What is Virtual Zone Person Status and Why is It So Beneficial? Georgia offers one of the most attractive tax regimes in the region for IT companies through its Virtual Zone Person (VZP) status. This designation grants qualifying tech companies a 0% corporate income tax rate on profits derived from the export of digital services […]
Virtual Zone Person Status in Georgia (0% Corporate Tax Regime) Read More »
We are pleased to announce that Andersen in Georgia is the exclusive contributor for The Legal 500 Country Comparative Guide 2025 – Tax (Georgia). The Guide provides a practical overview of Georgia’s tax laws and regulations, covering key aspects of the Georgian tax system, recent legislative developments, and regulatory updates relevant to both local and
Andersen Georgia Publishes Insights on Georgian Tax Law in The Legal 500 Guide 2025 Read More »
Barter transactions remain a practical way for businesses and individuals to exchange goods or services without relying solely on cash payments. While they may appear simple, barter deals in Georgia carry important tax implications. Under Georgian tax law, a barter transaction is treated as both a sale and a purchase for each party involved. This
Investors purchase shares to earn a return on their investment. They expect regular dividends as profit. For many minority shareholders, dividends are the only income from specific business ventures. Minority shareholders hold little control over corporate decisions. Corporate directors and majority shareholders dominate the dividend process. They prepare annual accounts, call shareholder meetings, and decide
In today’s globalized economy, multinational enterprises often operate across several jurisdictions, engaging in cross-border transactions within their corporate groups. While these arrangements are a natural part of international business, they also create the risk of shifting profits to low-tax jurisdictions. Recognizing these risks, Georgia has developed a comprehensive transfer pricing (TP) framework that closely follows
Significance and Key Principles of Transfer Pricing Read More »
In October 2024, Georgia introduced a landmark change to its transfer pricing framework, one that significantly reshapes the way cross-border financing arrangements are evaluated. With the addition of Article 141 to Order №423 of the Ministry of Finance, the Revenue Service has been granted explicit authority to reclassify certain loans as equity contributions. This change
Debt-to-Equity Reclassification in Georgia: Insights into the Revenue Service’s Approach Read More »
The Labour Code of Georgia (the Labour Code) forbids contractual terms that weaken employee protections and declares them void. Employers must ensure that termination decisions respect equality and non-discrimination. This means providing equal treatment, preventing harassment, offering reasonable accommodation, and carrying the burden of proof in discrimination disputes. Grounds for Termination The Labour Code provides
Lawful Termination of Employment: Key Considerations for Employers in Georgia Read More »
The rise of digital currencies has prompted many countries to update their tax systems. Georgia has become one of the more attractive jurisdictions for crypto investors and blockchain businesses, offering clear rules and several exemptions. The Georgian Tax Code, alongside ministerial rulings, establishes how income from crypto transactions is taxed and under what circumstances exemptions
Taxation of Crypto Assets in Georgia: Rules, VAT Treatment, and VASP Regulation Read More »
Value Added Tax (VAT) plays a key role in Georgia’s tax system, and understanding the rules for registration is essential for businesses and entrepreneurs operating in the country. Businesses can register for VAT under the Tax Code of Georgia in two ways: mandatory registration, where the law requires registration once specific thresholds or conditions apply, and voluntary
Rules for Mandatory and Voluntary VAT Registration in Georgia Read More »
The Law of Georgia on Entrepreneurs in Georgia establishes a clear and modern framework for companies, shareholders, directors, creditors, and other stakeholders. It draws inspiration from European Union directives and aims to bring Georgian corporate law closer to international standards. Modern Rules for Business Operations The Law introduces a more transparent approach to company operations.