IT technology is a fascinating industry with numerous streams, beginning with the most recent trends. The information and communication industry is not only one of the fastest growing industries, but it also directly employs millions of people and is critical for innovation and development.
It is important to note that the government of Georgia also clearly believes that the level of innovation and technological sophistication should increase in the country. ICT sector development is regarded as one of the cornerstones of Georgia’s social and economic development. Its efficient integration into the global economy is of great importance.
Finding a developing country in which to start a business is not an easy task. The declared policy of the country is working tirelessly to create itself as a hub for information and communication technology. In recent years, Georgia has been among the top performers regarding critical elements of the business climate. These factors were frequently the deciding factors for investing or doing business in Georgia’s market.
Today’s FDI is high, according to state structures. However, we must note that this is not an indicator of a good and right relationship between the state agencies and businesses, but that the pandemic has ended, and this growth is related to the end of the pandemic. This growth is only relative and temporary, and it is logical that this indicator has increased compared to previous years.
In 2011, liberal amendments were made to the tax code in order to develop IT technologies and attract investors in Georgia, and tax privileges were imposed on companies with the status of Virtual Zone Persons, but from 2021, the Audit Department of the Revenue Service imposed profit tax and fines of 50% of the amount payable on companies with similar status retrospectively, starting in 2018, and the motive was that the companies could not confirm the fact of production in Georgia. Many companies have begun to leave Georgia.
Along with the promotion of this IT industry, the government must first deal with the existing problem, which led to the outflow of existing investors and the impossibility of attracting new ones. To make the law clear without the possibility of interpretation is unfortunately used dishonestly by tax authorities.
