According to tax laws of Georgia you can use 2 patterns of organizing personnel:
1. If your remote employee has a legal status of Individual Entrepreneur you would have to pay 1% of a transferred fee (but not more than 160 000 USD annually).
2. You have an opportunity of R&D center deployment and therefore receiving getting tax discounts required for international IT companies. Your business activity has to meet all the requirements of Georgian tax law. In this case you will have following benefits:
• 0% dividend tax
• 0% VAT ( international transactions)
• 5 % tax on employee income
• 5 % tax on income
• According to directive of Finance Minister of Georgia Georgian companies with international status are allowed to decrease tax fees in amount of following expenditures:
1. Fee, payed to a Georgian citizen.
2. Costs on researching and experimental activity in the scopes and domains that are legal for international companies in Georgia.