Georgia has introduced several noteworthy amendments to its tax legislation, effective from November 2024, aimed at simplifying procedures, clarifying compliance requirements, and adjusting excise duties. These changes cover updates to the Personal Income Tax (PIT) Declaration, taxation of foreign citizens engaged in electronic gambling, electronic communication protocols with tax authorities, coding rules for petroleum products, and excise duties on tobacco products.
Simplified Personal Income Tax (PIT) Declaration
From December 2024, taxpayers will benefit from a streamlined process for reporting deductions prior to 2008. A notable addition is the separate allocation for pension contributions (2%) in the “Annex A” section, improving clarity and accuracy.
Taxation Rules for Foreign Citizens in Electronic Gambling
Effective December 1, 2024, income earned by foreign citizens through electronic gambling and betting will be exempt from income tax. However, income received by local individuals from foreign participants will be taxed at a 5% rate, calculated as the difference between stakes and winnings.
Enhanced Communication with Tax Authorities
A new amendment to Article 11 enhances communication protocols with tax and customs authorities. Taxpayers must now register a Georgian mobile phone number and may optionally provide an email address. Video and audio recordings may be used during electronic or phone communication for compliance purposes, with data storage and use procedures governed by the Head of the Revenue Service.
Revised Coding Rules for Petroleum Products
Starting January 1, 2025, the assignment of seven-digit codes to petroleum products will require lien documentation for products with liens. Coding rules now cover agricultural and non-agricultural land use, with ownership or usage rights for stationary facilities needing documentation through the public registry.
Changes to Excise Duty on Tobacco Products
Changes to excise duties on tobacco products took effect immediately from November 29, 2024. The allowable price difference between manufacturer/importer prices and tax authority valuations has been reduced from 6% to 2%. Manufacturers and importers must submit retail price information by December 5, 2024, to calculate excise duties, with 2025 retail prices finalized by December 20, 2024.
Eurofast’s Take
Navigating these legislative updates can be complex, but Eurofast is here to help businesses stay compliant and well-prepared. With a deep understanding of Georgia’s regulatory environment, we provide tailored solutions to address evolving tax obligations.
For further information, please contact us at [email protected].