Another meeting of the Association with representatives of the Ministry of Finance of Georgia and RS

Another meeting was held between the Association of Georgian Virtual Zone Persons and the representatives of the Ministry of Finance of Georgia and the Revenue Service, where they talked about the problems of the companies with Virtual Zone status raised by the Association, which are related to taxation. The meeting was attended by Levan Tsitelashvili (Deputy Head of Service), Nino Podiashvili (Head of Dispute Department), Zaza Tabagari (Head of Analytical Department), Roman Bugadze (Head of Department of Tax and Customs Methodology) and representatives of legal, audit, and other departments.

Attendees at the meeting considered the possibility of a solution to this problem in three directions: 

1. Refinement of the law; 

2. Setting clear criteria; 

3. Exemption from retrospective profit and income taxes and penalties.

According to the Association, this business in Georgia is under huge financial pressure and a crisis. Investors are leaving the country, and the main problems are occurring directly in legislation. The Ministry of Finance agreed that clear IT criteria have not been established until 2022 in Georgia and is ready to cooperate with the Association in this direction to formulate clear and understandable criteria for IT companies. 

First of all, it is necessary to find the legislative gaps, eliminate them, and only after that tighten the existing system of taxation for Virtual Zone companies. Without all this, the legislation will remain ambiguous, and therefore the dispute will continue. In addition, the Ministry of Finance and the Revenue Service have expressed their readiness to support the companies in relation to a number of issues that will help the Association to solve the existing problems.

During the meeting, John Braeckeveldt, a representative of the European Business Association, emphasized that it is in the interests of Georgia that the country’s businesses operate according to European standards.

In the 21st century, when the whole world begins to move to the virtual world, it is necessary for countries to express their willingness to develop in a similar way in order to operate businesses globally and position them in the right direction.

The Association is constantly in action, holding meetings with the media and state structures and carrying out some important activities for development. If you are interested in the outcomes and results of Association processes and negotiations with Governmental bodies, follow, join, and support us. Together we can work better.