Two Years of Accomplishments

As February rolled in, we celebrate a significant milestone for the Association of Georgian Virtual Zone Persons, which marks its second year of establishment. Over the past two years, the Association has played a pivotal role in championing the interests of Virtual Zone companies, fostering a conducive business environment, advocating for transparent legislation in the realm of information technology, demonstrating unwavering dedication to its mission, and achieving tangible results for its members.

Let us look at the results and the steps taken by the association:

Advocating for Clear Regulation and Legislative Improvement

A cornerstone of the Association’s mission has been advocating for regulatory clarity and legislative improvements for Virtual Zone companies. Through strategic engagements with state agencies and legislative bodies, the Association has championed initiatives aimed at creating a conducive business environment for IT companies. Thematic meetings, legislative proposals, and ongoing dialogue with policymakers have been instrumental in driving positive changes in taxation and regulatory frameworks. The Association is still in the process of achieving the final result.

With the persistent appeals of the Association to the state bodies, it was possible to change the methodological references, which, due to their inaccuracies, allowed interpretation of the law. This clarification resulted in the removal or reduction of fines not only for Association members, but also for companies with Virtual Zone status as a whole.

Empowering Virtual Zone Entities

One of the Association’s proudest achievements has been its unwavering support for Virtual Zone entities facing tax disputes and regulatory challenges. Through concerted efforts and collaboration with legal and audit partners, the Association has successfully navigated complex tax landscapes, resulting in the cancellation or reduction of fines for numerous member companies. This support not only alleviates financial burdens but also reinforces trust and confidence within the business community.

Building Strategic Partnerships

The Association’s commitment to international best practices and standards is underscored by its strategic partnerships with organizations such as the Delegation of the European Union to Georgia, the European Business Association of Georgia, the European Economic Cooperation Platform and others. These collaborations have not only amplified the Association’s advocacy efforts but have also facilitated access to invaluable resources and expertise.

Media Engagement and Public Awareness

The Association has effectively attracted media platforms to raise awareness about the challenges and opportunities facing Virtual Zone companies. Through appearances on television programs and participation in business forums, the Association has garnered widespread attention to issues related to taxation, regulatory compliance, and the rights of foreign investors. Media coverage has served as a catalyst for gaining support from European organizations, Business Ombudsman of Georgia, and amplifying the Association’s advocacy efforts on both local and international platforms.

Looking Ahead: Strategic Initiatives for 2024

As the Association embarks on its third year, it remains steadfast in its commitment to advancing the interests of Virtual Zone companies and driving positive changes and initiatives in the IT industry. Strategic initiatives for 2024 include further legislative advocacy, continued dialogue with government agencies, and sustained efforts to promote transparency and accountability. By charting a course guided by professionalism, collaboration, and dedication, the Association is poised to continue its impactful journey of supporting the growth and development of Georgia’s IT sector.

It is necessary to note that the Parliament has expressed its willingness to cooperate with the Association to take into account its opinion on this issue. The Association is currently working on a legislative initiative, and this is the most important goal – because no methodological references give a guarantee that tomorrow or later, there will not be an unwanted change or addition to the Virtual Zone Persons. Only a clear law can guarantee what the association is trying to achieve.

The Association is always in touch with its members and VZPs, in order not to leave any nuances of the case unconsidered and is ready to receive feedback and take into account all problems, and process them in the preparation of the initiative.

The Association of Georgian Virtual Zone Persons has made significant strides in its first two years, demonstrating unwavering dedication to its mission and achieving tangible results for its members. As we commemorate this milestone, let us celebrate the collective achievements and reaffirm our commitment to advancing the interests of Virtual Zone companies in Georgia and beyond.