The deadline for individuals to submit property tax returns is approaching. Taxpayers must file their declarations by November 3, while the payment deadline is set for November 17.
According to current legislation, individuals whose family’s combined annual income exceeded 40,000 GEL last year and who own taxable property are required to pay property tax.
However, tax experts argue that the existing GEL 40,000 exemption threshold, set nearly two decades ago, has become outdated and should be increased.
Zurab Dznelashvili, founder of the auditing company Tax & Legal Solutions, told BMG that it would be reasonable to raise the threshold to GEL 100,000, given the economic changes and rising nominal incomes in Georgia.
“The 40,000 GEL property tax threshold is very low today. It was established back in December 2004. A lot has changed in 20 years, nominal incomes have increased significantly, even if purchasing power hasn’t improved as much. Especially when considering family incomes. Therefore, I believe this benefit should be expanded by increasing the income threshold,” Dznelashvili said.
“Today, GEL 40,000 no longer reflects the reality of most families. Raising the threshold to GEL 100,000 would be more relevant to current income levels.”
The Ministry of Finance has been working on a property tax reform for several years, aiming to change the taxation principle for both individuals and enterprises so that property tax no longer depends on income.
However, Deputy Minister of Finance Giorgi Kakauridze has so far been unable to specify when such a reform might be implemented.
