Having an IT business? Your company is 100% digital and virtual? Do you struggle with taxes? Stop It now! Reduce Taxes to Zero! In Georgia you can do It. There is a workaround in Georgia which can help you to reduce your taxes to Zero. Enjoy Having IT business and Paying no Taxes at all. NO VAT and even not PROFIT TAX
What is IT Business by Definition of Georgian Legislation?
IT is the process of research, development, support, design, production and implementation of computer and information systems; as a result, various software products are in place.
Good News! VAT and Corporate Profit TAX FREE!
* Good News N1: In case the service takes place outside of the Country the operation is VAT free. How the location of the Service is Determined? Service is considered rendered outside of Georgia If Service Receiver is located outside of Georgia. and here comes a happy conclusion! Your Service Provided for non-resident companies or Individuals is TAX FREE!
* Good News N2: Income Generated from Virtual Zone Company rendering service outside of Georgia are exempt of Corporate Income (profit tax) !!! What is Virtual Zone Activity? Virtual Zone Business is the activity of creation of IT systems in Georgia by a legal person. The Status of the Virtual Zone is a license (permit) to carry out business activities in Virtual Zone.
Step by Step Checklist to Claim TAX FREE Benefit for your IT Business
Step 1: Register your Company in Georgia. Find out more about company registration procedure in Georgia by clicking here.
Step 2: Register your Business in Virtual Zone. What is Virtual Zone? A Virtual Zone is a person or a group of persons of a Virtual Zone. The ministry of Finance of Georgia is the responsible body to grant status of a Virtual Zone. Piece of Related Regulation to be found here.
Who can be granted Virtual Zone Status?
There is no restrictions on this. No minimum capital, no special proof required for this status. All you are required to have is active company in Georgia and that’s It. Any foreigner can apply for It. Did you know you can establish a company and claim your tax free status even without visiting Georgia?
How easy It is to be granted Virtual Zone TAX Free It zone status?
I would say, it is pretty much easy. All the applications filled by us was successfully completed. No application has been rejected so far. The Status is granted by the LEPL Financial Analytical Service within 10 working days from submission of the application.
The applicant shall be sent an electronic certificate to confirm that the status is granted.
The Status of the Virtual Zone is permanent.
What are the costs associated to maintan the Status?
There is no maintenance fees. The status is permanent.
Am I obligated for Tax Reporting if I have a Virtual Zone Company in Georgia?
Well, yes you are! You need to meet Georgian Tax Requirements, However, for service type companies there are some reasonable accounting offers out there.
Should I visit Georgia or Be in Georgia to open and Maintain Georgian Tax Free Company?
Can I open a Georgian company and have non-Georgian, International Customers?
Yes! However, make sure to collect base documentations for accounting transactions. Base documentations are usually Invoices and Receipts.
What are the after company formation requirements?
- There is no minimum capital requirement.
- No Requirement to hire
- Not required to operate an office, though you must have a registered address to establish a company
- No requirement and expenses at all. Only requirement thing will be to comply with taxation and accounting requirements and cooperate with revenue house