Panex specializes in manufacturing wall and roof sandwich panels, accessories, and refrigerator doors. Polyurethane sandwich panels are a cutting-edge construction material suitable for various commercial and public buildings. They are known for their exceptional thermal insulation properties, ease of installation, and long-term durability.The partnership between Basisbank and Panex has been instrumental in Panex's success. Basisbank's support enabled Panex to acquire the latest Italian equipment, enhancing the quality of its sandwich panels and ensuring compliance with European standards."We have seen significant growth in the number of infrastructure projects in the region over the past year. With a 70% increase in our sandwich panel production, we are confident in our ability to achieve our ambitious goals. Basisbank has been a constant supporter of our development and progress, and we look forward to continuing our successful partnership to further expand our business. Our aim is to establish a strong presence in the local market with high-quality products, ensure consistent supply to meet local demand, reduce reliance on imports, and ultimately increase our export capabilities." - Giorgi Levidze, CEO of Panex."Basisbank stands as a committed supporter of businesses, consistently championing local production and bolstering Georgian business and economic development. With Basisbank's financial backing and our fruitful partnership with Panex, we are confident that the business will seize even greater opportunities for expansion. Together with Panex, we take pride in our role as co-architects of yet another successful Georgian business." – Gigi Gabunia, Commercial Director of Basisbank.Video story of partnership between Basisbank and Panex:

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Also, at the Skytrax World Airport Awards 2024, the international airports of Tbilisi and Batumi were named among the 10 best airports in Eastern Europe.Tbilisi International Airport was included in this category for the eleventh time in a row, and Batumi - for the third time. According to the results of a passenger survey, the international airports of Budapest, Tallinn, Riga, Tbilisi and Sofia are among the top five in Eastern Europe.The world's best airports award ceremony took place in Frankfurt within the Passenger Terminal Expo 2024.Skytrax is an influential British consulting company that has been researching and assessing the service quality at the airports and airlines around the world since 1999. The World Airport Awards are based on the passengers’ evaluation from over 100 different nationalities and 570 airports around the world. Within the frames of the survey, the passengers evaluate the airport service.

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The fact that international companies are very interested in this status is evidenced by today's situation - more than 1,200 companies have been granted the status of Virtual Zone Person in Georgia. This sector forms an important part of the high-income middle class in Georgia, which is the best tool for improving the socio-economic background. The high salaries paid by companies with VZP status circulate in the real economy of the country. In addition to this, the most sought-after, highly qualified IT specialists are in demand on the world market today. These professionals are no longer forced to leave the country in search of better pay.Briefly about tax benefits and regulatory lawsCompanies with the status of a "Virtual Zone Person" are exempt from profit tax on the profits they receive from the creation of software products (for example, a website, mobile application, or software) for foreign customers. That is, in this case, we are talking about the profit obtained from the exported digital product.The activity of a Virtual Zone Person in Georgia is mainly regulated by 4 legal acts. These are: the Tax Code of Georgia; the Law of Georgia "On Information Technology Zones"; Resolution N49 of the Government of Georgia dated January 26, 2011 "On the rules and conditions for granting the status of the Virtual Zone Person and determining the person granting the status of the Virtual Zone Person" and the instruction "On administration of payments" approved by the order of the Minister of Finance of Georgia dated December 31, 2010, N996.However, laws and instructions, like in all other areas, need constant attention, refinement, and adaptation to modernity. It is practically impossible to work in this direction for companies with VZP status individually. It was to protect their interests, to communicate constructively with the governmental structures, and, as a result, to create a favourable working environment for these companies, that the decision was made regarding the creation of the Association of Georgian Virtual Zone Persons. The Association was headed by highly qualified lawyer and lobbyist Shorena Kopaleishvili. Ms. Shorena's active cooperation with the Ministry of Finance and the Business Ombudsman has also yielded results, and fine sanctions previously charged to the VZP status companies were either nullified or reduced to a minimum.In addition to the above-mentioned activities, the Association actively provides consultations to those companies that are interested in receiving the status of a Virtual Zone Person.The path from a company subject to standard taxation to a VZPFirst of all, let's determine which law entitles the company to enjoy tax benefits in Georgia - according to the 35th - 36th parts of Article 8 of the Tax Code of Georgia, a Virtual Zone Person is a legal entity that carries out information technology activities and has been assigned the appropriate status.A company interested in the status of a Virtual Zone Person in Georgia must first apply to the Financial-Analytical Service. For this, the candidate electronically fills out the application form posted on the official website of the Financial-Analytical Service (www.fas.ge).The representative of the company must attach to the application a list of information technology projects implemented by the company during the last three years.After that, the company is granted the status of a Virtual Zone Person no later than 10 working days after making the application. The electronic certificate confirming the status of the Virtual Zone Person is issued by the agency no later than 2 working days after the decision is made. The status of the Virtual Zone Person is issued for an indefinite period.A few more legal nuancesThe legislation of Georgia does not define the concept of a software product and the regulations related to its creation. At the same time, the law of Georgia "On copyright and related rights" recognizes the concept of computer programs. Specifically, according to Sub-paragraph “j” of Article 4 of this law, a "computer program" is a set of instructions expressed in words, codes, chips or in any other machine-readable form, which enables a computer to achieve certain results. The term also includes preparatory material for a computer program design.As in "computer program," software generally refers to a program or set of programs that contains instructions necessary for the computer itself to operate or instructions to perform other tasks. Software is independent of hardware (computer devices), and it is through it that computers can be programmed.Which product of the VZP company is not subject to the tax exemption?To comply with the activities within the status of the Virtual Zone Persons, the company's activities must involve the implementation of such activities in the field of computer information systems, which are used in the creation and(or) development of software. Accordingly, if this activity is limited to the electronic provision of services defined by the company using various hardware and software, the purpose of which is not to create a software product, the profit received from such activity will not be considered a profit received from the provision of information technologies, and therefore, the tax relief established by sub-paragraph “P” of Article 99 of the first part of the Tax Code cannot be applied to the distribution thereof.Easier way to get VZP statusAs already mentioned above, the best way to simplify the process of obtaining the status of the Virtual Zone Person and to understand all the necessary details in advance is to go through consultations with the Association of Georgian Virtual Zone Persons. Here you will get full information not only on the procedures for obtaining the status but also on the nuances related to further operation in the Georgian market under the existing regulations, the knowledge of which will make it significantly easier to manage your business under the status of a VZP.

