Taxation In international IT companies
Georgian government made changes to existing tax legislation for the purpose of attracting IT companies. With Resolution No. 619 International Company status is available to legal entities working in information technology.
Companies with International IT company status are exempt from VAT and dividend tax and benefit from a minimum 5% tax on the personal and corporate incomes.
| Taxes in Georgia | Mainland Company | International IT Company |
| VAT | 18% | 0% |
| Corporate Income Tax | 15% | 5% |
| Tax on Dividend Withdrawal | 5% | 0% |
| Personal Income Tax | 20% | 5% |
highlights
Requirements to establish a IT company in Georgia
2 years of working experience is required
The company must:
- Be working in Georgia for at least 2 years;
OR: - Register a branch of a company registered abroad with at least 2 years of experience;
OR: - Be a foreign-owned (at least 51%) Georgian company. In this case the mother company should have experience in information technology for at least two years.
International IT company status
Applicant must submit an application to revenue services to obtain International IT company status.
Physical presence
In addition, company seeking for the International Company status must have a physical presence (office and staff) and must work from Georgia.
Collaborations
Our clients
Some of the companies that obtained International Company Status with our assistance.
Get in touch
Support
Here’s how we help you
Collect necessary documents and register the company
Accounting and financial reporting
Finding IT professionals or getting your employees to Georgia
Finding office for your company
Notes
Important note on international IT companies
If acting properly, International IT company can decrease the profit base, from where the profit tax of 5% is calculated.
Additional tax incentives
Spending on:
- Salaries paid to Georgian citizens
- Expenses for research, design, and development work carried out in Georgia
Can be excluded from taxable profit base. For example if company has a profit 100,000 USD, but it pays 15,000 USD for Georgian employee salaries and 10,000 USD for research and development in Georgia, those expenses will be excluded from 100,000 USD. So, company will pay corporate profit tax from 75,000 USD (instead of 100,000 USD).
