Income Tax Declaration
Income Tax Declaration
The functionality allows to generate Income Tax Declaration in the system according to the posted operations which are charged with WHT. The information is taken from WHT Entries and Person Income Entries. The generated declaration can be exported and uploaded to the Georgian Revenue Service portal.
Income Tax Declaration
Go to the Report Income Tax Declaration,
- Indicate Period Code, Language and Global Dimension if needed,
- Income Tax Declaration will be generated and can be exported from the system. Then it can be uploaded to the RS.GE web page in the Income Tax declaration section.
Note
Declarations’ language should be always Georgian for getting correct information.
The system's Income Tax Declaration repeats the fields of the RS.GE's Income Tax Declaration.
Income TAX Declaration fields
| Field | Description |
|---|---|
| Identification number | Specifies the VAT Registration number of Vendor/Employee |
| Name of recipient | Specifies the name of the recipient of the payment |
| Surname of recipient | Specifies the surname of the recipient of the payment |
| Addreess | Specifies the address of the recipient of the payment |
| Country of residence | Specifies the country of residence code, taken from Country/Region code, specified on recepient's card |
| Tax Payer Category | Specifies the Tax Payer Category, provided from WHT Entry |
| Tax Code | Specifies Payroll Type, provided from WHT Entry |
| Gross Amount | "Base (LCY)" + "SMA WHT PF Comp. Amount (LCY)" from WHT Entry |
| Pension Amount | "WHT PF Comp. Amount (LCY)" from WHT Entry |
| Other Benefits | If "Double Taxation" is YES in WHT Entry, then "Benefit Amount for DTA" from WHT, else 0 |
| Payment Date | Specifies Posting Date from WHT Entry |
| Tax Rate | Specifies "WHT %" WHT Entry |
| Tax Amount | Specifies "WHT Amount(LCY)" WHT Entry |
| Tax Deduction | 0 |
Income TAX Declaration Appendix "E"
According to the Georgian legislation requirement, Income TAX Declaration Appendix "E" has been added. It reflects information about the taxes applied to individuals in the reporting month, which is related to the payment of services and is not taxed at the source of payment.
1. Setup values on the page "Type of Service" • Purpose: To define service types for individual transactions that are registered as taxpayers. • Fields:
o Code: Unique identifier for the service type.
o Description: Detailed description of the service type.
2. Mark “Not taxable WHT” field on related WHT Business Posting Group.
Specifies that an individual with this WHT Business Posting Group is not taxed at the source of payment.
3. Fill the field "Type of Service" to SMA WHT Business Posting Group.
o This field becomes active if "Not taxable WHT" is set to YES.
o If "Not taxable WHT" is set to NO, this field is blocked.
4. Field "Not taxable WHT" added in General Journal Line and SMA Bank Payment Journal, it becomes YES, if “Not Taxable WHT” is YES on WHT Business Posting Group.
5. Modified Posting Payment Process
• If "Not taxable WHT" is YES:
o System Skips the validation of WHT entries (i.e., do not create WHT entries when WHT % and WHT Amount are 0).
o Makes a record in WHT Entries as usual, but some fields, such as WHT amount and PF amounts, are 0.
7. New Report Income TAX Declaration Appendix "E" has been added.
• Provide an appendix with the same fields as the Income Tax Declaration.
• The report is savable in Excel and XML formats.
8. New Excel Template has been added.
• Template Columns:
o Columns A-C: Match the existing fields in the Income Tax Declaration template.
o Column D: "Type of Service" from SMA WHT Entry
o Column E: Base (LCY) from SMA WHT Entry
o Column F: Vendor’s Address
o Column G: Country of Residence
For generating report, go to the Income Tax Declaration Appendix "E",
- Indicate Period Code, Language and Global Dimension if needed,
- Income Tax Declaration Appendix "E" will be generated and can be exported from the system. Then it can be uploaded to the RS.GE web page in the Income Tax declaration section.