The Georgian Parliament passed with its third and final reading on December 15 draft law on IT Zones in Georgia.

According to the law, companies working on computer software production, development, design and support will be exempted from export tax and their profit from exporting services outside Georgia will not be taxed, as well as they will be exempted from value added tax on exported products and services.

According to the law, which will go into force from January 1 2011, a company, seeking to fall under this category, will have to apply for special status of “virtual zone entity”. Terms and conditions of granting this status to a company will be defined by the government’s decree.