International IT Company: 5% Tax, 0% VAT & Dividend Status
Start International IT Company – Georgia Has One Of The Best Offers
Why Georgia?
Thinking of setting up an International IT Company? – Georgia offers one of the most attractive tax regimes for global technology businesses. What do you get from Georgia? – 5% corporate tax IT-related companies, 0% VAT, and exempt dividends. The country has become a strategic hub for software development, R&D, data processing, and digital services. These incentives exist under a specific legal framework – Resolution No. 619, which governs the qualifications, registration requirements, and ongoing compliance for IT companies seeking preferential treatment. Registering in Georgia, International IT Company status allows substantial savings while maintaining full transparency and legal certainty.
The International IT Company Tax Incentives: 5% CIT/PIT, 0% VAT & Dividends
5% Corporate Income Tax & 5% Personal Income Tax
Under the enhanced Georgia IT company tax scheme, approved businesses pay just 5% CIT instead of the standard 15%. Additionally, the personal income tax for Georgian employees is reduced from 20% to 5%, enabling companies to significantly reduce payroll-related tax burdens. This makes Georgia an appealing destination for IT teams and tech talent relocating from higher-tax jurisdictions.
0% VAT on International IT Services
Registered IITC companies benefit from Georgia IT company 0% VAT, meaning that outbound international services – such as software development, licensing, SaaS products, consulting, and IT outsourcing are entirely VAT-exempt. This dramatically reduces operational expenses, especially for companies dealing with cross-border clients.
0% Dividend Tax
Dividend distributions to shareholders are tax-exempt, making profit extraction efficient and compliant. Combined with low operational taxes, these incentives give the IITC regime a global competitive advantage.
How to register International IT Company? – Georgia has several rules
- Minimum 2 Years of Operating Experience
To set up IT company in Georgia for foreigners is practically as easy as for the locals, but to qualify, a company must demonstrate two years of experience in IT-related activities.
- Physical Presence in Georgia (Office & Personnel)
Companies must maintain a real operational presence in Georgia. This includes:
- A physical office or development space
- Local employees on payroll
- A demonstrable link between Georgian activity and the company’s global IT services
Physical substance is critical for passing eligibility checks under Resolution No. 619.
To register International IT Company Georgia, the business must submit a formal application to the Georgian Revenue Service (GRS). The review typically takes 10–20 business days, depending on the complexity of operations and documentation. The application normally includes:
- Company profile and organizational structure
- Project portfolio demonstrating IT activities
- Evidence of 2-year experience (CVs, contracts, financial statements)
- Business plan outlining Georgian operations and expected activity
- Information about office location and Georgian employees
All supporting documents must be consistent with the standards outlined in Resolution No. 619.
What is Resolution No. 619 and how does it relate to the International IT Companies in Georgia?
It is the legal framework defining eligibility, documentation, and tax rules for IITC status.
What is the 2-year experience requirement for the IT status?
Applicants must show at least two years of IT operational experience or use the parent company’s track record.
Can an International IT Company hire foreign staff, and what is their tax rate?
Yes. Foreign and local staff can be hired, and Georgian employees benefit from the 5% PIT rate.
What is the process for obtaining the Georgia International IT Company status?
Submit an application to the Revenue Service, provide full documentation, meet substance requirements, and await approval.
How can the IITC further lower its tax burden beyond the 5% CIT?
Through profit base exclusions such as R&D expenses, Georgian salaries, and other eligible deductions.