U.S. Tax Advisory and Compliance
General Information on Georgia Corporate Income Tax for Foreign Companies
1) Tax Filing Requirements
All corporations that own property or do business in Georgia, or that have income from Georgia sources are required to file a Georgia income tax return Form 600.
A new domestic or foreign corporation doing business or owning property in Georgia must file an initial net worth tax return (Form 600) on or before the fifteenth day of the third calendar month after incorporation or qualification.
The initial net worth tax return is based on the beginning net worth (Federal Schedule L) of the corporation and covers the tax period from the date of incorporation / qualification to the end of the year. The tax is graduated based on net worth. In the case of new corporations, this is the beginning net worth. Thereafter, it is the net worth on the first day of the corporation’s net worth taxable year. A foreign corporation admitted into Georgia must file a net worth tax return until it has withdrawn from Georgia.
If a non-resident sells Georgia real property, tax withheld should be reported on Form G-2RP by the buyer. A copy of Form G-2RP should be attached to the seller's Georgia income tax return (Form 600) as proof of taxes withheld.
2) Tax Filing Dates
The initial net worth tax return is due on or before the 15th day of the third calendar month after incorporation or qualification.
If you want to file the Georgia return (Form 600) after the due date, a request for an extension of time to file a corporate tax return should be made by filing a Form IT303 before the original due date.
Please note that an extension to file does not extend the date for paying the tax. Tax must be paid by the statutory due date to avoid late payment penalty and interest.
3) Tax Rates *
For the initial net worth return, the tax is graduated based on net worth. Depending on the net worth of the corporation, the tax is within the range from US$10 to US$5,000.
Nonresidents who sell or transfer Georgia real property are subject to a 3% withholding tax. Nonresidents include individuals, trusts, partnerships, corporations, limited liability companies, limited liability partnerships, and unincorporated organizations.
The withholding tax is to be computed by applying the 3% rate to the purchase price. As an alternative, if the seller provides the buyer with a completed affidavit of gain (Form IT-AFF2 or equivalent) attesting to the amount of the gain, the withholding may be computed by applying the 3% rate to the amount of recognized gain.
Withholding will not be required on transactions where the purchase price is less than US$20,000. If the purchase price exceeds US$20,000 and the tax liability is less than US$600, the seller may provide the buyer with a completed affidavit of gain (Form IT-AFF2 or equivalent), attesting to the amount of the gain, and the buyer will not be required to withhold.
In general, Georgia income tax is 6% of the Georgia taxable income.
* Based on 2007 data.