ount in excess of 600 GEL
Source : Tax Code.
Tax agents who withhold tax at the source of payment are required to:
В· Transfer the tax to the budget when making payments to physical persons;
В· When paying wages, issue to the physical person receiving the income (at his or her request) a statement with the person's name, amount and type of income paid, and amount of tax withheld; and
В· Within 30 days of the end of the tax year, present to the tax agencies and, if requested, to the person paid, a statement containing the person's registration number, total income, and total amount of tax withheld during the year.
Physical person entrepreneurs and individual enterprises are required to submit income tax payments in three instalments, based on their income tax liability for the previous year. Instalments are applied against the taxpayer's actual liability. Payments may be reduced if income in the current year is expected to be at least 30 percent less than income in the previous year. Taxpayers with no income from the previous year must make payments based on actual income during the previous quarter.
Tax payers [3] are required to submit returns before April 1st of the year following the reporting year. Before the income tax return due date, taxpayers may apply to the tax authorities for an extension of time to submit their returns. Taxpayers who cease entrepreneurial activity must submit a tax return within 30 days of the cessation of activities.
Taxes Paid by Enterprises .
Profit Tax . Profit taxes must be paid by Georgian entities and foreign entities with permanent establishments in Georgia. Foreign entities that do not have permanent establishment presence in Georgia are taxed via a withholding tax at the source of payment, as stated above. Enterprises are defined as:
В· Legal persons established according to the legislation of Georgia
В· Corporations, companies, firms, and other entities established pursuant to the legislation of foreign states
В· Branches and other separate units that are structural units of the entities indicated in the first bullet and that have their own balance sheet and a separate settlement or other account.
Georgian and foreign enterprises are distinguished by place of activity and management. A Georgian enterprise has its place of activity or management within the territory of Georgia, whereas a foreign enterprise has its place of activity or management outside the territory of Georgia. If there is more than one place of management or activity, or the place of management and activity do not coincide, then the predominant location should be used to determine the...
