Tax Reporting Requirements for Georgian IEs and LLCs Receiving Crypto Payments (Declaration Guide)
- Tinatin Tolordava
- 2 days ago
- 6 min read
Table of contents
Why Crypto Reporting Matters for Georgian Businesses
How Georgia Classifies Crypto Income for IEs and LLCs
How IEs Must Report Crypto Payments
How LLCs Must Report Crypto Payments
How to Submit Declarations in the Revenue Service System
SOCF Requirements When Cashing Out Crypto to Georgian Banks
Common Mistakes IEs and LLCs Make With Crypto Reporting
How Gegidze Helps You Report Crypto Income Correctly
Frequently Asked Questions (FAQs)
Why Crypto Reporting Matters for Georgian Businesses
Georgia is one of the most crypto friendly countries in the region. Freelancers, Web3 developers, blockchain consultants, iGaming specialists, and international startups choose Georgia because the rules are predictable, the taxes are low, and the banking system is more flexible than most European countries.
However, every Individual Entrepreneur (IE) and LLC that receives crypto payments must follow strict reporting rules. Crypto is not invisible income. It is not automatically treated as tax free just because payments happen on the blockchain. As soon as crypto is earned from providing a service or running a business, it becomes taxable turnover for IEs or taxable corporate income for LLCs.
This guide explains everything you need to know about declaring crypto payments correctly, how the Revenue Service Georgia treats crypto, how to calculate turnover in GEL, and how to stay compliant for bank withdrawals under Bank of Georgia KYC and Georgian banks AML rules.
How Georgia Classifies Crypto Income for IEs and LLCs
Before talking about declarations, you need to understand how Georgia legally views crypto.
Crypto is a digital asset
It is not legal tender
Crypto investments for individuals are tax free
Crypto received for business activity is always taxable
This creates a simple rule.If crypto is earned from work, service, or business activity, it must be declared exactly like fiat income.
For Individual Entrepreneurs
Crypto income is treated as turnover.If the client is foreign and you have Small Business Status, you pay 1 percent tax under the Georgia small business status 1 percent tax turnover 500,000 gel 2025 rule.
For LLCs
Crypto income is corporate income.LLCs in Georgia only pay 15 percent tax when profits are distributed.This means crypto that stays inside the company or is reinvested is taxed at 0 until distributed.
Understanding this difference is essential for correct reporting.
How IEs Must Report Crypto Payments
Step 1. Record the crypto payment on the day it arrives
The Revenue Service Georgia requires that all IE turnover is calculated in GEL. The GEL amount must be based on the day the crypto reaches your wallet.
It does not matter that crypto values fluctuate during the day.You must always use the official daily exchange rate published by the Revenue Service.Not Binance.Not Coinbase.Not your bank's rate.
Step 2. Convert crypto to GEL using the official exchange rate
When crypto enters your wallet, open the Revenue Service page for that day and check the GEL rate for the currency equivalent. Record:
Date of receipt
Crypto amount
Equivalent USD or EUR
GEL exchange rate
Total GEL turnover amount
This becomes the number you must declare.
Step 3. Submit your monthly turnover declaration
Every IE must file a declaration monthly. Even if they receive only one crypto payment. Even if the crypto is not converted to fiat yet. The GEL turnover amount must be declared on the Individual Entrepreneur official websitethrough the Revenue Service portal.
Missing declarations creates penalties.Incorrect declarations may trigger reviews from Georgian banks during SOCF checks.
Step 4. Pay your 1 percent tax
If you have Small Business Status and the client is foreign, you pay 1 percent of the declared GEL turnover.
If your client is Georgian, the turnover may not qualify for 1 percent status and could be taxed at the standard 20 percent.
VAT also applies only for domestic revenue and for businesses that cross the georgia vat registration threshold 100,000 gel revenue service.
How LLCs Must Report Crypto Payments
LLCs have different reporting rules and must maintain proper accounting.
Step 1. Record crypto income as company revenue
When the company wallet receives crypto, this is business income. The crypto must be recorded using the GEL value based on the Revenue Service exchange rate on the date of receipt.
This applies even if the crypto is held on chain and not immediately sold.
