The Georgian authorities have added a new residence permit for the IT employees to the existing list of residence permits, whereby the new changes have recently been announced.
According to the bill, foreigners can receive the new residence permit in the information technology sector who are registered with the Ministry of Health. Family members of these employees are also entitled to these residence permits, visaguide.world reports.
The permits are also extended to foreigners who are registered in the IT sector, including their families, as an entrepreneur for small companies. The approval of the individuals to manage and represent international IT companies who work in Georgia and their family members also belong to this group of residence permits.
Some of the requirements for the beneficiaries of the IT residence permit result
According to 1TV, the draft law determines some of the requirements that apply to foreigners who represent Georgia who want to obtain these permits, including the following:
- Individuals have to present documents to confirm their activity.
- Documentation that demonstrated at least two years of work or economic activity in the IT sector.
- Certification that your annual compensation from IT work or economic activities is not less than 25,000 US dollars.
The existing law is changed to make it clear that temporary residence permits are originally granted for three years. Every time the approval is extended, it will receive another three years of validity. The maximum duration is set to 12 years.
The validity of the approval can also change for employees in the IT sector. For example, foreign employees will have their approval ended in this industry if they spend more than 183 days outside of Georgia. This includes time outside the Georgia's borders, especially for medical treatment.
Income tax volume, which is expected to increase by 33%
The income tax volume is expected to increase by 33 percent and will be geled by 159.6 million ($ 57.4 million), while the number of employees in international IT companies could reach 24,000.
If the proposed bill is passed, international status companies will probably bring around $ 490 million ($ 179.4 million) into income tax over the next three years, which corresponds to a 3.6-fold increase compared to the total income tax forecast in accordance with the applicable provisions. For foreigners who were registered as small entrepreneurs in the information technology sector, the estimated cumulative income tax over three years after the applicable regulations is approximately 119.9 million ($ 43.91 million).
Proposal
The authorities also point out that the expenses of these employees in Georgia will reach 6.5 billion ($ 2.34 billion) in the next five years.
In addition, these legislative changes are expected to increase the number of participants to 100,000 in the next five years. This can increase expenses for gel 24 billion (8.64 billion US dollars).
