Explore Georgian tax incentives for your innovative startup. We help founders compare the available statuses, review funding and payroll plans and prepare the next steps for an application.
Compare the incentive with your growth plans
Georgia’s innovative startup framework can offer tax relief to qualifying businesses developing innovative products, processes or services. We help you review the innovation, investment or GITA funding conditions against the company’s plans and compare the status with other available regimes.
Understand the relief phases
- First three years: salary income-tax relief within the amount set by Government decree.
- Years four to six: 5% salary income tax and 5% profit tax.
- Years seven to ten: 10% salary income tax and 10% profit tax.
Prepare for application and renewal
Initial status lasts one year, with annual renewal and continuing eligibility and funding milestones over a maximum ten-year period. It cannot be held together with International Company or Virtual Zone Person status. We help organise the innovation description, ownership, funding evidence and financial records needed to assess the appropriate status.
Compare the relief by year, not just by its maximum duration
The innovative startup provisions phase the relief over time. Use the company’s expected salary bill, taxable profit and funding needs to model the relevant years. The first period’s salary relief is subject to the amount set by Government decree; the application and financial forecast should use the applicable limit.
| Period | Salary income-tax treatment | Profit-tax treatment and planning point |
|---|---|---|
| Years 1–3 | Relief within the Government-set amount | Apply the relevant company tax provisions and model the approved relief precisely |
| Years 4–6 | 5% | 5% profit tax under the status provisions |
| Years 7–10 | 10% | 10% profit tax under the status provisions |
| Throughout the status | Annual renewal and continuing eligibility | Maximum ten-year framework; maintain the required evidence |
Explain the innovation in business terms
Describe the product, process or service and the problem it solves. Identify the development already completed, the intellectual property, the people doing the work and the commercial plan. Support the description with the project and funding records required for the relevant qualification.
The financial file should explain investment, any qualifying funding, ownership and use of funds. Keep the supporting agreements and bank evidence with the application. At renewal, update the operating and financial facts so the submission describes the business as it exists in that year.
Compare other statuses before changing an existing IT business
Innovative startup status cannot be held at the same time as International Company or Virtual Zone Person status. For an existing business, calculate the effect on salary, profit and distributions and identify the date any previous treatment ends. Compare the same forecast under the relevant provisions, including the work needed to maintain each status.
Give the accounting team the status decision and its effective dates. The ledger, payroll and tax returns should move to the applicable treatment together. Keep annual renewal work in the reporting calendar rather than treating the first approval as the end of the process.
Discuss the next step
Tell us about the product, development activity, funding received and your expected Georgian payroll.
Request a consultationFrequently asked questions
How long does innovative startup status last?
The initial status lasts one year and requires annual renewal. The framework has a maximum combined ten-year period, with continuing eligibility and statutory milestones.
What should be prepared for the application and renewal?
Prepare the innovation description, qualifying funding and investment evidence, ownership records, development activity and financial information required for the relevant conditions. Update those facts for each renewal.
Legal basis: Law of Georgia on Innovations; innovative startup provisions of the Tax Code of Georgia and implementing rules.