June 17, 2024

Georgian crypto kitchen. We choose dishes

Georgian crypto kitchen. We choose dishes

It is no secret that Georgia is one of the most loyal post-Soviet countries.spaces where it is not only cozy, but also profitableto do business. This has become possible literally in the last 10 years thanks to the tremendous reform efforts of successive leaders of the country, each of whom strove to make it better and richer. How exactly are things here with the cryptocurrency business, we will try to understand our today's material.

Georgia – very interesting, extraordinary anda promising country, both in terms of geography and in terms of tax legislation. Add here cheap electricity and the absolutely loyal attitude of the authorities towards any business that can replenish the country’s budget. Dilute this with the friendly nature of the Georgians themselves and get a unique recipe for your individual startup in Georgian style. 

Eccentricity is present in almost everything.

Register a company within an hour – easily. Receive tax benefits up to zero rate – Please.

According to the Law of Georgia "On Entrepreneurs",foreigners have equal rights with Georgians to open their own business. The so-called National Public Register Agency under the Ministry of Justice of Georgia is responsible for registering entrepreneurs. The only caveat: for foreign citizens, either a residence permit or officially registered property (for rent) is required.

Interestingly, both the state and taxRegistration can be completed using the “single window” system. All you have to do is come to the House of Justice, fill out the necessary documents and pay the state fee (about $21 for urgency). 

Requirements for authorized capital are not presented. The most convenient form of legal entity for commercial activities is considered to be the option of a limited liability company. This option assumes that the founders of the LLC are liable to investors solely with the property that is owned by the LLC.

Regarding taxes, the tax rates in Georgia are as follows:

– income tax – 15%;

– VAT – 18%;

– income tax – 20%;

At the same time, legal entities have the right to preferential tax treatment. 

An example is the possibilitycreating an international financial company (including for ICO purposes) with a zero rate on income tax and tax on income from securities. In this case, the tax on dividends will be only 5%. 

At the same time, there are no licensing requirements, as well as a special tax on cryptocurrency business, including the issue of tokens, in Georgia. 

Tax benefits apply not only to legal entities, but also to private entrepreneurs, and depend on their annual profit, namely:

– with income up to $12 thousand – rate is zero;

– with income from $12 to $42 thousand – 5% rate.

In addition to a variety of tax benefits, in Georgia you also get a chance to participate in state or private business support programs.

Despite the fact that Georgia does not have cryptocurrency state regulation, it has become perhaps the first country in the world where the state land cadastre works for Blockchain.

Confirmation of the development of the crypto industry, as well asThe growing popularity of cryptocurrencies among the population was the emergence of new cryptocurrency terminals in the country through which you can buy and sell bitcoins (and not only) for Georgian lari.

Cryptocurrency terminals produced by Czechby General Bytes, and established by TPS, have already appeared in Tbilisi at the New York Burger restaurant near May 26 Square, as well as on Shalva Dadiani Street. TPS in particular is known for providing exchange services through cash terminals and trading platforms.

However, from all types of crypto industry,Mining in Georgia, thanks to the low cost of electricity, occupies a leading position. Thus, a kilowatt-hour in Tbilisi (for commercial high-voltage subscribers) now costs 16.1 tetri (~6.5 US cents). In the regions the price is – lower, and in some high mountain areas consumers do not pay for electricity at all.

At the moment, according to GeorgianLegislation, mining does not fall within the definition of entrepreneurial activity, and, accordingly, is not subject to taxation. Also, none of the cryptocurrencies is recognized as a means of payment in this country, which means that no transactions with them are subject to currency control by the National Bank of Georgia.

As a result, the largest crypto farm in Georgiabuilt by BitFury – leader among miners and mining equipment manufacturers. Its data centers are located in Tbilisi and Gori. To do this, the company was one of the first to receive a loan of $10 million from the Co-Investment Fund, the founder of which is former Prime Minister of Georgia, billionaire Bidzina Ivanishvili.

As a result, according to the World Bank, about 5% of the population of Georgia is already associated with either mining or trading in the cryptocurrency market, and the country took 3rd place in terms of mining capacity.

At such a pace of development, Georgia has every chance of becoming a cryptocurrency paradise for the entire world crypto industry.

Based on materialshttps://georgia.bc.events/ru/article/kriptobiznes-v-gruzii-kompaniya-za-chas-i-otsutstvie-nalogov-87883