Georgia: The Peach State

Georgia is located on the Atlantic Ocean in the southeastern United States. In the north of the state lies the Blue Ridge Mountains. The area of ​​approximately 150,000 km² is distributed over 159 counties. This means that the state has the second highest number of these nationally. According to ehuacom, a good 400,000 of the more than 10 million inhabitants live in the capital Atlanta.

Georgia offers entrepreneurs a base that is hard to find elsewhere. Qualified workers, a very good infrastructure and low taxes can be understood as a letter of invitation. Located in the southeastern part of the country, the state is part of the fastest growing and already most populous region of the United States.

Porsche, Adidas or Kia Motors are just a few of the thousands of international companies that have settled in Georgia.

Georgia Location Map

ROWS OF “BEST STATE FOR BUSINESS” RATINGS

Site Selection magazine has ranked Georgia “No. 1 for Business” for eight consecutive years (2013-20). This is based on an analysis of announced projects, the state’s tax climate and a thorough survey of site selection professionals. Area Development Magazine shares this assessment and has consistently placed Georgia in the sun since 2014.

The low corporation tax of 5.75%, which only applies to local income, was certainly helpful in the classifications. The state offers a variety of tax credits and exemptions. It is one of the nine states that have the highest credit rating. Inexpensive real estate and low utility costs complete Georgia’s appealing package and make it an attractive business location for all sectors.

James Williams (Senior VP at Mitsubishi Hitachi Power Systems) believes that Georgia understands business needs better than other states and forms a business-friendly community.

A total of 440 of the Fortune 500 companies are based in Georgia. 18 of them have their headquarters here. This fact also demonstrates the favorable business conditions and growth opportunities that Georgia offers.

EXCELLENT LOCATION & INFRASTRUCTURE

Because of its geographic location and decades of investment in infrastructure, Georgia has unparalleled opportunities for cost-effective and efficient transportation of people and goods. 80% of the US market can be reached within a two-hour flight or a two-day truck ride. The world’s busiest and most efficient passenger airport, Hartsfield-Jackson Atlanta International Airport serves over 100 million passengers annually and moves over 650,000 tons of cargo. Georgia is also home to the nation’s fastest growing port, the Port of Savannah. It is already one of the busiest ports in the country.

With an extensive rail network, the largest intermodal hub in the Southeast and six US Interstate highways, Georgia offers a gateway to the US market.

All of this means being able to move products and people efficiently from Georgia to anywhere. Area Development ranks the state as best for infrastructure and access to global markets.

GEORGIA QUICK START SETS THE NATIONAL STANDARD

Georgia Quick Start has trained more than 1 million employees. Each training program is tailored to the individual needs of each employer. The training is a voluntary incentive for eligible, job-creating companies in the state.

Established more than 40 years ago, the program was the first of its kind in the country. Georgia Quick Start has set the standard for workforce training nationwide.

Quick Start is also characterized by its flexibility. Targeted instruction and practical experience can be imparted in classrooms, mobile laboratories or directly on site in the company. There are also no restrictions with regard to the sectors. The program has trained employees in assembling cars, manufacturing machine parts and growing bacteria for vaccines, among other things.

INCOME TAX IN GEORGIA

Georgia charges an income tax ranging from 1-5.75% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN GEORGIA

Georgia charges a 5.75% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN GEORGIA

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Georgia

The sales tax in Georgia is 4% at the state level. Municipalities or districts charge an average of 3.31% sales tax. Combined, an average of 7.31% is due.

Georgia Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

January 1, 2019

Transactions included:

Gross receipts from retail sales of tangible personal property delivered electronically or physically to a location in the US state for consumption, use or storage in the state. Taxable services are not included in the threshold.

Treatment of tax-exempt transactions:

Exempt sales, other than resales, are included, but exempt services are not included in the threshold.

Reason:

turnover or transaction volume.

Sales/Transactions Threshold:

– Before January 1, 2020: $250,000 or 200 transactions.

– From January 1st, 2020: $100,000 or 200 transactions.

Evaluation period:

Threshold applies to the previous or current calendar year

Extra information:

  • Effective April 28, 2019, remote sellers who reach the Georgia Economic Nexus threshold will be required to collect and remit sales tax. You can no longer opt out by completing tax reporting obligations on unused sellers.
  • Registration Requirements: Georgia did not specify how quickly a remote business must register once it crosses the Economic Nexus Threshold. This could already happen with the next transaction.
  • Remote Sellers – Sales and Use Tax Responsibilities
  • GA HB61

Georgia Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

April 1, 2020

Economic Nexus Threshold:

A marketplace facilitator who achieves or facilitates aggregate taxable retail sales of USD 100,000 or more in the preceding or current calendar year in aggregate of $100,000 or more is a retailer for each taxable retail sale that it facilitates in Georgia on behalf of a marketplace seller. When calculating the threshold:

  • Marketplace intermediaries include direct and third-party sales in their thresholds
  • Remote sellers should exclude sales made through a marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Georgia Department of Revenue (DOR) and collect Georgia sales tax on sales that are not taxed by a marketplace intermediary once you have crossed the Economic Nexus threshold.
  • Remote Marketplace Sellers: You may need to register with the DOR if you cross the Economic Nexus Threshold, even if you only sell through one or two collection marketplaces. Contact DOR for more information.
  • In-State Multichannel Sellers: You must register and collect Georgia sales tax on sales that are not taxed through a marketplace intermediary.
  • In-State Marketplace Vendors: You may need to register; Contact the DOR for more information.