Step 2. Maintain accounting records
LLCs must prepare:
Invoices
Wallet statements
SOCF documentation
Crypto acquisition logs
Exchange conversion documents
Balance sheet entries
Profit and loss reports
Accounting is mandatory.Crypto complicates bookkeeping because values change, but the declaration must still follow Georgian standards.
Step 3. Corporate tax only applies when distributing profit
Georgia’s corporate tax is based on the Estonian model.The business pays 15 percent tax only when profits are distributed as dividends.
So if a company receives 100,000 GEL of crypto in revenue but reinvests all of it into:
New mining equipment
Salaries
Contract developers
Hosting services
Software
Marketing
Then no tax is due.Tax is only applied when the company pays out profits to owners.
Step 4. You may need a VASP license depending on activity
LLCs handling crypto for clients, running platforms, managing wallets, or offering exchange services may need:
VASP license Georgia
Crypto license Georgia
VAT exemptions do not remove licensing obligations.
How to Submit Declarations in the Revenue Service System
Both IEs and LLCs must use the Revenue Service portal.
IE declaration steps:
Login using Georgian phone number or ID
Go to "Turnover Declaration"
Enter GEL amount
Submit
Pay the tax
LLC declaration steps:
Accountant prepares ledger and crypto records
Declare corporate income
File monthly VAT declarations if applicable
Submit annual financial statements
Declare distributed dividends
LLC reporting is more formal and requires consistent documentation.
SOCF Requirements When Cashing Out Crypto to Georgian Banks
All crypto income eventually touches the banking system.This triggers Bank of Georgia KYC, AML checks, and SOCF verification.
Banks may ask for:
Crypto wallet transaction history
Exchange withdrawal history
Contracts for services
Invoices matching crypto amounts
IE turnover declarations
LLC accounting entries
Screenshots proving payment origin
Client information
Email correspondence
GEL conversion records
You must present your SOCF documents clearly.Without SOCF, banks may freeze or reject your transfer.
Common Mistakes IEs and LLCs Make With Crypto Reporting
Crypto is easy to receive but easy to mishandle. The most common mistakes include:
Using market exchange rates instead of Revenue Service rates
Forgetting to declare income because crypto was not cashed out
Mixing personal and business wallets
Not keeping invoices
Not recording dates of receipt
Assuming crypto investments and crypto business income are the same
No SOCF documentation during withdrawals
Not knowing whether the activity requires a VASP license
These errors can cause tax penalties, banking delays, and compliance reviews.
How Gegidze Helps You Report Crypto Income Correctly
Gegidze assists crypto earning IEs and LLCs with:
Monthly turnover declarations
GEL conversion calculations
Accounting for crypto businesses
VAT classification
IE registration and Small Business Status
LLC registration in Georgia
SOCF documentation for banks
Crypto licensing guidance
English to Georgian translations for filings
Employer of Record Georgia for hiring staff
We make the reporting process simple, clean, and fully compliant.
If you receive crypto payments in Georgia as an IE or an LLC, correct tax reporting is essential. To avoid penalties, protect your bank accounts, and keep your business compliant, book a free consultation with Gegidze.
We will build your reporting system, organize your crypto documentation, and prepare everything needed for clean, audit proof declarations.
Frequently Asked Questions (FAQs)
Do I have to declare crypto income in Georgia if I never convert it to fiat?Yes. If you receive crypto in exchange for services, it becomes taxable income on the day it arrives in your wallet, even if you do not sell it. Georgian tax law requires both Individual Entrepreneurs (IEs) and LLCs to report the GEL value based on the official Revenue Service exchange rate. Keeping it in crypto does not exempt you from Georgia country taxes.
How do I declare crypto income as an Individual Entrepreneur with 1 percent Small Business Status?
You must convert the value of the crypto payment into GEL using the Revenue Service daily rate on the date of receipt. That GEL amount is declared as turnover in your monthly filing. If your client is foreign and you have georgia small business status 1 percent tax turnover 500,000 gel 2025, you pay only 1 percent tax. You must still keep SOCF documents for Georgian banks.
Do LLCs receiving crypto need a VASP license in Georgia?
Only if the LLC provides regulated crypto services. If your business operates an exchange, holds client funds, manages wallets, facilitates conversions, or provides crypto platform services, you may need a VASP license Georgia. Receiving crypto as payment for your own services does not automatically require licensing.
