0179, Tbilisi, Georgia
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In order to further improve the business environment in the country, to strengthen Georgia’s potential as a regional hub, and to increase the interest of multinational international companies, the Government of Georgia allows companies to obtain Special Trading Company status and benefit from corporate profit tax. This status refers to specific activity, which means the import, storage in Georgia and subsequent re-export of goods after that.
Note that it is better to apply and get Special Trading Company status at the start of the new year because the status is given for the current and future calendar years.
It is possible for a foreign enterprise that carries out economic activities in Georgia through a permanent establishment to additionally register a separate permanent establishment in order to be granted the status of a Special Trading Company and to carry out the activities permitted for such an enterprise.
Special Trading Company has the right to:
In addition to the income received from the above activities, Special Trading Company has the right to receive other income, including:
Special Trading Company is prohibited:
Note that in case of purchase of foreign goods by a taxpayer from a Special Trading Company, the cost deductible from the joint annual income by the buyer cannot exceed the customs value of these goods. This restriction does not apply to expenses incurred by the buyer, which are attributed to the value of the asset under the Tax Code of Georgia and are not related to payments to a Special Trading Company.
Violation of the rules of operation by a Special Trading Company shall result in penalties provided by law:
The status of a Special Trading Company shall be revoked for the calendar year indicated by the authorized representative of the enterprise in the application for revocation of the status of a special trading company. In addition, the application must be submitted no later than 5 working days before the start of the relevant year.
Within 10 working days after submitting the application for revocation of the status of a Special Trading Company, the tax authority shall issue an individual administrative-legal act on revocation of the status of a Special Trading Company.
Special Trading company has significant tax benefits, which creates a very attractive business environment for international companies trading in different countries. Due to the fact that Georgia has a good location and is at the crossroads of Europe and Asia and has a free trade agreement with both the EU and China for companies that intend to export their goods in the region, this status allows them to import, store and distribute their goods in the region.
For more information or to get help with obtaining the Special Trading Company status contact us.