The economic landscape globally is fraught with challenges, from rising tax rates to unpredictable market swings. In such a climate, Georgia emerges as a promising avenue for business growth and investment - Georgia has maintained a favorable environment for business development, thanks to its strategic location and progressive policies. What Does This Mean for You and Your Business? If you're an investor or a business owner, Georgia offers a unique blend of opportunities that can be leveraged for both short-term gains and long-term stability: Tax Incentives:  Georgia's tax regime is designed to attract and retain investors ) Estonian Model ). With one of the lowest tax rates in Europe, businesses can benefit significantly, which can improve profitability and ease of operations. Strategic Location:  Positioned at the crossroads of Europe and Asia, Georgia offers unmatched access to key markets, making it an ideal hub for logistics and trade. With free trade agreements and a relatively favorable tax environment, Georgia ensures competitive advantages for businesses. While geographically closer to Asia, Georgia maintains strong ties with Europe, with only a two-hour time difference from the Central European Time zone. Regulatory Ease:  Ranked highly for ease of doing business, Georgia ensures that starting and operating your business is as straightforward as possible, minimizing bureaucratic hurdles. Cost efficiency: low taxation is not the only reason to relocate or establish but relatively low costs for administration or human resources as well. Navigating the Challenges with IBCCS Georgia While the advantages are clear, navigating a new economic terrain can be daunting. This is where IBCCS Georgia steps in. Specializing in company formation, legal and tax advisory, and comprehensive support services, IBCCS Georgia can help bridge the gap between potential challenges and successful market entry. Expert Guidance:  From understanding the local business climate to implementing best practices, IBCCS TAX provides tailored advice to align with your business goals. Comprehensive Support:  Whether it’s legal compliance, financial planning, or market analysis, IBCCS TAX ensures that all your bases are covered, allowing you to focus on growing your business. Looking Ahead: Is Georgia Right for You? With its dynamic economy and investor-friendly policies, Georgia is more than just a safe harbor during economic storms - it is a launchpad for growth and innovation. However, making the most of what Georgia has to offer requires careful planning and local expertise. Interested in exploring business opportunities in Georgia? Contact IBCCS TAX Georgia today to find out how we can help turn your business aspirations into reality. Stay informed, make strategic decisions, and let us guide you through every step of the way.

Batumi, known for its picturesque coastline and bustling tourism sector, is quickly becoming a focal point for international business in Georgia. This transformation is supported by the city’s strategic location, which serves as a gateway to the Black Sea and beyond. Unique Business Opportunities in Batumi Investors and entrepreneurs can tap into diverse sectors such as hospitality, real estate, logistics, and related supportive services, thanks to Batumi's growing infrastructure and government incentives aimed at boosting economic growth. The development of Batumi's port and enhancements in transportation links further bolster its appeal as a commercial hub. Major Companies and Investment Projects in Batumi Several key players are making significant impacts in Batumi's real estate and development sectors: Batumi has become a hotbed for real estate development, attracting both local and international investors. The city’s growth is bolstered by its appeal as a tourist destination, strategic location, and favorable investment climate, which have together prompted significant developments in both residential and commercial properties.Batumi, with its incredible tourist attractions, has turned into a hub for travelers, digital nomads, and remote workers. How IBCCS Georgia Facilitates Business in Batumi IBCCS Georgia provides crucial support for businesses looking to relocate, establish or expand in Batumi. Services include but are not limited to: Relocation Related Services: Moving to Georgia? We got you! We'll help you plan and structure your corporate or personal relocation, explain the tax and legal benefits and opportunities, and support you through the whole process. Market Entry Strategy : Tailoring approaches to align with Batumi’s unique business landscape. Regulatory and Legal Assistance : Ensuring compliance with local laws and regulations, vital for smooth business operations. Investment and Financial Planning : Guiding businesses on optimal investment strategies and financial planning to maximize ROI. Ongoing Service:  We offer administrative assistance, and ongoing accounting and legal services that comply with Georgian regulations to help you with your business needs. Advantages of Investing in Batumi Beyond strategic benefits, Batumi offers a vibrant lifestyle and rich cultural experiences all year long, making it an attractive place for expats and local employees alike. The city’s development plans promise sustained growth, inviting more business activities and opportunities. Batumi as Your Next Business Destination With its strategic position, pro-business environment, and ongoing development, Batumi stands out as a promising location for both new and established businesses. Investing in Batumi means not just entering a new market but being part of a dynamic and evolving economic landscape. Are you considering relocation or expanding your business to the Georgian coast? Reach out to IBCCS Georgia to navigate Batumi’s business environment effectively. Discover how we can help turn Batumi’s potential into your success.

