Fixed Taxpayer Status in Georgia

Georgia’s special tax regimes include Fixed Taxpayer Status. Under this regime, taxpayers engaged in specific activities pay a predetermined fixed tax amount instead of tax calculated on income or profit. It is designed for a limited range of activities where paying a predetermined monthly amount per taxable unit is simpler than income-based taxation.

What is a fixed taxpayer

A fixed taxpayer is a person who:

• is not registered as a VAT payer; and
• carries out one or more activities subject to fixed taxation.

If the taxpayer is a natural person, they must first be registered as an Individual Entrepreneur to obtain the status — see how to register an Individual Entrepreneur remotely.

Activities subject to fixed tax

Fixed taxation applies only to specific activities defined by the Government, and the amount depends on the activity. The fixed tax is charged per taxable unit—for example, an oven, work place or solarium cabin—for each calendar month.

Type of activity	Object of taxation	Period	Fixed tax
Supply of goods produced in a bread-baking oven (tone) and/or services rendered by a tone	Tone (oven)	Calendar month	GEL 50 per tone
Hair cutting, styling, colouring, shaving, make-up, massage (except medical), eyebrow correction, epilation (except laser), depilation, cosmetologist services	Work place (chair/table/armchair)	Calendar month	GEL 50 per work place
Manicure and pedicure services (including nail extension)	Work place (chair/table)	Calendar month	GEL 30 per work place
Solarium services	Work place (solarium cabin)	Calendar month	GEL 70 per work place
Technical servicing and repair of automobiles, incl. rim/tyre restoration and related services (carpet washing)	Work place used for the service	Calendar month	One work place designated for servicing one automobile – GEL 100. **Where this cannot be clearly determined, GEL 100 for each 40 m² of service area.

Additional activities

A person with fixed taxpayer status may also carry out other activities permitted by the Government. However:

• income from additional activities is taxed under the general rules; and
• only the activities specifically designated as fixed-tax activities fall under the fixed regime.

Tax treatment of income

Income derived from fixed-tax activities is treated differently under the Tax Code. Specifically, it:

• is not included in the taxpayer’s total income;
• is not subject to further taxation; and
• is not considered when determining the obligation for mandatory VAT registration.

Cash register

A fixed taxpayer is exempt from using cash-register machines for activities taxed under the fixed regime. This exemption applies only to the fixed-tax activity itself.

Deduction of expenses

Certain restrictions apply. If a taxpayer buys goods or services from a fixed taxpayer within the scope of the fixed-tax activity, those those expenses are not deductible for income tax purposes. Where a taxpayer performs both fixed-tax and other activities, undivided expenses cannot be deducted from the income of the other activity.

How the status is obtained

To obtain the status, the taxpayer submits an application to the Revenue Service stating:

• the type of activity subject to fixed taxation; and
• the address where the activity will be carried out.

A taxpayer may apply at any time during the calendar year. If the legal requirements are met and the application is complete, the Revenue Service issues a Fixed Taxpayer Certificate. The taxpayer holds the status from the first day of the month following the month in which it was granted. A separate certificate is issued for each location where the fixed-tax activity is conducted.

Obligations

A fixed taxpayer must:

• keep any primary tax documents issued or received; and
• comply with tax withholding obligations where required under Georgian tax law.

When the status is cancelled

Fixed taxpayer status is cancelled if the taxpayer:

• stops the fixed-tax activity;
• requests cancellation;
• carries out activities not permitted under the regime;
• becomes registered as a VAT payer;
• has their Individual Entrepreneur registration cancelled; or
• dies (for natural persons).

Where this fits

Fixed Taxpayer Status is one of three special tax regimes. If your activity is not on the fixed-tax list, compare Small Business Status (1% turnover) and Micro Business Status (0% tax). For how these regimes sit alongside the standard rate, see Personal Income Tax in Georgia, and for the wider map see Business Statuses in Georgia.

A note on verification

Fixed Taxpayer Status applies only to activities expressly designated by the Government, and both the list of eligible activities and the fixed tax amounts may be amended from time to time. Before relying on this guide, verify that the applicable activities, tax rates and administrative requirements remain unchanged. Where there is any inconsistency, the Tax Code of Georgia, together with the relevant Government and Revenue Service regulations, prevails. This guide is intended as a practical explanation of the current legal framework and does not constitute legal or tax advice.

Frequently asked questions

What is a fixed taxpayer?

A person who is not registered as a VAT payer and carries out one or more activities subject to fixed taxation. Under this regime the taxpayer pays a predetermined fixed amount per work place or unit each month instead of tax calculated on income or profit. If the taxpayer is a natural person, they must be registered as an Individual Entrepreneur.

Which activities qualify for fixed tax?

Only specific activities defined by the Government, including bread-baking ovens (tone), hairdressing and related beauty services, manicure and pedicure, solarium services, and technical servicing and repair of automobiles. The fixed amount depends on the activity and is charged per unit such as an oven, chair, station, cabin or work place, per calendar month.

How is the fixed-tax income treated?

Income from fixed-tax activities is not included in the taxpayer's total income, is not subject to further taxation, and is not counted when determining whether mandatory VAT registration applies. A fixed taxpayer is also exempt from using cash-register machines for the fixed-tax activity.

Can a fixed taxpayer carry out other activities?

Yes, other activities permitted by the Government are allowed, but income from those additional activities is taxed under the general rules. Expenses on goods or services bought from a fixed taxpayer within the fixed-tax activity cannot be deducted, and undivided expenses cannot be deducted from the income of the other activity.

How is the status obtained and when does it start?

By application to the Revenue Service stating the type of activity and the address where it will be carried out. A person may apply at any time in the year. If the requirements are met, a Fixed Taxpayer Certificate is issued, and the status takes effect from the first day of the month following the month it was granted. A separate certificate is issued for each location.