Don said:
Feel free to reach out if you want to get started in Georgia.
The country offers vast benefits and special tax zones/regimes:
STC (Special Trade Company)
STC regime is designed for Georgian companies dealing with international trade. The company is structured in the same way as the local LLC and the STC license issued by the Revenue Service.
The condition for obtaining the STC certificate is trading outside Georgia.
Example: a company established in Georgia buying goods from China and selling them to Poland. Taxation: exemption from corporate income tax in Georgia.
International Company (IC)
IC regime is designed for Georgian companies dealing with IT services and/or commercial and maintenance services by a shipowner and/or services related to ship ownership. The company is structured in the same way as the local LLC and the IC license issued by the Revenue Service.
The condition of obtaining the IC certificate is for the LLC which has at least two years of experience in carrying out the permitted activities or which is a representative of a non-resident enterprise in Georgia; if the non-resident enterprise has at least two years of experience or more than 50% of shares are owned by partner enterprises independently (each partner separately), and which has at least two years of experience.
Example: a company established in Georgia performing IT or vessel maintenance services
Taxation: exemption from Dividend tax, VAT and property tax; Reduced tax for CIT and PIT in Georgia.
IT VIRTUAL ZONE (VZ)
VZ regime is designed for Georgian companies dealing with IT (information technology) services exported outside Georgia. The company is structured in the same way as the local LLC and the VZ license issued by the Revenue Service.
The condition of obtaining the VZ certificate is performing IT services to entities located outside Georgia.
Example: Georgian company performing software development services to a Polish company. Taxation: exemption from corporate income tax in Georgia.
FREEZONES:
All Free Zones provide generous investment incentives such as the possibility of 100% foreign ownership, no corporate taxation, no restriction on repatriation of capital and profits, no exchange control, and no restrictions on investment in any industrial sectors.
Important considerations:
- Importing goods from Georgia to Free Zone is exempt from all taxes except 4% duty
- Importing goods from countries other than Georgia is exempt from all taxes
- Exporting goods abroad are exempt from all taxes
- Exported products to the territory of Georgia should include VAT and 4%
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