If you’re running a business in Georgia, particularly in programming or IT services, you might have heard whispers about the International Company Status. This status offers a unique opportunity for businesses to optimize their tax obligations and enhance their competitive edge in the market. Let's dive into what it entails and how you can benefit.
What is International Company Status?
International Company Status is a special designation available for eligible Georgian entities involved in specific business activities. This status is particularly advantageous for companies engaged in programming, IT services, and tech consulting. By applying for this status, your business can unlock significant tax benefits that can boost your profitability.
Key Benefits
- Reduced Profit Tax: Enjoy a reduced profit tax rate of just 5%, compared to the standard 15%. This allows you to reinvest more into your business or increase your profitability.
- Property Tax Exemption: Your business will be free from property tax (excluding land) as long as it is used for eligible business activities. This further lowers your operational costs.
- Tax-Free Dividends: Dividends distributed from your business are not counted as overall income for the recipient and are not taxed at source, enhancing your cash flow and investment potential.
Eligibility Criteria
To qualify for the International Company Status, your business must meet certain criteria:
- Business Income: You must derive your income solely from eligible services. Be mindful that any other income exceeding 2% of your total income can lead to cancellation of your status.
- Proven Experience: Your business should have a minimum of 2 years of documented experience in the relevant activities.
- Not a Virtual Zone Party: Businesses registered as Virtual Zone entities do not qualify for this status.
Navigating the application process can be daunting, but you don’t have to go it alone. BAUER GROUP offers comprehensive assistance, from document gathering to finalizing your application. Our team is dedicated to ensuring that your application is complete and meets all necessary requirements.
Important Note
While we prepare your application with the utmost care, please remember that the final decision rests with the government of Georgia. We strive to provide all the relevant documentation, but we cannot guarantee the outcome.
Embrace the potential of your Georgian business with the International Company Status. The benefits are clear, and with the right support, you can take your business to new heights!