Micro business status offers one of the most favorable tax positions available to small operators in Georgia: qualifying Individual Entrepreneurs are exempt from income tax entirely, provided their annual turnover stays below GEL 30,000 and they do not employ hired staff. It is designed for solo freelancers, consultants, and small-scale traders rather than growing operations.
Not every activity qualifies. Certain regulated or licensed professions, along with specific trade and manufacturing activities defined in the implementing regulation, are excluded from micro business status regardless of turnover. Applicants should confirm their specific activity code is eligible before applying, since an ineligible activity registered under micro status will typically be reclassified — with back tax owed — once identified during a review.
The application itself is filed electronically through RS.ge alongside standard IE registration, and approval is generally straightforward for eligible activities. The main ongoing obligation is monitoring the turnover threshold in real time: the moment cumulative annual turnover crosses GEL 30,000, the business automatically falls out of micro status and must switch to either small business or standard taxation for the remainder of the reporting period.