How does a freelancer pay taxes in Georgia?
How to register, how much to pay and when to report.
Short answer
A freelancer in Georgia usually pays tax as an individual entrepreneur, and with small business status the rate is 1% of turnover while calendar-year income stays under GEL 500,000. The tax authority grants the status on application. The return is filed and the tax paid no later than the 15th day of the month following the reporting month.
Why
- Tax Code of Georgia, Article 88: small business status may be granted to an individual entrepreneur (natural person), and the Government may exclude certain activities.
- Article 90: taxable income is taxed at 1%, and income above GEL 500,000 a year is taxed at 3% from the start of the month the limit is exceeded until year-end.
- Article 93: the return is filed and the tax paid no later than the 15th day of the month following the reporting month.
Details
The status is issued as a small business certificate after applying to the tax authority (Article 89(1)). A small business keeps a special book of records (Article 91(1)). The status is revoked if the limit is exceeded in two consecutive calendar years, if an activity excluded by the Government is carried out, and on other grounds (Article 89). Registration and reporting are online through the Revenue Service portal rs.ge. For opening an individual entrepreneur see the question on individual entrepreneurs in Georgia, for general tax rates see taxes and VAT, and for whether a foreigner needs a permit see work permits.
Tip
Keep the income record book from day one and set a reminder for the 15th: late returns lead to penalties, and Article 91 requires keeping records.
What may differ
Small business status is not available for all activities, and the Government defines the list of exclusions. The limit, rates and deadlines change by amendment, and foreigners usually need a work permit. Check your own situation on rs.ge or with an accountant.
Common misconception
Every freelancer in Georgia automatically pays only 1%.
What actually happens
The 1% rate applies to an individual entrepreneur with small business status granted by the tax authority, and above GEL 500,000 a year 3% applies (Articles 88–90 of the Tax Code).
People also ask
- How to pay taxes in Georgia?
- What taxes do you have to pay in Georgia?
Sources
- Tax Code of Georgia (matsne.gov.ge)Checked at:
- Revenue Service of Georgia (rs.ge)Checked at:
This answer is for reference only and is not legal advice. Rules change, so check official websites.
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