- September 1, 2023
- Posted by: fsgroupg
- Category: Uncategorized
Registration form for companies engaged in trade and production
Tax benefits for companies engaged in re-export or processing of goods
- The following types of registration are possible for goods trading and raw material processing businesses under tax preferential conditions:
- According to the legislation of Georgia, companies engaged in re-export can register (receive the status) as a “special trade company”.
- 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.
Taxes, tax benefits:
- “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.
- “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:
- a) to re-export foreign goods from the customs warehouse;
- b) deliver foreign goods to the customs warehouse both for enterprises with the status of a special trading company and those without this status;
- 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:
- a) to import goods into Georgia, except for imports intended for the main means of this enterprise;
- b) to purchase Georgian goods in the territory of Georgia for further delivery;
- c) provide services to a Georgian enterprise/individual entrepreneur and/or a permanent establishment of a foreign enterprise in Georgia;
- d) to have a customs warehouse.