Published by Bookkeeping.ge — Assio Lex and Associates LLC
Updated
Recent Changes to the Tax Code in Georgia
In 2024, Georgia amended the rules for writing off certain acknowledged tax debts of natural persons, including individual entrepreneurs. The provision concerns liabilities arising before 1 January 2021 that remain outstanding when written off, together with the surcharge assessed on those liabilities. This is historical relief with specific conditions, rather than a general amnesty for every current tax debt or a blanket cancellation of LLC and JSC liabilities. The taxpayer’s account and subsequent payments must be reconciled to identify the qualifying outstanding balance.
Company liquidation also requires a separate tax review. An entity entering liquidation must notify the tax authority and file the relevant return within five business days after registration of the start of liquidation. The company should reconcile liabilities, assets, shareholder settlements and outstanding reporting before closure. This is a current procedural obligation; this overview does not establish that the entire liquidation procedure was newly introduced in 2024.
These amendments reflect the Georgian government's ongoing efforts to streamline tax administration and provide relief to taxpayers, thereby fostering a more business-friendly environment.
For practical accounting support, Bookkeeping.ge can review the taxpayer’s balance, distinguish historical debt relief from current obligations and prepare the reporting needed for the next step.
Review historical tax liabilities before acting
Prepare the taxpayer-account statement, original assessment, reporting periods, payment history and any instalment arrangement. Historical tax-debt relief and current tax liabilities need to be reconciled separately before deciding whether a write-off, amendment or payment is appropriate.
If company liquidation is planned, also provide registry documents, asset and liability balances and outstanding returns. Bookkeeping.ge can identify the accounting work and tax filings needed for the process without treating historical relief as a general cancellation of current company debt.