Choose a Georgian tax structure that suits how you actually earn and operate. We help entrepreneurs, IT businesses and investors compare preferential regimes and understand the filings and records that go with them.
Individual entrepreneur and Small Business Status
For eligible activities, Small Business Status generally offers a 1% income-tax rate. The general annual threshold is 500,000 GEL, with a 3% rate applying from the month of excess to year-end under the relevant rules. We check your activity and income first, then plan VAT and other filings alongside the status.
IT companies and innovative businesses
Virtual Zone Person, International Company and innovative startup statuses serve different business models. We help compare the relief, eligibility, payroll and record-keeping requirements against where your work is performed and how your clients are served.
Company profits and owner payments
For companies using Georgia’s distributed-profit system, we help you plan distributions, owner payments and other transactions that may create tax obligations. VAT, payroll and withholding are considered alongside profit tax so the structure works in practice.
Personal investments and international income
Personal investment, crypto activity, regulated virtual asset services and company trading have different tax treatments. We can assess the Georgian position and identify the residence-country questions to discuss with your foreign adviser.
Read the detailed tax explanations
Explore 1% Small Business Status, International Company status, company profits and dividends and the 2026 individual property-tax exemption. Each addresses a different part of the business or personal tax calculation.
Compare the tax base as well as the headline rate
A 1% tax on qualifying receipts, a reduced tax on company profit distributions and salary relief answer different questions. Start with the legal form, activity, location of the work, revenue, salary costs and money the owner wants to withdraw. A useful comparison uses the same commercial assumptions for every option.
| Treatment | Who or what it concerns | Important practical test |
|---|---|---|
| Small Business Status | An eligible individual entrepreneur and qualifying income | Permitted activity, income source, receipts and thresholds |
| Ordinary company system | Company distributions and specified taxable payments | Retained earnings, owner payments and the 15/85 calculation |
| Virtual Zone Person | Qualifying IT activity and relevant income | Technology created, customer supply and development evidence |
| International Company | A qualifying approved company | Permitted activity, experience and Georgian operations |
| Innovative startup | A qualifying approved innovative business | Eligibility, relief phase, annual renewal and continuing conditions |
| Individual foreign-source exemption | A resident individual’s qualifying foreign-source income | Correct residence and statutory income-source analysis |
Keep VAT and payroll in the same calculation
A business can qualify for one income or profit-tax treatment and still need to assess VAT, reverse-charge VAT or employee taxes. Prepare a second schedule for those obligations. For example, foreign advertising and software purchases should reach the accountant even where the owner focuses on the 1% business tax.
Owner payments also deserve their own line in the model. Show salary, dividends, reimbursement and funding movements separately. This makes the available cash and tax cost understandable and avoids treating all transfers from a business account as the same type of income.
Retain the evidence that supports the treatment
Keep the status decision, application documents, effective date and the records explaining each relevant income stream. Review the position when a service, customer model, team location or ownership changes. A tax benefit is most useful when the business can apply it consistently in its ordinary accounts and explain why it qualifies.
Discuss the next step
Describe your work, clients, expected turnover, work location and ownership. We will help you compare the relevant options.
Request a consultationFrequently asked questions
How do I assess eligibility for 1% Small Business Status?
Compare the actual activity and income with the permitted and excluded-activity rules. Consulting and certain other activities are excluded. Assess VAT and other taxes separately from the income-tax status.
Which overseas-owner questions belong in the comparison?
Establish the owner’s residence, where management decisions are made and any controlled foreign company or other domestic rules in the residence country. Connect that analysis with the Georgian company and its actual operation.
Legal basis: Tax Code of Georgia; Government Resolution No. 415 on special tax regimes and Resolution No. 619 on International Companies.