The Association received a response from the Revenue Service

The retrospective fining of businesses with the status of the Virtual Zone, as is well known, was caused by an imprecise and interpretable regulation. The law is still so ambiguous that the state, under pressure from a mass of dissatisfied companies, had to publish the first progressively and then the second methodology, which raised a lot of questions. 

The Association of Georgian Virtual Zone Persons was able to engage with the Revenue Service, provide them with the questions requiring additional clarification that they had developed based on their member processes, and gain more clarity on these issues.

The Revenue Service in its letter gave some clarifications of the letter on issues related to the activities of companies with the status of Virtual Zone Persons. The Deputy Head of the Service, Levan Tsitelashvili also noted that a revised draft of the methodical reference on the taxation of profits of the Virtual Zone Persons has been prepared and is undergoing further legal procedures.

Inconsistent and improper steps put the Revenue Service in a self-righteousness mode. The response is available in both Georgian and English.

Although additional clarification and communication with businesses are important, the main goal and priority is to clarify the law, and the Association is actively working with the Parliament of Georgia in this regard.

The Association continues working to improve legislation and regulations and expects to collaborate with government bodies in the future.