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During the three-day exhibition, the Wine Agency organised a wine tasting hosted at the stand of the German media holding Meininger under the title Georgia - The Homeland of Wine, led by wine masters Janek Schumann and Konstantin Baum.In addition, presentations under Georgian Wine Day were hosted by popular influencer and sommelier Toni Askitis.Levan Mekhuzla, the Chair of the Agency, said the Düsseldorf exhibition was “very important” for Germany and the global wine market.“Professionals gather here, companies constantly meet potential partners. Georgia participated in ProWein Düsseldorf for the 24th time. One of the main goals of the Agency is diversification of markets [while Germany] is one of the strategic markets for Georgian wine, where the sales are growing steadily”, he said.Within the exhibition, Mekhuzla held meetings with representatives of marketing companies and media holdings, as well as with Peter Schmitz, the Director of the ProWein Trade Fair.About 5,400 wine producers from 65 countries participated in the 30th anniversary exhibition.

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It can be safely said that countries are actively competing with each other to offer the best tax, economic, social, and other important conditions to companies working in the IT field.Georgia in the international ratingsIf we rely on public sources, the list of the best countries for creating IT companies is changing, because they are constantly trying to offer something new to companies. Also, these ratings are part of the marketing process, although we can more or less single out advanced jurisdictions in this direction, with appropriate justification.It should be noted here that Georgia has been in the top positions in these rankings for years.According to the rating, companies prefer the following jurisdictions: Cyprus, Romania, Georgia, Hong Kong, Estonia, the United Arab Emirates, Singapore, Gibraltar, Poland, and Turkey.It is quite good news for the acceleration of the growth of the economy of Georgia, when the country, with its potential, positions itself next to the EU countries in one of the fastest-growing and most promising fields. However, continuous development is probably necessary so that the country does not lag behind modern trends, responds to the demands of the sector and the challenges facing it, and increases Western (and not only) investment flows in the Georgian market.The essence of benefits established for VZPsGeorgia is a small country located at the junction of Europe and Asia. We can consider the location an important advantage compared to other countries. In addition, the country offers IT companies a favorable tax regime. For example, instead of the standard 15% profit tax, 0%–5%. The tax rate on distributed dividends is 5% for individuals. There is also a discount in the part of VAT (18%) if the companies provide services or products abroad; the founder doesn't need to be a resident of Georgia to be granted this status, and no additional license is required to carry out information technology activities, etc.In addition, Georgia has a business-friendly environment and a simple and efficient incorporation process. The country is also known for its low bureaucracy, which makes it easy for entrepreneurs to start and run a business.In this direction, preferential regimes such as Virtual Zone and International Companies are very attractive for investors. However, judging by the statistics of IT companies registered in Georgia, the Virtual Zone has an unrivaled status not only in Georgia but also throughout the region. Obtaining the mentioned status in Georgia has been possible since 2011 when the Law of Georgia on Information Technology Zones will be adopted. This news gave great impetus to many IT companies and their representatives to start their activities in Georgia.Georgia has become a favorable location for companies in the information technology sector, with more than 1.200 organizations granted Virtual Zone Person status within our jurisdiction and enjoying the benefits offered by this status.IT, including the contribution of the VZP sector to the economyThis, in turn, implies the greatest economic benefits for the state. For example, according to Galt & Taggart's review of Georgia's economy and sectors, which was published in March, the income from the export of IT services reached 1.77 billion GEL in 2023, which is 4 times higher than in 2021. Rapid growth was caused by tax incentives and the relocation of companies in Georgia.As a result, between 2021 and 2023, the number of employees in the IT sector quadrupled, and average salaries doubled. According to 2023 data, 14.164 people were employed in IT companies, and the average salary was 7.192 GEL.The same Galt & Taggart analysts note in their review that labor costs account for 60% of sector revenues. Accordingly, the income from IT exports is mainly distributed to the employees, which contributes to the growth of consumption. High salaries in the IT sector create a prerequisite for the formation of the middle class.Although it is difficult to determine how much of this statistic is the share of companies with Virtual Zone status, according to various calculations, this indicator is not less than 50%.For a clearer comparison, today more than half of the employed (including self-employed) population of Georgia comes from agriculture, and the share of agriculture in the country's economy is only a few percent. Economist Vakhtang Charaia explained in the Public Broadcaster's "Gadatskvetileba" program on March 6 that if winemaking and viticulture employ about 200.000 people directly and indirectly in Georgia, and about 14.000 specialists in the IT sector, the incomes of these 14.000 people exceeded the incomes of 200.000 citizens employed in winemaking. Thus, according to Charaia, the country should take important steps in those directions, the development of which will create more wealth in the country, including in the direction of the IT sector.Another interesting indicator can be cited: in 2021–2023, the economy of Georgia grew by 9.7%. In this indicator, the contribution of the IT sector is quite impressive and amounts to 1.3 percentage points. This is only 0.1 percentage points behind the contribution of the trade and transport sectors (1.3 percentage points). Here you will know that in the growth of the economy, 0.9 percentage points come from the manufacturing industry, 0.6 percentage points - from financial activities, 0.6 percentage points from electric energy, and 3.5 percentage points from other sectors taken together.It should also be noted that the majority of these companies are representatives of European companies and investors.What is happening elsewhere, and what do we have to fix?The status of a Virtual Zone Person, it can be safely said, is unique not only in the region but also in the world. Its analog is not found in the legislation of any country. By the way, based on the need to develop the IT sector and increase the ranking and competitiveness of Armenia as a country with a developed IT sector in the region, in 2014 the Law "On State Support of the Information Technology Sector" was adopted. The Armenian government has given tax incentives to IT startups and exempted them from the corporate tax rate of 18%, as well as reduced the income tax to 10% from 20%. Nevertheless, there is not much interest in this jurisdiction from the business side.Therefore, we can confidently say that Georgia, with its potential, competes convincingly with a number of advanced European states, while it undoubtedly maintains its leading position in the region.However, there are also a number of factors that more or less hinder the attraction of even more companies. In this regard, political instability and the vagueness of tax legislation are highlighted, which deprives businesses of the opportunity to make their activities predictable.In the global race to lead the fintech revolution, Georgia has every opportunity to play a leading role in shaping the future of the region's IT industry. All the more so since there are already best practices for benefiting from preferential regimes.

