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In Georgia, “companies with international status” (International Company Status) means legal entities that have received a special tax regime focused on attracting international IT and business process outsourcing (BPO) companies to the country.
What is international status?
This is a preferential tax regime regulated by:
- Tax Code of Georgia (Article 23¹);
- Government Decree No. 619 of October 8, 2020.
It applies only to companies providing IT or BPO services abroad and officially registered in Georgia.
Requirements for obtaining international status
1. Industry of activity
The company should be engaged in:
- Software development, SaaS, games;
- IT consulting;
- database management;
- business process outsourcing (e.g. call centers, accounting, HR, support, etc.).
2. Experience and background
- The company must have a minimum of 2 years’ experience in the relevant field (either as itself or through the founder/parent company).
- The company should sell services outside Georgia (for export).
3. Form of ownership
Only legal entities (LLC / შპს). Individual entrepreneurs are not suitable.
Tax benefits
| Tax | Tax rate with international status | Regular rate |
|---|---|---|
| Income tax | 5 % instead of 15 % | 15 % |
| Tax on dividends | 0 % (on payment to a non-resident) | 5 % |
| Employee payroll tax | 5 % instead of 20 % + 2 % | 20 % + 2 % |
| VAT | 0 %, if the services are exported | 0—18 % |
Advantages
- Significant reduction of tax burden.
- Simplified work with foreign clients.
- Legal status for an international IT company.
- Possibility to attract developers under a transparent scheme.
Procedure for obtaining status
1. Company registration in Georgia
- Ordinary LLC registration (sh.p.s. / შპს)
- Articles of Association, founders, address, etc.
2. Submitting an application to the Ministry of Finance
Through the rs.ge portal
- A formal application is filed.
- Supporting documents are attached:
- work experience (contracts, sites, documents);
- description of activities;
- information about clients;
- proof of export of services.
3. Review period — up to 10 working days
If the status is approved, the company is officially granted “International Status”.
Obligations and restrictions
- The company is obliged to operate in the declared areas.
- Export only — cannot provide services within Georgia.
- Reporting — monthly filing of declarations is required.
- In case of loss of conditions — the status is canceled.
Useful sources:
- Law: Tax Code of Georgia, Art. 23¹
- Government Resolution No. 619 of 2020 (PDF).
- Website of the Tax Service of Georgia
Example
SoftDev LLC:
- Registered in Georgia in 2022.
- 100 % of clients are foreign (USA, EU).
- Main activity — SaaS platform.
→ Applies for international status in 2024.
→ Receives: 5 % income tax, 0 % dividends, 5 % payroll tax.
→ Saves tens of thousands of dollars per year on dividends and payroll taxes.
If you run an IT business or outsourcing and want to reduce taxes — the status of an international company in Georgia can become your competitive advantage.
Contact ESPERO experts — we will help you to register a company, collect documents and obtain the status of “International Company” quickly and without mistakes.