Changes for submission of income tax declaration and tax liability for the supply of property/asset by an individual
Significant changes have been made in the Tax Code of Georgia for individuals, specifically The amendment to Article 153 of the Tax Code of Georgia came into effect on January 1, 2024. Changes are related to the submission of income tax declaration and tax liability for the supply of property/asset by an individual, including a non-resident individual.
According to the change, a natural person, including a non-resident natural person, who realizes the sale of property/asset within the framework of non-business activities and generates additional income, is obliged to submit an income tax declaration to the tax authority no later than the 15th of the month following the month of sale and pay the corresponding income tax within the same period.
In the event that a person violates the deadline for submitting the declaration, in particular, does not submit the declaration by the 15th of the month following the month of the sale of the property, and the period of delay does not exceed 2 months, he/she will be charged a fine of 5 % percent of the amount of tax to be paid on the basis of the declaration.
In the event that the deadline for submission of the declaration exceeds 2 months, a fine of 10 % percent of the amount of tax to be paid based on the declaration will be charged.In addition to the mentioned fine, the person will also be charged a penalty in the amount of 0.05% percent of the amount to be paid for each overdue day.
It is also important to note that the deadline is considered to be overdue from the month following the month of submission of the declaration.
In such cases, if a person purchased an apartment and subsequently reconstructed it, as a result of which the mentioned apartment was divided into two, and then the person sold these apartments, in order to calculate the profit from the mentioned apartments, it is necessary to calculate their value proportionally based on the single apartment.
According to general practice the calculation is proportional to the original price. It should be known what is the proportion of the sq. meters after division of the flat. It should be proportionally calculated from the price the apartment was originally bought, and then compared separately from sold prices.
It is crucial to schedule tax liabilities in advance to avoid additional charges and fines.
Author: Oksana Iashagyan, REVERA Georgia
Dear journalists, the use of materials from the REVERA website in publications is possible only with our written permission.
To coordinate materials, contact us at e-mail: i.antonova@revera.legal or Telegram: https://t.me/PR_revera
