Georgia: zones for miners and exchangers
Despite the fact that in Georgia it is impossible to legally pay with crypto, the country remains one of the friendliest for crypto users and officially strives to become a global crypto hub.
Legislation
Georgia now has a law on taxation of miners and crypto-investors. And since the fall of 2022, a large bill has been under development aimed at protecting consumer rights, securing digital assets, and combating money laundering..
It is important to note that the bill almost fully reflects the concept of EU crypto regulation.
taxes
Mining taxation law was adopted in 2019. Thanks to Special Investment Zones (SIZs), cryptocurrency mining in Georgia is very popular. Mining profits converted into fiat are taxed.
Important! Individuals selling crypto in Georgia are not required to pay income tax. The fact is that cryptocurrency is not considered a source of income within the country..
And types of income received from external sources are not taxed. Legal entities are not so lucky.
Their income is taxed on corporate profits from any source (both external and internal). However, if the income from the crypt is not fixed, but constantly reinvested, then you will not have to pay tax.
The conversion of cryptocurrency into fiat is equivalent to foreign exchange transactions and is not subject to VAT.
Digital lari
The Central Bank of Georgia keeps up with the global trend and plans to launch its own CBDC pilot program in the first half of 2023.
Free Industrial Zones (PPE)
FIZ is a paradise for crypto exchanges due to licensing of their activities and preferential taxes. PPE is available in Tbilisi, Kutaisi and Poti.
Cooperation with Binance
Cryptocurrency exchange Binance has signed a Memorandum of Understanding (MoU) with the Georgian Innovation and Technology Agency (GITA).
The agreement implies the active participation of the company in the development of the blockchain infrastructure and other crypto projects in the country. Crypto friendliness rating: 9/10