IT Virtual Zone Company in Georgia
Special Tax exemptions for IT companies at 5% tax rate.
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Taxation for IT Virtual Zone Companies
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.
| 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.
How we can help you
Deal with all the legal stuff
Let us take care of all the heavy lifting. We prepare all the documentation for the company registration, apply for IT virtual zone status, and finalize the legalization of your documents.
Take advantage of our various banking solutions
Although banking nowadays is often associated with problems, we offer solutions. Our arsenal consists of the most up-to-date bank account options not only in Georgia but across the globe.
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.
What are the requirements for IT Virtual Zone Companies?
- Company registrationRegistration of a new company in Georgia;
- Virtual zone company statusAn application to obtain virtual zone company status;
- Physical presencePhysical presence of office and staff, and actual operations from Georgia is mandatory;
- Virtual zone entityRepresent a legal entity carrying out information technology activities that has been assigned the corresponding status;
- Information technologyCarrying out the study, support, development, design, production, and information systems, as a result of which software products are produced.
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Contact usImportant 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
Georgian banks have become more difficult to deal with recently, and averse to client transactions not related to Georgia. However, companies are allowed 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:
1. Fast and reliable international transactions in different currencies
2. Taxes paid in GeorgiaBoth issues can be resolved by using a combination of international and local banking services. Please contact us for a detailed consultation.