Georgia may not be the first country you think of when it comes to innovative technology. However, this country is making a name for itself as a rising tech hub, thanks in large part to its international company (IC) status. With a lively startup scene, tax incentives, and a strategic location at the crossroads of Europe and Asia, Georgia is becoming a top priority destination for global tech companies. Let's take a closer look at how IC status is helping to transform Georgia into a tech powerhouse. 1. Business-Friendly Environment: A Tech Company's Dream When it comes to doing business, Georgia does everything possible for tech companies. Here's why it stands out from the competition: Major tax savings: Thanks to IC status, companies get a corporate tax rate as low as 5%, reduced taxes on employees, and exemptions from dividend and estate taxes. This makes Georgia a top choice for technology companies looking to increase profits and reduce costs. Simple rules: IC status means a simpler regulatory framework.This streamlined process makes starting and running a technology business in Georgia simple and cost-effective. 2. Increase in foreign investment and high-skilled jobs Georgia is becoming a magnet for foreign technology investment, and here's why: Attracting Global T echnology Companies: Attractive tax incentives and eased regulations are attracting international companies to Georgia, which helps attract valuable foreign investment and grow the local economy. Skilled Job Creation: As global technology giants open their businesses, Georgia's workforce is growing to meet the needs of international digital and innovation companies . High-paying and skilled jobs are being created, which is a win-win for both businesses and local professionals. 3. Promoting innovation and technology development IP status helps creating an ecosystem in which innovation is allowed to flourish: Encouraging R&D and growth: Lower taxes and simplified regulation allow companies to focus more on research and development (R&D). This not only helps in the creation of new technologies but also builds an innovative technology ecosystem within the country. Creating technology hubs and clusters: Georgia is developing technology clusters - communities of startups and digital companies that collaborate, share knowledge and collectively boost growth. These clusters have further positioned Georgia as a technology hub in the region. 4. A strategic crossroads for technology markets Georgia's location is a game changer for digital and innovation  businesses: Gateway to Europe and Asia: Located at the crossroads of Europe and Asia, Georgia provides easy access to both markets. This strategic location is great for international companies looking to grow their reach and connect to a broad range of markets. Regional Influence Expansion: As more digital companies open regional offices in Georgia, the state's role as a technology leader in the region continues to grow. 5. Strong growth potential for start-ups and infrastructure development The benefits of IC status apply not only to large corporations: Support for startups and scalable enterprises: A business-friendly environment and tax incentives make Georgia an ideal location for startups and scalable technology companies. This support creates a dynamic and diverse ecosystem in which new businesses can grow and succeed. Evolvi ng infrastructure:  As demand from tech companies grows, so does the infrastructure - better internet connectivity, co-working spaces and office space. These changes make Georgia's technology portfolio even stronger. An overview of Georgia's growing tech industry scene The fact that Georgia is an emerging technology center is demonstrated by the global technology companies that make it their base. Here are some well-known names: Wix.com : A leading web development platform centered in Tbilisi. Couchbase: A NoSQL database development company using Georgia's skilled labor force. DataArt and EPAM Systems: Global consulting companies expanding their delivery centers in Tbilisi. AstraZeneca: The pharmaceutical giant opened a technology center in the country. Viber and Turing: Both companies use Georgia's techno-ecosystem for communications and software development. These global players choose Georgia not only because of its tax incentives, but also because of the growing reputation of its technology ecosystem and talented workforce. Ready to start a business in Georgia?  Are you looking to grow you r  business or develop a new market? Georgia offers unique opportunities due to its tech-friendly environment, competitive tax rates, and skilled workforce. Whether you're a startup, scaling or an already established company, the opportunities are huge. Get in touch with our team of experts for personalized guidance and first class support! Simply leave a comment below or send us a direct message and we'll be sure to get back to you. Alternatively, you can email us at hellogeorgia@ibccs.tax . We look forward to helping you on your journey through Georgia's thriving tech industry! The future of yo ur   b usiness starts here - let's make it happen!

