If you plan to start a new business, Georgia is one of the best places for startups in the whole world with many tax benefits. Doings business is very simple here, in addition, the country offers the following tax benefits (non-exhaustive list):
0% taxation of individual on foreign source income;
0% taxation of individuals on selling cryptocurrency;
1% taxation of individuals for certain type of incomes up to 500 000 GEL in annum;
5% taxation of individual on renting out or selling residential properties;
Special system of corporate income tax for companies (taxation only in case of dividend distribution, no taxation on reinvested profit);
0% taxation and other benefits for IT companies;
Free industrial zones;
Protection by 56 international tax treaties;
Possibility to obtain a tax residency in Georgia without spending even one day in the country;
And many other benefit.
Considering all above, we strongly suggest you to have in mind Georgia as a new location for your business and if you decide so, we will be glad to use our expertise to assist you in the following:
Company (e.g. LLC) registration in Georgia,
Registration as an individual entrepreneur in Georgia;
Providing a legal address for your business (Individual and/or legal entity);
Opening a bank accounts (business and/or private);
Opening a tax-payer page in a portal of Georgian tax administration;
Obtaining Georgian tax residency certificate;
Obtaining status of “small business” for individuals for 1% taxation;
Obtaining status of “Virtual Zone Person” or “International Company” for 0 or low taxation for IT companies;
One-off tax consultation for setting up the best business structure and lawfully enjoy all possible tax benefits (strongly suggested to avoid future risks and complication/receive more benefits);
Monthly accounting and reporting services;
On-going tax and legal consultation.
Please, note that all above services can also be performed on distance, via Power of Attorney. We are best in what we do. Just send us a request to email@example.com
If the tax administration makes a new tax assessment of your company, you have three ways to proceed: Agree and recognize your new tax liabilities; Apply for the tax agreement (maximum amount you can negotiate on is penalty and interest, principle amount tax is not negotiable); Challenge the assessment, submit the appeal and start dispute process in the system of minster of finance. (Recommended approach, in addition, by choosing this way you don’t lose the opportunity to go back to previous two options later) We will be glad to be your representatives in dispute process within the system of ministry of finance and the court. We will make thorough analysis of all the tax issues under the question, prepare and submit the appeal on your behalf, will be your representatives in the dispute process. Our long experience of litigation from the perspective of both sides of the table will help us provide high quality services. Working experience in a tax administration, as well as in international accounting firms and multinational group helps us easily and deeply analyze all challenged issues, understand strong and weak parts of arguments provided by tax administrations and use all that info for your benefit.
If tax inspection is commenced by the tax administration in your company you will no longer have a right of making adjustments in your tax declarations for the period under the inspection, as a result you might face unavoidable considerable amount of penalties and interests. That’s why it is always wiser to assess your tax risks in advance and decide whether to make changes or leave uncertain issues the way they are. Tax audit which we offer serves exactly the purpose: to let you know all the potential tax risks in advance. We will analyze all your business transactions and potential tax consequences of each of them.
Accountants have too much workload every day to know the tax legislation in depth, follow the legislative changes and always make correct decisions in tax matters. They shall not be required to be tax experts. For minimizing probability of mistakes in tax issues and optimizing the functionality and achievements of the company synergic work of two professionals – accountants and tax auditors is the best way. The latter will offer consultations periodically on the tax issues. The goal of synergy work-checking and ensuring the correctness of the tax policy of a company on a transaction level; the result-minimization of tax risks/potential penalties. We guarantee high-quality tax consultations based on our in-depth knowledge of Georgian and international tax legislation as well as our knowledge of approaches established by Georgian tax administration. Our team members have worked as tax inspectors in the past and they know the established approaches and the legislation well.
Our highly-qualified and continuously self-developing professional will provide you with the evaluation service of movable and immovable property according to internationally recognized standards.
Tax Treaty Application
Georgia has signed double taxation agreement with 56 countries so far meaning that you can benefit from such treaties and pay lass withholding tax in Georgia when you have business transactions with residents of above-mentioned 56 states. However, please be aware that some mistakes in application of the tax treaties are expectable if you do not enjoy high competence in this field, as a result you might face additional tax risks and penalties. We will evaluate correctness of application tax treaties by you; we will assess the risks, also potential benefits which you could enjoy but have not done yet. Most importantly, we will continue providing you consultations to prevent any mistakes in the future. Founding partner of TPsolution has made valuable contribution in establishing approached of Georgian tax administration with regard to tax treaty application when he was in the role of tax inspector in Georgia. After that he farther deepened his knowledge during LLM program of international tax law in Austria, followed by working experience in the field in Austria and Germany. So, you are in a good hand.
Transfer Pricing Services
If you represent an aaffiliate of a foreign company in Georgia which conducts transactions with the parent or other associated non-resident companies or if your company has transactions with tax-heaven based persons, the Georgian tax law obliges you to prepare special Transfer Pricing documentation to demonstrate that the prices on above-mentioned transactions were consistent with the market principles. With our education and work experience obtained in Georgia and EU countries we are specialized in this field. We will assist you in preparation of such documentation for your company with high quality and assist you in setting the correct transfer pricing policy. For the beginning just drop us a message and we will help you assess potential tax risks you might face.
Representation During the Tax Inspections
If a tax administration sends you a notice on commence of tax inspection in your company, there is an extremely high probability that they will start tax inspection in between 10-30 days. You can use this time to communicate with a tax professional who will be the representative of your company in the tax administration during the tax inspection process. It is crucially important a highly qualified tax professional to be in charge of communication with tax inspectors on behalf of your company during the tax inspection. The qualified representative will effectively defend your positions and minimize the possibility of tax assessments.
Attribution Profit to Permanent Establishments
If you are affiliate/permanent establishment of a foreign enterprise in Georgia, you need to consider specific tax rules for correctly attributing profit to your permanent establishment and for other tax issues. We will be glad to apply our international experience and education to help you solve this issue with high competence.