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“For this purpose, large investments will be made in the development of road, railway, air, sea transport infrastructure. The state will actively support production development, [and] export growth. Also, the educational system and infrastructure of the country will be fundamentally strengthened”, Kobakhidze said.He added “reforms and changes” were being implemented “in many directions”, which would “directly or indirectly contribute” to the development of business in Georgia and have a “positive impact” on economic progress and business development.Speaking at the event organised by the Business Association of Georgia, Kobakhidze said the Government would need “continuous collaboration” with the business sector to overcome challenges facing the latter.“We will need to coordinate with business so that Government decisions on each of these issues are as rational as possible, and tailored to the interests of business and economic progress. We need new ideas from you in order to further increase the pace of economic development, improve the environment for doing business, and for investing in Georgia”, he said.The Prime Minister promised the Government would “work actively” with the business society to overcome “all challenges” and create the “best possible environment” for business.In comments on the challenges, Kokbakhidze mentioned the lack of a qualified labour force and said changes were needed in education to facilitate related development.

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Tea Zakaradze participates in the route development forum Routes Asia 2024 in Malaysia. The largest airlines, airports, aviation authorities and decision-makers in the field of tourism from many countries of the world participate in the conference. The event includes panel discussions as well as bilateral meetings of airport and airline leaders.Within the framework of the forum, negotiations on the development of new direct air routes are underway with leading and fast-growing airlines in the Asian region, including Japan Airlines, China Airlines, Beijing Capital Airlines, Air China and Air Asia Group, which includes AirAsia, Air Asia India, Philippines Air Asia, Indonesia AirAsia and Thai AirAsia. Also, meetings were held with the heads of Hainan Airlines, Etihad Airways, Thai Lion Air, Tianjin Airlines, Malaysia Airlines Berhad and the representatives of Beijing Airport.

