Companies that offer IT and maritime services will be able to enjoy favourable terms of taxation in Georgia if they obtain the status of an international company, in the country, announces Georgian Finance Minister Vano Matchavariani.
In order to be granted the status of an international company it is necessary for the company to be registered in Georgia and have at least two years of work experience in the country.
The company will apply to the Revenue Service, and then the government will examine this application and grant the company status", Matchavariani said.
After obtaining the status of an international company the company will enjoy reduced property (but not land), profit, dividend (full exemption), and income taxes, with profit and income taxes reduced to five per cent.
There are two types of expenses. One is the cost of salaries paid to citizens or residents of Georgia which can be fully deducted, that will reduce the profit tax. And the second is the cost of scientific, research design and experimental consulting services, the so-called rent costs in the field of activities allowed for an international company. This can reduce the income tax", Matchavariani said.
Georgian Prime Minister Giorgi Gakharia said that in the period of the post-pandemic economic recovery, given the fierce global economic competition, the Georgian government is allowing companies to obtain the status of 'international company' and also creating a convenient platform for international companies to work from Georgia.
First of all, it will be companies related to maritime business as well as IT companies. Both fields are important for the development of the global economy and to Georgia because transport and logistics are crucial sectors of our economy. In the same vein, we have serious IT resources that must be set in motion", Gakharia said.
Georgian Economy Minister Natia Turnava said that despite the global pandemic Georgia should be considered as an attractive platform for foreign investors, which is the most stable and offers an attractive tax and business environment.
It will be an unequivocal motivation for these companies to come to Georgia and create more jobs", she said.
Turnava said that both IT and maritime services have potential in Georgia.
Two factors coincide now: one is our unwavering strategy to attract more investors, and the other is the need for global businesses to find new, yet unused platforms where they can drive their businesses with less cost and more prospects. Therefore, we are confident that we will see new investors in these two sectors", Turnava said.
She added that 'we already have the first serious applications' in IT technologies from the region.