Special Tax Regimes in Georgia: Small, Micro and Fixed Status

In this section

Small Business Status in Georgia (1% Turnover Tax) Small Business Status is a special tax regime for an Individual Entrepreneur that taxes qualifying turnover at 1%, rising to 3% once income exceeds GEL 500,000 in a calendar year (GEL 700,000 for wine tourism and agritourism). Registering the IE and obtaining the status are two separate steps: you apply to the tax authority, which issues the certificate within 2 working days, and the status then runs with no expiry date. It is not available for a list of prohibited activities — which includes consulting and some income, such as rent, interest, dividends, royalties and property gains, is always taxed under the ordinary rules. Holders keep a special expense journal and file monthly declarations by the 15th.
Micro Business Status in Georgia (0% Tax) Micro Business Status is a special tax regime for an individual who carries out small-scale economic activity personally, without hired labour, and whose qualifying gross income does not exceed GEL 30,000 in a calendar year. Qualifying income is exempt from personal income tax (0%). A VAT payer cannot hold the status, and a list of prohibited activities — including trade, licensed activities, and medical, legal, auditing or consulting work — is excluded. Some income types (rent, interest, dividends, royalties, property gains and similar) are always taxed under the ordinary rules and do not count toward the GEL 30,000 limit.
Fixed Taxpayer Status in Georgia Fixed Taxpayer Status is a special tax regime for a person who is not a VAT payer and carries out one or more specific activities defined by the Government — such as bread-baking ovens (tone), hairdressing, manicure and pedicure, solarium and car repair. Instead of tax on income or profit, the taxpayer pays a set monthly amount per work place or unit (for example GEL 50 per tone or per hairdressing chair, GEL 30 per manicure station, GEL 70 per solarium cabin, GEL 100 per car-repair place). A natural person must be registered as an Individual Entrepreneur to obtain the status. Fixed-tax income is excluded from total income, is not taxed further, and is not counted toward mandatory VAT registration. The status is granted by the Revenue Service on application, with a separate certificate for each location.

Georgia’s tax system is known for its simplicity. Alongside the standard rules, Georgian legislation provides special tax regimes for individuals and small entrepreneurs, allowing small-scale activity to be taxed under simplified conditions rather than the full standard system.

Not sure whether your activity qualifies? The prohibited-activities list is longer than most people expect — consulting is on it. Search your activity code in the Small Business Activity Checker.

Rather than applying one set of rules to every business, the law creates a graduated structure of three regimes. A person can start under the most simplified conditions and move up as the business grows, so that taxation rises in proportion to the size of the activity instead of imposing heavy obligations at the earliest stage.

This page is a hub. It sets out what the three regimes are and who each is for, then links to a detailed guide for each. For how these tax regimes sit alongside the standard 20% personal income tax, see Personal Income Tax in Georgia; for the wider picture of business statuses, including the company-focused ones, see Business Statuses in Georgia.

Why the special regimes exist

Not all economic activity is the same in scale or structure. Large companies can manage complex accounting and standard taxation, but imposing the same requirements on very small entrepreneurs or individuals working independently would create unnecessary administrative and financial barriers.

To address this, the Georgian tax system provides simplified regimes tailored to small-scale activity. Their stated purposes are:

to encourage entrepreneurship and self-employment;
to reduce the administrative burden for small taxpayers;
to make participation in the formal economy easier;
to support the development of small businesses.

Who can use them

The special regimes are primarily intended for natural persons engaged in economic activity, including individuals operating as entrepreneurs. They are especially relevant for:

freelancers and independent professionals;
small traders and artisans;
individuals providing services independently;
small entrepreneurs at an early stage of business development.

Companies (LLCs) do not use these regimes. A resident individual who wants to use Small Business Status or Fixed Taxpayer Status must first register as an Individual Entrepreneur — see how to register an Individual Entrepreneur remotely. Micro Business Status can be obtained by a registered taxpayer even without Individual Entrepreneur registration.

The three regimes at a glance

Regime	Typical user	Tax mechanism
Micro Business Status	very small individual activity, no employees	0% income tax on qualifying income up to GEL 30,000 per year
Small Business Status	growing Individual Entrepreneur	1% of turnover, rising to 3% above GEL 500,000
Fixed Taxpayer Status	specific listed activities (e.g. bakeries, hairdressing, car repair)	a fixed GEL amount per unit, per calendar month

Each regime is granted by the Revenue Service on application and keeps its own conditions, excluded activities and reporting rules. None of them removes a person’s VAT obligations where the Tax Code requires VAT registration.

