Toptal and sole proprietors in Georgia: how to receive payments in USD, save 1 % tax, and minimize commissions

Toptal pays freelancers in USD and uses its own payment system (Toptal Pay / Hyperwallet) with the option of withdrawing funds to a bank account, Payoneer‐like e‐wallets, or third‐party accounts (in some cases via a USD receiving account that can be linked to providers such as Wise). This gives you flexibility in choosing your withdrawal channel, but the actual “net” amount on your card depends on Toptal’s commission, the provider’s commission, and the recipient bank’s commission/spread.

1) Why individual entrepreneur + “small business (1 %)” status is usually beneficial for freelancers on Toptal

• Low tax rate: if the conditions are met, Georgia has a simplified regime in place — 1 % of turnover for small businesses (turnover threshold — up to 500,000 GEL per year; details and exceptions should be checked before applying). This makes legalizing income economical for many freelancers.
• Simple administration: registering as an individual entrepreneur (IE) is a quick and relatively inexpensive way to legalize your income; many do this remotely through services/intermediaries.
• Compatible with Toptal: Toptal automatically bills the client and pays you in USD — the legal status of an IE does not interfere with receiving payments, but it does facilitate banking operations and reporting.

2) What payment methods does Toptal offer?

• Toptal Pay / Hyperwallet — Toptal uses its own pay portal, which allows you to set up automatic transfers and choose from available withdrawal methods.
• Bank transfers / USD receiving accounts — it is often more convenient to receive USD to an account (for example, in Wise) and then transfer it to GEL; many freelancers set up a USD balance in Wise/Payoneer and use it as an “intermediate” support.
• Payoneer / local providers / cards — Toptal supports withdrawals to third-party payment providers; their fees and exchange rates vary—test them with a small amount.

3) Practical strategy for choosing a withdrawal channel (algorithm)

1. Check which methods are available in your Pay Portal Toptal account. The set of methods depends on your country and verification status.
2. Open a test account with 2—3 providers (e.g., Wise USD balance, Payoneer receiving account, local bank) — this will allow you to compare actual receipts.
3. Make a test withdrawal of a small amount ($50—200) and record how much arrived on your card/account, what fees were deducted, and what exchange rate was applied. Real tests are more important than “general advice.”
4. Evaluate the result: the final amount on the card (GEL) = the amount on Toptal (USD) − Toptal fees (if any) − provider fees − conversion at the exchange rate (spread) − possible bank incoming/fixed fees. Choose the channel with the lowest losses and acceptable processing time.

4) Taxation and accounting in Georgia—what to do step by step

1. Register as an Individual Entrepreneur (IE). This can be done at the Public Service Hall or through intermediaries/lawyers (there are online guides and services available).
2. Apply for Small Business Status — this is a separate procedure/application to the Revenue Service, which allows you to pay 1 % of your turnover if you meet the criteria (threshold, type of activity, etc.). Check your eligibility before applying.
3. Keep track of payments: save Toptal statements, payment screenshots, transfer confirmations, and conversion rates — this is necessary for both your accountant and the tax authorities.
4. Determine when to recognize income: it is important for the tax authorities to correctly match the date of receipt in USD and the transfer to GEL (use the exchange rate recommended by your accountant/tax advisor).
5. Consult with a local accountant regarding social security contributions and other mandatory payments — rules may change, and accuracy is essential for the first declaration.

5) Common mistakes and how to avoid them

• Choose a channel based on general advice rather than testing it. Actual fees and exchange rates are personal.
• Not taking into account incoming bank fees (SWIFT). This is especially important for wire transfers.
• Ignoring the requirements for maintaining the 1 % regime. Exceeding the threshold or non‐compliance with activities may result in the loss of benefits.
• Poor accounting of currency transactions. Keep all receipts and record exchange rates.

6) Short checklist “from registration to first regular payment”

• Register as an Individual Entrepreneur (IE) at the Public Service Hall or through an intermediary.
• Apply for Small Business Status (1 %) at the Revenue Service.
• Set up the Toptal Pay Portal and view available withdrawal methods.
• Open a USD receiving account (Wise) and/or Payoneer account for testing.
• Make a test withdrawal and record the final figures (fees, exchange rate, time).
• Set up an accounting table: payment date (USD), Toptal fees, provider fees, exchange rate, total in GEL, arrival date.
• Agree with your accountant on the method of conversion to GEL and the timing of payment of the 1 % tax.

Conclusion

Toptal offers stable USD payments and flexible withdrawal options, which is convenient for Georgian sole proprietors. The optimal path is to register as a sole proprietor, obtain small business status (1 %), test real withdrawal options (USD balance → Wise/Payoneer/direct bank), and choose the one that leaves you with the maximum “net” amount after all fees.