Is this relevant to your company?
Georgian legal persons creating software or qualifying IT for foreign customers.
- IT created by the Georgian entity
- foreign-market supply
- 0% qualifying export profit
- 20% salary and 5% dividend tax
- VAT, mixed revenue and cost allocation
What the company or status is designed to do
Virtual Zone treatment can exempt profit from qualifying IT created in Georgia and supplied outside Georgia. The official summary pairs this with 20% ordinary salary income tax, 5% dividend tax and 0% VAT treatment for qualifying export; it is not a blanket zero-tax label for every receipt.
A special status is useful only when the company’s day-to-day activity and records meet its conditions. We compare the proposed status with an ordinary Georgian LLC before recommending an application.
The exemption follows qualifying IT created in Georgia
Virtual Zone Person status is for a Georgian legal person carrying out qualifying IT activity. The favourable profit-tax treatment concerns qualifying IT created in Georgia and supplied outside Georgia; it is not a blanket exemption for every receipt of the company.
- 0% profit tax on supported qualifying exported IT profit.
- 20% ordinary salary income tax and 5% dividend tax remain relevant.
- The official programme presents 0% VAT treatment for qualifying export; the legal place-of-supply and transaction facts must still be checked.
- Document who creates the software or IT product in Georgia.
- Separate exported qualifying activity from Georgian-market or non-qualifying services.
Status approval is not the same as proving each tax-period exemption
The official programme indicates electronic application to the Financial-Analytical Service, a decision within 10 working days and an indefinite status. For each reporting period, the company still needs evidence that the income claimed under the exemption comes from qualifying IT created in Georgia and supplied outside Georgia.
- Keep the status certificate and legal-person records.
- Maintain personnel/contractor, technical, IP and creation-location evidence.
- Link exported invoices and customer contracts to the qualifying product or service.
- Allocate expenses where Georgian and foreign or qualifying and non-qualifying revenue coexist.
Consulting, reselling and local-market income need their own analysis
A company may hold the status while also generating income that does not qualify for the export-profit exemption. The accounting result should not apply a single zero-rate assumption across the entire business.
- Identify what the Georgian company actually creates.
- Separate licence, SaaS, implementation, support and general consulting revenue.
- Model local supplies, salary, dividends and VAT independently.
- Reassess substance and cost allocation when the delivery team changes.
What to send us first
You do not need to draft a charter, status application or legal memorandum yourself. Send the business facts and existing evidence; we prepare the legal and filing documents within the agreed scope.
Send us first
- Founder, shareholder and director passport details
- Existing Georgian company ID or foreign group documents
- Plain-language product, service and client-market description
- Approximate turnover, payroll and team information
- Any funding, IP, R&D, tax or prior-status evidence
We prepare or coordinate
- Compare an ordinary LLC with the realistic special-status options
- Prepare incorporation, governance or status-application documents
- Coordinate the tax, accounting, audit and translation work
- Manage filing, follow-up and post-approval requirements
Obtained or confirmed later
- Updated registry and tax certificates
- Audited or assurance reports where the status requires them
- GITA, Revenue Service or Government decisions
- Bank and operating records needed after registration
How the work usually proceeds
The exact order depends on the service and your documents. We confirm the steps and responsibilities before professional work begins.
- 01
model the activity and transaction flow
- 02
compare ordinary and special-status treatment
- 03
register the entity and tax accounts
- 04
prepare the status application and supporting file where applicable
- 05
maintain activity, substance, allocation and reporting evidence
How this may look in a real case
A software exporter with Georgian developers separately allocates product-development revenue and consulting so only the supported qualifying exported IT profit uses the exemption.
What can slow the process down
We check these points at the beginning and flag gaps before filing, so you can correct them while there is still time.
- A special status is selected for its headline rate before the actual activity and history are tested.
- The company cannot produce the required personnel, R&D, funding, IP or substance evidence.
- Routine and qualifying income or expenditure are not separated in the accounts.
- Banking, payroll, VAT and foreign-worker requirements are left until after registration.
A clear recommendation and a managed Georgian process
We compare the ordinary company and special-status options, prepare the agreed structure and coordinate the evidence and filing work.
ITResidency.ge is operated by ASSIO LEX & ASSOCIATES LLC, the Georgian legal and business-services provider for the engagement.
- Company and status eligibility review
- Formation or corporate changes
- Tax, audit and evidence coordination
- Application and post-approval compliance
Frequently asked questions
Can a foreign-owned company use Virtual Zone Person Status?
Foreign ownership is not automatically disqualifying, but every special status has its own activity, history, substance, finance and evidence conditions. The Georgian company’s real operations must satisfy them.
Can a newly incorporated company qualify immediately?
It depends on the status. Some routes require qualifying history, funding, previous-financial-year expenditure or an established foreign group. Company formation alone does not prove special-status eligibility.
Does the company status give shareholders or directors residence rights?
No. Company and tax status are separate from personal residence and work rights. Each foreign director, shareholder and employee needs an individual assessment.
What should we send for a status assessment?
Send the company extract, ownership and group structure, business and product description, client countries, contracts, approximate turnover, employee information, tax status and any status-specific funding, R&D or IP evidence.
Can ITResidency.ge prepare the company and status application?
Yes. We can compare the ordinary LLC and special-status options, form or update the company, prepare the evidence plan, coordinate accountants or auditors and manage the agreed application and follow-up.
