Special tax regime for Individuals

Special tax regime for individuals

Special tax regimes are for individuals and it gives benefits them with taxes. Individuals must meet relevant conditions to be granted with a special tax regime status.  There are two often common statuses shown in the table below.

Status type Tax rate Taxable base Condition of receiving a status Additional Information
Micro business 0%   Individuals with annual turnover of less than GEL 30,000, no employees.  
Small business 1% / 3% Annual turnover Individual entrepreneurs who are not engaged in activities prohibited for small businesses.

1% tax rate up to GEL 500,000 annual turnover.

3% tax rate after annual turnover exceeds GEL 500,000.

*Please note that according to the resolution of the Government of Georgia 415 on special taxation, there are the following activities banned for special regimen status individuals:      

  • Activities that require licensing or authorization;
  • Activities that require significant investment (excise goods production);
  • Conduct currency operations;
  • Medical, architectural, legal, auditing, consulting (including tax consultants) activities;
  • Gambling business;
  • HR services;
  • Production of excise goods.

*This is general information only. Georgia's tax code is very extensive and taxes may vary depending on the particular situation.  Before making any decision that may effect on your business or private finance, you should consult a qualified professional adviser. We don’t take any responsibility for any loss by any person/entity who relies on this communication.

Last updated on 25th of January 2020