---
title: "Virtual Zone and Crypto — the Real Limits of the Tax Exemption"
url: "https://legal.ge/en/service/technology-and-digital-law-en/virtual-zone-and-crypto-the-real-limits-of-the-tax-exemption-en"
field: "Technology & Digital Law"
description: "Virtual zone and crypto in Georgia: the exact Article 99 exemption conditions, VAT treatment and the 5 percent alternative. Legal.ge."
updated: "2026-10-15"
publisher: "legal.ge"
---

# Virtual Zone and Crypto — the Real Limits of the Tax Exemption

> Source: legal.ge, https://legal.ge/en/service/technology-and-digital-law-en/virtual-zone-and-crypto-the-real-limits-of-the-tax-exemption-en

## Virtual Zone Status — Who Qualifies and How

The Tax Code defines a virtual zone person as a legal entity that carries out information technology activity and has been granted the respective status. Information technology, under the Code, means the study, support, development, design, production and implementation of computer information systems, as a result of which software products are obtained. These two definitions together draw the boundary: the status helps a crypto business only where the company actually creates and supplies a software product, not where it merely trades cryptocurrency.

A virtual zone person is an enterprise: the Code treats as an enterprise legal entities created under Georgian legislation, foreign formations and their permanent establishments, and associations — forms carrying out economic activity or created for that purpose. The procedure for granting the status is set by other normative acts, while the tax effect is defined precisely by Article 99 of the Code.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/technology-and-digital-law-en/virtual-zone-and-crypto-the-real-limits-of-the-tax-exemption-en

### Who is a virtual zone person?

A legal entity carrying out information technology activity and granted the respective status.

### What does the profit tax exemption cover?

Profit (distribution of profit) from the supply outside Georgia of information technologies created by the virtual zone legal entity.

### Is a crypto exchange subject to VAT?

Cryptographic currency is not goods and the transfer of ownership over it is not a service, so an exchange as such falls outside those objects.

### What is the international company rate?

Profit tax — 5 percent; employment income is also taxed at 5 percent; dividends are not taxed at source.