Corporate Income and Net Worth Tax
Georgia has a corporate income tax on corporations. Corporations may also have to pay a net worth tax.
Corporate Income Tax
Corporate income tax is based on the net worth of a corporation levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia.
- Corporate income tax is a non-graduated percentage based on a corporation's federal taxable net income and as modified by Georgia statutory adjustments.
- Corporations that own property, do business in Georgia, or receive income from Georgia sources are subject to corporate income tax
- The rate of taxation is 5.39% of a corporation's Georgia taxable net income.
- If S Corporation status is recognized for Georgia purposes, the shareholders of the corporation pay the tax as opposed to the corporation paying the tax.
Net Worth Tax
Corporations may also have to pay a net worth tax. This tax is based on the net worth of a corporation, levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia. For net worth years beginning on or after January 1, 2018 (those reported on the 2017 income tax return), corporations with a net worth of $100,000 or less are not subject to tax but must file a return. The maximum is $5,000 for a net worth in excess of $22 million. All corporations doing business in Georgia for the first time must file an initial net worth return on or before the fifteenth day of the third calendar month after incorporation or qualification in the state (for C corporations, 15th day of the fourth month for net worth years beginning on or after January 1, 2017; those reported on the 2016 income tax return).