The Association continues to hold meetings with state structures

On July 26 of this year, Shorena Kopaleishvili, chairman of the Association of Georgian Virtual Zone Persons, met with representatives of the Ministry of Finance and Revenue Service of Georgia. 

The meeting was attended by representatives of the Department of Tax and Customs Policy. as well as the heads of the Departments of Tax and Customs Methodology.

Mr. Davit Papiashvili (managing partner of the international network auditing company Kreston Georgia-one of the most qualified experts in the tax legislation of Georgia) also took part in the meeting on behalf of the Association.

Shorena Kopaleishvili spoke out once more about the situation that companies with virtual zone status are in. Specific arguments and justifications were presented based on the legitimate interests of the business, which confirm the non-uniformity of the law, the absence of specific clear criteria, contradictory decisions, the actions of the tax authorities, and the principled position of the business, etc.

The representatives of the profile agency, in turn, spoke about the main goals of the adoption of the law and their position in the current situation. As it turned out, not a single question, to which the business has not received concrete answers for several months, is still being processed (for example, making decisions based on methodical reference and the legality of its unauthorized use, determining the salary by market value, it is not yet clarified how much of the product should be created in Georgia or in general, what part of the cost (20%, 40%, 60%, 80% or how much) must be incurred in Georgia for it to be considered as produced in Georgia). The agency expressed its desire to cooperate with the Association of Georgian Virtual Zone Persons in order to provide conclusions regarding the issues on which a clear position has not been established at this stage. The Association expressed its willingness to participate in the processes.

The chairman of the Association was interested in the extent to which mass fining of companies is justified in light of the fact that there is no clear and uniform approach, vision, or position on several certain issues.

The Association in principle defends its position regarding the issue of exempting companies from accrued taxes and sanctions and also considers it crucial to clarify the legislation, as was once again underlined during the meeting.

Despite the different positions of the state structures, especially in the part of fines accrued for the past period, the Association of Georgian Virtual Zone Persons is ready to continue negotiations and meetings with other state agencies because the truth is on the side of the affected companies and the action must continue.