Using the status of an international company in Georgia
The legal regulation of the activity of a legal entity with the status of an international company is carried out in accordance with:
- Art. 23 of the Tax Code of Georgia;
- Decree of the Government of Georgia No. 619 dated 08.10.2020 on the issue of determining the status of an international company, establishing the list of authorised activities and certain expenses.
According to the definition, an "international company" in Georgia is an enterprise that carries out activities defined by a decree of the Government of Georgia and derives income only from these activities.
General rules for the operation of an international company
- A legal entity with the status of an international company (hereinafter referred to as the Company) must carry out activities in the sphere corresponding to the list provided by the legislation for a company with the status of an international company (hereinafter referred to as the List). In case the Company plans to carry out an additional type of activity from the possible areas, it must notify the tax authorities in advance.
- The Company is entitled to receive income from activities that are not included in the List if the following conditions are met:
- such activities must be related to the Company's core business (i.e. activities for which the Company has obtained international status);
- income (excluding VAT) received from such activities during a calendar year must not exceed 2% of the income (revenue) received from the Company's core activities. Taxes received by the Company from non-core activities are subject to taxation in accordance with the general procedure.
- The Company must have employees who are related to the activities carried out by the Company for which it has the status of an international company.
- Employees of the Company must be on the territory of Georgia. Some of the employees may work at a distance/remote (without violating the rule of being on the territory of Georgia). Being outside Georgia is allowed only for C-level executives.
- The product created by the Company shall be sold outside the territory of Georgia.
REVERA Georgia lawyers will assist in obtaining the status of an international company.
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