Small Business Status (1% Tax) – Georgia
One of Georgia's main advantages — small business status with just 1% tax on turnover. Available to individual entrepreneurs with annual turnover up to 500,000 lari (~$165,000). When limit exceeded, rate increases to 3%. No complex reports, simple system. Ideal for freelancers, consultants, digital nomads.
Small Business Status (1% Tax)
One of Georgia's main advantages — small business status with just 1% tax on turnover. Available to individual entrepreneurs with annual turnover up to 500,000 lari (~$165,000). When limit exceeded, rate increases to 3%. No complex reports, simple system. Ideal for freelancers, consultants, digital nomads.
Requirements
Annual turnover must not exceed 500,000 lari (~$165,000). When exceeded, rate increases to 3%. Very generous limit for most freelancers.
Small business status available only to individual entrepreneurs without employees. Must work independently.
Registration as individual entrepreneur online through tax service portal. Takes 1-2 days. Minimal bureaucracy.
Suitable for IT services, consulting, design, marketing, education and most services. Limitations only for specific licensed activities.
Benefits
Pay just 1% of gross income without deducting expenses. Simpler calculation than 20% on profit. With $100,000 income, tax only $1,000.
No need for complex accounting. Declaration filed once a year by March 31. No need to hire accountant for most cases.
Small entrepreneurs exempt from VAT if turnover less than 100,000 lari. No need to collect and pay 18% VAT. Simplifies work.
Can work remotely from any country, serve foreign clients. Ideal for digital nomads and remote workers.
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