International Company Status

13 December 2021

International company status is available to foreign investors and can offer significant tax benefits to the qualifying entities. In this article we will be discussing the exact benefits of holding this status and will be answering the frequently asked questions. Our company will provide all necessary legal and accounting services needed to obtain and maintain this status.


What is International Company Status?

This status entitles entities to significant tax benefits. These are:

  • Instead of personal income tax rate of 20%, the company pays 5% – for example if an employee has net EUR 1,000 monthly salary, instead of paying EUR 250 in taxes (1,000/80%-1,000) company, which has the status, only pays EUR 52.6 (1,000/95%-1,000)
  • Instead of corporate income tax (profit tax) rate of 15%, the company pays 5%
  • Instead of VAT (value-added tax) rate of 18%, the company pays 0% on exports

Due to the above listed tax advantages, it is worth knowing whether your company would be eligible for the status.

Our company offers bookkeeping services and files all relevant tax declarations.


What companies are eligible for International Company Status?

The status can be obtained only either by IT or maritime industry companies. To be eligible for the status, company must have a minimum of 2 years’ experience in the field. However, if entity has more than 50% shareholder company, which has 2 years’ experience, this satisfies the law requirement.

It should be noted that it is not mandatory that 100% of company’s revenues be generated from the relevant industries (IT and maritime), however other sources of revenues shall not exceed 2% it total during calendar year.

Our company will carefully consult you on the International Company Status application process and will file the application form on your behalf. After obtaining the status, we will provide all necessary accounting services. Our bookkeeping services also include all relevant tax declarations filing.


Frequently asked questions

Our clients often ask the following questions regarding the International Company Status:

If I establish an IT company which will provide services on the local (Georgian) market and more than 98% of revenues will be generated from IT services, will I be eligible for the status?

The short answer is – no.

It is not sufficient that your company’s revenues are generated from IT services. There is one more important criterion, which is not specifically mentioned in the state decree, however can be found in the application form. The additional requirement is that more than 98% of revenues must be generated from exports. In other words, to be eligible for the status, company must provide services to entities outside Georgia. Revenues generated from local entities shall not exceed 2%.


If my company does not have more than 2 years’ experience in the allowed fields (IT or maritime), however its owners (who happen to be individuals) have the relevant experience, will I be eligible for the status?

The short answer is – no.

The reason is that the state decree specifically mentions that shareholder company, and not shareholder individual, must have a minimum of 2 years of relevant field experience.


Is there any official registry of companies that currently have International Company Status in accordance with the Georgian law?

Yes. The full registry of the status holder entities is available on the official webpage of Georgian Revenue Service. You may also follow the link below: