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The concept of micro business in Georgia

By Messenger Staff
Monday, June 7
The new taxation code which has recently been widely promoted by the Government introduces many novelties. For instance, the term 'micro business' will now refer to those companies whose annual turnover does not exceed 30,000 GEL. They will be exempt from profit tax.

The Government says that this will be a serious advantage for these businesses, but many analysts challenge this, saying that if annual turnover is 30,000 that means GEL 2,500 monthly and GEL 83 daily. If a person sells and buys items for GEL 83 a day he will possibly have no more profit than GEL 5 a day and this is just a ridiculous figure.

Furthermore the micro businesses must register and are obliged to have official cash registration machines, because if they do not have one they will be accused of hiding their income. However some businessmen could register several such entities and keep each one under 30,000 turnover but in fact have a much bigger total income.