American custom software engineering company enters Georgia

US custom software engineering company Exadel is opening an office in Georgia as part of the Georgian government’s initiative to offer favourable terms of taxation to companies that obtain the status of international company in the country, announces Georgian Economy Minister Natia Turnava.

• International IT, maritime companies to enjoy tax benefits in Georgia

In order to be granted the status of an international company it is necessary for a company that offers IT or maritime services to be registered in Georgia and have at least two years of work experience in the country.

After obtaining the status, 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.

Turnava said that Exadel will employ about 40 people in Georgia. 

We think that in five years, IT companies that will relocate businesses to Georgia and employ locals will contribute about 5% to the country's GDP. This is our task", Turnava said.

US information technology company EPAM was the first company which opened an office in Georgia as part of the government's initiative and brought 30 employees to Georgia.