One percent tax in Georgia

One percent tax in Georgia: this guide explains the applicable rights, rules, documents and procedures using official sources.

The 1% regime does not automatically apply to everyone registered as an individual entrepreneur. An entrepreneur natural person must meet the Tax Code requirements and obtain small business status from the tax authority.

When does the 1% rate apply?

Under Article 90 of the Tax Code, qualifying taxable income of a person with small business status is taxed at 1%, subject to statutory exclusions.

What happens above the threshold?

If gross income from economic activity exceeds GEL 500,000, the 3% rate applies from the relevant month through the end of the calendar year. A separate GEL 700,000 threshold applies to specified wine and agritourism operators.

Check the income type

Salary income and excluded activities do not automatically fall within the 1% regime. VAT registration and status-retention rules must also be checked separately.