Georgia's 1% regime in 2026: same rate, stricter housekeeping

Small Business Status carries a 1% rate on turnover and that has not changed. What has changed is the start date. Previously the status took effect on the first day of the month after registration, which left a dead stretch where income was taxed under the general regime. Under the 2026 amendments the status is effective from the date the application is submitted to the Revenue Service. For anyone registering mid-month, that gap is now closed.

Monthly personal income tax declarations are now mandatory whether or not there is anything to declare. In the past, simply not filing was read as a nil return. That informal allowance is gone: a month with no invoices still requires a filed declaration. For a freelancer with seasonal or lumpy income, this is the change most likely to generate an avoidable penalty.

Micro Business Status is taxed at zero up to GEL 30,000 of annual turnover. Cross that line — or take on employees — and the clock starts: an application for Small Business Status has to follow within 15 calendar days. Meet the deadline and the earlier income keeps its micro-business treatment, with the new status treated as running from the moment the old one ended. Miss it and that income falls under the general 20% regime instead. Separately, the record-keeping obligation was shortened from six years to three.

Re-granting is no longer a same-year fix. If Small Business Status is revoked, a fresh application is only possible from the tax year following the revocation. Fixed Taxpayer Status, the third of these regimes, now requires an active Individual Entrepreneur registration and is revoked automatically if that registration is cancelled. None of this is dramatic on its own — but all of it rewards keeping the registration tidy rather than fixing it later.