Do you reside in Abkhazia or Tskhinvali region and have a desire to launch production or are you already producing certain products? (Don't forget, you are eligible to receive funding from Peace Fund!) Apply to the National Agency of Public Registry and register as an entrepreneur remotely, online. At the Agency you can also register a commercial legal entity (company).
You can also apply online to the Revenue Service to obtain consent for the implementation of economic activities and the status of a special enterprise. This status gives the advantage by exempting you from income, profit and VAT taxes for trade/business activities on both sides of the dividing line.
Don't forget that if you don't possess Georgian citizenship, you need to undergo neutral registration to achieve all the above-mentioned and receive a personal ID number. For this, you should contact the Public Service Development Agency electronically, or any of its territorial units, which will grant you with a neutral personal ID number.
Who can receive the status of a Special Enterprise?
The status of a Special Enterprise can be obtained by a person who already has a special consent for activities in Abkhazia and Tskhinvali regions and implements:
➥ Delivery of goods originating or produced in Abkhazia/Tskhinvali region to other territories of Georgia, as well as export of products from the rest of Georgia. In this case, delivery of excise goods (except for alcoholic beverages and tobacco products) from Abkhazia/Tskhinvali region is prohibited;
➥ Production of goods in Abkhazia/Tskhinvali region for the aforementioned purpose;
➥ Delivery of goods from the rest of Georgia to Abkhazia/Tskhinvali region.
A person with the status of a special enterprise has the right to deliver goods only:
➥ To/From the territory of Abkhazia – to/from the direction of Zugdidi Municipality;
➥ To/From the territory of Tskhinvali region – to/from the direction of Gori Municipality.
What can be considered as products originated or produced in Abkhazia/Tskhinvali region?
Products originated or produced in Abkhazia/Tskhinvali region are:
➥ Minerals extracted from the subsoil, territorial water or seabed of the territory of Abkhazia/Tskhinvali region;
➥ Products of plant origin, grown or collected in the territory of Abkhazia/Tskhinvali region;
➥ Animals born and raised in the territory of Abkhazia/Tskhinvali region;
➥ Products obtained from animals living in the territory of Abkhazia/Tskhinvali region;
➥ Products obtained as a result of hunting and fishing in the territory of Abkhazia/Tskhinvali region;
➥ Waste, scrap and used goods obtained as a result of production operations, collected in the territory of Abkhazia/Tskhinvali region and used only as raw materials for processing;
➥ Goods produced in the territory of Abkhazia/Tskhinvali region from the aforementioned products;
➥ Goods available in the rest of Georgia, which were processed in the territory of Abkhazia/Tskhinvali region in such a quantity that the processed goods changed at least one sign (number) from the first 4 commodity positions of the national commodity nomenclature of foreign economic activity;
➥ If the materials and raw materials used for the production of these goods originate or are produced in the territory of Abkhazia/Tskhinvali region and the value of these materials and raw materials is at least 51% of the value of the finished products.
Tax benefits
Exempted from VAT without the right of deduction - supply of goods originating or produced in the territory of Abkhazia/Tskhinvali region to a person from this territory possessing the status of a special enterprise.
Exempted from VAT with the right of deduction – supply of goods to the territory of Abkhazia/Tskhinvali region by a person possessing a status of a special enterprise.
The following activities are exempted from income and profit tax:
➥ Distribution of income/profits received from the delivery of goods originating or produced in the territory of Abkhazia/Tskhinvali region, from this territory to other territories of Georgia, and/or from the export of products from the rest of the territory of Georgia.
In such cases, delivery of excise goods (except for alcoholic beverages and tobacco products) from Abkhazia/Tskhinvali region is prohibited.
➥Delivery of goods to Abkhazia/Tskhinvali region from the rest of Georgia.
A person with the status of a special enterprise fulfills the obligations of a tax payer (including the function of a tax agent) in accordance with the tax and customs legislation of Georgia.
Granting of the status and fee
Status of a Special Enterprise is granted by the LEPL Revenue Service upon the application of an interested person.
Request for obtaining the status can be submitted in written or electronic form - https://eservices.rs.ge/ServiceRequestNew.aspx?p=708.
Application should include:
➥ Person’s registration data (identification number, first name, last name, address);
➥ Brief description of the activity (including the type of activity and place of implementation);
➥ Name, last name and identification number of persons employed in production (if any);
➥ Requisites of the relevant legal act on the issuance of a special consent for the activity by the person.
Granting the status of a Special Enterprise is free.
The Revenue Service reviews application within 10 working days and takes a decision on granting or refusing to grant the status of a Special Enterprise to a person.
Granting / refusal to grant the status of a Special Enterprise is undertaken by the Order of the Head of the Revenue Service.
A person is considered to be possessing the status of a Special Enterprise from the first day of the month following the month when the Order is issued by the Head of the Revenue Service on granting the status and is valid for the period of the special consent issued for the implementation of the activity.
- Obtaining special consent / prolongation of its validity period
To obtain a special consent or to prolong its validity period, a person applies to the Revenue Service.
Applications can be submitted in written or electronic form - https://eservices.rs.ge/ServiceRequestNew.aspx?p=707.
Application should include:
➥ Name, last name and identification/personal number of the applicant;
➥ Information about the location of the activity;
➥ Address of the applicant;
➥ Detailed information about activities;
➥ Request for obtaining a special consent for the implementation of a specific activity, indicating the period of validity of the approval;
➥ Consent to the fact that he/she agrees to the transfer of his/her personal information, available to the tax and customs authorities, to other State institutions;
➥ Date of application submission;
➥ Applicant's signature;
➥ Application must be annexed with an extract from the register of entrepreneurs and of non-profit (non-commercial) legal entities (if any); in case of a representative authorized person - also a relevant document confirming the representative’s authority.
Consent is initially granted for a period of 1 year and can be prolonged each time upon the application of the interested person, for the period specified in the application.
Person with a special status is prohibited to:
Implement activities different from those indicated in the application submitted for obtaining special consent.
The aforementioned will lead to the annulment of the consent and of the granted status, for which the relevant Order by the Revenue Service will be issued.
Additional information - https://rs.ge/LegalEntityPreferentialTax?cat=4&tab=1
Contact Information - (+99532) 2299299
