AdSense and sole proprietorships in Georgia: how to receive payments from Google, save 1 % tax, and minimize commissions

If you receive income from Google AdSense (websites, YouTube, etc.), the optimal workflow is usually as follows: register as an Individual Entrepreneur (IE) in Georgia → apply for Small Business (1 % of turnover, subject to limits) → set up a payment method in AdSense (usually wire/bank transfer or a supported provider) → make a test withdrawal → choose a permanent channel based on actual figures. Key risks — withdrawal fees, conversion spreads, and possible bank fixed fees — all need to be measured through testing.

Key information about the tax: 1% regime (Small Business) — what you need to know

• Georgia has a simplified “small business” regime with a low rate of 1 % of turnover, subject to certain conditions. For 2024—2025, the annual turnover threshold for 1 % is approximately GEL 500,000 (details and exact current limits and exceptions should be checked before filing). If the limit is exceeded, it is possible to switch to a higher percentage or lose status.
• The status registration and rules for completing declarations are subject to change — it is useful to check the conditions on the Revenue Service website and with your local accountant.

How to register as an individual entrepreneur (IE) — key steps

• Registering as an IE in Georgia is quick: you usually submit an application to the Public Service Hall (in person or through a representative/intermediary), and the procedure can take from a few hours to one day. You will need your passport/ID, registration address, and selected activity codes.
• After registration, you can apply for small business status (SBS) if your type of activity and projected turnover meet the requirements.

How Google AdSense pays — what methods are available

• AdSense supports several payment methods: wire transfer, EFT (where available), check, etc. — a list of methods for each country is available in the AdSense help center; to add a method, use the Payments → Manage payment methods section.
• Practically the most accessible and reliable for Georgia is wire/bank transfer (SWIFT), as Google sends funds in currency (USD/EUR) to a bank account. Some publishers use intermediaries (Payoneer, Wise) to obtain a USD receiving account and then convert it profitably to GEL.

What are the actual monetary losses (where income is “eaten up”)?

1. Platform/intermediary — Google does not usually charge an additional “payment fee” on top of what is already deducted as advertising expenses, but the payment gateway/correspondent may deduct a commission.
2. SWIFT correspondent fees — wire transfers often incur fixed fees from correspondent banks (e.g., $15—30), which reduces the total amount.
3. Conversion rate and spread — the bank or Payoneer/Wise converts USD→GEL with a certain spread (margin from the interbank market). Wise is usually closer to the interbank rate, Payoneer is sometimes more expensive; local banks may have a fixed margin and incoming fees.
4. Fixed fees of the recipient bank — some Georgian banks charge a fixed fee for incoming international transfers.

Bottom line: between the “amount in AdSense” and “what ended up on the card in GEL” there are often fixed fees + conversion percentage; therefore, it is useful to keep a reserve of 2—5 % before testing.

Practical strategy: choose the best channel — algorithm

1. Check which methods are available in your AdSense account. (Payments → Manage payment methods).
2. Open 2—3 receiving channels: personal bank account (with SWIFT support), Payoneer multicurrency (receiving account), and/or Wise multi‐currency. This will give you a real option for testing.
3. Make a test withdrawal of a small amount ($50—200) to each channel and record how much arrived in GEL, what fees were charged, and how many days the transfer took.
4. Choose the channel with the best amount “on the card” and acceptable time; document this logic in your records.

Only real tests give an accurate answer — reviews on the internet often contradict each other due to different banks/account statuses.

Taxes and accounting: how to calculate correctly for your tax return

• In your accounting, record the following: payment date (AdSense finalization date), amount in USD, conversion rate (bank/provider), and the total in GEL. The tax office expects you to declare your turnover in GEL according to applicable rules (and pay 1% if you qualify as a small business).
• Keep all evidence: AdSense statements, SWIFT notifications, transaction screenshots, and the exchange rate on the date—this will facilitate reporting and justify the chosen rate in case of questions.
• Social contributions and other mandatory payments: check with your accountant, especially if you are a resident/non-resident or have additional sources of income.

A short checklist: "from registration to first payment"

• Register as an Individual Entrepreneur (IE) in the Public Service Hall.
• Apply for Small Business Status (1 %) if your planned turnover and type of activity qualify.
• In AdSense → Payments → Manage payment methods, add a bank account (wire) or link Payoneer/Wise, if available.
• Make a test withdrawal ($50—200) and record the time, fees, and rate.
• Maintain a spreadsheet: date, USD amount, provider fees, rate, GEL total, and credit date.
• Agree with your accountant on the tax return format and the frequency of 1 % tax payments.

Common mistakes and how to avoid them

• Believing the "official" online rate without making a test transaction. Real banks and providers apply their own rates and fees.
• Don’t register for SBS in advance. If you plan to earn a regular income, register as a small business before starting regular payments.
• Don’t keep payment confirmations. This complicates income declarations and verification.
• Ignoring the recipient’s name. AdSense sometimes requires the recipient’s name and bank account (personal vs. business) to match — check your AdSense settings and account details.

Example of a "quick check"

Let’s say Google wired $1,000. Expected deductions/transfers:

• The correspondent removed the $25 hold. The recipient bank converted the remaining $975 at a rate of 2.70 × (1—1.5 % spread) ≈ 2.66 GEL → 975 × 2.66 ≈ 2,593.5 GEL.
• 1% tax (if SBS): ≈ 25.94 GEL.
• Net total: ≈ 2,567.6 GEL.

This is an example; actual figures depend on your bank/provider and the exchange rate on the date of deposit. Always test.

Is it worth registering as a sole proprietor and working officially through AdSense?

Yes — if you're consistently making money from advertising/content, registering as a sole proprietor and obtaining small business status (1 %) usually pays off: the tax burden becomes predictable and low, and the official form simplifies interactions with banks and contractors. The main thing is to set up your payout channel correctly and measure real losses on test transfers.