Small business status: what individual entrepreneurs should know

The main rules: who gets the status, what the rate is and when to file.

Who can get the status

Small business status may be granted to an entrepreneur natural person. An LLC cannot get it (Tax Code, Article 88).

Rate and limit

Taxable income is taxed at 1%. If income for the calendar year exceeds 500,000 GEL, the rate is 3% from that month until the end of the year (Articles 88 and 90). Some activities have a different limit.

When to file

The return must be filed and the tax paid by the 15th day of the month after the reporting month (Article 93).

What records to keep

A small business must keep a special book of records and retain its primary tax documents (Article 91).

When you can lose the status

The status is revoked if income exceeds the limit in each of two calendar years, or if the person carries out a prohibited activity (Article 89). The Government sets the prohibited activities, so check the current list before applying (Resolution No. 415).