We’re honored to be featured in Entrepreneur Georgia! Here’s the English version—enjoy the read! " Ibccs.tax Georgia" has been helping Georgian and foreign investors discover the business potential of Georgia and develop their activities in our country for 6 years. The company is the Georgian representative office of the international IBCCS Tax, which will celebrate its 10th anniversary in 2024. " Ibccs.tax Georgia" and the international group of which the company is a member are a constantly growing and development-oriented team, for which customer satisfaction is not only a goal, but also a fundamental value. The co-founder and regional director of the company's Georgian office is Irakli Arjevanidze, an experienced manager in marketing and communications. He met Cesar Zieniuk, the founder of the international Ibccs.tax , while still studying for his master's degree in Cyprus, where he studied with a state scholarship and funding from the same country. How the ibccs.tax regional office was established in Georgia, who is its director, and what is the company's policy towards both employees and customers - Entrepreneur Georgia  spoke to Irakli Arjevanidze about these and other issues. First of all, tell us about yourself - what field of education did you receive and how did you end up at ibccs.tax Georgia? After studying at several schools in Tbilisi, I entered Tbilisi State University, Faculty of Commerce and Marketing, and completed my bachelor's degree there. In 2012, within the framework of a grant from the Cypriot government, I received a scholarship to study at the European University of Cyprus, where I completed a full master's degree course in a year and a half and defended my master's thesis. It was in Cyprus that I became friends with my current partner, Cesari Zieniuk, with whom I shared a dormitory room. After completing my master's degree, I had to go on a 5-month internship in the German city of Regensburg. After returning to Georgia, I worked at the microfinance organization "Credo", and after its transformation into a bank, at "Credo Bank". It was after 7 years of work at the bank that I decided to start a new business. In 2018, in Tbilisi, together with Cesar, who already had a company based in Cyprus, we founded " ibccs.tax Georgia". In what direction are you currently involved in the company's work? Today, in addition to managing the company, I am also involved in sales and customer communication. However, as our team grows, I will gradually be left with only management functions, which include developing the company's culture and entering new markets. What was your career path before joining ibccs.tax , and what do you think gave you the most relevant experience for your current position? Since the age of 18, I have worked and am still involved in various fields, including: agriculture, production, video production, graphic novels and comics production and publishing (both with my own scripts and for international publishers), investment and real estate, and trade. Before moving to Cyprus, I had to work at VTB Bank - I started as a night call center operator, after which my career developed significantly both in the bank and in other financial organizations. After that, I moved to the insurance company "Archimedes - Global Georgia", we also had a garbage collection company and the exclusive import of tobacco products to Georgia (these were Djarum brand kretek category tobacco products). After all this, there was independent life and studies in Cyprus and Germany and then back to Georgia. Each of these activities, whether as an employee or an employer, or a startup, has given me the opportunity to gain experience in corporate management and life, as well as enthusiasm and a passion for innovation. I have been under both good and bad managers. I have made many mistakes; I know what it means to receive both praise and insults. I think that is the advantage of our team. How would you describe your style as a manager? It's a difficult question, I'll answer you with what I want it to be - as people-oriented as possible. I want to create equal opportunities for all team members and share the company's values ​​equally within the team. If it's not like that now, I want you to know that I'm doing everything I can to make sure it is. This is my vision for the company. What kind of corporate culture is cultivated at Ibccs.tax ? Our main value is high quality of service. Therefore, we operate around this value in the company. Initiatives and innovations are encouraged for employees, which we devote a lot of time to. As for culture, it is in the formation stage and is a very lively process, which is a completely healthy given the current growth of our team. We also celebrate