Types of activities that do not qualify as small business are defined by Resolution No. 415 of the Government of Georgia dated December 29, 2010.

On determining prohibited types of activities and types of activities and income that will not be taxed and (or) will not be subject to special taxation regimes for income tax for persons with the status of micro and small businesses

Article 1. Based on parts 2, 3 and 4 of Article 84 and parts 2 and 3 of Article 88 of the Tax Code of Georgia, approve:

1. The list of activities that are not subject to restrictions during the calendar year in in the amount of 30,000 GEL of the total aggregate income of individuals with the status of a micro-business (Appendix No. 1).
2. The list of prohibited types of activities, for which an individual cannot be granted the status of a micro-entrepreneur (Appendix No. 2).
3. Types of income that will not be taxed in a special tax regime and will not be taken into account in the total income when calculating the limit of 30,000 GEL of the total aggregate income acceptable to individuals with the status of a micro-enterprise during a calendar year (Appendix No. 3).
4. The list of prohibited types of activities, for which an individual entrepreneur cannot be granted the status of a small business (Appendix No. 4).
5. Types of income that will not be taxed in a special tax regime and will not be taken into account in the total income when calculating the limit of 100 000 GEL of total income received during the established calendar year for individual entrepreneurs with small business status. (Appendix No. 5).

Article 2. The resolution shall enter into force on January 1, 2011.

Prime Minister N. Gilauri

Appendix No. 1​

List of activities that are not subject to the 30,000 GEL aggregate income limit for individuals with microbusiness status during a calendar year.

1. Growing agricultural products using tractors or combines.
2. Production of carpets and bakery products.
3. Production of pullovers and similar products.
4. Production of outerwear, except for demonstration and fashion shows.
5. Production of underwear.
6. Production of headwear.
7. Production of other clothing and accessories.
8. Production of various wooden products.
9. Production of wooden clothes hangers and hats.
10. Production of wooden household items and kitchen utensils.
11. Production of porcelain and earthenware household items.
12. Production of household utensils and inventory.
13. Production of musical instruments.
14. Production of accordions and similar instruments, including harmonicas.
15. Production of wind musical instruments.
16. Production of brooms and brushes.
17. Repair of household goods and personal items.
18. Repair of household goods and personal items, if it is carried out independently of the production, wholesale and retail trade of these items, if the repair is carried out jointly with other types of activities, then it belongs to the corresponding groups retail and wholesale trade or production of these goods.
19. Shoe and leather goods repair.
20. Household electronics repair.
21. Watch and jewelry repair.
22. Alteration and repair of clothing.
23. Repair of household goods and personal items.
24. Washing and processing of linen and other textiles.
25. Services related to driving a car at home.

Note: the limit on total aggregate income of 30,000 GEL, established for individuals with microbusiness status during a calendar year, does not apply to the list of specified types of activities if the individual carries out economic activity independently and does not use the labor of hired persons. , and carries out the production and retail delivery of the listed goods and/or services to the end consumer.

Appendix No. 2​

List of prohibited activities, for which an individual cannot be granted the status of a microbusiness

1. Activities requiring licensing or permission.
2. Activities from which the income may exceed 30,000 lari during a calendar year.
3. Implementation of foreign exchange transactions.
4. Medical, architectural, legal or notarial, auditing, consulting (including tax) activities.
5. Gaming business.

Appendix No. 3

Types of income that will not be taxed under the special tax regime and will not be taken into account in the total income when calculating the limit of 30,000 GEL of total joint income allowed during the established calendar year for individuals with microbusiness status

1. Income from renting out real estate.
2. Income from lending.
3. Profit from the gaming business.
4. Income from gifts.
5. Additional income received from the sale of the following property:
   1. a) real estate;
   2. b) vehicle;
   3. c) securities.
6. Income received in the form of inheritance property.
7. Income received in the form of dividends.
8. Income received in the form of interest.
9. Income received in the form of royalties.
10. Income from debt forgiveness.

Appendix No. 4

List of prohibited activities, for which an individual entrepreneur cannot be granted small business status

1. Activities requiring licensing or permission.
2. Activities, the implementation of which requires significant investments (production of excisable goods).
3. Implementation of foreign exchange transactions.
4. Medical, architectural, legal or notarial, auditing, consulting (including tax) activities.
5. Gaming business.
6. Personnel provision.
7. Production of excisable goods.

Appendix No. 5​

Types of income not subject to a special tax regime and not included in the collective income received as part of the implementation of small businesses

1. Rental of property.
2. Income from lending.
3. Profit from the gaming business.
4. Donation.
5. Additional income received from the sale of the following property:
   1. a) real estate;
   2. b) vehicle;
   3. c) securities.
6. Income received in the form of inherited property.
7. Income received in the form of dividends.
8. Income received as interest.
9. Income received as royalties.
10. Income from debt forgiveness.
11. Surplus received from sale of partner's share.