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Here we remind you that the status of VZP gives international and local IT-companies the opportunity to enjoy the tax benefits, which are regulated by the law adopted in 2011. However, the extent to which the activities of these companies were properly regulated was called into question after it was revealed that the Revenue Service imposed fines of millions of GEL on the companies that enjoyed the tax benefits. Obviously, this resulted in disputes between the companies, both in the tax office and in court.Due to the complexity of the problem, it would be impossible for the companies with the mentioned status to fight individually to protect their interests, and against this background, a legitimate need for creating the Association of Georgian Virtual Zone Persons naturally arose.Audit with interpreted conclusionsIf we follow the recent history of the sector in more detail, in 2021, mass audits of companies with VZP status began to determine whether their activities corresponded to the received preferential status.In the first stage - in the spring of 2021, the Tax Agency of Georgia started to contact the representatives of the companies with the status of Virtual Zone Persons and request various types of information.The tax agency disputed the fact that these companies created information technology products in the territory of Georgia. The companies were retrospectively cancelled the benefit in the profit tax and were required to pay the taxes from the previous period, starting in 2018. Here we should emphasize the fact that, it is still unknown what criteria and legal norms the tax authority relied on when determining the fact of the creation or non-creation of information technologies on the territory of Georgia.As a result of the tax audits, the fines imposed on the companies reached several million GEL.It was this difficult situation that led to the need to create the Association of Georgian Virtual Zone Persons. It was necessary to create a common space, a platform that would ensure the protection of the interests of VZP companies and the establishment of private-public dialogue.  The association was founded in February 2022.It is a non-profit organization that unites foreign investors and representatives of Georgian IT companies, which have been granted the status of a Virtual Zone Person.The primary goal of the Association is to protect the interests of its members and VZP companies and to ensure transparency in the regulation of their activities. By clarifying the legislation, the problem of unfair, retrospective taxation of companies with the status of a Virtual Zone by the tax authorities will be solved.The Association, which unites more than 40 IT companies, was headed by Shorena Kopaleishvili, a lawyer with many years of professional experience. During these two years, a number of important steps were made by the Association's team to protect the interests of the sector and each company."We believe that the regulatory legislation of such a promising field for the development of our country, such as information technology, should be clearly formulated and spelled out in the relevant legislative acts and should not be allowed to be misinterpreted by the representative of any agency. All the details of taxation for companies with the status of VZP should be spelled out in the Tax Code of Georgia and in the regulatory legislation of the mentioned field, not in the methodological references of the Revenue Service or in the so-called situation manuals. As it became known, one of the priorities of the Georgian government is the development of information technologies. In the published document "The main data and directions of the country for 2023-2026" we read that the government's goal is "to increase the number of specialists and companies in the field of information technology and innovation and promote the improvement of qualifications." To achieve this, it is necessary to: 1. analyze the current situation in the sector, identify challenges, and solve them; 2. support existing  companies and promote their activities; 3. create a legal framework that will clearly and transparently regulate the activities of companies operating in the information technology field; and 4. strengthen measures and programs aimed at the promotion of this industry, so that Georgia can position itself as one of the most attractive countries for this sector (including tax benefits). I think the business and the government should work in a coordinated way to overcome the existing challenges", - says Shorena Kopaleishvili, chairman of the VZP Association.What was doneIt is probably too early to talk about achieving the final goals, and it will be more of a process than some concrete landmark. However, the list of achievements that were made possible by Shorena Kopaleishvili's team through tireless work, intensive communication with various government agencies, cooperation, and involvement with tax experts, auditors, and partner associations is extensive, including:• Giving special importance to the problems of VZP companies. Due to the activity of the Association, the discussions of the problem began in state agencies (Revenue Service, Ministry of Finance, Parliament), European associations, and business community. There was also media coverage of the problem.