TikTok and Individual Entrepreneurs in Georgia: How to Legally Earn Money on the Platform, Receive Payouts, and Save on 1 % Tax

In short — a 30‐second solution

TikTok offers several earning channels (Creator Fund/Creator Rewards, gifts in live broadcasts, subscriptions, bonus programs, TikTok Shop, and more). To receive payments officially and economically from Georgia, the typical approach is as follows: register as an Individual Entrepreneur → apply for small business status (1% of turnover with a limit of up to 500,000 GEL) → set up a TikTok payout account and choose the optimal withdrawal channel (PayPal/Payoneer/bank transfer) → make a test withdrawal and set up your account.

What monetization methods are available on TikTok?

• Creator Rewards / Creator Fund / Creativity Program — platform payments to creators for views/engagement through rewards programs. Requirements and conditions are subject to change.
• Gifts / Live Gifts — viewers purchase virtual gifts that can be converted into real money.
• Subscriptions / Paid Content — paid subscriptions to exclusive content (if available in your country).
• TikTok Shop / affiliate / e‐commerce — merchandise sales through platform integrations.
• Brand Deals and Creator Marketplace — direct advertising contracts through the platform or independently.

Important: the availability of specific tools and payment terms depends on your country, age, and account status. Please check the Monetize / Creator Tools section in your account.

How TikTok Pays (Payout Methods and Geographical Restrictions)

TikTok lists its payout programs on the central Monetize / Creator Rewards page, but withdrawal methods vary by program and country. For some programs, PayPal is often the primary payout method; in some countries, Payoneer or bank transfers are available; in others, only local providers are available. When setting up a payout account, TikTok requires KYC/tax information.

Practical advice: PayPal is usually the fastest method (transfers arrive within 24—72 hours after initiation), while bank transfers take longer (up to several business days). Plan for this when budgeting and testing.

Legal aspects: why register as a sole proprietor in Georgia and what does the “1 % regime” offer?

• Sole proprietorship (IP) is a simple and common form for freelancers/creatives: quick registration, minimal paperwork, and ease of opening an account or working with accountants.
• Small business regime (1 %): in 2025, a preferential 1 % rate applies to annual turnover of up to approximately GEL 500,000 (check the threshold when applying: there are specific exceptions and rules for specific types of activities). This makes income legalization very beneficial for many creatives.

Step‐by‐step instructions: from “I want to monetize” to “I received money on my card”

Step 1 — Check your eligibility on TikTok and enable monetization

Log in to Creator Tools → Monetization / Creator Rewards in the app or Creator Studio; ensure your account meets the requirements (age, followers, original content, compliance with the rules).

Step 2 — Register as an individual entrepreneur in Georgia

Register as an individual entrepreneur through the Public Service Hall or with an agent/notarized power of attorney (remote registration is also possible). This will give you the legal framework for your business.

Step 3 — Apply for small business status (1 %)

If your projected annual turnover falls within the limit (usually ≤500,000 GEL), apply for small business status with the Revenue Service. This will reduce your tax burden to 1 % of your turnover.

Step 4 — Set up a TikTok payout account and complete KYC

In TikTok’s payout settings, select your preferred method (PayPal / Payoneer / bank), upload the required documents (ID, tax information), and complete verification. Some methods may not be available depending on your country — choose based on availability.

Step 5 — Test the withdrawal (required!)

Make a test withdrawal of a small amount (for example, $20—$50) to the selected channel and record the receipt time, fees, conversion rate, and the total amount “on the card.” This is the only reliable way to determine your actual losses.

Step 6 — Keep records and pay taxes

Keep a simple table: payout date (USD), amount, fees withheld (TikTok / provider / bank), conversion rate to GEL, and the total. Based on your annual turnover, calculate 1 % tax (if you are on SBS) and file your return on time.

Which withdrawal method to choose — practical criteria

• PayPal is often the most convenient and fastest (in some countries, it’s the primary method for Creator Rewards). Cons: There can be a noticeable spread when converting to local currency.
• Payoneer / Wise / virtual USD accounts are good if you want to accept USD and convert/withdraw at a favorable rate; suitable for regular payouts. You should check whether the specific TikTok app in your country supports them.
• Direct bank transfer is convenient for bank accounts, but SWIFT correspondent fees and processing time can eat up a significant portion of small payouts. For larger payouts, it's a good option.

Rule: Test 2—3 options, record actual results, and use the one that yields the largest net amount in a reasonable timeframe.

Common mistakes creators make and how to avoid them

• Failure to complete KYC in advance means your payouts will be delayed or limited. Fill out your TikTok details immediately.
• Failure to make a test withdrawal means relying on reviews to determine your withdrawal amount — results vary across different banks and accounts. Testing is crucial.
• Failure to register for SBS before receiving income means you’ll have to pay according to the general rules, which can lead to additional expenses. Apply for 1 % in advance if you plan on regular income.
• Poor foreign exchange accounting means saving all statements, SWIFT notes, and screenshots of payments — this will be useful for accountants and the tax authorities.

A practical checklist (briefly — what to do right now)

• Check your eligibility on TikTok → Monetization / Creator Tools.
• Register as an Individual Entrepreneur in Georgia.
• Apply for Small Business Status (1 %) in the Revenue Service.
• Set up a payout account on TikTok → complete KYC (PayPal / Payoneer / bank).
• Make a test withdrawal of $20—50 and record the actual fees and exchange rate.
• Keep a spreadsheet of your payments and arrange with an accountant for filing your declarations.

Conclusion

TikTok offers many ways to monetize, but actual profits depend not only on views and donations but also on how you accept and withdraw funds. For a creator in Georgia, a reasonable approach is to register as a sole proprietor, apply for a SBS (1 %), set up a payout, and test several withdrawal channels. This will allow you to operate legally and minimize losses on commissions and exchange rates.