Deputy Finance Minister: Property tax amendments will apply solely to individuals; commercial entity reform to follow

“Upcoming legislative changes regarding property tax will apply exclusively to individuals, while broader structural reforms for commercial entities remain under active development,” Deputy Minister of Finance Giorgi Kakauridze has announced.

According to Kakauridze, formal consultations are scheduled for early next week, after which the Parliamentary Finance and Budget Committee is expected to introduce the bill.

“Detailed technical work is underway in close coordination with Parliament’s Finance and Budget Committee. We will hold final discussions on Monday and Tuesday, following which the Parliamentary Finance Committee will likely initiate the legislation. While I cannot disclose specifics prematurely, the key takeaway is that the current income thresholds will be adjusted.

At this stage, the revisions will apply strictly to physical persons, leaving commercial entities unaffected for now as reform work in that area continues. We will likely transition to the corporate segment in phases further down the line, given that reform for commercial enterprises is considerably more complex to execute.

The current 40,000 GEL income threshold serves as a tax relief measure established for Georgian citizens. We are actively working to determine by how much this relief threshold will be increased. Existing provisions for commercial entities will remain unchanged in the interim, but we expect to finalise the definitive draft for individuals with Parliament by the end of next week. Once the final framework is established, we will decide how to offset any fiscal impact alongside upcoming budget adjustments,” Kakauridze stated.

Asked whether the amendments could be passed before 1 November, Kakauridze noted that the bill will be considered under an expedited parliamentary procedure, making it possible for the new tax rules to take effect for the current tax year.

On 31 August, parliamentary majority leader Irakli Kirtskhalia stated that the Finance and Budget Committee, together with the Ministry of Finance, is actively working to raise the current 40,000 GEL property tax threshold for individuals.