{"id":3546,"date":"2020-10-09T20:51:32","date_gmt":"2020-10-09T20:51:32","guid":{"rendered":"https:\/\/inc.ge\/?p=3546"},"modified":"2025-05-11T16:06:55","modified_gmt":"2025-05-11T12:06:55","slug":"international-company-status-in-georgia","status":"publish","type":"post","link":"https:\/\/inc.ge\/ru\/2020\/10\/09\/international-company-status-in-georgia\/","title":{"rendered":"International Company"},"content":{"rendered":"<div class=\"vc_row wpb_row vc_row-fluid krth-dhav-dotted\"><div class=\"wpb_column vc_column_container text-left vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>1. Introduction<\/h3>\n<p><span style=\"font-size: 16px;\">In order to further improve the business environment in the country, to strengthen Georgia&#8217;s potential as a regional hub, and to increase the interest of multinational international companies, the Government of Georgia allows companies to obtain &#8220;International Company&#8221; status and benefit from tax breaks. The benefit applies to companies related to the <b>shipping <\/b>business as well as <strong>IT<\/strong> companies. <span class=\"VIiyi\" lang=\"en\"><span class=\"JLqJ4b ChMk0b\" data-language-for-alternatives=\"en\" data-language-to-translate-into=\"ka\" data-phrase-index=\"0\">See the Resolution of the Government of Georgia on International Company <a href=\"https:\/\/matsne.gov.ge\/ka\/document\/view\/5012362?publication=0\">here<\/a>.<\/span><\/span>\u00a0<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>2. Benefits of International Company<\/h3>\n<p><span style=\"font-size: 16px;\">&#8220;International Companies&#8221; enjoy the following tax benefits:<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<ul class=\"krth-list-icon  krth-list-69e0cd2b3903b\"><li><i class=\"fa fa-check-square\"><\/i><h5>Corporate Income Tax \u2013 5%<\/h5><p>On dividend payment instead of the usual 15%<\/p><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Salary Income Tax \u2013 5%<\/h5><p>On salary payment instead of the usual 20%<\/p><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Dividend Income Tax \u20130%<\/h5><p>On dividend payment instead of the usual 5%<\/p><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>VAT on services abroad - Exempt<\/h5><p>Delivery of services in a foreign country is not subject to VAT<\/p><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Property Tax  (other than land) \u2013 Exempt<\/h5><p>On a portion of the property used within the scope of the activity permitted by the government.<\/p><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>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.<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>International Company has the right to reduce the amount of taxable corporate income by the expense of the salary paid to the resident in Georgia and at the expense of scientific-research, design and test-design services.<\/h5><\/li><\/ul>\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>3. The terms and conditions of granting the International Company status<\/h3>\n<p><span style=\"font-size: 16px;\">International Company status may be granted to a Georgian enterprise, including a representative of a non-resident enterprise in Georgia if it has at least 2 years of experience in this permitted activity. List of permitted activities include:<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t<div  class=\"wpb_single_image wpb_content_element vc_align_left\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper vc_box_outline  vc_box_border_grey\"><img loading=\"lazy\" decoding=\"async\" width=\"917\" height=\"325\" src=\"https:\/\/inc.ge\/wp-content\/uploads\/2016\/04\/Virtual-Zone-Entity-1.jpg\" class=\"vc_single_image-img attachment-full\" alt=\"IT company formation in Georgia\" srcset=\"https:\/\/inc.ge\/wp-content\/uploads\/2016\/04\/Virtual-Zone-Entity-1.jpg 917w, https:\/\/inc.ge\/wp-content\/uploads\/2016\/04\/Virtual-Zone-Entity-1-300x106.jpg 300w, https:\/\/inc.ge\/wp-content\/uploads\/2016\/04\/Virtual-Zone-Entity-1-768x272.jpg 768w\" sizes=\"auto, (max-width: 917px) 100vw, 917px\" \/><\/div>\n\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p><span style=\"text-decoration: underline;\"><strong>IT Services:<\/strong><\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<ul class=\"krth-list-icon  krth-list-69e0cd2b39945\"><li><i class=\"fa fa-check-square\"><\/i><h5>Software release<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Computer game releases<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Other software realises<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Computer programming, consulting and related activities<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Computer programming activities<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Consulting activities in the field of computer technology<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Computer asset management activities<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Other activities of information technologies and computer services<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Production and\/or delivery of a digital product, including software support and delivery of an updated version<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Website development and\/or delivery<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Web hosting, remote maintenance of software and hardware<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Software and relevant updates<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Providing images, texts and information to ensure access to the database<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Remote administration of the system<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Online supply of allocated memory capacity<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Access to or download software (including procurement\/accounting software or antivirus software) and its updates<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Banner advertising blocking programs<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Downloadable drivers, such as software that connects computers to peripherals (such as a printer)<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Automatic