• As a result of its qualified reasoning, the Association succeeded in canceling the first and second methodological references, and accordingly, it started reviewing the decisions made by the representatives of the revenue service against the members of the Association, recalculating the accrued taxes and fines, and removing or significantly reducing the fines imposed on the majority of companies.• The Association works diligently to establish clear criteria for tax purposes for IT-companies with Virtual Zone status.• The Association was able to enter the Parliament of Georgia with the request to initiate legislative changes.• The Association received the support of the Business Ombudsman of Georgia.• The Association was able to inform the European Business Association and other European representatives about the current challenges.• The policy carried out by the Association ensured an increase in interest in VZP status and the applications of companies.• The Association ensured the establishment of a successful public-private dialogue.• The Association was able to successfully resolve the tax disputes and related issues of a number of its member companies.Contribution of the VZP sector to the economy of GeorgiaThe introduction of the VZP status and the establishment of tax benefits for it were intended to bring both large and medium-sized international IT companies to the Georgian market, which should create new, high-paying jobs, bring more knowledge and education about this industry, contribute to stimulating the development of the country's economy, and more.As for the revenues of the country's budget from this sector, in the first 8 months of 2023, only 29.5 million GEL was paid to the budget by VZPs in the form of VAT. During this period, VZPs paid a 6.5 million GEL profit tax. The income tax reached an impressive rate, which amounted to 25.4 million GEL during the analysis period. If we sum up all the taxes, in the first 8 months of 2023, VZPs contributed 61.6 million GEL to the state budget.If we take into account that these payments are calculated taking into account tax benefits, it will be seen that the contribution of companies with this status to the real economy of Georgia is much greater, which means the creation of high-paying jobs, employment of qualified personnel in the IT field in Georgia, and therefore the outflow of specialists with such important qualifications from the country decreases, and they spend the high salaries received in the country.As for the last 5 years' statistics of payments to the state budget by the companies with VZP status, the dynamics have increased dramatically. In particular, VZP companies paid a total of 46 million GEL as taxes in 2019. In the pandemic year 2020, this indicator decreased slightly and amounted to 43.8 million GEL; however, from 2021 on, a sharp increase was observed - 67.3 million GEL. In 2022, this indicator reached 74 million GEL, and in only 8 months of 2023, 61.6 million GEL has been paid, and a significant increase in the total indicator of the year is expected after its calculation.What is the Association going to do?The association does not change its goals, and they are:• to unit more companies• Complete abolition of taxes, fines, and penalties for the past period• Achieving legislative changes• Establishing clear IT criteria for companies with VZP status• Close cooperation with government agencies and other partners• Facilitating the development of the information technology sector in the country

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"While our events have always complied with the law and created a safe environment for free expression, we have received a warning that any event that is sex-themed is not allowed," Kinky Party's Telegram channel said.TV company "Dozhd" notes that the next closed evening was supposed to be held in Moscow on February 17, but the organizers have already canceled the event."Now we are holding the events in Georgia and we hope to meet in other countries as well", - say the organizers.It is not clear in the statement whether they are already holding erotic evenings in Georgia, or if this is just a plan.

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The National Competition Agency is planning to start work on the regulation of the mentioned field this year, and the relevant guidance document should be ready by 2025.It is not yet known what other conditions will be set for the activities of influencers, however, as the agency told "Interpress News", "the main thing is transparency, because the customer should know that the company paid the influencer money for posting a video about a specific product or service."

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