Individual Entrepreneur Tax Guide: A Comprehensive Overview

If you're a sole proprietor or planning to register as one, this blog is for you. Let's examine what taxes individual entrepreneurs pay and their obligations.

What Taxes Do Individual Entrepreneurs Pay?

1. Income Tax:

   • Rate: 1% (for annual turnover up to 500,000 GEL) or 3% (if turnover exceeds 500,000 GEL)

   • Payment deadline: Monthly, by the 15th of the following month

2. Value Added Tax (VAT):

   • Obligation arises when annual turnover exceeds 100,000 GEL

   • Rate: 18%

   • Payment deadline: Monthly, by the 15th of the following month

3. Property Tax: If using property for business activities

   • Rate: Maximum 1% of property value

   • Payment deadline: Once annually, by November 15th

What Are the Obligations of an Individual Entrepreneur?

1. Registration: Must register with the Public Registry

2. Tax Accounting: Must maintain income and expense records

3. Tax Filing:

   • Income tax declaration: Monthly

   • Annual declaration: By April 1st of each year

4. Receipt Issuance: Required to issue receipts for all sales

5. Bank Account: Must maintain a separate business bank account

Essential Information to Know:

1. Small Business Benefits:

   • If annual turnover is below 500,000 GEL, you're eligible for small business status with only 1% tax rate

2. Expense Documentation:

   • Keep all receipts and documents. This helps in tax optimization

3. Professional Consultation:

   • Regular consultation with an accountant or tax advisor is recommended

4. Late Payment Penalties:

   • Late tax payments result in penalties. Always pay on time

5. Legislative Changes:

   • Stay informed about changes in tax legislation

Why Is Professional Accounting Help Important? While individual entrepreneurship offers freedom, it also requires significant responsibility.

Benefits of Professional Tax and Accounting Services:

• Time Savings - Focus on your business while we handle the numbers

• Financial Optimization - We find legal ways to minimize your taxes

• Peace of Mind - Know that your finances are properly managed and all deadlines are met

• Growth Potential - Our advice helps you make financially sound decisions

Ready to Take Control of Your Finances?

If you're an individual entrepreneur needing assistance with tax management, don't delay! Contact us today for a free consultation. Our experienced team is ready to help you with all tax-related matters.

Don't let taxes hinder your business success. Contact us today and take a step toward financial peace of mind!