IT company
in Georgia
Georgia has a special status for IT companies that sell to clients abroad. Here is how it works and how we help you set it up.
What the Virtual Zone status is
A tax status for Georgian IT companies working for foreign clients.
Georgian IT companies can apply for Virtual Zone Person status. If you are approved, profit from IT products and services that you deliver to clients outside Georgia can be exempt from corporate profit tax.
The status belongs to a Georgian legal entity, usually an LLC, so the first step is to register a Georgian LLC. The status is a separate application, made after registration. The Revenue Service grants it.
What to know before you apply
The status has limits. Check them against your plans.
| Topic | What to expect |
|---|---|
| Clients | The exemption is meant for IT services delivered to clients outside Georgia. Income from Georgian clients is not covered. |
| Activity | The activity must be IT as defined by the rules. Not every digital business qualifies. |
| Other taxes | The exemption covers profit tax only. Payroll taxes and tax on distributed profit remain, and rules change. |
| Reporting | Companies with the status still file regular declarations, and the status can be withdrawn if the conditions are not met. |
| Timing | There are deadlines for applying, so plan the application before the tax year in which you want to use it. |
This is general information from public sources, not tax advice. Confirm the current rules on the Revenue Service website (rs.ge) or with a tax adviser before you decide.
How we help
We register the company and prepare the application.
| 01 | We review your activity | Whether your IT business and your clients fit the status. |
|---|---|---|
| 02 | We register the LLC | Registration, one year of registered address and bank account assistance are part of the LLC package. |
| 03 | We prepare the application | The documents and the description of your activity for the Revenue Service. |
| 04 | The authority decides | We cannot guarantee that the status will be granted. |
| 05 | We stay with you | Accounting and monthly reporting, legal advice and everything else the company needs. |
Questions
What is the Virtual Zone in Georgia?
It is a special tax status for Georgian IT companies. Profit from IT services delivered to clients outside Georgia can be exempt from corporate profit tax.
Can a foreign owner get Virtual Zone status?
The status is granted to a Georgian company, and the owner can be a non-resident. The company must meet the conditions.
Does the 0% rate apply to all my income?
No. It is meant for IT services delivered to clients outside Georgia. Other income and other taxes are treated under the normal rules.
Do you also do the accounting and legal advice?
Yes. We can handle accounting and monthly reporting, give legal advice and take care of everything else the company needs, so the status is kept in order.
Do you guarantee the status?
No. The Revenue Service decides. We prepare the application and tell you honestly if your plan does not fit.
See also: Bank account in Georgia · Small Business Status · Register as a non-resident · Legal address in Tbilisi · Company registration in Georgia
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