IT Virtual Zone Companies in Georgia

IT Virtual Zone Companies in Georgia

Discover Georgia Virtual Zone Company Status Tax-Free Businesses

What is a virtual zone company in Georgia?

Georgian legislation favors companies involved in the development and sale of IT products. Companies enjoying IT virtual zone status are exempt from VAT and income tax and benefit from a minimum 5% tax on the distribution of dividends. 

According to the Georgian tax code, virtual zone status is:

A license (authorization) to conduct business activities for any company in the IT sector, from independent companies to medium-sized enterprises, in a virtual zone in Georgia. 

In case your business activities are 100% IT services (Software development, Web design, SEO) we can help you to obtain the status of Virtual Zone Company and you will have the following tax benefits: 0% - profit tax from services delivered outside Georgia, 0% VAT

How to obtain the status of the Virtual Zone for your company?

The country's responsible authority for granting the virtual zone status is LEPL Analytical Service under the supervision of the Ministry of Finance of Georgia.

There are a few steps you take to obtain the status:

Register your legal entity – business;

Registering and accessing the system using your name and password on the Electronic Declaration system www.newzone.mof.ge

Fill in and submit the online application;

After submitting the application entities interested in receiving virtual zone status will be granted one within ten workdays. You might be required to submit extra documents proving your business model, clarifying your products and suggested services, as well as labor contracts(agreements) with local staff (it is understandable, as the aim of creating Virtual Zone is to implement new jobs in the country)

Digital certificates confirming the virtual zone membership will be issued no later than the two-day period from the date of granting the status.

Some Possible Payment Methods

• Payoneer
• Wise
• TBC
• BOG
• Liberty
• Montify
• Paysera
• PayPal

Here are tax tables for Virtual Zone Status