Virtual Zone in Georgia
Georgia has a business climate that attracts foreign investors from all over the globe. It has an edge over its competitors in terms of global access, logistics, tax benefits, talented professionals and standards of living. No wonder the Fortune 500 companies call Georgia their “home”! It has also acquired the first position in the Site Selection magazine in 2013 and 2014 successively. The nation has gathered a lot of appreciation in the past few years in the fields of entrepreneurship and technology. The Parliament of Georgia has created laws that offer several benefits including tax exemptions to the foreign investors planning to set up businesses in Georgia.
IT Companies In Georgia
IT or Information Technology involves the study, support, research and development, design, and deployment of computers and related technologies to produce software products. Georgia offers a favourable climate for IT companies to develop and expand their businesses. If you are planning to set up an IT company in Georgia, you should apply for a “Virtual Zone” status to get tax benefits from the Georgian Government. Georgia has a lower corporate tax rate with respect to other economically developed countries and, setting up a company at the Virtual Zone in Georgia will help you make the most of it.
What Is a Virtual Zone Entity in Georgia?
A Virtual Zone Entity/Person status is granted to a professional or a group of professionals that has the legal rights and is subjected to obligations for carrying out IT business activities on the Georgian soil. Virtual Zones in Georgia for IT companies are also known as Information Technology Zones.
Tax Benefits With The Status Of The Virtual Zone
Taxation of virtual zone persons complies with the rules and standards meted out by the Tax Code of Georgia. Any company or individual with this status are exempted from:
- Taxes on the revenue earned by supplying their products beyond Georgian borders.
- VAT or Value-Added Tax on the products delivered outside the borders of Georgia.
- Export duties or taxes on products exported from the customs territory of Georgia.
All the expenses with respect to the income earned by supplying information technology products outside or within the borders of the Georgian territory shall be deducted from the gross income according to the share of the earnings by supplying within its territory.
Furthermore, the Virtual Zone persons will also be exempted from any special regulation and they will not require licenses, permits or any other regulatory document to carry out business activities on the Georgian soil.
How To Apply For The Status Of The Virtual Zone in Georgia?
If you are interested in setting up an IT company in a virtual zone in Georgia, you can apply for the status of a Virtual Zone Entity/Person to avail the aforementioned benefits.
Kaukapital has over a decade of experience in the field of business consultation. You can get in touch with our professional consultants in Georgia to apply for a Virtual Zone Status. We will make the process relatively easier for you by offering you maximum assistance, support and advice during the application process. Your application will be granted within 10 working days after submission and you will be able to carry out your IT business activities seamlessly. Talk to our company representatives if you wish to know more about Virtual Zone in Georgia and the process of setting up an IT company in Georgia.