17 maritime, IT companies have status of international companies in Georgia

There are 17 maritime and IT companies in Georgia that have obtained the status of an international company, meaning they are able to enjoy favourable terms of taxation in the country, announces the Ministry of Economy of Georgia.

Fourteen of the 17 companies are involved in the IT sector, while the remaining three companies are maritime services providers. 

• 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 the company to be registered in Georgia and have at least two years of work experience in the country.

Summary of tax benefits: 

• Low 5% Profit Tax (Corporate Income Tax – Normally 15% in Georgia). Tax is levied at the time of distribution only. Reinvested profits are not taxed
• 0% Dividends tax (Instead of 5%)
• 5% Tax withholding on employee income (reduced from 20%) plus the standard 2%+2% pension contributions for employees who are Georgian legal residents
• 0% Property tax (except land) on property if this property is intended for, or used to, carry out the permitted activities of the international company

Who can apply?

• The applying company must have at least two years of experience in the permitted activity
• It may be a representative of a non-resident enterprise in Georgia, if this non-resident enterprise has at least two years of experience in the permitted activity
• It may have a partner enterprise (s) with more than 50% share and this partner (s) has at least two years of experience in the permitted activity

This programme is aimed at enticing foreign IT and maritime companies to base their operations in Georgia.

The programme was launched in October 2020.