Another meeting with the representatives of the financial agencies of the state

Another meeting was held a few days ago between the Association of Georgian Virtual Zone Persons, the European Business Association and representatives from the state’s financial authorities. 

The following issues were discussed at the meeting:

• Review of the past period (2021-2022), including the remaining fines.

• The parties also discussed the remaining challenges with regard to taxation approaches, including ambiguities arising from the third methodological reference.

The aforementioned issue is critical for the Association’s members in order for their businesses to operate properly in the market and benefit from it. Shorena Kopaleishvili asked specific questions, including:

• Is it necessary for the creation of information technology by a Virtual Zone Person to be carried out directly by a person employed in the relevant profile category (IT-developer) hired in Georgia in order to benefit from tax relief? In such a case, is it necessary for this employee to meet the conditions set by Article 34, Part 2 of the Civil Code?

• What percentage of the product must be created in Georgia or what portion of the total cost must be incurred in Georgia to be considered substantially created directly by the employee(s) and/or resident founder(s)?

• The procedural aspect of renewing existing disputes or proceedings, among other things.

Shorena Kopaleishvili, the chairman of the Association, received oral explanations; however, she requested a written response to this and other questions, which she expects from the agency in the near future.

The main topic of the meeting was the necessity and significance of clarifying the law. Shorena Kopaleishvili informed agency representatives once more that the Association, in collaboration with its partners, is already working on an official initiative document, which will be presented to the parliament for consideration in a few weeks. In this process, the chairman of the Association hopes for the cooperation of all relevant state agencies.

VZP Association  would like to thank the European Business Association (EBA) once again for their assistance and for sharing our and our members’ desire to conduct business on a European standard.