TAX MATTER — GEORGIA — CURRENCY CONTROL AND PROFIT REPATRIATION IN A FREE INDUSTRIAL ZONE
Client. A foreign investor [CLIENT_JURISDICTION — operator to confirm] operating through a registered Free Industrial Zone enterprise in Georgia.
Background. Under the Law on Free Industrial Zones (2007), enterprises established in Georgian FIZs benefit from a preferential tax and customs regime. They remain subject, however, to Georgian currency control legislation governing profit distributions and cross-border transfers. The client sought to repatriate accumulated operating profits to its parent entity abroad and encountered material uncertainty over the applicable currency control requirements and the procedural steps necessary for compliant transfer under Georgian law.
Our role. Nino Beridze, contributing regional analyst for Georgia, reviewed the client's FIZ registration status, the operative currency control framework, and the specific documentation requirements for cross-border profit repatriation. Counsel identified the permissible transfer mechanisms available under the 2007 FIZ regime, prepared the necessary regulatory submissions, and liaised with the relevant Georgian authority to resolve the outstanding compliance questions. Supporting analysis on the intersection of FIZ tax benefits and repatriation procedure was provided through the firm's Tax practice at /jurisdictions/georgia/tax/.
Outcome. [PLACEHOLDER — operator to replace with real outcome] Matter settled before first hearing.
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