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Accounting for Individual Entrepreneur with Small Business Status (1% Tax) in Georgia

Foreign entrepreneurs and freelancers who register as an Individual Entrepreneur (IE) in Georgia and obtain Small Business Status benefit from one of the most attractive tax regimes in the region. Under this system, qualifying entrepreneurs pay only 1% tax on annual turnover up to 500,000 GEL.

Although the tax regime is simple, Individual Entrepreneurs must still comply with several reporting obligations before the Revenue Service of Georgia (RS.ge). Proper accounting and timely submission of monthly declarations are essential in order to maintain the Small Business Status and avoid administrative penalties.

 

What is Small Business Status in Georgia?

Small Business Status is a special taxation regime available to registered Individual Entrepreneurs whose annual turnover does not exceed 500,000 GEL. This system is particularly popular among freelancers, consultants, IT specialists, digital service providers, and remote professionals working with international clients.

Entrepreneurs registered under this regime pay 1% tax on their gross turnover instead of standard corporate taxation. If turnover exceeds the threshold, the tax rate may increase according to Georgian tax legislation.

 

Accounting Obligations for Individual Entrepreneurs

Even though the Small Business tax system is simplified, Individual Entrepreneurs must still maintain basic accounting records and submit periodic reports to the Georgian Revenue Service.

  • Monthly tax declaration submitted through the RS.ge portal
  • Reporting of business turnover and issued invoices
  • Payment of the 1% small business tax
  • Annual summary reporting when required
  • Maintenance of accounting records for business activities

 

Benefits of Small Business Status

The Georgian Small Business tax regime is widely used by international freelancers and entrepreneurs because it offers several advantages compared to many other jurisdictions.

  • Very low taxation – only 1% income tax
  • Simple reporting obligations
  • Fast registration process for Individual Entrepreneurs
  • Suitable for remote work and international clients
  • Ability to operate legally in Georgia while working globally

 

Accounting Services for Individual Entrepreneurs

Our accounting team provides full accounting support for Individual Entrepreneurs with Small Business Status. We ensure that all monthly declarations are submitted correctly and that your tax obligations are fulfilled in accordance with Georgian legislation.

Our accounting services include:

  • Monthly tax reporting to the Revenue Service
  • Preparation and submission of 1% tax declarations
  • Monitoring of turnover limits
  • Consultation regarding tax compliance
  • Communication with Georgian authorities if necessary

With professional accounting support, Individual Entrepreneurs can focus on their business activities while remaining fully compliant with Georgian tax regulations.