Information Technology Zones, virtual zone person tax and regulatory incentives
In forceLaw of Georgia on Information Technology Zones, Law No. 4064-rs, adopted 15 December 2010, Arts. 3-5
Effective 2011-01-01 · Applies to private
A legal person engaged in information-technology activity that is granted virtual zone person status under Article 5 is exempt from profit tax, VAT, and export duty on information technologies it supplies outside Georgia, per Article 3, and under Article 4 is exempt from any special regulations and does not need a licence, permit, or other regulatory document to conduct its activities.
Article 99(1)(p) of the Tax Code of Georgia separately exempts from profit tax the distribution of profit earned from the supply of information technologies outside Georgia developed by a legal entity of a virtual zone, corroborating Article 3's tax benefit at the Tax Code level.
Status is granted by a person the Government of Georgia designates, within 10 working days of an application under Article 5, and neither statute names a data centre, a physical facility, land use, energy-grid interconnection, water use, or air emissions.
Source: Full text of law