What Is the International Company Status?

On October 8, 2020, the Georgian government introduced Decree No. 619, amending Article 23 of the Georgian Tax Code. This decree grants new tax benefits to foreign and Georgian companies operating in Information Technology and Shipping & Logistics.

By relocating a portion of their operations to Georgia, these companies can apply for International Company Status, unlocking a range of tax advantages.

Key Tax Benefits of the International Company Status

• 5% Corporate Income Tax (instead of 15%) – Tax is only applied when profits are distributed. Retained or reinvested earnings remain tax-free.

• 0% Dividends Tax (instead of 5%) – No tax on distributed dividends.

• 0% VAT on international business income – Additionally, registered VAT taxpayers can reclaim 18% VAT on eligible purchases in Georgia.

• 0% Export Tax – IT services and digital products exported from Georgia are exempt from customs duties.

• 5% Salary Tax – A reduced tax rate applies to non-resident employees (instead of 20%). A 4% pension contribution applies only if the employee is a Georgian resident.

• 0% Property Tax – Companies are exempt from property tax (excluding land) if used for business operations.

• R&D and Salary Deductions – Expenses related to salaries and research & development can be deducted from the corporate tax base.

• Profits Reinvestment Benefit – Profits reinvested in Georgia or distributed to another Georgian legal entity remain tax-free.

Who Qualifies for International Company Status?

Both Georgian and foreign companies based in Georgia can qualify, provided they engage in activities listed by the Ministry of Economy in the IT or Maritime sectors.

IT Activities Eligible for International Company Status

• Remote IT system management

• Automated software deployment (firewalls, website filters, etc.)

• Computer programming, consulting, and related services

• Database management solutions

• Software development, release, updates, and support (including SaaS and gaming)

• Cloud-based services, web hosting, and software maintenance

• Website and digital platform development

Maritime Activities Eligible for International Company Status

• Coordination of shipbuilding, berthing, and repairs

• Compliance inspections and safety management

• Environmental protection and pollution prevention oversight

• Maritime dispute resolution and cargo claims management

• Ship maintenance, monitoring, and supply logistics

• Vessel construction management and sales

• Real-time ship route optimization

• Ship rental (with or without crew)

How to Apply for International Company Status in Georgia?

Setting up an International Company in Georgia is straightforward if all requirements are met. Applications are submitted to the Revenue Service of Georgia (RS), which typically processes requests within 10 business days.

If additional information is required, companies have 10 business days to provide supporting documentation. Upon approval, the Ministry of Finance grants the final certification.

Get Expert Assistance

Navigating the registration process and ensuring compliance with Georgian regulations can be complex. Our team offers comprehensive support, from company formation to securing International Company Status. Contact us today to get started!