Tax structuring and status in Georgia

Virtual Zone status is applied for through the Revenue Service and relieves a qualifying IT company's profit from IT services supplied outside Georgia from profit tax. International Company status covers qualifying IT and maritime activities and generally requires at least two years of relevant experience. The two statuses cannot be held together, and an International Company cannot be established in a Free Industrial Zone.

Free Industrial Zones operate in Poti, Kutaisi, Kutaisi Hualing and the Tbilisi Technological Park, with profit tax, VAT, property tax and import duty relief for qualifying operations inside them. VAT registration is mandatory once taxable turnover exceeds 100,000 GEL in any continuous twelve months; the rate is 18%, the tax period is monthly, and the return and payment are generally due by the 15th of the following month. Which regime suits you depends on your activity, where your clients are and where the work is done, so we start with a written eligibility memorandum.