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%|
|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).