Competent accounting support of the business, correct preparation of reports and their timely submission to regulatory authorities ensure the safety of the company in financial terms. If declarations are submitted on time and taxes are paid in due time, you will not face fines in the tax sphere in Georgia.

Penalties for violation of tax legislation in Georgia

Taxation in Georgia is regulated by the Tax Code of the country. If a company properly prepares reports and submits them to the tax authorities in due time, then fines in the tax area in Georgia are not terrible. Sanctions will also not be imposed if the company has paid taxes before and the violation is unintentional because it simply did not know any requirements, no sanctions will be imposed on it.
In cases where a violation is found in tax reporting or the terms of its submission, the tax authority prepares a protocol. A person who has violated the requirements of the Tax Code may leave comments or observations in this protocol.
In case of violation of tax legislation in Georgia, such types of sanctions may be imposed:

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

In cases where several violations are recorded, sanctions will be imposed on each of them. The sanctions that are imposed on the offender are written on the record.


It may be given in writing or entered in the register. A warning is given in such cases:

  • Incorrect reporting, breached deadlines;
  • Incorrect accounting records;
  • The Company avoids being checked by auditors.

Cash fines and penalties

Accrual is made on the amount of taxes when the deadline for payment is breached. Starting from 2015, a fine of 0.05 % of the amount of tax arrears for each day of delay in payment is established.
A monetary penalty may be imposed for such offences:

  • Incorrect reporting and violation of the established deadlines;
  • Incorrect accounting;
  • The Company avoids being checked by auditors.

The Company should pay a fine to the state budget. This must be done within 30 days from the day the fines were imposed.

Imprisonment and confiscation of company property

The company’s property is seized or confiscated in order to pay off the company’s tax debts. Arrest of property is possible under an act which is drawn up by the tax authority. Arrested may be as part of the property of the company, or the whole company. The act contains an inventory of property in the presence of the business owner and witnesses.
If the business owner has the opportunity to pay off his tax arrears, he shall be entitled to dispose of the property. Otherwise, the property will be sold to pay off the existing debt. Within 5 working days, the owner will be refunded the funds remaining after the sale of the property and the closing of tax arrears.

How to avoid penalties?

No matter what kind of sanctions are imposed, it is always a trouble for the company. It leads to a decrease in its balance. In the worst-case scenario, the company’s operations may stop or it will need to be liquidated.
It is not difficult to avoid penalties if you clearly comply with the requirements of the Tax Code, namely:

  • keeping accounting records, clearly comply with the requirements established by law;
  • Submit reports to the control authorities in due time;
  • Pay taxes in full and in due time.

It is not necessary to do it yourself or hire a staff accountant to fill in declarations correctly and pay all taxes on time and in the required amount. You can contact us and we will spare you the fear of forgetting to pay taxes on time and the obligation to fill out monthly declarations. With our help you can devote all your time to business development and not to think about taxes.


Fill out the form below to calculate the cost of accounting in Georgia.