🇬🇪 Tax Code Articles 84–90 • RS.ge Individual Entrepreneur Framework

Georgia Individual Entrepreneur (IE) Tax Comparison Calculator

Evaluate your tax liability across Georgia's three sole proprietorship regimes: Micro Business (0%), Small Business Status (1%), and Standard IE (20% on net profit).

Quick Presets:
₾

Total yearly invoiced receipts

₾

Allowable for Standard IE deduction

Disqualifies from 0% Micro status

Small Business (1%) Annual Tax
₾ 0.00
≈ $0 USD • Net Take-Home: ₾ 0.00
Micro Business (0%): Ineligible
Standard IE (20% Net): ₾ 0.00
Tax Saved via 1% Status: ₾ 0.00
Micro Business (0%)
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Cap: 30,000 GEL • No Staff
Small Business (1% / 3%)
₾ 0.00
Cap: 500,000 GEL • Staff Allowed
Standard IE (20% Net)
₾ 0.00
Tax on Gross − Documented Exp

Georgian Individual Entrepreneur Regimes: Statutory Matrix

Parameter Micro Business Status Small Business Status Standard IE (General)
Statutory Tax Rate 0% (Completely Exempt) 1% (3% on excess > ₾ 500k) 20% on Net Taxable Profit
Annual Revenue Ceiling Up to 30,000 GEL Up to 500,000 GEL No Upper Ceiling
Hiring Employees Strictly Prohibited Permitted (20% PIT withholding) Permitted (20% PIT withholding)
Accounting Complexity Zero bookkeeping required Minimal cash accounting log Full accrual/expense invoices
Filing Frequency Annual (or none) Monthly by 15th (RS.ge) Annual by March 31

Operating Individual Entrepreneur in Georgia

Registering Individual Entrepreneur (ინდივიდუალური მეწარმე) at the Public Service Hall (NAPR) is the fastest and most tax-efficient method to conduct business in Georgia. Once registered with NAPR, an entrepreneur can apply for preferential tax statuses directly through the Revenue Service portal (rs.ge).

Small Business 1% Regime Highlights

The 1% Small Business regime is renowned globally of the most competitive tax regimes in the world. Tax is calculated purely on gross revenue with no requirement to deduct or justify expenses. However, businesses exceeding the 500,000 GEL ceiling in two consecutive years will revert to the standard 20% net regime.

Frequently Asked Questions

What are the eligibility requirements for Micro Business Status in Georgia?

Under Article 84 of the Tax Code of Georgia, Micro Business Status confers a 0% tax rate. The entrepreneur must operate solely individual without any hired employees, and annual gross turnover must not exceed 30,000 GEL. Certain activities (like consulting requiring licensing, wholesale trade, currency exchange) are prohibited.

How does the 1% Small Business Status work for Individual Entrepreneurs?

Under Article 88-90 of the Tax Code, registered Small Businesses pay a flat 1% tax on gross turnover up to 500,000 GEL per calendar year. If turnover exceeds 500,000 GEL, the excess is taxed at 3%. Small Businesses are permitted to hire employees (withholding 20% PIT and 2% pension) and maintain simplified accounting.

When does an Individual Entrepreneur lose Small Business Status?

An IE loses Small Business Status if gross turnover exceeds 500,000 GEL for two consecutive calendar years, or if they engage in prohibited activities (financial services, gambling, currency exchange, legal/consulting services without an IT/technical classification).

How is a Standard Individual Entrepreneur taxed in Georgia?

A standard IE without preferential status is taxed under the general personal income tax regime at a flat 20% rate applied to net taxable profit (gross turnover minus verified, documented business expenses).

Are Individual Entrepreneurs in Georgia subject to VAT?

Under Article 157, any business (including Small Business IEs) whose taxable turnover of local goods or services exceeds 100,000 GEL during any continuous 12-month period must register for 18% VAT. However, qualifying services exported to foreign clients outside Georgia are zero-rated or exempt from Georgian VAT.

MS

Engr. Muhammad Shahzad

Verified Compliance Author

Principal Civil & Systems Software Engineer specializing in Caucasian corporate tax regimes, sole proprietorship structures, and RS.ge digital filing algorithms under the Tax Code of Georgia.

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📊 Revenue Service of Georgia (RS.ge) & Pension Agency Matrix

Statutory Component / Legal Deduction Item Calculated Amount (GEL)
Primary Net / Statutory Payable Amount 0.00 ₾
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Engr. Muhammad Shahzad

Principal Financial Systems Architect & Caucasus Fiscal Integration & Revenue Service of Georgia Architect

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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