the company's birthday every year, when all team members gather for 2-3 days in Georgia or abroad. During this period, along with fun, we discuss the company's challenges and future plans, and if necessary, conduct professional training. Why do you think this is important for employees and ultimately what does it mean for you? It is important because it is not short-term and is people-oriented - both employees and customers. How do you support the professional growth and development of employees? Together with our managers, we strive to establish individual and direct communication with all team members. This allows us to have an "open door" management principle and quickly and easily identify needs. Professional development is ongoing in our team, and, in addition, team members themselves are involved in seeking and participating in internal and external training. The company is growing and professional development within the team is encouraged. A clear example of this is one of the company's partners, who initially started as a chief accountant, and today holds the position of CFO and is also a shareholder in the company. ibccs.tax is ten years old - how has the role of technology in your field changed over that time? The answer is simple - it has changed according to demand. We live in a different reality, for example, we no longer use fax, electronic signatures have appeared, we have created an online platform for our services, we participate in a virtual forum, the metaverse, etc. How does your team adapt all of this? If we want to develop, we must adapt to the new reality at the speed at which the market is developing in the world. Sometimes we need to be pioneers in Georgia and develop the industry as a whole. This is a challenge that we must embrace and not be afraid of. Do you have any innovative and technological practices in place that put you ahead of your competitors in the industry? In August 2024, we won the GITA grant competition and began developing a new platform. It will digitize our service delivery and make it easier for customers to receive legal, financial, and accounting services remotely, through digital channels. What is IBCCS's social responsibility policy and the projects implemented or planned in this direction? Social responsibility is one of the most important policies for the company's culture. We share our experience and knowledge with start-ups free of charge, and in some cases, they even have the opportunity to receive our services for free. Creating a good foundation for financially and legally sound start-ups or young entrepreneurs is very important. In September 2024, we were partners of TEDxTbilisi Youth, where we presented an educational game that made the basic processes of entrepreneurship more visible to young people. We also have internship programs where young people have the opportunity to work and gain practical experience and knowledge through paid internships. IBCCS is an international company - what role does the company play in the development of Georgian society? We use a Georgian company for our group's internal trainings, which we conduct once a year for employees in all countries of the group. Also, the production of the group's brand book and marketing identifiers was carried out from Georgia, from where we provide services to representatives of different countries. One of the goals of this is to introduce Georgian companies to the international market, which gives them experience in managing international projects. How important is partnership and cooperation for ibccs.tax ? Partnership, like social responsibility, is one of the most important for us, because IBCCS.TAX does not operate independently in the market and support, as everywhere and in everything, is important in our business. We share knowledge and experience with each other, strengthen each other's weaknesses and "complement" each other. Can you highlight any significant collaborative projects? There are many similar ones, but we would like to highlight one of the well-known cryptocurrency companies in Georgia, which we helped obtain an international license and enter the international market. How important is customer feedback? It is crucial, because ultimately, the goal of everything we do is client satisfaction. We especially enjoy positive feedback, which makes everyone, from account managers to managing partners, equally happy. However, any feedback is important to us, and I will say this to the readers: if you have ideas, want to share your thoughts, or want to learn more about us, do not hesitate to write to us at hellogeorgia@ibccs.tax , do not rule out becoming our next customer, partner, or simply a fan. You never know how we can benefit each other.

