🇬🇪 Tax Code Articles 88–90 • 1% Turnover Tax • ₾ 500k Ceiling

Georgia Small Business Status (1% Tax) Calculator

Compute monthly RS.ge turnover tax, evaluate 1% vs 3% bracket transitions against the 500,000 GEL annual ceiling, and track cumulative year-to-date compliance.

Quick Presets:
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Gross income received this month

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Total revenue Jan 1 to last month

Self-employed 2% pension contribution

Monthly RS.ge Tax Due (By 15th)
₾ 0.00
≈ $0 USD • Effective Rate: 1.00%
Net Monthly Retained: ₾ 0.00
Cumulative YTD Turnover: ₾ 0.00
Current Rate: 1.00% (Within ₾ 500k Limit)
Portion at 1% Rate ₾ 0.00
Portion at 3% Excess Rate ₾ 0.00
Pension Deduction (2%) ₾ 0.00
Remaining Under ₾ 500k ₾ 425,000.00

Small Business Status: Thresholds & Statutory Guidelines

Turnover Bracket Statutory Tax Rate Reporting Frequency Filing Deadline Status Risk
Up to 500,000 GEL YTD 1.0% on Gross Turnover Monthly online (RS.ge) 15th of following month Fully Compliant
Over 500,000 GEL YTD (Year 1) 3.0% on Excess Monthly online (RS.ge) 15th of following month Warning: 1st year excess
Over 500,000 GEL (Consecutive Year 2) Reverts to 20% Net Profit Annual (March 31) March 31 of next year Status Revoked by RS.ge
Domestic Local Sales > 100k GEL + 18% Mandatory VAT Monthly VAT return 15th of following month Export services exempt

Navigating Georgia's 1% Small Business Status

Georgia's Small Business Status (მცირე ბიზნესის სტატუსი) is established under Chapter XIV (Articles 88–90) of the Tax Code of Georgia. It permits qualifying sole proprietors to replace traditional corporate income taxes and complicated expense accounting with a flat 1% turnover tax.

Monthly Compliance Protocol

Every month, the entrepreneur logs into the RS.ge electronic tax portal, submits the simplified declaration form showing total gross revenue earned across all bank accounts during the preceding calendar month, and remits the 1% tax by the 15th. No deduction receipts or expense vouchers need to be submitted.

Frequently Asked Questions

What is the tax rate under Georgia's Small Business Status?

Under Article 88 of the Tax Code of Georgia, registered Small Businesses pay a flat 1.0% tax on gross turnover up to 500,000 GEL during a calendar year. Any gross revenue exceeding 500,000 GEL in the same calendar year is taxed at 3.0% on the excess.

When are Small Business taxes declared and paid in Georgia?

Taxes must be declared and remitted monthly through the online portal of the Revenue Service of Georgia (RS.ge) no later than the 15th calendar day of the month following the reporting period.

What is the two-consecutive-year rule for the 500,000 GEL ceiling?

Under Article 90, an Individual Entrepreneur does not automatically lose Small Business Status the first time turnover exceeds 500,000 GEL. Status revocation only occurs if gross turnover exceeds 500,000 GEL for two consecutive calendar years, after which the entrepreneur reverts to the general 20% net profit regime.

Do Small Business Individual Entrepreneurs need to pay 18% VAT?

VAT registration (18%) is mandatory once domestic taxable turnover within Georgia exceeds 100,000 GEL in any 12-month period. However, international export services provided to foreign clients outside Georgia are zero-rated (0% VAT), allowing many IT freelancers to remain VAT-free.

Which business activities are prohibited from obtaining Small Business Status?

Prohibited activities include currency exchange, financial intermediation, gambling, legal practice, architectural/engineering licensing where corporate structures are mandated, medical services, and wholesale trade of excisable goods.

MS

Engr. Muhammad Shahzad

Verified Compliance Author

Principal Civil & Systems Software Engineer specializing in Caucasian tax structuring, RS.ge digital declaration protocols, and sole proprietor Small Business status compliance under Georgian law.

Learn more about author credentials & verification →

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

Statutory Component / Legal Deduction Item Calculated Amount (GEL)
Primary Net / Statutory Payable Amount 0.00 ₾
MS

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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