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14.5. Interest and Penalties

Following interest and penalties are imposed:

  • Interest is levied on late payment of tax at the rate of 0.05% of the tax due for each day of delay;
  • Delay in the filing of the tax return for up to two months attracts a penalty at the rate of 5% of tax stated in a tax return, and if the delay exceeds two months, the penalty applies at the rate of 10%; and
  • Understatement of tax or overstatement of the tax credit as a result of adjustments made by tax authorities attracts a penalty ranging from 10% to 50% of tax.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the Georgian Ministry of Finance allowed 100% relief from fines and penalties for the payment of outstanding tax debts provided the taxpayers applied for a tax agreement with the Georgia Revenue Service by 1 August 2021 and paid the principal amount of tax due by 31 December 2021. The relief is available for all tax arrears, including disputed tax debts but excluding tax debts involved in ongoing criminal cases.