Georgia IT Zone

Bank Accounts, Company Formations, Tax Planning, Residency Solutions, and more
CALL US ON +971 50 4467827 - TO SETUP YOUR NON-CRS COMPANY STRUCTURE IN DUBAI.

D0naldDuck

New member
Hi guys, does anyone has knowledge regarding the Georgian tax laws? The IT zone benefits sound quite good but I wonder how long they will grant them and whether its a good idea to build a 5+ year setup on that IT zone. Do they have any legal regulations that grant the IT zone benefits? If so, how easy can they be changed/removed?

Best regards
 

JonnyStekkino

Silver Member
From what I know the IT Virtual zone has been around since quite some time in Georgia.
I opened an IT Virtual Zone company around 1 years ago, obtaining the license has been quite easy I would say.
 

JonnyStekkino

Silver Member
Can some explain in a summary what this is about, do we need to move there or can we get tax benefits from it remote?
Technically it's possible to do it remotely, local banks are the issues if you mind to open an account with one of them.

To get approved you just need to prove that you work in the IT field, usually a contract with a client it's enough.

Benefits are huge.
- 0% ICT
- 5% dividends
- no VAT
- no license costs
 

James Spader

Forum Moderator
Staff member
Mentor Group Gold
Elite Member
Doing it remote will still not free you from your local tax authorities. I believe, they will tax you from any income of such an setup! If someone prove me wrong I'm all ear.
 

Risehigh

Active Member
Doing it remote will still not free you from your local tax authorities. I believe, they will tax you from any income of such an setup! If someone prove me wrong I'm all ear.
Most likely yeah, since you need apostille in your local country to form one
Also georgia is cracking down a little on it companies without substance/products produced in the it zone in specific.
Also always consindering that they join crs in 23/24 (lets ssee) its a nice short term bet/vehicle.
 

kkein

Entrepreneur
About this, does anyone have any news? I was told that to benefit from the virtual zone, the company needs to have local employees, is that possible? And what happens if the ubo residing abroad decides to not pay the related corporate tax when issuing dividends (and dissolve the company)?
@khinkali do you know?
 

khinkali

Entrepreneur
@kkein it's more than just having local employees. The IT property must have been developed on Georgian soil. The UBO doesn't matter, it's where the work was done.

This is not a crazy rule and I think it is in line with similar "IP Box" type regimes in other places. People got angry because this interpretation appeared suddenly and was backdated three years. I don't know what the outcome was for people caught up in it.

I also don't know if you can dissolve a company after distributing dividends that should have been taxed. I would go to a Georgian tax auditor for the specifics.
 

kkein

Entrepreneur
@kkein it's more than just having local employees. The IT property must have been developed on Georgian soil. The UBO doesn't matter, it's where the work was done.

This is not a crazy rule and I think it is in line with similar "IP Box" type regimes in other places. People got angry because this interpretation appeared suddenly and was backdated three years. I don't know what the outcome was for people caught up in it.

I also don't know if you can dissolve a company after distributing dividends that should have been taxed. I would go to a Georgian tax auditor for the specifics.
Thanks for the clarification, i think it helps a lot.
My next question is: what happens if people who got angry and who aren't resident in Georgia, simply decide to not pay?
After they get the money out of the company, can they simply stop doing their biz with the Georgian VZE, and incorporate elsewhere?
 

khinkali

Entrepreneur
After they get the money out of the company, can they simply stop doing their biz with the Georgian VZE, and incorporate elsewhere?

I guess this comes down to where they are; whether the Revenue Service would get cooperation from the authorities in the other country.
 

Latest Threads

Top