25.01.2021

G o v e r n m e n t   o f   G e o r g i a   a d o p t e d   t h e   r e s o l u t i o n   o n   D e t e r m i n i n g   t h e   S t a t u s   o f   a n   I n t e r n a t i o n a l   C o m p a n y ,   i t s   P e r m i t t e d   A c t i v i t i e s   a n d   O n   t h e   A p p r o v a l   o f   t h e   L i s t   o f   S e p a r a t e   E x p e n s e s  

On 8 October, 2020, the resolution of the government of Georgia on Determining the Status of an International Company, its Permitted Activities and On the Approval of the List of Separate Expenses was published on the website of the Legislative Herald of Georgia.

  • The status of an International Company may be granted to the Georgian enterprise:

- which has at least 2 years of experience in the permitted activities listed in the Annex 2 and for which activity the status is demanded for;

- is the representative of non-resident enterprise in Georgia and also complies with the previous rule;

- 50% shareholder of which is an enterprise, that has at least 2 years of experience in the permitted activities listed in the Annex 2, carried out by the Georgian enterprise and for which activity the status is demanded for.

  • An enterprise wishing to acquire the status of an International Company, within the status must carry out permitted activities in Georgia and must be taxed by an income tax pursuant to the Tax Code of Georgia.
  • To obtain the status of an International Company, the Interested Enterprise must address the Revenue Service with the Notice, form of which is approved by the Ministry of Finance.
  • Final decision about the grant of the status is made by the Government of Georgia.
  • The status of an International Company will be terminated upon the request of the party or if the applicant no longer complies with the requirements. Termination of the status becomes effective via the decree of the Government of Georgia.
  • Annex 2 of the resolution provides the list of permissible activities. Annex 3 sets forth the list of costs, which when incurred in Georgia can be deducted from the International Company’s taxable income.

Law became effective upon its publication.

Source and date of publication: Legislative Herald of Georgia, 08.10.2020.

Locations
Practice areas
Subscribe to our newsletter for the latest news and insights: