08.Oct .2020 13:53

How the company can gain international status and benefits? – explanation

How the company can gain international status and benefits? – explanation
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Today, the Government of Georgia considered and adopted a positive decision on the resolution, which provides granting of international status for the companies.

Minister of Finance Vano Machavariani assures that obtaining the status will not be difficult. According to him, the company should be registered at the Revenue Service and the government will consider its proposal in the near future:

Which field of business will receive international status?

"Back in July, the concept of an international enterprise was established by the law and today we are further defining what activities it includes, counting restrictions and benefits. These are the IT sector and maritime services”, - the Finance Minister explains.

What are the benefits?

Ivane Machavariani says that enterprises with this status will have to pay profit and income tax of 5 per cent instead of 15 per cent and 20 per cent.

"There is a list of expenses that can reduce profit tax. In general, we are dealing with two types of expenses, one – a company can fully deduct the salary costs for a hired person, who is a citizen of Georgia and the second - design and expert construction costs for an international company by which they can reduce profit tax.

What criteria must the company meet to gain the international status?

“The company must have two years of working experience in the above mentioned fields, including representatives of non-resident enterprises in Georgia”, - the Finance Minister declares.