Georgia Tax 2023

1. Corporate Income Tax:

• State Corporate Income Tax:
  • Georgia has a flat corporate income tax rate.  
  • It is very important to verify the current exact corporate tax rate with the Georgia Department of Revenue as it may change.
• Federal Corporate Income Tax:
  • In addition to the state tax, companies operating in Georgia are subject to federal corporate income tax.
• Key Considerations:
  • Companies doing business in Georgia or deriving income from Georgia sources are subject to this tax.
  • Tax planning is crucial to understand the combined impact of state and federal taxes.

2. Sales and Use Tax:

• State and Local Sales Taxes:
  • Georgia has a state sales tax, and local jurisdictions may impose additional sales taxes.  
  • This tax is levied on retail sales of tangible personal property and certain services.
  • It is very important to check the local sales tax rates.
• Use Tax:
  • A use tax is imposed on the storage, use, or consumption of tangible personal property in Georgia that was not subject to sales tax.

3. Property Taxes:

• Real and Personal Property Taxes:
  • Real property (land and buildings) and personal property (business equipment, inventory) are subject to property taxes.  
  • Property tax rates are set by local governments (counties and municipalities).  

4. Individual Income Tax:

• State Individual Income Tax:
  • Georgia has a progressive state individual income tax system.
  • It is very important to verify the current exact progressive rates with the Georgia Department of Revenue as they may change.
• Federal Individual Income Tax:
  • Individuals residing or working in Georgia are also subject to federal individual income tax.

5. Key Tax Incentives:

• Tax Credits and Exemptions:
  • Georgia offers various tax credits and exemptions to attract businesses, particularly in specific industries.  
  • These incentives may include credits for job creation, research and development, and investment in certain areas.
• Opportunity Zones:
  • Georgia has designated Opportunity Zones, which offer tax advantages for investments in economically distressed areas.  

6. Important Considerations for Foreign Investors:

• State and Federal Compliance:
  • Ensure compliance with both Georgia state tax laws and U.S. federal tax laws.
• Tax Planning:
  • Engage in proactive tax planning to optimize your tax position.
• Professional Advice:
  • Seek professional tax advice from experts familiar with U.S. and Georgia tax laws.
• Documentation:
  • Maintain accurate and complete records of all financial transactions.
• Up to date information:
  • Tax Laws can change, so maintain up to date information from the goverment websites.
  
  
  By understanding these key aspects, foreign investors can navigate the Georgia tax system effectively.