IBCCS Tax Integration

Taxation:

• Corporation Tax: 2.5 – 12.5%
• Capital Gains Tax: none*
• VAT: 0 – 19%

Main benefits of the jurisdiction:

• One of the lowest Corporation Tax in European Union
• No Capital Gains Tax on sale of securities
• No Withholding Tax on dividends paid and received
• Large number of Double Tax Treaties signed
• Access to EU directives
• Non-dom regime, residency by investment, naturalisation by investment possible
• Flexible and stable tax and legal system

Types of entities: Private Limited Company, Public Limited Company, General Partnership, Limited Partnership, Partnership Limited by Shares, Trusts, Charitable Foundation, Associations, Clubs

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: no
• Public Registry of Companies: yes

Time to incorporate:  from 2 days. Remote registration possible. Shelf companies available.

Taxation:

• Corporation Tax: 0% (14% or 20% only when profits are distributed)
• Capital Gains Tax: 20% (in form of income tax)
• VAT: 0 – 20%

Main benefits of the jurisdiction:

• Full participation exemption for dividend income for qualifying holdings
• No withholding tax on outbound dividends paid to non-residents
• No exchange control regulations
• No thin capitalization rules
• Access to EU directives
• Large number of Double Tax Treaties

Types of entities: Private limited company, Public limited company, Limited partnership, General partnership, Commercial association, Nonprofit organization, Sole proprietorship

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: Yes
• Public Registry of Companies: Yes

Time to incorporate: Starting form 24 hours

Taxation:

• Corporate Profit Tax – 15%, payable only when the dividend is distributed. Zero tax possible when using Free Zone companies or Virtual Zones Companies.
• Import Tax – 0%, 5% or 12%
• Excise Tax – depends on the listed products
• Property Tax – up to 1%
• Double Tax Treaties Network – very broad, more than 50 DTTs signed
• Tax year – tax calendar year
• Advance Rulings from tax authorities – available
• VAT registration – voluntary, only obligatory if the turnover of activities subject to VAT exceeds GEL 100,000 per annum
• VAT rates – standard rate: 18%
• Social Security TAX – 0%

Main benefits of the jurisdiction:

• Located in a trade strategic area between Asia and Europe
• Ranked as 7th place in the world for ease of doing business.
• Has successfully adopted the DCFTA that results in having eliminated all customs duties for goods originating in Georgia being imported into the EU
• Free trade agreement (FTA) with China is effective which makes Georgia the second European country (after Switzerland) that has FTA with China
• Offers numerous incentives for the development of the business environment.
• One of the most competitive markets in its region
• Offers three industrial zones, created to cater the needs of specific business sectors and they are to be found in Poti, Kutaisi and Tbilisi.

Main tax incentives that Georgia offers are:

• STC licensed Georgian LLC: exemption from tax for trading performed outside Georgia
• IFC licensed Georgian LLC: exemption from tax for international financial services and holding companies selling shares of foreign entities
• VZC licensed Georgian LLC: exemption from tax for providing IT services outside Georgia
• Free Zone Companies: exemption from any corporate tax and withholding tax.
• Public Registry of Ultimate Beneficial Owners: No
• Public Registry of Companies: Yes

Time to incorporate:  24 hours

Taxation:

• Corporation Tax: none or 9% depending on the activity and legal form
• Capital Gains Tax: none
• VAT: 5% (exempt for international B2B sales)
• No WHT on dividends

Main benefits of the jurisdiction:

• Exemption from corporate and capital gains tax for qualifying activities
• Very low VAT rate (if applicable)
• Very low fixed 9% rate of Corporate Income Tax on profits
• Stable and transparent legal system
• No Personal Income Tax
• Stable and well-developed banking system
• One of the most developed trading and service infrastructure in the world

Types of entities: Offshore company, Free Zone company, Designated Zone Company, mainland Limited Liability Company, Private Foundations.

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: none.
• Public Registry of Companies: none.

Time to incorporate: Starting from 3 days

Taxation:

• Corporation Tax: 19% (9% for SME)
• Capital Gains Tax: 19%
• VAT: 23% (reduced rate at 8%, 5% or 0%)

Main benefits of the jurisdiction:

• One of the fastest growing economies in the entire Europe
• Significantly lower labor costs in comparison to other EU countries
• Biggest market in the region of Central and Eastern Europe
• Steadily improving conditions of running business
• Political and economic stability

Types of entities: Limited liability company, Joint stock company, Limited joint stock company, Limited partnership, General partnership, Limited liability partnership, Civil partnership, Sole trader

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: Yes
• Public Registry of Companies: Yes

Time to incorporate: Starting from 3 days

Taxation:

• Corporation Tax: 19%
• Capital Gains Tax: 18-28%
• VAT: 20% (reduced rate at 5% or 0%)

Main benefits of the jurisdiction:

• Political and economic stability
• Strengthening the image of the company
• High level of ease of doing business (8th jurisdiction in the world)
• Low cost of doing business
• Very good reputation

Types of entities: Private company limited by shares, Private company limited by guarantee, Public limited company, Unlimited company, General partnership, Limited liability partnership, Limited partnership, Sole proprietorship, Community interest company, Charitable incorporated organisation

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: Yes
• Public Registry of Companies: Yes

Time to incorporate: starting from 24 hours

Taxation:

• Corporation Tax:  29%.
• Capital Gains Tax: 0%
• VAT: 0 – 21%

Main benefits of the jurisdiction:

• Centrally located
• Concluded tax information exchange agreements with countries including Andorra, the Bahamas, Gibraltar and Liechtenstein.
• No Capital Gains Taxation
• Multicultural environment with a lot of expats
• Reduced withholding tax rates on dividends as well as: interest and royalties apply under the relevant treaties.
• Access to EU directives

Types of entities: limited liability company, unlimited liability company, and sole proprietorship. General and limited partnerships are less common. 

Disclosure rules:

• Public Registry of Ultimate Beneficial Owners: Yes
• Public Registry of Companies: Yes

Time to incorporate:   from 1 week.