Tax Exemption Applications is a specialized legal service helping businesses and individuals avail themselves of benefits and special regimes provided by Georgian tax legislation. Georgia offers an attractive tax environment for certain sectors (IT, manufacturing, agriculture), but obtaining these benefits requires navigating complex bureaucratic procedures and strictly substantiating compliance with criteria. An incorrectly filled application or lack of documentation can be grounds for refusal of status.
This service involves not only the formal filing of the application but also a preliminary analysis of the client's business model to determine how well it meets legal requirements. For instance, obtaining "Virtual Zone Person" or "International Company" status requires proving that services are provided outside Georgia or the activity falls within permitted sectors. Lawyer assistance ensures the process runs smoothly and minimizes tax risks.
What This Service Covers
The service includes full legal support in the process of obtaining various tax benefits:
- Eligibility Analysis: Examining business activities and determining whether they qualify for a specific tax benefit.
- Obtaining Special Statuses: Preparing applications for "Small Business", "Micro Business", "Virtual Zone Person", "International Company", or "Special Trading Company" status.
- VAT Exemption: Applications for exemption from VAT with or without the right to deduct (e.g., medical, educational activities).
- Tax Agreements: Preparing applications for the reduction or write-off of tax arrears.
- Documentation Preparation: Legal vetting of all necessary supporting documents (contracts, charter, business plan).
- Communication with Revenue Service: Answering questions and submitting additional information during the review process.
Common Scenarios
This service is critical in the following cases:
- Establishing an IT Company: A foreign tech company enters Georgia and wants to benefit from 5% income/profit tax (International Company status).
- Individual Activity: An individual entrepreneur who wants to be taxed at a 1% rate (Small Business).
- Charitable Activity: An organization requests exemption from profit tax regarding grants.
- Import: Requesting VAT exemption when importing fixed assets necessary for production.
Georgian Legislation
Granting tax benefits is regulated by:
- Tax Code of Georgia: Defines types of benefits and conditions.
- Government of Georgia Decree on International Company Status: Sets criteria for IT and maritime sectors.
- Orders of the Minister of Finance: Regulate rules for administering special taxation regimes.
Process
Working with a Legal.ge specialist starts with a consultation. The lawyer checks your compliance with the criteria. Then the application is prepared electronically (on RS.ge) or physically. The lawyer monitors the review process, which, depending on the type of status, can last from 10 days to 3 months.
Why Legal.ge
Incorrectly filling out a tax exemption application can lead not only to refusal but also to provoking a tax audit in the future. Legal.ge gives you access to experts who know exactly how an application should be presented to achieve success. Save time and get the tax benefits you deserve with the help of professionals.
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