Micro Business Status

Designed for very small economic activity performed personally by an individual, with no hired labour. It offers the most favourable treatment — 0% income tax on qualifying income where annual turnover does not exceed GEL 30,000 — in exchange for the strictest limits on scale.

Small Business Status

For an Individual Entrepreneur whose activity exceeds the micro threshold but is still small-scale. Qualifying turnover is taxed at 1%, rising to 3% once income crosses GEL 500,000 in the year (GEL 700,000 for wine tourism and agritourism). It is the most widely used regime for freelancers, consultants and small service providers.

Fixed Taxpayer Status

For a short list of specific activities defined by the Government, where tax is a predetermined fixed amount per work place or unit each month rather than a percentage of income. Examples include bakeries (tone), hairdressing, manicure and pedicure, solarium and car-repair services.

Common features and limits

Across all three regimes:

A status is optional and conditional. It is granted on application and can be refused or cancelled if the conditions stop being met — for example, by exceeding a turnover threshold, carrying out a prohibited activity, or (for micro and fixed taxpayers) becoming a VAT payer.
Prohibited activities are excluded. Government Resolution No. 415 lists activities that cannot use the special regimes, such as those requiring a licence or permit, foreign-currency operations, gambling, and certain professional services. Income from an excluded activity is taxed under the standard rules.
VAT still applies. A special regime concerns income tax only; VAT obligations under the Tax Code are unaffected.
Some income is always taxed normally. Categories such as rent, interest, dividends, royalties and gains on property are taxed under the ordinary rules even for a person holding a status.

How the regimes relate to residency

These regimes determine how qualifying Georgian-source business income is taxed. Whether you are taxed in Georgia at all depends on your tax residency and how income is sourced, which is explained in the Personal Income Tax guide. The special regimes do not change the territorial principle; they change the rate and reporting for the income that falls within them.

Where to go next

Open the detailed guide for the regime that fits your activity:

Small Business Status in Georgia (1% Turnover Tax) — eligibility, the 1%/3% rates, thresholds, hiring rules and cancellation.
Micro Business Status in Georgia (0% Tax) — the GEL 30,000 rule, excluded activities and reporting.
Fixed Taxpayer Status in Georgia — the fixed-amount activities, rates and how the status is granted.

For the broader map of statuses, including the company-focused ones, see Business Statuses in Georgia.

Legal sources

This overview is based on the Tax Code of Georgia, Government Resolution No. 415 of 29 December 2010 on activities prohibited for special tax regimes, and Order of the Minister of Finance No. 999 of 31 December 2010 on the rules for granting Micro and Small Business Status. Official versions are published by the Legislative Herald of Georgia (Matsne). Rates, thresholds and excluded activities are updated periodically, so confirm the current position with the Revenue Service before relying on any regime. This is not tax advice.

Frequently asked questions

What are the special tax regimes in Georgia?

They are simplified tax regimes for small-scale economic activity that replace the standard taxation system. The three main ones are Micro Business Status (0% income tax up to GEL 30,000 of qualifying turnover), Small Business Status (1% of turnover, rising to 3% above GEL 500,000), and Fixed Taxpayer Status (a set monthly amount for specific listed activities). Each has its own eligibility conditions, excluded activities and reporting rules.

Who can use a special tax regime?

These regimes are designed for natural persons carrying out economic activity — freelancers, independent professionals, small traders and artisans. Micro Business Status can be held by a registered taxpayer without being an Individual Entrepreneur, while Small Business Status and Fixed Taxpayer Status require the individual to be registered as an Individual Entrepreneur. Companies (LLCs) cannot use these regimes; they are taxed under the standard corporate system.

Do the special regimes remove VAT obligations?

No. A special tax regime concerns income tax, not VAT. If a person becomes liable to register for VAT under the Tax Code, they must do so. A person registered as a VAT payer cannot hold Micro Business Status or Fixed Taxpayer Status, whereas Small Business Status can be held alongside VAT registration.

Can I move from one regime to another as my business grows?

Yes. The regimes form a graduated structure. A micro business whose income exceeds GEL 30,000 can transition to Small Business Status, and a business that outgrows the small-business thresholds moves to the standard system. This lets taxation rise in proportion to the size of the business rather than creating a barrier at the start.

Is this page tax advice?

No. This is a neutral, source-based overview of the special tax regimes drawn from the Tax Code of Georgia and the related government legislation. Thresholds, rates and excluded activities are updated periodically and individual facts matter, so confirm the current position with the Revenue Service or a qualified adviser before relying on any regime.

Sources

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