Georgia has one of the most business-friendly tax systems in Eastern Europe in general and couple of special economic zones for IT businesses make it virtually a European IT off-shore zone.

Below is a general comparison chart of corporate tax systems in Georgia, Russia, Belarus and Ukraine with average total income to net salary efficiency rates* which shows the complete superiority of the Georgian tax system for IT companies compared to the tax regimes in Russia, Ukraine and Belarus.

TAXES Russia Russia (Skolkovo Zone) Belarus Ukraine Georgia Georgia (Virtual Zone) Georgia (International Company)
VAT 20% 0% 20% 20% 18% (in some cases can be avoided) 0% 0%
Social Taxes (in total) Up to 30% 14% 34% Up to 22% Not needed for foreign citizens 0% 0%
Income Tax 13% to 15% 13% to 15% 13% 18% 20% 20% 5%
Corporate Profit Tax 20% 0% 18% 18% for residents (from 0% to 20% for non-residents 15% 0% 5%
Dividend Tax 8% 8% 12% 5% 5% 5% 0%
Total income to salary efficiency* ~56% 76,3% and lower 54% over 56% 67,8% 80% 95%

*Maximum percent of gross income available to payments as a net salary for IT company with zero profit and overhead costs. Calculated as: (Gross Income - VAT - Social Taxes - Income Tax) / Gross Income, %.

Our experts will guide you through the process of choosing and registration of the right taxation form or help with getting a free economic zone status (like Virtual Zone or International Company).