IT VIRTUAL ZONE COMPANY IN GEORGIA
Want to optimize taxes for your IT company?
- Georgia’s IT Virtual Zone is the place for you.
- Special Tax exemptions for IT companies at a 5% tax rate.
Contact
Our experts are ready to answer all your questions
We deal with all the legal stuff
Let us take care of all the heavy lifting in the Company registration process; We’ll prepare the necessary documentation, get registration, apply for IT virtual zone status, and finalize legalization of your company documents
Take advantage of our various banking solutions
Although banking nowadays is often associated with Problems, we offer Solutions. That is to say, our arsenal consists of different functional bank account options not only in Georgia but across the globe. We bring you the most up-to-date solutions.
Take care of your company accounting
It’s not enough just to have a company and a bank account. Your accounting and bookkeeping also need to be in order. Just send us your documents, and we’ll take care of the rest.
IT Virtual Zone Companies in Georgia
Georgian legislation favours companies involved in the development and sale of IT products. Companies enjoying IT virtual zone status are exempt from VAT and corporate profit tax and benefit from a minimum 5% tax on the distribution of dividends. These are the requirements:
- Registration of a new company in Georgia
- An application to obtain virtual zone company status
- Physical presence (office and staff) and actual operations from Georgia is mandatory
The company must satisfy the following conditions:
- virtual zone entity – a legal entity carrying out information technology activities that has been assigned the corresponding status;
- information technology – the study, support, development, design, production, and implementation of computer information systems, as a result of which software products are produced.
All procedures require a maximum of 12 days.
Schedule a free consultation
*Schedule a first 30-minutes free online consultation
Taxation for IT Virtual Zone Companies
| Taxes in Georgia | For Mainland Company | For IT Virtual Zone Company |
| VAT | 18% | 0% |
| Corporate Profit Tax | 15% | 0% |
| Tax on Dividend Withdrawal | 5% | 5% |
| Personal Income Tax | 20% | 20% |
Some Possible Payment Methods
These methods have been tested by us and work for Georgian IT companies
Important Notes On Virtual Zone IT
Proper Work Plan
A Virtual Zone IT company in Georgia offers tremendous tax incentives. Your company pays only 5% tax on dividends.
However, without a proper working plan, taxes for your company may increase significantly. Services you purchase from abroad can increase your exposure to taxes by up to 33%. To avoid unpleasant surprises all you need is to get a proper working plan in advance. In other words, to get a proper consultation before starting a Georgian IT company.
Proper Banking Solution
Who needs a company without banking?! Georgian banks have become more difficult to deal with recently. They have become averse to client transactions not related to Georgia.
However, Georgia does allow companies to possess a foreign bank account as well as digital banking solutions. There are two primary issues that need to be resolved simultaneously for an IT virtual zone Georgia company:
- Fast and reliable international transactions in different currencies
- Taxes paid in Georgia
Both issues can be resolved by using a combination of international and local banking services. Please contact us for a detailed consultation.
