Tax residency & residence
Small Business status 2026: application and new rules
The Small Business status with 1% of turnover remains – but new procedural rules apply since March 2026. Here is what changes for the application and ongoing duties.
What it is about
The basis is the Tax Code (Art. 88–91) and Ministry of Finance Instruction No. 999 on special tax regimes, amended by Order No. 38 (published 6 February 2026, in force since March 2026).
New: the status applies from the day of the application. If it is revoked, you can reapply only from the next tax year. A missing monthly return no longer counts as a zero return and may be fined. Unchanged: 1% up to GEL 500,000 turnover, 3% above that until year end.
Requirements
- Registration as an individual entrepreneur
- Eligible activity (certain activities are excluded)
- Turnover up to GEL 500,000 a year
- Monthly return – even without turnover
How it works
- Check the activity
- Register as an individual entrepreneur
- Apply for the status – it applies from the application date
- File monthly, keep an eye on the threshold
How StartKap helps
We register you as an individual entrepreneur, apply for the status and, if you wish, file the monthly returns.
Whether, as a foreigner, you need a work permit in addition to the status, we clarify with you in a consultation.
Legal status checked on 9 Nov 2026. General information, not legal or tax advice for your individual case.
Questions about this service
Does the status apply retroactively from the start of the month?
No. Since 2026 it applies from the day you apply.
What if I forget a return?
It no longer counts automatically as a zero return; fines may apply. File every month, even without turnover.