Georgia has introduced several tax legislative changes affecting individuals, entrepreneurs and businesses, including a higher property tax exemption threshold, expanded deductions for microbank loan interest and revised rules for excise goods and tax penalties, according to a summary prepared by FAS Group and shared by the SME Development Commission of ICC Georgia.
Effective October 1, 2026, the annual household income threshold for exemption from property tax on taxable property, excluding land, increased from GEL 40,000 to GEL 100,000. The exemption applies when household income in the previous calendar year does not exceed the new threshold. The applicable property tax rate remains between 0.8% and 1% of market value.
From November 3, 2026, interest paid on loans issued by licensed microbanks can be deducted from gross income under the same terms as interest on loans from commercial banks. The change is particularly relevant to individual entrepreneurs taxed at 20% on income after eligible expenses.
Amendments introduced in September also clarify the treatment of excise-stamped goods that are written off. If goods are written off before excise tax liability arises, the stamps are considered used and no excise tax is due. Where excise tax has already been paid, it can be refunded through an excise tax return. The rules apply to both locally produced and imported goods.
Separately, changes effective from July 2026 revised eligibility criteria for exemptions from certain tax penalties, including those related to late tax returns and VAT violations. Eligibility is now assessed based on the taxpayer’s outstanding recognized liabilities on the date the decision is made, rather than the date the violation report was drawn up. Liabilities of up to GEL 1 and legally deferred payments not yet due are excluded from the assessment.
