How to get a cryptocurrency license in Georgia in 2021
Obtaining a cryptocurrency license in Georgia in 2021 is in demand, as the country has been a leader in mining for several years. The main advantages of opening a company are low electricity costs, no restrictions in laws, getting tax benefits, and ensuring confidentiality. To learn more about how to get a crypto license in Georgia in 2021, contact our experts at IT-OFFSHORE.
In 2019, clarification was provided regarding the tax treatment of cryptocurrency. Individuals in Georgia can receive an income tax exemption on profits that were earned from the sale of crypto assets.
The sale of this type of currency and its exchange is not subject to VAT. The sale of computing facilities and the purchase by a resident abroad is subject to a VAT levy, the rate of which is 18%.
According to the Georgian Tax Code, the income of natural persons who are citizens of Georgia and non-residents are taxed only if the source of profit is on the territory of the state. The income of legal entities is taxed on corporate profits from sources anywhere in the world.
Nuances of licensing
The legislation of the country, which regulates the sphere of electronic finance and services, obliges entrepreneurs to obtain a license to operate. Upon obtaining the appropriate permit, the firm has the right to issue and acquiring instruments for payments.
It is allowed to provide services for debiting and crediting accounts, to use various electronic instruments, to issue electronic money and to make payments with their use. It is allowed to make transfers of funds.
Permission to operate the payment system is issued to organizations that have the structure of LLC or JSC. There are no requirements for residency of the founders, no conditions for the presence of a physical office. At the same time, the company is required to maintain reporting and be audited.
Pros of cryptocurrency business in Georgia
Getting a cryptocurrency license in Georgia is relevant because the cost of electricity is low, there are free industrial zones where the cost of this resource is even lower. There are no direct bans on payments using virtual money.
Cryptocurrency is very popular in Georgia. Seminars and conferences are often held in the country, which are devoted to the development of this currency, new cryptomats are installed. It is possible to open an account in a Georgian bank to handle cryptocurrency transactions.