Virtual Zone Company in Georgia Tbilisi, tax free zones in Georgia, tax heaven Tbilisi

Virtual Zone Company in Georgia Tbilisi, tax free zones in Georgia, tax heaven Tbilisi

Virtual Zone Company in Georgia Tbilisi, tax free zones in Georgia, tax heaven Tbilisi

STATUS OF VIRTUAL ZONE PERSON IN GEORGIA

Do you have IT Company and IT business? Would you like to sell online worldwide your IT products and software in tax free regime? This great offer is for you!

The best news is that profit generated by a Virtual Zone Entity (company or business person) from the supply of information technology (IT) services outside of territory of Georgia is exempted from taxation in Georgia.

 

HOW TO GET THE STATUS OF VIRTUAL ZONE PERSON AND WHO IS ELIGIBLE?

Status of Virtual Zone Person can be granted to an IT company registered in Georgia. The status is granted to a legal entity involved in the creation of the computer software such as: the study, support, development, design, production and implementation of computer information systems etc.

WHAT IS THE STATUS OF THE VIRTUAL ZONE?

The Status of the Virtual Zone is a license to carry out IT business activities in a Virtual Zone.


MAIN TAX BENEFITS OF VIRTUAL ZONE PERSON IN GEORGIA:

  • The income of a VZE is exempt from VAT (18%) and corporate income tax (15%) if the company provides its services to foreign customers located outside Georgia
  • In case of dividends payment (to a physical person or non-resident legal entity shareholder), the only Georgian tax on dividends payable is rated at 5% and is paid by the company to the state budget at the moment of dividends payment. Dividends distributed in Georgia to a Georgian shareholder will not be included in the taxable base of such a person. If dividends are paid to a foreign shareholder, then the taxation of such a shareholder in the country of its tax residency shall be analyzed with the consideration of provisions of double tax treaty of the relevant country with Georgia (if any). If income of Virtual Zone Entity is distributed not in the form of standard dividends but in another way described by law regulations, then the 5% withholding tax in Georgia will not be paid and there will be no taxation in Georgia at all(!)
  • The director of the Virtual Zone Person or Virtual Zone Company can be either a Georgian or foreign person who can be physically located either in Georgia or abroad and can manage the company´s activities and corporate bank account by internet and mobile banking
  • There is no law requirement to keep employed staff in Georgia, except for the company`s director.

Georgian Virtual Zone Entities give new opportunities for IT companies and it is becoming interesting especially for international clients.

 

Based on "Ease of Doing Business" report by World Bank georgia is on 9th position in Top 10 countries worldwide for ease of doing business

It is also good to note that Georgia is also still a great place to bank and is not a member of Common Reporting Standard (CRS) is an information standard for the automatic exchange of information (AEOI) regarding bank accounts on a global level.

 

 

How long it takes? 

After submission of the application, the Status is granted by the LEPL Financial Analytical Service in few working days (2 days) and applicant will receive an electronic certificate to confirm that the status is granted. It should be noted that The Status of the Virtual Zone is permanent. After getting Virtual Zone Person status, the company is enjoying considerable tax benefits.


If you have IT company registered in Georgia or you need to incorporate a new LTD company in Georgia with the virtual office service, we can help you to get a Status of Virtual Zone Person within 48 hours and to enjoy this innovation, attractive environment and favorable tax regime in Georgia. This chance is for you!

 

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