Investment intelligence for Georgia, the countryENWhatsApp
Request an introduction
Menu

Home / Rules and tax / Small business status: 1%

Rules and tax · as written

Small business status: 1%

An individual entrepreneur with small business status pays 1% of turnover up to GEL 500,000 a year instead of 20% on profit, rising to 3% in the year the threshold is crossed. It is a regime for individuals, not companies, and several service activities are excluded. Investors meet it as the regime their Georgian contractors, landlords and freelancers often use.

Last updateNext update9 Oct 2026~9 Nov 2026Checked against the current text of the Tax Code and Revenue Service guidance.
Nikusha PruidzeFounder · 1 min read · 2 sources

Summary

The figures

1%

Tax on turnover for an individual entrepreneur with small business status, up to GEL 500,000 a year.

Tax Code of Georgia, Art. 88–90·1 Oct 2026

GEL 500,000

Annual turnover ceiling for the 1% rate; 3% applies for the year in which it is exceeded.

Tax Code of Georgia, Art. 90·1 Oct 2026

As written
1 provision

Define small business status for individual entrepreneurs, the excluded activities, the turnover threshold and the 1% and 3% rates. (Paraphrased.)Tax Code of Georgia, Articles 88–90 (small business)

How it works

Small business status is granted by the Revenue Service to a registered individual entrepreneur. The entrepreneur pays 1% of gross turnover monthly, keeps simplified records and files a short return. Expenses are not deductible, which is the trade-off for the low rate.

Some activities cannot use the status, among them consulting, legal, medical, architectural and financial services, gambling and currency exchange. A contractor who offers you the 1% regime for a service on the excluded list is offering something the Revenue Service will unwind.

For an investor the regime matters in two ways: as the status of the freelancers and small suppliers you pay, and as an option for a resident individual with modest trading income. It is not available to companies and does not combine with employment income from the same payer.

Worked example

A Tbilisi designer with small business status bills GEL 180,000 in a year. Tax: 1%, or GEL 1,800, paid monthly on the previous month's receipts. Had the designer been an employee on the same gross, income tax would have been 20%, or GEL 36,000, plus pension contributions.

FAQ

Questions investors ask about this rule

Can a foreigner get small business status?

Yes, if registered in Georgia as an individual entrepreneur, with a Georgian address and tax number. Tax residency is a separate question.

What happens above GEL 500,000?

The rate is 3% for the year in which the threshold is exceeded; if it is exceeded in two consecutive years the status is lost.

Is a company eligible?

No. The status exists for individual entrepreneurs only.

Sources

Sources

  1. Tax Code of Georgia (matsne.gov.ge), current text
  2. Revenue Service of Georgia, small business guidance

Next step

Not legal advice, by design. For your case, we work with your lawyer or introduce one we have checked.

Tell us the structure and the sector. We reply within one working day with the regime that applies and what to verify first.

Request an introduction

Free · no obligation · named-lead protection with partners

WhatsApp