Registration form for companies engaged in trade and production in Georgia

Tax benefits for companies engaged in re-export or processing of goods

1. The following types of registration are possible for goods trading and raw material processing businesses under tax preferential conditions:
2. According to the legislation of Georgia, companies engaged in re-export can register (receive the status) as a “special trade company”.
3. And companies engaged in raw material processing should be registered as a “free industrial zone enterprise”.

Enterprises can be represented by representatives of foreign companies registered in Georgia.

Article 241

Taxes, tax benefits:

1. “Special trading company”.

VAT tax -0

Profit tax – 0.

Dividend payment tax -5%.

20% of income on salary rate.

(for services that can be received from a small entrepreneur, a small entrepreneur is taxed at 1%)

Property tax – 1% of the book value of fixed assets.

1. “Free Industrial Zone Enterprise”

VAT tax -0

Profit tax on sold goods – 4%, monthly.

Dividend payment tax -0%.

The employee declares and pays 20% of the salary tax.

(On such services that can be received from a small entrepreneur, a small entrepreneur is taxed at 1%).

Property tax – 0% of the book value of fixed assets

“Special trading company”. An enterprise with the status of a special trading company may carry out its activities and has the right to:

1. a) to re-export foreign goods from the customs warehouse;
2. b) deliver foreign goods to the customs warehouse both for enterprises with the status of a special trading company and those without this status;
3. c) to purchase foreign goods from an enterprise that does not have the status of a special trading company for the purpose of further re-export and/or delivery to the customs warehouse at a customs value not less than the customs value; (Article 24.1 Clause 4)

Resolution No. 453 Resolution No. 493

An enterprise with the status of a special trading company is prohibited from:

1. a) to import goods into Georgia, except for imports intended for the main means of this enterprise;
2. b) to purchase Georgian goods in the territory of Georgia for further delivery;
3. c) provide services to a Georgian enterprise/individual entrepreneur and/or a permanent establishment of a foreign enterprise in Georgia;
4. d) to have a customs warehouse.