Tax incentives in Georgia for international IT and maritime companies

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The Georgian Finance Minister, Vano Matchavariani, recently announced that companies offering IT and maritime services that apply for, and obtain, the status of an international company within the country, will be able to enjoy favourable terms of taxation in Georgia.

In order to be granted the status of an international company it is necessary for the company to be registered in Georgia and have at least two years of activity within the country. Once the company applies to the Revenue Service, its application will be examined by the government in order to assess whether the company can obtain the ‘international’ status. Once successful, the international company will be able to enjoy reduced taxes on property, profit and income taxes will be reduced to 5% while dividends will be tax exempt. It should be noted that the reduced property taxes do not refer to land.

The Prime Minister of Georgia Giorgi Gakharia said that in the conditions of post-pandemic economic recovery, the Georgian government also allows companies to obtain the status of an “international company” and creates an extremely convenient platform for working from Georgia.

In this regard, the Georgian government has developed a new program “Remotely from Georgia”, allowing foreigners to travel and work remotely from Georgia.

The Prime Minister also added: “First of all, these will be companies related to the maritime business, as well as IT companies. Both areas are important for the development of the world economy and for Georgia, since transport and logistics are key sectors of our economy. In the same spirit we have serious IT resources that have to be used “.

Georgian Economy Minister Natia Turnava noted, that there are two factors that coincide now: one is our unwavering strategy to attract more investors, and the other is the need for global businesses to find new, yet unused platforms where they can drive their businesses with less cost and more prospects. Therefore, we are confident that we will see new investors in these two sectors”.

Our office in Georgia will help all interested companies gain access to tax benefits, that Georgia offers to potential investors. We are pleased to offer you cooperation in the registration of Standard Georgian Company, Georgian Free Zone Company, providing your company with the status of Virtual Zone Entity, accounting, etc. All by Power of Attorney and on a turn-key basis.

For further information details please contact Irina Lopatina at irina.lopatina@eurofast.eu

Eurofast is a regional business advisory organisation employing local advisors in over 22 cities in South East Europe & Middle East . The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East.