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Fines in the Tax Sphere in Georgia


The company's financial security is ensured by competent business accounting support, accurate report preparation, alongside timely submission to the regulatory authority. After submitting all declarations and paying taxes on the due day, the company will not be subject to tax fines in Georgia.

Penalties for Violating the Tax Legislation in Georgia

The Tax Code of Georgia is the main regulatory body of the taxation system in Georgia. There are no obligations assigned to the company that thoroughly follows taxpayers' accountability. What is more, there are no sanctions imposed on those who unintentionally violate existing rules or paid taxes before the due date.

May the negligence in tax reporting or submission term violation occur, the tax authority prepares a protocol. The person who has breached the Tax Code Requirements may leave comments or remarks in this report. 

The Violation of the Tax Legislation in Georgia may result in the following sanctions:

  • a warning;
  • a fine or a fine in monetary terms may be imposed;
  • property of the violator is arrested or confiscated.

In case of multiple violations, each misdoing is subject to sanctions. As the rest of the information, imposed sanctions are also recorded in the protocol.


A warning may be provided in writing or enclosed in the register. Cases that can evoke the written notice are as following:

  • Incorrect reporting & breached deadline;
  • Incorrect accounting records;
  • Company's avoidance of audit. 

Monetary Fines

When breaching the deadline for payment, accrual composes of the payable tax amount. From 2015 a fine of 0.05% is established from the tax arrears to each delayed day.Enforcement of the monetary fine can occur in the following offenses:

  • Incorrect reporting and violation of the established deadlines;
  • Incorrect accounting;
  • Company's avoidance of audit.

The Company should pay a fine to the state budget within 30 days from the date it was imposed.

Property Confiscation

The company’s property can be seized or confiscated to pay off the outstanding tax debts. Property confiscation is lawful under the act issued by the Tax Authority. Subject to seizure can be the property solely or the whole company.The act includes an inventory of property in the presence of the business owner and witnesses.

If the business owner can pay off the tax arrears, he should be entitled to dispose of the property. Otherwise, the property will be sold to pay off outstanding debt. Within five working days, the owner will get a refund of funds remaining from the property trading and the closure of tax arrears.

How to Avoid Penalties?

Sanctions of any kind constitute an obstruction for the company.It may lead to decreased balance and, in the worst-case scenario, dispose of the company's progress and finally its termination.Avoiding penalties is a very straightforward process if the company complies with the requirements of the Tax Code of Georgia, namely:

  • Keeping accounting records, complying with the requirements established by law;
  • Submitting reports to the controlling authorities on the due date;
  • Paying taxes in full and on the due date.

There is no necessity to hire an extra staff member - an accountant, or personally manage the timely completion of the monthly declaration process and payable tax obligations. Our Company will spare you the fear of forgetting and/or misconducting monthly tax obligations and declaration procedures. With our assistance, you can devote all your time to business development without thinking of the taxation process.

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