---
title: "Small Business Tax Structuring"
url: "https://legal.ge/en/service/tax-law-en/small-business-tax-structuring-en"
field: "Tax Law"
description: "Small business 1%: ceiling to 500,000, 3% above, journal and payroll relief. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-11-07"
publisher: "legal.ge"
---

# Small Business Tax Structuring

> Source: legal.ge, https://legal.ge/en/service/tax-law-en/small-business-tax-structuring-en

## The Architecture of the One-Per-Cent Regime

The small-business status is the central element of the special-regime system of the Tax Code: an entrepreneur natural person, within a defined ceiling, receives the right to taxation at a one-per-cent rate. All five pillars of the regime — who is eligible, how the status is put at risk, how the rate works, what accounting is required and what payroll relief exists — must be read as a single structure. A boundary is noted too: the administrative procedure of granting the status is set by an act of the Minister of Finance, and the prohibited and excluded types by a government act — those acts must be analysed before planning a structure. A special regime means that, instead of the general rules, the special rules of the Code apply — and they follow the status: losing the status means leaving the special taxation regime.

## Eligibility, the Ceiling and the Risks

Small-business status may be granted to an entrepreneur natural person; the ceiling is aggregate income of five hundred thousand lari in a calendar year — seven hundred thousand for subjects of wine tourism and agrotourism. To obtain the status, the person applies to the tax organ, which issues a certificate. The status is voided in five cases: exceeding the ceiling in two calendar years; applying before the end of the calendar year; carrying on a prohibited activity; being fined not less than three times in a year for breaches of cash-register rules; and non-conformity with the conditions. The timing rules of voidance are also precise — upon exceeding, the status is void from the beginning of the following year; where the person applied before the end of the calendar year — from the first day of the month following the month of application; for a prohibited activity or cash-register fines — from the beginning of the current year; and for non-conformity with the conditions — from the date the respective ground arose. Upon cancellation of the status, the accounting of the existing goods balances is likewise determined by an order of the Minister of Finance.

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

### The ceiling?

500,000 lari; wine tourism and agrotourism — 700,000.

### When 3%?

From the month of exceeding until year end.

### Payroll relief?

Up to 6,000 lari per year — under conditions.