Entrepreneurs operating in the Georgian market, it's time to mark your calendars and start taking action! Recent legislative changes to the Entrepreneur Law will change the business landscape. By April 1, 2025, all registered businesses (except sole proprietorships and nonprofits) must update their registration information. Let's look at what these changes mean for your business and how you can keep up to date. What's at Stake Under Georgia's New Entrepreneur Law? Ignoring compliance deadlines is a risky game, one that can lead to significant business disruption. Here's what's at stake: Limited authorisation: Your ability to represent, manage, and conduct business may be significantly limited. Banking and financial restrictions: Expect restrictions on bank account transactions and credit availability. Tax involvement: Your ability to participate in tax transactions may be frozen. Compliance Steps Review and update: Evaluate current registration information for compliance with the new law. Shareholder Resolution: Make sure the compliance resolution is documented and approved by your shareholders. Submission to the National Agency: Submit the necessary changes to the National Public Registry Agency to avoid last-minute problems. Consequences of non-compliance Failure to meet deadlines is not just limited to business disruptions. It leads to registration suspension and potential ‘defective’ status, which has more serious consequences such as registration cancellation. This status severely limits your ability to operate and deal publicly. Start the compliance process today! Deadline: 1 April 2025 For businesses registered in Georgia before 1 January 2022, time is running out. Extending the deadline to 1 April 2025 gives you the opportunity to bring your business registration details in line with the new requirements. It's not just a bureaucratic tick box, it's a strategic move that will ensure the smooth running of your business. Moving forward While the new changes introduce stricter compliance requirements, they provide an opportunity to streamline and strengthen your operations. Use your compliance registration platform to receive timely updates and keep your business on the right page. Let's accept these changes not only as a legal necessity, but also as a stepping stone to more solid business practices in Georgia. Ready to make sure the future of your business is safe? Don't wait for the deadline to creep up on you! Start the compliance process today to ensure your business thrives without interruption. Need help navigating these changes? Contact our team of dedicated experts for personalised guidance and professional assistance.

On March 13, 2024, the European Parliament approved the world's first harmonized regulatory act, The AI Act (hereinafter referred to as "The Act"), establishing a groundbreaking legal framework for Artificial Intelligence (AI). The Act aims to establish principles and obligations for AI developers and users concerning the ethical use of AI. It applies to: Providers operating within the EU regardless of their registration or founding place. Users utilizing AI situated within EU territory. Providers and users utilizing AI and its products developed outside the EU in EU member states. Notably, the Act excludes AI created for specifically military purposes and does not affect governments of non-EU members and international organizations. This article provides a brief overview of the main purposes of The Act and proposed AI categories. The Act determines obligations and standards for AI, its products, including categorizing AI and transparency requirements. The Act defines the following AI categories: Unacceptable risk; High risk; Minimal risk. Unacceptable risk: AI falls into the unacceptable risk category if it can: Manipulate individuals through subliminal techniques beyond their consciousness or exploit vulnerabilities of specific vulnerable groups to significantly alter their behavior (e.g., children and/or persons with disabilities); Engage in social scoring, classifying individuals based on their behavior, socio-economic status, and personal characteristics; Identify and categorize individuals based on their biometric data. Utilize real-time, remote biometric identification systems (e.g., face recognition in street surveillance cameras). Although AI with unacceptable risk is not outrightly prohibited, its usage by states is strictly limited to situations where it is necessary to achieve a substantial public interest, such as searching for potential crime victims, including missing children. High risk: AI falls into the high-risk category if it poses significant risks to health, safety, or fundamental rights of individuals. High-risk AI includes: 1.    AI systems intended as safety components of products subject to third-party ex-ante conformity assessment; 2.    Stand-alone AI systems, which should be registered in the EU database, such as: Systems managing critical infrastructure (e.g., transportation, natural resource supply, etc.); Systems used in education or vocational training (e.g., automated feedback and scoring systems); Systems used in employment, workforce management, and self-employment (e.g., automatic CV reviews, task allocation, employee monitoring, etc.); Systems determining essential private and public services and benefits (e.g., granting loans, credits, etc.); Systems used by law enforcement authorities (e.g., detecting the emotional state of individuals, polygraphs, etc.); Systems used in migration, asylum, and border control management (e.g., automated application and document review systems); Systems intended for interpreting legislation (e.g., researching and interpreting facts and laws, applying the law to specific facts). All AI systems falling into the high-risk category must undergo examination, assessment, and CE marking before being placed on the market. Also, throughout the AI system's lifecycle, individuals will have the opportunity to submit complaints to relevant authorities. AI categorized as minimal risk must adhere to transparency standards (additional information is provided below). The Act recommends (though not mandatorily) that such systems also follow the standards set for high-risk AI and/or develop internal guidelines and regulations. Regarding transparency, the Act establishes that AI systems interacting with humans, identifying emotions or social categories based on biometric data, or generating/manipulating content (e.g., deep fakes) must provide relevant information to the person interacting with the system. For instance, individuals should be informed if they are communicating with a chatbot. Moreover, when AI systems are used to create photo/video/audio content, there is an obligation to disclose and indicate the artificial origin of the product. The Act will come into force twenty days after its publication in the Official Journal of the European Union and will be enforceable twenty-four months thereafter, with exceptions: Norms prohibiting specific actions/systems will be effective 6 (six) months after the Act's enforcement; Practical Codes that will be effective 9 (nine) months after the Act's enforcement; General Purpose Artificial Intelligence Regulatory Norms will be effective 12 (twelve) months after the Act's enforcement; Obligations imposed on high-risk AI systems will be effective 36 (thirty-six) months after the Act's enforcement. The AI Act represents a significant milestone in establishing a global legal framework for artificial intelligence. It sets a precedent for addressing AI challenges at the legal level and aims to ensure the reliability of AI processes, safeguard fundamental human rights and freedoms, and uphold safety and ethical principles within and beyond the European Union.

