The Georgian authorities have added a new residence permit for IT workers to the existing list of residence permits, with the new changes being announced recently.
According to the draft law, foreigners in the information technology sector who are registered with the Health Ministry can obtain the new residence permit. Family members of these workers are also eligible for these residence permits, VisaGuide.World reports.
The permits will also be extended to foreigners who are registered as small business entrepreneurs in the IT sector, including their families. Individuals’ authorisation to manage and represent international IT companies that operate in Georgia, and their family members, also belong to this group of residence permit beneficiaries.
Some of the Requirements for Beneficiaries of the IT Residence Permit Revealed
According to 1TV, the draft law lays down some of the requirements that apply to foreigners representing Georgia who want to obtain these permits, including the following:
- Individuals must present documents to confirm their activity.
- Documentation proving at least two years of work or economic activity experience in the IT sector.
- Certification that their annual compensation from IT work or economic activities is not less than the equivalent of $25,000.
The existing law will be amended to clarify that temporary residence permits are initially issued for three years, and each time the permit is extended, it will gain another three years of validity. The maximum duration is set at 12 years.
The validity of the permit can also change for workers in the IT sector. For example, foreign workers in this industry will have their permit terminated if they spend more than 183 days for one year outside Georgia. This includes time spent outside Georgia’s borders, especially for medical treatment.
Income Tax Volume Expected to Increase by 33%
The income tax volume is anticipated to increase by 33 percent, reaching GEL 159.6 million ($57.4 million), while the number of employees in international IT companies could reach 24,000.
If the proposed draft law is adopted, international status companies are projected to contribute approximately GEL 490 million ($179.4 million) in income tax over the next three years, representing a 3.6-fold increase compared to the total income tax forecast under current regulations. For foreigners registered as small entrepreneurs in the information technology sector, the estimated cumulative income tax over three years under current regulations is approximately GEL 119.9 million ($43.91 million).
The authorities also point out that the expenditure by these employees in Georgia over the next five years will reach GEL 6.5 billion ($2.34 billion).
In addition, these legislative changes are anticipated to increase the number of participants to 100,000 in the next five years. That can increase the expenditure to GEL 24 billion ($8.64 billion).