Individual entrepreneurs in Georgia can apply for a special regime called small business status. It replaces the general income tax with a low flat rate. This guide summarises the Tax Code.
Who can get the status?
The status may be granted to an entrepreneur natural person (an individual entrepreneur), not to a company (Article 88). The Government may forbid the status for certain activities.
The tax rate
- Taxable income of a small business is taxed at 1% (Article 90(1)).
- If gross income from economic activity exceeds GEL 500,000, the rate becomes 3%, from the beginning of the month in which the limit was exceeded until the end of the calendar year (Article 90(2)).
Taxable income covers income from a Georgian source, except salary income and the income types excluded by the Government (Article 90(3)).
How to get it
You apply to the tax authority, which issues a certificate of small business (Article 89(1)).
When the status ends
The status is revoked if (Article 89(2)):
- gross income does not exceed GEL 500,000 in each of two calendar years (revocation from the start of the following year);
- you apply for revocation before the end of the calendar year;
- you carry out a prohibited activity;
- you are fined at least three times in a calendar year for breaking the cash register rules.
Records
A small business keeps a special book of records and keeps the tax source documents issued to or by it. A loss is not carried forward to the next year unless the person leaves the special regime (Article 91).
VAT still counts
Small business status does not by itself remove VAT. If your VAT-taxable transactions exceed GEL 100,000 in any 12 months you must register; see VAT in Georgia. Compare it with the general 20% income tax.
MITC keeps your books, files your returns and checks which regime fits you. Contact us for a consultation.
Source: Tax Code of Georgia, consolidated version of 28 October 2026 (matsne.gov.ge), Articles 88 to 91. Last verified: 7 November 2026. Rates and rules can change; confirm them with MITC or the Revenue Service before acting.
