Georgia's New Pension Declaration Rules for 2025: Combining Simplicity with Compliance Risks

Strategic Insights -

The Georgian Pension Agency has implemented a significant change in the pension declaration process, merging it with the personal income tax (PIT) declaration. As of May 2025, employers are required to submit both declarations simultaneously via the Georgia Revenue Service portal by the 15th of the following month. This updated system aims to simplify reporting, but it also introduces new compliance risks for businesses that fail to fund pension accounts on time or submit accurate data. To avoid fines and penalties, employers must ensure they have sufficient funds in the pension account by the due date and maintain a minimum balance to cover monthly contributions.

Key Takeaways:

  • The Georgian Pension Agency has merged the monthly pension declaration with the personal income tax (PIT) declaration, effective May 2025.
  • Employers must submit both declarations simultaneously via the Georgia Revenue Service portal by the 15th of the following month.
  • Companies must ensure adequate funds are available in the pension account by the due date to finalize the combined declaration, otherwise, the declaration cannot be closed.
  • Fines for late or incorrect pension and PIT declarations include 500 GEL for the first offense and 1,000 GEL for subsequent violations.
  • Employers must ensure pension contributions are paid in full when processing salaries or benefits and keep a buffer in the pension account to cover monthly contributions on time.
  • The new combined declaration system eliminates the need for monthly reconciliations of pension and PIT, allowing for annual corrections of discrepancies.
  • Employers must use the new system to reduce administrative effort and avoid delays and penalties.
  • Maintaining a minimum balance in pension accounts is highly recommended to avoid delays and penalties.

Statistics:

  • 500 GEL: fine for the first late or incomplete declaration.
  • 1,000 GEL: fine for each subsequent late or incomplete declaration.
  • 15th of the following month: new submission deadline for combined PIT and pension declarations.
  • Annual correction declarations: employers can now correct discrepancies once a year, rather than monthly.

Sources:

  • The Georgian Pension Agency.
  • Eurofast Georgia.