online installation of filters on websites<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Automatic online installation of brand mailers (firewalls)<\/h5><\/li><\/ul>\n\t<div  class=\"wpb_single_image wpb_content_element vc_align_left\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper vc_box_outline  vc_box_border_grey\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"470\" src=\"https:\/\/inc.ge\/wp-content\/uploads\/2020\/10\/shipservices.jpg\" class=\"vc_single_image-img attachment-full\" alt=\"International Company Status in Georgia\" srcset=\"https:\/\/inc.ge\/wp-content\/uploads\/2020\/10\/shipservices.jpg 1280w, https:\/\/inc.ge\/wp-content\/uploads\/2020\/10\/shipservices-300x110.jpg 300w, https:\/\/inc.ge\/wp-content\/uploads\/2020\/10\/shipservices-1024x376.jpg 1024w, https:\/\/inc.ge\/wp-content\/uploads\/2020\/10\/shipservices-768x282.jpg 768w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/div>\n\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p><span style=\"text-decoration: underline;\"><strong>Commercial and technical services related to the shipowner and\/or ship ownership, including:<\/strong><\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<ul class=\"krth-list-icon  krth-list-69e0cd2b3a111\"><li><i class=\"fa fa-check-square\"><\/i><h5>Rental of a ship with or without a crew (barboat charter)<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Planning and\/or analysis of ship routes<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Giving route instructions to the ship's captain agreed with the shipper<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Stalinist time counting, disbursement report analysis and management<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Managing disputes of a written agreement (charter) on cargo claims, commercial, legal issues and chartering<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Organizing orders for the construction of new ships and\/or the service of buying and selling used ships<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Computer asset management activities<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Supervising the physical condition of the ship and \/ or supplying the ship with relevant technical parts and\/or food products<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Coordinating shipbuilding, ship docking and repair, conducting inspections in accordance with the requirements of industry regulators<\/h5><\/li><li><i class=\"fa fa-check-square\"><\/i><h5>Ensuring compliance with the ISM Code, the flag and port state control requirements and the rules of the classification society<\/h5><\/li><\/ul>\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p><span style=\"font-size: 16px;\">The above-permitted activities include services provided under a service contract.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">A prerequisite for obtaining the status is that the International Company operates only within the scope of the above-mentioned permitted activity and has at least 2 years of experience in the activity.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">An International Company has the right to receive other income other than the permitted activity, however, such income should not exceed 2% of the income from its permitted activity.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">In case the company meets all the requirements defined by the legislation, the status is granted on the basis of the application submitted to the Revenue Service and on the basis of the issuance of the relevant ordinance by the Government of Georgia.<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>4. Revocation of status<\/h3>\n<p><span style=\"font-size: 16px;\">The Government of Georgia makes a decision to revoke the International Company 1) status on the basis of a person&#8217;s application; 2) If the company carries out activities (s) other than those permitted under the status, the income from which exceeds the threshold amount; 3) If the company does not operate from Georgia and does not meet the other requirements of the status.<\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>5. Conclusion<\/h3>\n<p><span style=\"font-size: 16px;\">The status of an International Company has existed in the Tax Code since 2019, although the list of permitted activities has only been determined by the government since October 8, 2020, hence the tax incentives set out in this section were not actually in effect.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">International Company status has significant tax benefits, which creates a very attractive business environment for companies, including international companies working in the field of <strong>Information Technology<\/strong> and <strong>Shipping<\/strong>. This status is new aims to bring international companies to Georgia, employ Georgian residents, and conduct business from Georgia.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">For more information or to get help with obtaining the International Company status <a href=\"https:\/\/inc.ge\/ru\/contact-us\/\">contact us.<\/a><\/span><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"1. Introduction In order to further improve the business environment in the country, to strengthen Georgia's potential as a regional hub, and to increase the interest of multinational international companies, the Government of Georgia allows companies to obtain \"International Company\" status and benefit from tax breaks. The benefit applies to companies related to the shipping[...]","protected":false},"author":1,"featured_media":3920,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[55,5,8],"tags":[35,36,56,57,58,59,60],"class_list":["post-3546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-company","category-investing-in-georgia","category-special-tax-certificates-in-georgia","tag-incorporation-in-georgia","tag-information-technology","tag-international-company","tag-international-company-status","tag-it-business-in-georgia","tag-it-company-in-georgia","tag-shipping-business-in-georgia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>All About International Company in Georgia - 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