---
title: "Self-Employment Tax"
url: "https://legal.ge/en/service/tax-law-en/self-employment-tax-en"
field: "Tax Law"
description: "Small business: 1% rate, 500 000 lari threshold, certificate and declaration by the 15th. Legal.ge."
reviewed: "2026-06-27"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Self-Employment Tax

> Source: legal.ge, https://legal.ge/en/service/tax-law-en/self-employment-tax-en

## The Small Business Regime in the System of Special Taxation

The Tax Code of Georgia builds a system of special taxation regimes that extends to physical persons holding micro business status, entrepreneur physical persons holding small business status, and persons holding the status of a fixed taxpayer. For an individual entrepreneur the central link of this system is precisely the small business status — with simplified rates and simplified accounting.

Small business status may be granted to an entrepreneur physical person. At the same time, with the consent of the Financial-Budget Committee of the Parliament of Georgia, the Government may prohibit the pursuit of particular activities within which this status cannot be granted to an entrepreneur, and may also define types of income that are not taxed under the special regime and are not counted in total income.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/tax-law-en/self-employment-tax-en

### What is the small business rate?

Taxable income is taxed at 1 percent; upon exceeding 500 000 lari (wine tourism/agrotourism — 700 000 lari), 3 percent applies until the end of the year.

### Who is granted the status?

An entrepreneur physical person who satisfies the conditions and applies to the tax organ, which issues a small business certificate.

### When is the status cancelled?

On exceeding the threshold (from the following year), on pursuing a prohibited activity, on failing to meet the requirement, and on being fined at least 3 times in a year for cash register violations.

### When does small business file a declaration?

No later than the 15th day of the month following the reporting month, with tax paid on the same schedule.