IT specialists who plan to start their own business in Georgia can register as small entrepreneurs and enjoy tax benefits. According to lawyer and business consultant Gvantsa Zhorzholiani, IT specialists with an annual taxable turnover exceeding 100,000 GEL can also take advantage of the benefits.
Persons working in an IT career can register as small businesses and continue their activities with the status of small business entities." To do this, they must register as an individual entrepreneur in the state register, submit an application for a small entrepreneur status to the Tax Service .
An IT specialist registered as a small entrepreneur will have to pay 1% of his income once a month. He will be exempt from income tax, as well as VAT if his income does not exceed 100,000 GEL.
These benefits apply to any information service activity, be it software, web development, hosting or anything else.
However, it’s worth mentioning that consulting services cannot be provided to a small entrepreneur. If an IT specialist is engaged in consulting activities, his income will be taxed at the rate of 20%.
Apart from the monthly payment of 1%, IT specialists will also have to pay VAT if their income over the past 12 months exceeds GEL 100,000 . However, here, too, IT specialists can tenjoy benefits - according to Georgian law, they will have to pay 5% instead of 20% income tax if their annual income does not exceed GEL 500 thousand," Gvantsa Zhorzholiani says on the radio station Commersant.
