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Order N38: skipping a monthly declaration is no longer 'zero'

March 12, 2026 · 3 min read

Monthly SBS returns must be filed even for quiet months. Corrected guidance on Order N38, zero-tax penalties, status timing and reapplication.

Updated 10 October 2026: clarified the commencement clause, the zero-tax late-filing fine exception, and the separate reapplication provisions. The original publication date is retained.

Short version

For a long time, many Small Business Status (SBS) holders treated a quiet month the same way: just skip the monthly declaration. The Revenue Service used to treat that as a zero return.

That changed in March 2026. Order N38 was adopted on 5 February 2026 and published on 6 February; its commencement clause says the 30th day after publication. A missing monthly declaration is not treated as a submitted zero return.

The filing obligation and the monetary penalty are separate: Tax Code Article 274(3) says the late-filing fine under that article does not apply when the tax payable on the return is zero. This does not remove the duty to file.

This is a practical change to the monthly routine for SBS holders.

This is a practical summary, not legal advice. Always confirm details with your accountant or an official source.

What exactly changed

Order N38 amended the Instruction on Special Tax Regimes for Small Business, Micro Business and Fixed Taxpayer status. Three changes matter most:

1) “No filing” is no longer “zero filing”

Before: if your turnover was zero, many SBS holders simply didn’t file — the system absorbed it as a zero declaration.

After: you must affirmatively file a declaration every month, even with no income. Check the month’s records before confirming a zero return.

2) SBS now activates on the date you apply

Before: SBS became effective from the first day of the next month after your application.

After: SBS is generally effective from the application date, subject to the specific microbusiness transition exception in Instruction 8(2)(a). Confirm your actual status and effective date with RS before applying the SBS rate.

3) Check both reapplication provisions

Order N38 replaces Instruction 12(6) with a rule permitting a renewed application from the tax year following cancellation. Separately, Instruction 18(1)(b) expressly bars re-grant in the cancellation year for the specified two-calendar-year turnover-based cancellation.

A single high-income month is not that cancellation test. Check the cancellation ground and effective date with RS; neither provision promises automatic re-grant or says the loss is permanent. Order N38, amendments to Articles 12 and 18.

For microbusiness transitions, the amendment distinguishes an application within 15 days of the relevant event from a late application. The timing affects the status start date and treatment of income earned before it; check the applicable threshold and exceptions rather than assuming the whole year is taxed at one rate.

What this means in practice

If you have an SBS PE in Georgia, this is the new reality:

  • Every month, you file. While the SBS filing obligation applies, the return and any tax due are due by the 15th of the next month; a non-working-day deadline moves to the next working day.
  • A clean monthly routine matters more than ever. A missed month is no longer invisible.
  • Plan trips, breaks, and dry periods around the 15th. If you travel or take a long break, schedule your filings or use a tool that does it for you.

How Taxocat fits in

This change is exactly the kind of thing Taxocat is built around:

  • We keep a monthly view that includes empty months, so a zero month is obvious instead of forgotten.
  • Auto submission can file your monthly return even on a zero-income month, on the same schedule.
  • If you prefer to stay in control, Manual mode prepares everything for you to review before filing.

If you’re currently relying on “I’ll just skip when there’s nothing”, now is a good time to switch your habit. Confirm the month’s figures and retain the accepted return.

See also:

For several quiet months, compare zero returns, status cancellation and deregistration in Inactive months: what to file.

Official sources