BAKU, Azerbaijan, June 3
By Tamilla Mammadova – Trend:
There are 17 maritime and IT companies in Georgia that have obtained the status of an 'international company', Trend reports via Georgian Ministry of Finance.
As reported, they are able to enjoy favorable terms of taxation in the country.
Fourteen of the 17 companies are involved in the IT sector, while the remaining three companies are maritime service providers.
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 percent Profit Tax (Corporate Income Tax – Normally 15 percent in Georgia). Tax is levied at the time of distribution only. Reinvested profits are not taxed.
- 0 percent Dividends tax (Instead of 5 percent)
- 5 percent Tax withholding on employee income (reduced from 20 percent) plus the standard 2 percent + 2 percent pension contributions for employees who are Georgian legal residents.
- 0 percent Property tax (except land) on property if this property is intended for, or used to, carry out the permitted activities of the international company.
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.
This program is aimed at enticing foreign IT and maritime companies to base their operations in Georgia.
The program was launched in October 2020.
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