Spanish IT company Making Science enters Georgia
Deputy Minister of Economy Irakli Nadareishvili said that the government of Georgia had been supporting the development of an innovative IT ecosystem. Photo: Making Science.
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Spanish IT company Making Science has teamed up with Georgian IT company Sweeft Digital to serve international clients from Georgia.
Deputy Minister of Economy Irakli Nadareishvili said that the government of Georgia had been supporting the development of an innovative IT ecosystem, and for this reason the government has created favourable terms of taxation for the companies that offer IT and maritime services and obtain the status of an international company 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.
Nadareishvili said that this initiative helps Georgia attract more international players and further develop the IT industry.
As a result, we already have several successful examples of global IT companies entering the Georgian market and operating from here", he said.
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.
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