In the era of digitalization and globalization of business, Georgia stands out as an attractive point on the map of the IT industry thanks to its unique virtual zone status. This status provides significant tax benefits to IT companies, fostering the development of technological innovations and attracting entrepreneurs from around the world.
Advantages of opening a company in the IT zone
The main advantage is tax optimization: companies operating in the IT sector and having the status of a virtual zone are exempt from profit tax, which significantly reduces financial burden and increases competitiveness in the global market. Moreover, the simplified registration procedure and minimal administrative barriers make Georgia an attractive place for international IT business.
Tax regime for IT companies in Georgia
A distinctive feature of the Georgian jurisdiction is the favorable tax regime for IT companies. Unlike ordinary companies, which are subject to standard taxation, IT companies registered in the virtual zone enjoy significant tax benefits, including exemption from profit tax and simplified taxation of revenue from service exports.
| Taxes in Georgia | For a regular company | For a Virtual company |
| Income tax | 18% | 0% |
| Corporate profit tax | 15% | 0% |
| Dividend tax | 5% | 5% |
How can I obtain Virtual Zone status?
The process of obtaining virtual zone status in Georgia is relatively simple and includes submitting an application to the relevant state authorities, confirming compliance with IT sector activities, and fulfilling a number of administrative requirements. This status opens doors to the international market and provides access to favorable tax conditions.
To register as a subject of the virtual zone in Georgia, you initially need to:
- Reserve a unique name.
- Prepare and submit a package of documents.
- Appoint a director.
- Contribute the charter capital.
- At registration, it is necessary to open an account for the IT company of the virtual zone, submitting a request to the Tax Service. This is necessary for reporting and tracking tax payments.
- Obtain a Georgian license for the provision of VZE status.
Benefits for companies with Virtual Zone status
The most significant benefits for companies with virtual zone status in Georgia are tax benefits, ease of doing business, and access to developed infrastructure. These factors create optimal conditions for the growth and development of IT projects, promoting innovation and technological progress.
Collaboration with Jara Accounting opens new horizons for entrepreneurs aiming to develop their IT business in Georgia. Thanks to a deep understanding of local legislation and unique tax benefits provided by the virtual zone status, Jara Accounting becomes a reliable partner on your path to success. Opening an IT company in Georgia today is not only a matter of economic benefit but also an opportunity to become part of a fast-growing digital community where innovations and advanced technologies find fertile ground for development.
With Jara Accounting, you not only receive comprehensive consultations and support at all stages of registration and business operation but also access to a wide network of local and international IT experts. Choosing Georgia as a venue for your IT enterprise means betting on stability, an innovative ecosystem, and an attractive tax climate. With Jara Accounting, you can be sure that your business is set up for success from the start, and your path into the Georgian IT sector will be as smooth and promising as possible.
Opening an IT company in Georgia with the support of Jara Accounting is your step towards success on the international stage. Join the number of entrepreneurs who have already appreciated the advantages of working in Georgia, and give your business a boost to new achievements in the world of technology.