Small business status gives eligible Individual Entrepreneurs a flat 1% tax on gross turnover, rising to 3% only on the portion of annual turnover that exceeds GEL 500,000, up to the overall GEL 500,000 threshold that caps eligibility for the status. Below that ceiling, it is typically the most favorable regime available for growing service and trading businesses that have outgrown micro business status.
Eligibility follows the same activity-based exclusions as micro business status — certain licensed, regulated, or specifically excluded activities cannot register under the small business regime regardless of turnover — so confirming activity-code eligibility before applying is just as important here as it is for micro status.
The tradeoff for the favorable rate is stricter record-keeping: small business status requires maintaining a proper income ledger and retaining supporting documentation for all revenue, since the tax is calculated on gross turnover rather than net profit and RS.ge can request that documentation during a review. Businesses that keep clean, contemporaneous records from day one rarely have issues; those that reconstruct records after the fact during an audit are where most small business status disputes originate.