The primary duties of the candidate will include:  Liaising with the corporate administrators, clients, with colleagues and other institutions in reference to various tasks performed other institutions  Assistance with the administration of a portfolio of companies  General business administrative activities  Checking and responding to potential client inquiries  Addressing requests from clients and potential clients  Managing communication channels to ensure prompt and effective responses Providing information and guidance to potential clients regarding services offered Maintaining a database of client interactions and transactions for future reference Ensuring accurate and timely documentation of client inquiries and resolutions Ideal candidate should meet the following requirements:  Proficient knowledge of Polish language - written and spoken. English and Other languages will be an advantage  Proactive, professional, customer service oriented with good organizational skills Knowledge of MS Office tools (Outlook, Word, Excel, PowerPoint)  Experience or background in law or business administration will be considered as an advantage  University degree or graduate student  Working Conditions:  Hours: 09:30:00 – 18:30  Probation period: 2 months.  The selected candidate will be offered work in a friendly and professional environment and development possibilities, ongoing training related to corporate services and will have exposure to an international working environment.  The chosen individual will be reporting to the Regional Manager in Georgia and Managing Director, as well as other designated colleagues.  Candidates, who meet the requirements listed above, should send their CVs to  the following E-mail: n.khakhutashvili@ibccs.tax

As of March 1, 2024, the new law “On Personal Data Protection” has been enacted (Hereinafter – “Law”). Certain provisions of this Law will take effect on June 1, 2024, while others will be implemented on January 1, 2025. The primary objective of the new Law is to enhance the standards and guarantees of personal data protection while reinforcing effective mechanisms aimed at safeguarding human rights. The amendments to the Law primarily impact video monitoring, introducing legal norms for audio monitoring and defining the basis for their implementation. Additionally, significant changes include the regulation of data processing for direct marketing purposes, the establishment of the personal data protection officer institution, and a substantial increase in sanctions for violations, marking important innovations. The article will address crucial topics and business requirements arising from legislative changes. 1.    The introduction of a new standard for video monitoring implementation To conduct video monitoring, the data processor is obligated to specify the purpose and scope of video surveillance, the duration of surveillance and recording storage, access protocols for video recordings, procedures for storage and deletion, and mechanisms for safeguarding the rights of data subjects, all in accordance with the principles of data processing. The data processor or authorized person must prominently display a warning sign indicating ongoing video surveillance, which should include the identity and contact details of the data processor. 2.    The procedure for audio monitoring Audio monitoring is permissible with the consent of the data subject, for protocol recording, during remote communication, for personal safety and property protection purposes, as well as for safeguarding confidential information when alternative measures are not feasible, and in other cases expressly authorized by legislation. The data processor is required to establish in writing the purpose and extent of audio monitoring, its duration, access rules, storage and disposal procedures for audio recordings, mechanisms for protecting the rights of data subjects, and to notify the data subject in advance or promptly after the commencement of audio monitoring. 3.    Data processing for the purpose of direct marketing Data processing for direct marketing involves the processing of personal data for the purpose of sending advertising messages. It is permissible by Law only with the explicit consent of the individual whose data is being processed (data subject). The data subject must be informed clearly, simply, and understandably that they have the right to withdraw their consent to the processing of their data at any time. Upon receiving such a request, the data processor is obligated to cease processing the individual's data within 7 working days. 4.    