Understanding the New Tax Fine Cancellation Rule: A Guide for Businesses

The Revenue Service has approved a new rule that allows for the cancellation of 50% of the fines accrued from a tax audit. This cancellation is possible if the taxpayer agrees to the offered conditions in a timely manner.

What Has Changed?

📌 On September 22, 2025, the Revenue Service introduced a systematic rule regarding the cancellation of half of the fines resulting from a tax audit. This change is rooted in Article 269, Part 11 of the Tax Code. The aim is to encourage taxpayer responsibility and facilitate the timely settlement of tax liabilities.

How Can You Benefit from the 50% Fine Cancellation?

To take advantage of this fine cancellation, taxpayers must meet specific conditions:

• Waive the Right to Appeal: Taxpayers must upload the relevant application on the portal eservices.rs.ge.

  
  

• Full Payment Required: The taxpayer must pay the full amount (100%) of the tax accrued from the audit and half (50%) of the fine.

  
  

• Timely Payment: This payment must be made within 30 days from the date of submission of the tax demand.

  
  

⚠️ Important Clarification

Any tax overpayment (credit) recorded on the taxpayer's personal registration card will not be considered for this payment.

Illustrative Example

Consider the following scenario:

• Principal Tax: 20,000 GEL

• Fine: 10,000 GEL

• Overpayment (Credit): 50,000 GEL recorded on your tax card.

  
  

Within 30 days, you must pay:

• Principal Tax: 20,000 GEL

• 50% of the Fine: 5,000 GEL

• Accrued Penalty: Any penalty accrued up to the moment of payment.

  
  

Total Payment: 25,000 GEL (plus any accrued penalty). If this amount is credited to the budget on time, the remaining 5,000 GEL of the fine will be considered cancelled. Note that the existing overpayment of 50,000 GEL is not taken into account.

Another Important Detail

If the payment is made on the last day (for example, Friday evening), but the amount is reflected in the budget on the next business day, the payment will still be considered timely. This is because the actual transfer occurred within the 30-day period.

What Is the Benefit for Your Business?

This regulation offers a significant advantage to taxpayers. It allows businesses to receive a "discount" in cases where appealing the audit results may not be beneficial.

The main takeaway is that businesses must carefully assess whether it is worth appealing the accrued taxes. They need to determine which option is more advantageous: appealing or opting for the concession.

How AccurAi Can Assist You

At AccurAi, we understand the complexities of tax regulations and the implications for your business. We are committed to helping you navigate these changes effectively. Our expertise in AI-driven automation and optimization can streamline your Tax, Finance, and Accounting processes.

By leveraging our innovative technology, you can make data-driven decisions that unlock measurable efficiency and sustainable growth.

With our guidance, you can confidently assess your options regarding tax audits and fines. We aim to establish ourselves as a market leader in AI-powered financial solutions, enabling businesses like yours to thrive in a competitive landscape.