What is a virtual zone?

Virtual zone is a virtual space where businesses in IT sector can register, after which they can enjoy certain tax incentives.

Post-registration the company receives a Virtual Zone Person certificate, which is available to companies providing IT services to foreign customers and allowing them to enjoy the exemption from corporate income tax (CIT) in Georgia.

Definition of the IT (Information Technology) Services

According to the law, the companies based in Georgia, supporting, developing, designing, producing and introduction computer information systems as a result of which software products are developed are considered as the IT service providers.

Tax Benefits

Georgian virtual zone companies can take advantage of the following tax benefits – 0% VAT tax and corporate tax.

How to apply

1. Register on the virtual zone platform through tax identification number.
2. Fill-in and submit an electronic application.
3. The status is granted by the LEPL Financial Analytical Service within 10 working days from submission of the application.
4. The applicant shall be sent an electronic certificate to confirm that the status is granted.

Applicants might me requested to further clarify services, business model, and provision of contracts executed with local employees.