Personal Data Protection Officer (DPO) The Law establishes the institution of the Personal Data Protection Officer (DPO), which stands as one of the most significant innovations. The rights and duties of the DPO include informing the data controller/processor and their staff about data protection issues, providing consultation and methodological assistance, contributing to the development of internal regulations and impact assessment documents on data protection, analyzing data processing activities, handling statements and complaints, and issuing appropriate recommendations. The Law specifies the entities responsible for appointing a Data Protection Officer: Public institutions Insurance organizations Commercial banks Micro-finance organizations Credit Bureaus Electronic communication companies Airlines Airports Medical institutions Data controllers process personal data of at least 3 percent of the population of Georgia or conduct systematic and large-scale monitoring of individuals' behavior. The role of a Data Protection Officer can be fulfilled by either an employee or an external individual or entity under a service agreement. 5.    Strengthened sanctions for violation of the Law The penalties for breaching the regulations set by the new Law have been significantly strengthened. Fines are determined based on the type of offense and typically range from 1,000 to 6,000 GEL. The precise amount of the fine is determined by the individual's annual income and the presence of aggravating circumstances. Note: All changes discussed separately in the article came into force on March 1, 2024, except for the obligation to appoint a Personal Data Protection Officer, which will come into force on June 1, 2024. The Law establishes a high standard of personal data protection and introduces changes and additions concerning issues such as the mandatory procedure for obtaining the data subject's consent and the information required to be provided to them. Companies will be required to implement additional measures to ensure their processes comply with the standards set by the new Law.

In 2011, Georgia made a resolute move towards global financial transparency by embracing the Common Reporting Standard (CRS), an international framework developed by the Organization for Economic Co-operation and Development (OECD). This strategic decision not only solidifies Georgia's commitment to combating tax evasion but also holds implications for international customers with bank accounts in the country. Understanding CRS: A Global Effort for Financial Integrity The Common Reporting Standard (CRS) is an international initiative designed to facilitate the automatic exchange of financial account information between countries. Developed by the OECD, its core objective is to prevent tax evasion by ensuring that tax authorities worldwide have access to accurate and comprehensive information about the financial accounts of foreign residents. The automatic exchange of information occurs annually, promoting tax transparency and legal compliance on a global scale. Legal Framework and Georgia's Pledge to International Standards Georgia's commitment to CRS is rooted in the Convention of January 25, 1988, of the OECD and the Council of Europe. In 2022, Georgia took a significant step forward by signing the Multilateral Competent Authority Agreement (CRS MCAA), signaling its dedication to the implementation of CRS. To support this commitment, new articles 702 and 2792 were introduced into the Tax Code of Georgia, outlining the obligations of reporting financial institutions and the associated tax liabilities. Navigating CRS Compliance in Georgia For international customers holding bank accounts in Georgia, Article 702 of the Tax Code mandates that financial institutions collect and provide information on the tax residency of customers to the Revenue Service. The Revenue Service acts as the central authority overseeing CRS implementation, ensuring compliance with obligations and facilitating information exchange with other participating jurisdictions. Financial institutions in Georgia are now obligated to determine the tax residency status of each international customer. If a customer is a tax resident of a foreign country, their information is shared with the Revenue Service. This legislation, effective since January 1, 2023, requires financial institutions to submit information annually from January 1, 2024, to June 30, ensuring timely compliance with CRS standards. Implications for International Account Holders International customers with bank accounts in Georgia should be aware that their information may be subject to automatic exchange under CRS. The Revenue Service, as the competent agency, plays a crucial role in obtaining, transferring, and monitoring compliance with CRS-mandated information exchange. It is advised that account holders familiarize themselves with these developments and ensure proper compliance with tax residency requirements. Conclusion: Georgia's Commitment to International Financial Standards Georgia's adoption of CRS reflects its commitment to international financial standards and signals a proactive approach towards global cooperation in combating tax evasion. International account holders in Georgia should stay informed about these regulatory changes and work with financial institutions to ensure seamless compliance with CRS, contributing to enhanced financial transparency on an international scale.

