Taxation in Georgia

Updated on Wednesday 25th July 2018

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Foreign investors should pay attention to the taxation structure in Georgia when opening a business in USA, and particularly in this state. The corporate tax and the sales tax are two of the most important taxes one should consider for his/her business. Our company formation agents in USA can provide you with information about how to set up a company in Georgia and about the taxes which need to be paid for the states’ authorities. You may also consider the general guide to company incorporation in Georgia for details.

What is the sales tax in Georgia?

Georgia aligns with the states that impose a low sales tax which is now set at 4%, with the exception that it is not enforced on medical equipment, food, and medicines. It is good to know that Atlanta, Georgia’s capital, has its own sales tax rate of 1.9%. Also, municipalities in Georgia can choose to have their own sales tax without exceeding 4%. We are at your services if you would like to know more about the taxes in Georgia.

What is the corporate tax in Georgia?

The corporate tax rate in Georgia is set at 6% and it is imposed on the net income registered by the company in this state. We mention that enterprises which have different properties in Georgia and activities in this state are subject to the above-mentioned corporate tax.

We are at your disposal with complete support for taxation matters in Georgia and for company registration in Georgia, so you can talk to our team of company incorporation agents in USA.

Taxation for sole traders in Georgia

Performing the economic activities as sole traders in Georgia comes with different benefits, meaning that proprietorships are not subject to the corporate income tax. In this sense, it is good to know that the business income is allocated to the owner, therefore the individual federal tax is imposed on that revenue.

Nexus for multistate companies

If your company in Georgia has several business offices in USA, meaning other branches, it will have to pay the imposed taxes in the American states where the activities are performed. Such companies are subject to Nexus, the sufficient physical presence which is the factor that determines what kind of taxes you need to pay.  Please observe the following matters:
  • if the business is registered elsewhere in USA, but it generates revenues in Georgia, this states’ taxes need to be paid;
  • foreign companies need to provide information about the other branches in USA and register for tax purposes;
  • each state enforces its own income tax and sales tax;
  • the rules for such kind of taxation can be entirely explained by our team of advisors.

We invite you to contact our team of company formation representatives in USA and ask for information about the taxation in the state of Georgia.