Business and tax · Practical guide
Small business tax: the 1% rate is not automatic
Status, income type and eligible activities all matter.
Published on this website: 10.10.2026
Last checked: 08.10.2026
No separate source publication date is specified
No single effective date applies — practical guide
What you need to know
Income covered by the special small business regime is generally taxed at 1%. If the statutory annual threshold is exceeded, a 3% rate applies from the beginning of the month in which it is exceeded until the end of the year. The general threshold is GEL 500,000; for wine tourism and agritourism businesses specified by law, it is GEL 700,000.
What to do in practice
Before calculating tax, check your status, the source and type of income, and whether your activity is eligible. Assess VAT and other obligations separately. Do not assume that all income earned by an individual entrepreneur is taxed at 1%.
