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Small Business Taxes in Georgia


Low taxes on small business in Georgia, a simple and quick registration process for any business make this country an ideal place to start or continue your business. The government is interested in attracting foreign investment, so the taxes and business registration process for foreigners are the same as for citizens of the country. 

The development of small and medium-sized businesses in Georgia is one of the most important priorities. In this article, we will talk more about how taxes are formed on small businesses in Georgia and the procedure for becoming tax registered.

What forms of small business are there in Georgia?

The main determinants of your business status are income and the availability of hired workers. Each status has clear distinctions, different tax rates, and fines for violating the norms of the assigned legal status. All conditions are listed in the Tax Code of Georgia and cannot be challenged. Owners of small businesses must submit income and expense declarations on a monthly basis and pay taxes on small businesses in Georgia accordingly. 

There may be different forms of small business depending on the turnover and volume of expected revenue:

  • Microbusiness is the simplest form of business with a turnover of up to GEL 30,000 per year without hired employees. There is no income tax at all, but 5% office rental tax must be paid. The main part of microbusiness in Georgia is: family business, private hotels, hostels, guest houses, craftsmen, taxi drivers, tourist guides, etc;
  • Small business with turnover up to GEL 100,000 per year. Taxed at 1% of turnover before deducting expenses;
  • Small business with turnover from 100,000 GEL to 500,000 GEL per year. Taxable in the amount of 1% of turnover and 18% VAT on turnover;
  • Small business with turnover over GEL 500,000 per year becomes an individual entrepreneur and pays 20% tax on profits and 18% VAT on turnover.

How to get into tax accounting in Georgia?

First of all, you need to understand the turnovers and volumes of expected revenues, and from that, you need to choose a suitable form of small business. Later on, the registration procedure will be fast and simple enough. You will need to come to the House of Justice with a passport, a notarized legal address, and a person who knows the Georgian language. Having filled in the application and paid the state fee, you will have to wait no more than two days. And already after you register your small business you need to apply to the tax office to be given access (login and password) to the electronic cabinet of the taxpayer.

Everything is quite easy and simple, but foreigners and people who want to open a business in Georgia remotely cannot always cope on their own. Besides, not everybody wants to spend time studying bureaucratic requirements of Georgian legislation and keep accounting on their own. It is in such cases that they turn to us. We will gladly help you to choose the legal and organizational form of your business and after calculating the expected income we will propose the best option. Leave your application on the website to get free advice.


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