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  • BDO Tax & Legal Newsletter / October 2019 No.5

BDO Tax & Legal Newsletter / October 2019 No.5

09 October 2019

Mariam Khuskivadze / Manager, TAX |

Amendment to the Law

Personal Use of Company Vehicle

N289 Decree (25.09.2019) of the Minister of Finance of Georgia stipulates amendment to N996 Decree (31.12.2010) “Tax Administration”. The amendment is an implication of the previous amendment to the Tax Code of Georgia in July of the same year about the taxation of employee benefits received through the personal use of company vehicle.

According to the amendment:

  • Motor car shall be considered used for personal purposes when such right of the employee is prescribed by the labor contract, charter or by the other document
  • Where motor cat is a vehicle registered under customs code 8703 of the national commodity nomenclature of foreign economic activities.

Personal income tax shall be paid in full in reporting period, regardless of the number of days for which the car is used for personal purposes.

It was also specified that:

  • If the employee uses two or more motor cars for personal purposes during the reporting period, personal income tax shall be payable according to the car used for longer period (more days), and if the number of days is equal – according to the car with higher engine capacity
  • If the same car is used by several employees at the same time during the reporting period, the income tax shall be paid separately - for each employee.

The same amendment approved a new form of income tax return, which already includes the appropriate fields for taxation of personal use of the car by an employee.

  • Car registration number (plate number)
  • Engine capacity
  • Name and surname of the employee using the car for personal purposes
  • The amount (in GEL) of personal income tax calculated for personal use of the vehicle.

The amendment came into force on 26 September and applies to legal relations arising from 1 September 2019.