month private sector and ~GEL 115/month public sector — unchanged since 1999 and economically irrelevant; market and living wages are far higher. [RESEARCH GAP — sourced from secondary HR/payroll sites (CXC Global, Playroll), not an official gazette; treat as "Georgia effectively has no functional minimum wage."]

Calculation examples (2025)

Calculation examples (2025) (matsne 4280127; PwC)

Monthly gross	Annual	State tier	Employee pension (2%)	Employer pension (2%)	PIT (20%)	Net pay
GEL 1,000	GEL 12,000	2% (≤24k)	GEL 20	GEL 20	GEL 200	GEL 780
GEL 3,000	GEL 36,000	1% band	GEL 60	GEL 60	GEL 600	GEL 2,340
GEL 6,000	GEL 72,000	0% above 60k	GEL 120	GEL 120	GEL 1,200	GEL 4,680

• Arithmetic check — 1,000 − 200 − 20 = 780; 3,000 − 600 − 60 = 2,340; 6,000 − 1,200 − 120 = 4,680. ✓ (matsne 4280127; PwC)

Test suite

Test 1: Country of Georgia, monthly gross GEL 1,000, employee aged 32 (mandatory). → Employee pension GEL 20, employer pension GEL 20, PIT GEL 200, net pay GEL 780. (1,000 − 200 − 20 = 780.)

Test 2: Monthly gross GEL 3,000 (annual GEL 36,000), aged 41, no opt-out. → Employee pension GEL 60, employer pension GEL 60, PIT GEL 600, net pay GEL 2,340. State share GEL 600/yr (480 + 120). (3,000 − 600 − 60 = 2,340.)

Test 3: Monthly gross GEL 6,000 (annual GEL 72,000), aged 29. → Employee pension GEL 120, employer pension GEL 120, PIT GEL 1,200, net pay GEL 4,680. State share GEL 840/yr (480 + 360, nothing above 60k). (6,000 − 1,200 − 120 = 4,680.)

Test 4: Self-employed, annual GEL 50,000, opted IN. → Pension 4% = GEL 2,000. State share GEL 740/yr (480 + 260). (4% × 50,000 = 2,000.)

Test 5: Self-employed, annual GEL 50,000, did NOT opt in. → No pension contribution due (voluntary, default off).

Test 6: Worker aged 62 at 1 Jan 2019 enactment. → Voluntary participant only; mandatory 2%+2% does NOT apply unless they elect in. Flag for reviewer (T2-1).

Test 7: Client mentions USD, the IRS, and Atlanta. → STOP. Wrong jurisdiction (U.S. state of Georgia). Refuse per R-GE-SC-1.

Test 8: Revenue Service debit referencing "VAT APR 2025." → Classify as VAT (18%), NOT a social/pension contribution.

Prohibitions

• NEVER apply this skill to the U.S. state of Georgia — confirm the country (GEL, rs.ge, Pension Agency) first.
• NEVER model a health/unemployment/"social security" payroll contribution for Georgia — none exists.
• NEVER assume a state co-contribution above GEL 60,000 annual income — the state share is zero there.
• NEVER apply a ceiling to the employee/employer 2%+2% — only the state share is capped.
• NEVER treat self-employed participation as mandatory — it is voluntary (4%) only on election.
• NEVER quantify pension/PIT arrears or exact GEL fines without a Revenue Service / Pension Agency statement — flag as [RESEARCH GAP] and escalate.
• NEVER use progressive PIT brackets — Georgia's PIT is a flat 20%.
• NEVER present figures as definitive — label as estimated, pending reviewer sign-off, and direct the client to rs.ge / the Pension Agency.

Disclaimer

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