Form It 611 - Corporation Income Tax Forms And General Instructions - 2012 Page 9
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22GENERAL INFORMATION: INCOME TAX (continued)
ONE FACTOR FORMULA
For tax years beginning on or after January 1, 2006, a
(a) Gross Receipts Factor. The gross receipts factor is the
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
The purpose of the gross receipts factor is to measure the
tangible personal property, must include gross receipts from
marketplace for the taxpayer’s goods and services. When
both activities in their receipts factor.
receipts are derived from the sale of tangible personal property,
For tax years beginning on or after January 1, 2006, a
receipts shall be deemed to have been derived from business
done in this State if received from products shipped to
company whose net income is derived from business other
customers in this State or products delivered to customers
than the manufacture, production, or sale of tangible personal
within this State.
property only includes in their receipts factor gross receipts
from activities which constitute the company’s regular trade
When receipts are derived from business other than the sale
or business.
of tangible personal property, receipts shall be deemed to have
been derived from business done in this State if received from
(b) Apportionment of Income: Business Joint Venture and
customers within this State, or if the receipts are otherwise
Business Partnerships. A corporation that is involved in a
attributable to this State’s marketplace.
business joint venture or that is a partner in a business
partnership must include its pro rata share of the joint venture’s
For tax years beginning on or after January 1, 2008, the
or partnership’s property, payroll, and gross receipts values in
Georgia apportionment ratio shall be computed by applying
its own apportionment formula.
only the gross receipts factor. See Georgia Comp. Rules and
Regulations. 560-7-7-.03 for specific details.
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 owning
corporations, this is the beginning net worth. Thereafter,
property in Georgia must file an initial net worth tax return on or
it is the net worth on the first day of the corporation’s net
before the fifteenth day of the third calendar month after
worth taxable year. Net worth is defined to include issued
incorporation or qualification. The initial net worth tax return
capital stock, paid in surplus and retained earnings. Treasury
is based on the beginning net worth (Federal Schedule
stock should not be deducted from issued capital stock.
L) of the corporation and covers the tax period from the
date of incorporation/qualification to the end of the year.
Foreign corporations qualified to conduct business in Georgia
If this return is for a short period of less than six months,
are taxed based upon the portion of net worth employed within
the tax due is 50%. The initial net worth return cannot be
Georgia as computed in Schedule 2, using the ratio computed
combined with the initial income tax return because the
in Schedule 8. To compute the ratio, the property factors will
due dates do not coincide.
reflect total balance sheet assets within Georgia and
everywhere. This includes all intangible assets reflected on the
Thereafter, an annual return must be filed on or before the fifteenth
Federal return such as accounts receivable. Gross receipts
day of the third month following the beginning of the corporation’s
factors are determined per the instructions on Page 8.
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 (100%
date until paid in full.
ratio) and should not use the ratio computation in
Schedule 8.
Page 8
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