2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue Page 10
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24GENERAL INFORMATION: INCOME TAX
(continued)
ONE FACTOR FORMULA
(a) Gross Receipts Factor. The gross receipts factor is the
For tax years beginning on or after January 1, 2006, a
company whose net income is derived from the manufacture,
ratio of gross receipts from business done within this State to
production, or sale of tangible personal property and from
total gross receipts from business done everywhere.
business other than the manufacture, production, or sale of
When receipts are derived from the sale of tangible personal
tangible personal property, must include gross receipts from
property, receipts shall be deemed to have been derived from
both activities in their receipts factor.
business done in this State if received from products shipped
to customers in this State or products delivered to customers
For tax years beginning on or after January 1, 2006, a
within this State.
company whose net income is derived from business other
than the manufacture, production, or sale of tangible personal
When receipts are derived from business other than the sale
property only includes in their receipts factor gross receipts
of tangible personal property, receipts shall be deemed to have
from activities which constitute the company’s regular trade
been derived from business done in this State if received from
or business.
customers within this State, or if the receipts are otherwise
(b) Apportionment of Income: Business Joint Venture and
attributable to this State’s marketplace.
Business Partnerships. A corporation or partnership that is
For tax years beginning on or after January 1, 2008, the
involved in a business joint venture or that is a partner in a
Georgia apportionment ratio shall be computed by applying
business partnership must include its pro rata share of the
only the gross receipts factor. See Georgia Comp. Rules and
joint venture’s or partnership’s property, payroll, and gross
Regulations. 560-7-7-.03 for specific details.
receipts values in its own apportionment formula.
GENERAL INFORMATION: NET WORTH TAX
COMPUTATION OF TAX
INITIAL FILING AND DUE DATES
The tax is graduated based on net worth. In the case of new
A new domestic or foreign corporation doing business or
corporations, this is the beginning net worth. Thereafter,
owning property in Georgia must file an initial net worth tax
it is the net worth on the first day of the corporation’s net
return on or before the fifteenth day of the third calendar month
worth taxable year. Net worth is defined to include issued
after incorporation or qualification. The initial net worth
capital stock, paid in surplus and retained earnings. Treasury
tax return is based on the beginning net worth (Federal
stock should not be deducted from issued capital stock.
Schedule L) of the corporation and covers the tax period
from the date of incorporation/qualification to the end of
Foreign corporations qualified to conduct business in Georgia
the year. If this return is for a short period of less than six
are taxed based upon the portion of net worth employed
within Georgia as computed in Schedule 2, using the ratio
months, the tax due is 50%. The initial net worth return
cannot be combined with the initial income tax return
computed in Schedule 8. To compute the ratio, the property
factors will reflect total balance sheet assets within Georgia
because the due dates do not coincide.
and everywhere. This includes all intangible assets reflected
Thereafter, an annual return must be filed on or before the
on the Federal return such as accounts receivable. Gross
fifteenth day of the third month following the beginning of the
receipts factors are determined per the instructions on Page 8.
corporation’s taxable period.
For net worth tax purposes, a foreign corporation is a
PENALTIES AND INTEREST
corporation or association created or organized under the
statutory laws of any nation or state other than Georgia.
Penalty for delinquent filing is 10% of tax due. Penalty for
delinquent payment is 10% of tax due. In addition, interest at
Domestic corporations and domesticated foreign
12% per annum is due on delinquent payments from the due
corporations are taxed based upon total net worth
date until paid in full.
(100% ratio) and should not use the ratio computation
in Schedule 8.
Page 8
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