Former Soviet Republic of Georgia To Become IT Tax Haven

A few days ago we noted how Ukraine is driving out its software freelancers with the threat of onerous taxation. Now comes news that another former Soviet republic, Georgia, will become a tax-free zone for IT companies. It might be the Google translation, but it seems that officials there are somewhat worried about how to categorize the IT segment: "[T]he main difficulty ... is to determine which organization is the IT company, and what is not: 'While from a formal point of view it is impossible to distinguish between software developers from the oil.'"

Comments

Re:So now our jobs go to Georgia?

[Darkness404]

Yeah, you have lower quality work, but in many cases it is easily offset by taxes. The main thing about taxes is it punishes you for being successful. The more successful you are the higher you have to pay in taxes. The foreign workforce is usually decently educated, cheap and willing to work long hours because the standard of living is lower. Someone being paid US minimum wage in the US can hardly even afford rent, the same pay gives a person "middle class" status in third-world or developing countries.

Code is generally code. Lower quality code for a much lower price is many times a decent price to pay.

Re:awesome

[oldhack]

That's bullshit. How can you speak Russian "with no accent"? Stupid.