An opportune land for enterprising businesses, Georgia can be the ideal tax retreat. The country saw Foreign Direct Investments of around 322.6 million in the third quarter of 2018 (Source: Agenda.ge,) making it one of the most favoured business destinations in the world even for the Fortune 500 companies. The land and it’s business environment are conducive to set up various types of enterprises with Information technology being the preferred vertical.
Information Technology (IT) is arguably the engine of growth for the world economy. Every sinew of business, commerce, and industry is underpinned on IT, making it a much sought after service. The special virtual zones in Georgia make sure that entrepreneurs who want to set up an IT firm, do not face any hassle in doing so.
A note about the virtual zones in Georgia
The virtual zones in Georgia are meant specifically for the IT start-ups as well as the biggies. The companies officially registered in the virtual zones are also given the title of being a “Virtual Zone Person” or “Virtual Zone Entity.” The ready to use robust infrastructure, low tax rates, absence of red tape and the market friendly economy of Georgia add to the plethora of benefits offered by the zone. Virtual zones are all-inclusive and deal with activities such as production, support, design, software services, research, and development.
A list of pros provided by the virtual zones in Georgia
There is a slew of benefits that virtual zones in Georgia provide to the entrepreneurs. The biggest attraction is that if the income from a virtual zone person stays within the company, Georgia will charge no tax on it. The other additional benefits are:
- Exemption from all kinds of local licenses, permits, and regulations issued by the federal as well as local government.
- Tax exemption on export duties for products that are to be exported from the customs territory.
- If any dividend from an IT company is distributed to a resident shareholder, it shall be free of tax. On the other hand, when the same is distributed to a non-resident, the tax is imposed in accordance with the rules of the shareholder’s resident nation and the double taxation convention existing between Georgia and that nation.
- If the services of an IT company are extended to the customers based outside Georgia, then the mandate on income tax (15%) and VAT (18%) are spared. However, if the income of the company is distributed to a non-resident, then a 5% tax is levied.
- Georgia offers a skilled workforce at the lowest cost in the entire EU trade zone.
The best part of setting up an IT firm in the virtual zone in Georgia as an entrepreneur is that you do not have to stay in the country to manage it. In fact, as a foreigner, you can hire a local financial adviser to help you with everything related to the company.
Conclusion: As an entrepreneur looking at starting an IT venture, the virtual zones in Georgia can be a great option for you. To know more details of the place and its advantages, get in touch with the best business consultant in the country – Kaukapital at http://www.kaukapital.com/