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Georgia Small Business 1% Tax 


Small Business Tax Status in Georgia: 1% Taxation for Annual Turnover up to 500,000 GEL

In an effort to support small businesses and promote economic growth, the government of Georgia has introduced a favorable tax regime for eligible entrepreneurs. This small business tax status allows qualifying businesses to benefit from a reduced tax rate of only 1% on their annual turnover, up to a threshold of 500,000 GEL. Here's an overview of who can apply and the advantages it brings:



  1. Annual Turnover: To qualify for the small business tax status, your business must have an annual turnover of up to 500,000 GEL. This threshold ensures that small and medium-sized enterprises (SMEs) can take advantage of the reduced tax rate and ease their tax burden.
  2. Registered Businesses: Your business must be formally registered in Georgia to be eligible for this tax status. This includes both newly registered businesses and existing enterprises.


Advantages of Small Business Tax Status:

  1. Reduced Tax Rate: One of the primary benefits of the small business tax status is the significantly reduced tax rate of only 1% on your annual turnover. This lower tax rate helps small businesses retain a larger portion of their earnings, allowing for reinvestment, expansion, and increased competitiveness.
  2. Simplicity and Administrative Ease: The tax regime for small businesses in <link>Georgia</link> is designed to be straightforward and easy to manage. This simplifies tax reporting and compliance requirements, reducing administrative burdens for entrepreneurs.
  3. Cash Flow Enhancement: By paying a reduced tax rate, small businesses can improve their cash flow and allocate resources more efficiently. This can facilitate business operations, enable investment in equipment or personnel, and contribute to overall financial stability.
  4. Supporting Business Growth: The small business tax status aims to foster entrepreneurship and encourage the growth of small businesses in <link>Georgia</link>. By providing a favorable tax environment, the government aims to stimulate economic activity, create jobs, and drive innovation.


Applying for Small Business Tax Status:

To benefit from the reduced tax rate for small businesses in Georgia, you need to ensure that your business meets the eligibility criteria and submit the necessary documentation to the relevant tax authorities. It is advisable to consult with a tax professional or accountant who can guide you through the application process and help you understand the specific requirements.

The small business tax status in Georgia, specifically in Tbilisi, offers eligible entrepreneurs the opportunity to benefit from a reduced tax rate of 1% on their annual turnover, up to 500,000 GEL. This favorable tax regime aims to support small businesses, enhance cash flow, and promote economic growth. By taking advantage of this tax status, small businesses in Georgia can retain more of their earnings, reinvest in their ventures, and contribute to the thriving business landscape in the country.