Georgia Tax Calculator

Small Business Tax (1%) Calculation

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This calculator helps quickly estimate tax for entrepreneurs operating under the small business regime in Georgia. In this regime, the tax rate is 1% of turnover, provided annual income does not exceed the established limit.

Enter your income amount and the calculator will automatically show the tax due.

The result is for reference only and helps you quickly assess your tax liability. Learn more →

How to File a Tax Declaration on rs.ge

  1. Go to rs.ge — open the menu (1) and select "Declarations" (not "Charged on Declaration"). If you've already marked it as a favourite, use the quick link (2) on the home screen instead. rs.ge home page Declarations in menu

    💡 Tip: you can mark Declarations as a favourite in the menu for quick access next time.

  2. Create a new declaration: select "Small business" (1), then click "New return" (2). Declarations list New declaration setup
  3. Convert income to GEL: if you received payments in foreign currency, convert each amount using the National Bank of Georgia (NBG) exchange rate for the exact deposit date. This calculator does it automatically — just enter each payment and click Calculate.
  4. Fill in the form fields:
    • Field 15 — annual income (January–December) in GEL
    • Field 17 — income for the reporting month in GEL
    The 1% tax is calculated automatically. Declaration form fields
  5. Submit: click "Next" → review the form → click "Send". A checkmark confirms successful submission.
  6. Pay the tax: open your bank app → "Payments to state treasury" → treasury code 101001000 → in the description: "Income tax for [month/year], declaration No. [number]".
  7. Deadline: submit by the 15th of the following month (e.g. October income → by November 15).

Clear all entries?

All income entries will be removed. This cannot be undone.

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Frequently Asked Questions

What is Georgia's 1% small business tax?

Georgia's small business tax status (მცირე ბიზნესი) allows eligible sole proprietors and companies with annual turnover under ₾500,000 to pay a flat 1% tax on gross revenue instead of the standard income tax.

This calculator helps you track all your income entries, converts foreign currency amounts to GEL using the NBG rate on the date of receipt, and computes your total tax liability.

How is the tax calculated?

For small business status entrepreneurs, the formula is simple:

Tax = 1% of turnover

For example:

  • Income: 5,000 GEL → Tax: 50 GEL
  • Income: 20,000 GEL → Tax: 200 GEL

The calculator performs this calculation automatically.

Who can use the 1% regime?

The small business regime is available to individual entrepreneurs in Georgia if:

  • annual turnover does not exceed 500,000 GEL
  • the activity is not on the list of prohibited activities for this regime
  • the entrepreneur is registered as an Individual Entrepreneur
What happens when annual turnover exceeds ₾500,000?
If annual turnover exceeds 500,000 GEL, the tax rate increases to 3% on the portion of income above the threshold.
When is VAT registration required?

If total turnover exceeds 100,000 GEL over any 12 consecutive months (a rolling window, not a calendar year), the entrepreneur becomes obligated to register as a VAT payer. This rule applies regardless of tax regime — it is equally in force for holders of small-business status.

Key points:

  • The threshold is calculated on a rolling 12-month basis, not per calendar year.
  • Registration is mandatory within 2 business days of exceeding the threshold. Otherwise the Revenue Service registers you automatically and retroactively, with penalties.
  • Once registered, you must charge VAT at 18% on all taxable transactions and file a VAT return monthly, by the 15th of the following month.
  • VAT-payer status is permanent — it is kept even if turnover later drops below the threshold. Deregistration requires a separate application and is only possible under specific conditions (typically at least 12 consecutive months with turnover below the threshold).
  • Certain transactions are zero-rated (e.g., export of goods, some services supplied to non-residents), but zero-rating does not exempt you from accounting and reporting obligations.

Important: VAT is a separate obligation from the 1% turnover tax. A small-business status entrepreneur can simultaneously be a VAT payer — VAT is paid in addition to the turnover tax.

Before crossing the threshold, consult an accountant: it may be worth restructuring client agreements (e.g., gross/net invoicing, zero-rated export structures) to prepare for the transition.

How are foreign-currency payments converted to GEL?
Exchange rates are fetched in real time from the official National Bank of Georgia API at nbg.gov.ge. This matches the methodology accepted by Georgian tax authorities for converting foreign income.
Is this official tax advice?
This tool is provided for informational purposes only and does not constitute tax advice. Tax laws can change — always verify your calculations with a qualified accountant or the Georgia Revenue Service (rs.ge).