On 8 October 2020, the Georgian government introduced Decree N 619, which allows companies to obtain the status of "international company" and benefit from tax relief in order to further improve the business environment in the country, strengthen Georgia's potential as a regional hub and increase the interest of multinational international companies.
The concession applies to companies active in shipping and to IT companies.
- 5% Corporation tax (instead of 15%)
- 0% Dividend tax (instead of 5%)
- 5 % Wage tax (instead of 20 %)
- 0% Property tax on assets used in activities with the status of an "international company" (instead of approx. 1%)
- The provision of services abroad is not subject to VAT.
The possibility of further reducing corporate income tax by taking into account salaries paid to Georgia resident employees and research and development expenses.
Dividends paid by an international company are not taxable at the source of payment and are not included in the gross income of the person receiving the dividend.
The status can be granted to companies,
having at least 2 years of experience in carrying out a permitted activity, or having a representative of a non-resident business in Georgia if such non-resident has at least 2 years of experience in carrying out the permitted activity carried out by the Georgian business, or startup, business whose shareholders holding more than 50 % of the shares in the Georgian business each have at least 2 years of experience in carrying out the permitted activity carried out by the Georgian business.