Georgia, a strategically located country at the crossroads of Europe and Asia, has become an attractive destination for businesses looking to expand globally. The government of Georgia has introduced the International Company Status, which offers several benefits, including tax incentives for qualifying enterprises.
This guide outlines the five key requirements that a company must meet to achieve international company status, as well as the procedures to follow and the tax benefits that come with this status.
Requirements for International Company Status
- Georgian company: To be eligible for International Company Status, a company must operate as a Georgian enterprise, conducting its core income-generating activities within the country.
- Sufficient experience: The company seeking International Company Status should have at least two years of experience in the field for which it is requesting the status.
- Sufficient assets: The company must possess assets worth at least GEL 500,000 (approximately USD 150,000) or an equivalent amount in another currency.
- Have sufficient employees: To qualify for International Company Status, a company must employ at least five people who are either Georgian citizens or foreign nationals legally residing in Georgia.
- Have sufficient income: The company must generate an annual income of at least GEL 500,000 (approximately USD 150,000) or its equivalent in another currency.
Procedures
- An application for international company status must first be submitted to Georgia’s Revenue Services (RS). The RS then has ten days to conduct a compliance check.
- Once the RS has granted permission, the application is forwarded to the Ministry of Finance of Georgia for further processing.
Tax Benefits of International Company Status
Companies with international company status enjoy a significantly reduced profit tax rate of 5%, as opposed to the standard 15% corporate income tax in Georgia. This tax is levied only at the time of distribution, making it even more beneficial for businesses aiming to grow internationally.
Obtaining international company status in Georgia can offer a variety of advantages to businesses seeking to expand their global footprint. By meeting the necessary requirements and following the appropriate procedures, companies can benefit from a favorable tax environment, which can contribute to their overall success in the international market.