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IE with 1% Tax For Freelancers With Personal Presence
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No “tourist tax”
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IE WITH 1% TAX FOR FREELANCERS
Georgia is a promising and attractive country for foreign freelancers, especially from the IT field. Lack of strict regulations, a tax incentive policy, fast and simple registration process attract businessmen from CIS countries and Europe to start as an IE with low status in Georgia.
The main advantage of Georgia is the ability to reduce the tax burden – if your annual turnover is less than 30,000 lari (9,000 dollars) per year, the rate will be 0%. But small business owners must file income and expense declarations monthly.
Preferential form of taxation – individual entrepreneur with a small status, with a turnover of up to 500,000 lari / calendar year (about 160,000 USD), 1% of the turnover is paid.
In case of exceeding up to 1,000,000 within a calendar year, 3% of the excess amount is paid. From the new calendar year – 1% is paid again up to a turnover of GEL 500,000. In the second year, they exceeded GEL 500,000 – again 3% of the excess amount is paid.
If for 2 consecutive calendar years you have exceeded a turnover of GEL 500,000, from January 1 of the third year, the minor status is removed and 20% of the net profit is paid.
VAT registration is required if your VAT-taxable turnover exceeds 100,000 lari if you work in the Georgian market. The procedure for taxing a business with VAT is specific, based on the place of provision of services/sale of goods. Contact our specialists to clearly determine whether your business is subject to VAT.
WITH PERSONAL PRESENCE
| Service | |
|---|---|
| Free full consultation on the registration procedure, tax burden, reporting | ✅ |
| and subsequent obtaining a residence permit in Georgia | |
| Preparation of all documents | ✅ |
| Registration at the House of Justice | ✅ |
| Registration at the Tax Office | ✅ |
| Registration of Small Business status (for a tax rate of 1%) | ✅ |
| Cost | 250 $ |
| Service | |
|---|---|
| Registration of Small Business status (for a tax rate of 1%) | ✅ |
| Opening a multi-currency card account in a bank | ✅ |
| Cost | 300 $ |
| Additional expenses | |
|---|---|
| Annual state fees or licenses | no |
| Legal address | no |
| Training in filling out a declaration for an individual entrepreneur in English | 100 $ |
TERMS
If you have already arrived in Georgia, then all stages (from registration at the House of Justice to the issuance of a multicurrency bank card) may be completed in person in no more than 3 working days.
WHO CAN GET THE STATUS?
The tax service has limited the list of activities for individual entrepreneurs with a low status. Allowed to take advantage of the tax credit:
- IT developers;
- Online marketers;
- Persons conducting online trading;
- Family business;
- Private hotels;
- Hostels and guest houses;
- Craftsmen;
- Taxi drivers;
- Tourist guides.
Prohibited!
Those who provide any kind of financial and consulting services. That is, such income will be taxed according to the usual system and you will have to pay 20% of the net profit annually. Therefore, it is very important to get a free consultation from a specialist before registering an individual entrepreneur.
WHY IS IT NECESSARY TO REGISTER AS AN INDIVIDUAL ENTREPRENEUR IF YOU ARE A FREELANCER IN GEORGIA?
The 1% tax rate is not retroactive. If you have been working as a freelancer for 183 days in Georgia and receive income, but have not registered as an individual entrepreneur, your mandatory tax will be 20% instead of 1%. Before the automatic assignment of tax residency and the accrual of 20% taxes, the best and, in principle the only, correct option for those who move to Georgia is to open a small business. If you have no plans to live in Georgia and you are not threatened with tax residency, by registering as an individual entrepreneur, you can save significantly on taxes in your country of residence by taking advantage of the double taxation avoidance agreement.
The Georgian government is interested in attracting foreign investment. As such, foreigners are taxed at the same low rate as citizens of the country, and the registration process has been simplified as much as possible.
FILL OUT THE FORM TO GET A FREE CONSULTATION
To get a free full consultation on the registration procedure, tax burden, reporting, and subsequent obtaining a residence permit, as well as assistance in the selection of real estate, fill out an application on the website.
