Tax administration is being tightened in several directions. According to the new tax bill, the changes will affect both individuals and legal entities.
One of the changes, coming into effect starting 2024, will concern the additional income (i.e. the difference between the sale and purchase prices of the real estate) received by the individual from the sale of a real estate, if such income is subject to taxation, individuals will be obliged to declare and pay accordingly income tax much earlier. The taxation period will change from 1 year to 1 month. So far, such income received during the calendar year, was taxed no later than 1st of April of the following calendar year. Starting 2024-year, such income taxation will be due no later than the 15th of the following calendar month from the moment of receipt of the income.
Important conditions are that taxation of the additional income received from the sale of residential properties, is subject to taxation only if this property has been sold within 2 years after purchase.
As for the taxation of the additional income received from the sale of the commercial real estate, there are two conditions in either of which such income is subject to taxation:
- if this commercial property has been sold within 2 years after the purchase, or
- if it has been used for commercial purposes during the 2 years preceding the moment of its sale.
More important changes shall be described in the following articles.
For further information or advice by our local advisors please contact Ms. Irina Lopatina, Country Executive at our Eurofast office in Georgia, Tbilisi at email@example.com
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