Annual Property Tax Declaration

The deadline for submitting the annual property tax declaration and paying the tax for an enterprise/organization is April 1.

The obligation to submit a declaration applies to both resident and non-resident enterprises.

A resident enterprise is required to pay property tax on assets recorded on its balance sheet as of December 31, including fixed assets and/or investment property, uninstalled equipment, and construction in progress, as well as property leased out by the enterprise. It is also very important for the enterprise to properly account for its fixed assets. This depends on which accounting standard is applied: full IFRS, IFRS for SMEs, or the fourth category standard.

As for non-resident enterprises, the object of property tax is property located in the territory of Georgia, which corresponds to the type of property defined for resident enterprises/organizations. This includes property provided on the basis of lease, rent, usufruct, or other similar agreements within the territory of Georgia.

Both resident and non-resident enterprises are also subject to property tax on land. Land owned as of April 1 of the tax year, or land owned by the state but used or possessed by the enterprise, must be declared together with other property. The deadline for paying land tax is no later than November 15.

Regarding the tax rate, the annual rate on taxable property shall not exceed 1% of the average annual net book value of the taxable property. The tax rate on land depends on the type and location of the land plot. Enterprises/organizations are entitled to benefit from tax reliefs provided under Article 206 of the Tax Code of Georgia.