September 2026 Legal Insights and Regulatory Developments

September 2026 Legal Insights and Regulatory Developments

Tax Legislation Updates

Under the amendments introduced to the Tax Code, the family income threshold for the purpose of the property tax exemption for individuals has been increased from GEL 40,000 to GEL 100,000.

An individual is required to submit the annual property tax declaration for 2026 if:

  • the 2025 income of the individual and/or his/her family members exceeded GEL 100,000 and the individual owns taxable property on the territory of Georgia;
  • or, regardless of the amount of income, the individual and/or his/her family members own taxable land as of 1 April of the current year.

The rate on taxable property (excluding land) is determined at no less than 0.8% and no more than 1% of the market value existing at the end of the previous year.

If the 2025 declaration has already been submitted and no changes have been made to it, submission of the 2026 declaration is not mandatory. In this case, the tax authority will assess the tax based on the data of the 2025 declaration.

Other Legal Updates

Proposed Amendments to the Law on Funded Pensions

Law No. 1861/1-VIms-XImp adopted on 16 September 2026 significantly changes the rules for enforcing employers’ obligations in the accumulative pension scheme.

The main part of the amendments entered into force upon publication. Certain provisions enter into force from 15 October 2026 or from 1 June 2027.

Employer’s liability and fine

  • For failure to fulfil the obligation to make pension contributions (including for violation of the deadline), the fine amounts to GEL 300.
  • If the employer fully pays the unmade contribution and the accrued unreceived benefit thereon within 10 working days from the imposition of the fine, the obligation to pay the fine shall be cancelled.
  • Imposition of the fine does not release the employer from the obligation to make the contribution and pay the unreceived benefit.
  • The fine may be imposed no later than 6 months from the detection of the violation.
  • A decision on the fine may be enforced within 2 years from its adoption.

The law also defines cases where a contribution is not considered a violation (for example, a contribution timely made through correction or clarification of a declaration).

Participant’s unreceived benefit

A new concept is introduced in the law — “participant’s unreceived benefit”.

This is an amount that the employer must pay to the participant together with the pension contribution when the contribution was not made or was made late. The amount is reflected on the participant’s individual pension account in the form of pension assets.

  • Accrual starts from the day following the expiry of the deadline for making the contribution.
  • It is calculated on the basis of the monetary policy rate of the +5%National Bank of Georgia plus 5%.
  • Accrual ceases after the contribution is fully made.
  • Appealing a decision of the Pension Fund does not suspend the accrual of the unreceived benefit.

In the case of violations detected or committed for the period before 1 May 2025, the unreceived benefit shall not be imposed on the employer.

The Pension Fund is entitled to enforce the recovery of amounts through an individual administrative-legal act that has entered into legal force and an enforcement writ issued on its basis.

The law creates an independent Dispute Resolution Service within the Pension Fund, which is accountable to the Management Board. The Service reviews disputes free of charge in compliance with the principles of legality, objectivity, transparency and impartiality.

  • Appeal period: 30 calendar days from the delivery of the decision.
  • Submission of a complaint suspends the enforcement of the contested decision.
  • A decision of the Service may be appealed to a common court within 30 calendar days from its delivery.

The employer has the right to apply to the Dispute Resolution Service with a request for staged payment of the unmade contribution and the unreceived benefit. The terms of the agreement are determined by the law and the statute of the Service. During the term of the agreement, enforcement is suspended; however, in case of violation of the terms of the agreement, the decision is subject to immediate enforcement.