Annual property tax declaration of an individual

Annual property tax declaration of an individual

Please note that an individual, no later than Calendar Year November 1, is required to submit Annual property tax declaration of an individual If:

• Owns Taxable land, uses/owns state-owned land, or owns and/or uses a land plot registered in the name of a deceased person (except for use under a lease, rent, usufruct or other such agreement), regardless of the amount of income.

• The income of the person and his/her family members exceeds 40,000 GEL in the previous year and they own property Taxable property(Real estate, including unfinished construction, buildings or parts thereof, yachts (boats), helicopters, airplanes and passenger cars(s) owned and/or used by the deceased, is subject to property tax (except for use under lease, rent, usufruct or other such agreements). In the case of carrying out economic activities, assets recorded as fixed assets on the balance sheet, uninstalled equipment, etc.).

The annual tax rate on taxable property of an individual is differentiated according to the income received by the taxpayer's family during the tax year and is determined by the following amounts:

a) For families with an income of up to 100,000 GEL – not less than 0.05 percent and not more than 0.2 percent of the market value of the taxable property at the end of the tax period;

b) For families with an income of 100,000 GEL or more – not less than 0.8 percent and not more than 1 percent of the market value of the taxable property at the end of the tax period.

In the declaration, taxable property is reflected by market value, and taxable land - by area (non-agricultural - in square meters, and agricultural - in hectares).

The taxable value of property may be determined by the individual based on the potential market price of the property. Information about the market prices of property can also be obtained from various information sources, or an appropriate authorized person can be engaged to assess it.

What type of income should a person report from the income received by themselves and their family?

All income received by an individual and their family during the tax year shall be included, including profits without taking into account tax benefits, specifically: taxable income derived from economic activity, and in the case of having small business status - 25 percent of the taxable income subject to taxation from small business; any income, including profits, not related to economic activity; accrued (not received) wages.

An individual submits the property tax declaration to the tax authority no later than November 1 of the calendar year. The declaration includes data on taxable property based on the previous tax year, while information on taxable land is based on the current tax year (the taxpayer of property tax on the land is the person who owns it at April 1 of the tax year).

We would like to remind you here, an individual pays property and land taxes no later than November 15 of the calendar year.

A person is not obligated to file a tax return if they have filed a tax return or paid taxes in the previous tax year and the data has not changed.

If an individual was a property tax declarant in the previous tax year and, taking into account the tax benefits established by the Tax Code, is not required to file a tax return in the current tax period, he or she shall apply to the tax authority with an application no later than November 1 of the tax year.

If two or more family members have taxable property, any adult family member may file a single (family) annual property tax return, listing all family members and their taxable property/land.

A family member is considered to be a person, his/her spouse, minor children and grandchildren, as well as a parent, child and grandchild permanently residing with the person, sister, brother, grandmother, grandfather, and grandson who are engaged in a common household.