Incorporating the latest amendments to the New Law on Entrepreneurs, updated deadlines have been established for entrepreneurs registered in Georgia until January 1, 2022, to bring their registered data into compliance with the new regulations. Furthermore, the legislation outlines in a thorough manner the legal consequences in case of non-fulfillment of this obligation.  The article discusses in depth the implications for businesses based on the recent changes. 1. . The deadline for complining registered data with the requirements  All entrepreneur registered in Georgia before January 01, 2022, except for individual entrepreneurs, are obliged to ensure compliance of their registration data with the requirements of the New Law On Entrepreneurs (also referred to as the "New Law") no later than April 1, 2025. For this purpose, the decision of the shareholders should be submitted to the National Agency of Public Registry. It's important to note that, before the most recent legislative changes, entrepreneurs were required to comply with the New Law by January 1, 2024.  2. Consequences of Non-Compliance    Failure to fulfill the obligation of bringing the Company's registered data into compliance with the New Law results in the suspension of registration. This information will be reflected in the register, and subsequently, no extracts from the register will be issued. The registering body shares information about the suspension of registration with the relevant administrative bodies and banks. The suspension of registration limits: the representative power of the person(s) with the representative power of the Company;  the right to dispose of property by the Company; participation in tax operations; the right to manage a bank account, open a new account, dispose of the money in the account; Ability to take credit.  Therefore, the representative powers and operational capabilities of the Company will be restricted.  Registration will be restored as soon as the Company fulfills the obligation. 3. Public Notice and "Compliance Registration Platform" The decision on the suspension of registration is published as information on the registered data page of the unified electronic Platform of the registering authority, designated specifically for posting details on re-registration (hereinafter referred to as the "Platform"). The Platform will serve as an "informative center" for compliance-related purposes.  Placing the decision on the Platform signifies its publication, and consequently, the decision becomes effective on the day of its publication.   4. “Grace“ Period and Status of a Defective Company  If a Company fails to fulfill its obligations by April 1, 2025, the registration authority shall, on its own initiative, make a decision on the identification of a defect and grant the Company the status of a Company with a defect, which will be indicated in the Registry and notified to the Company. An additional "Grace" period of 3 months will be set to rectify the defect. The decision to identify the defect is also published on the Platform. The rule of publication has replaced other options, such as the rule of delivering the decision to the legal address or placing it on the electronic address of the Company. This modification allows the registering body to cancel the Company's registration within 3 (three) months from the date of the decision's publication. While the status of the Company remains Defective, the validity of the registered data is suspended, and an extract from the Registry shall not be issued. A Defective Company, in its entirety, has limited representational powers and operational capabilities. 5. Revocation of Registration and Liquidation If the defect is not rectified within 3 (three) months from January 1, 2026, the registering body will make a decision to cancel the entrepreneur's registration.  If, following the revocation of the registration of the Company, it is discovered, upon the initiative of an interested party, that the society still possesses assets, the liquidation of the Company proceeds in a standard manner. Upon application by a Shareholder or creditor of the Company, the court appoints the liquidator. 6. Exception for Individual Entrepreneurs and Non-Entrepreneurial (Non-Commercial) Legal Entities The amendments have specified the addressees to whom the compliance obligations apply, and it has been determined that the obligation to bring them into compliance does not apply to individual entrepreneurs and non-entrepreneurial (non-commercial) legal entities.  The obligation to ensure the compliance of registration data with the requirements of the New Law does not extend to individual entrepreneurs. Additionally, a non-entrepreneurial (non-commercial) legal entity is entitled, though not obligated, to apply to the registration body to bring its registered data into compliance with the New Law. Entrepreneurs have been granted an additional deadline until April 1, 2025, to comply their registered data with the provisions of the New Law. Non-fulfillment of the obligation within the established terms will result in the suspension of the Company registration at the first stage, followed by the determination of defective status, and ultimately resulting in the revocation of the Company's registration.