Ga. Comp. R. & Regs. R. 560-7-8-.01 - Requirements for Filing
(1)
The following filing requirements pertain to all taxable years beginning on or
after January 1, 1971:
(a) Every resident
individual who is required to file a Federal return for any year is required to
file a Georgia return for such year on Form 500.
(b) Every non-resident individual who is
required to file a Federal return for any year, which return includes income
from sources within Georgia, shall file a Georgia return for such year on Form
500.
1. Personal service. The gross income of
a non-resident (who is not engaged in the conduct of a business, trade,
profession or occupation on his own account, but receives compensation for his
services in the status of employee or independent contractor) includes
compensation for personal services only to the extent that the services were
rendered in this State. Compensation for personal services rendered by a
non-resident wholly outside this State and in no way connected with the
management or conduct of a business in this State is excluded from gross income
regardless of the fact that payment is made from a point within this State or
that the employer is a resident individual, partnership or corporation.
Compensation for personal services rendered by a non-resident wholly within
this State is to be included in gross income although payment is received at a
point outside this State or from a non-resident individual, partnership or
corporation.
(i) Where compensation is
received for personal services rendered partly within and partly without this
State, that part of the income allocable to this State is included in gross
income. In such cases the test of physical presence is used to determine the
situs of the rendition of the services, except where the peculiar nature of
such services causes the objective of the employment to be accomplished or to
take effect within this State as; for example, where a non-resident is a
fiduciary of a Georgia estate or trust. The gross income from commissions
earned by a non-resident traveling salesman, agent, or other employee for
services performed or sales made, whose compensation is in the form of a
specified commission on each sale made, or services rendered, includes the
specific commissions earned on sales made, or services rendered, in this State;
and allowable deductions must be computed on the same basis.
(ii) Examples: If non-resident employees are
employed in this State at intervals throughout the year, as would be the case
if employed in operating trains, boats, planes, motor buses, trucks, etc.,
between this State and other states and foreign countries, and are paid on a
daily, weekly or monthly basis, the gross income from sources within this State
includes that portion of the total compensation for personal services which the
total number of actual working days employed within the State bears to the
total number of working days both within and without the State. If the
employees are paid on a mileage basis the gross income from sources within this
State includes that portion of the total compensation for personal services
which the number of miles traversed in Georgia bears to the total number of
miles traversed within and without the State. If the employees are paid on some
other basis, the total compensation for personal services must be apportioned
between this State and other states and foreign countries in such a manner as
to allocate to Georgia that portion of the total compensation which is
reasonably attributable to personal services performed in this State.
(iii) The gross income of all other
non-resident employees, including corporate officers, includes that portion of
the total compensation for services which the total number of actual working
days employed within this State bears to the total number of actual working
days employed both within and without this State during the taxable period. In
the case of corporate officers and executives who spend only a portion of their
time within this State, but whose compensation paid by a corporation operating
in Georgia is exclusively for managerial services rendered by such officers and
executives while within this State, the entire amount of compensation so earned
is taxable without apportionment.
2. Income from intangible personal property.
Intangible personal property, including money or credits, of a non-resident has
a situs for taxation in this State when used in the conduct of the taxpayer's
business, trade or profession in this State. Income from the use of such
property, including dividends, interest and other income from money or credits,
constitutes a part of the income from a business, trade or profession carried
on in this State when such property is acquired or used in the course of such
business, trade or profession as a capital or current asset, and is held in
that capacity at the time the income arises.
(i) Examples: If a non-resident pledges
stocks, bonds or other intangible personal property in Georgia as security for
the payment of indebtedness, taxes, etc., incurred in connection with a
business in this State, the property has a business situs here. Again, if a
non-resident maintains a branch office here and a bank account on which the
agent in charge of the branch office may draw for the payment of expenses in
connection with the activities in this State, the bank account has a business
situs here. If intangible personal property of a non-resident has acquired a
business situs here, the entire income from the property, including gains from
the sale thereof, regardless of where the sale is consummated, is income from
sources within this State, taxable to the non-resident.
3. Business. The gross income of a
non-resident (other than one who is employed by another, as distinguished from
doing business on his own account) from a business, trade, profession or
occupation is determined in the same manner as is the gross income of a
resident from a similar activity, but includes only income from the business,
trade, profession or occupation carried on in this State.
4. Sale of Property. The gain or profit from
any sale, exchange or other disposition by a non-resident of real or tangible
personal property located in this State is taxable, even though it is not
connected with a business carried on in this State; and the loss from such a
transaction is deductible if a business loss, or is a gain from a transaction
entered into for profit, The gain or loss from the sale, exchange or other
disposition by a non-resident of real property or tangible personal property
located in this State is determined in the same manner, and is recognized to
the same extent, as the gain or loss from a similar transaction by a
resident.
5. Intangibles. The gain
or profit of a non-resident from the sale, exchange or other disposition of
intangible personal property, including stocks, bonds and other securities,
ordinarily is not taxable and should not be included in gross income, except to
the extent that such intangible personal property has acquired a business situs
in this State. Likewise, losses sustained from the sale, exchange or other
disposition of such property are not deductible, except to the extent that they
are losses incurred in a business carried on within this State by the
non-resident taxpayer.
6. Rents.
The gross income of a non-resident from rents includes all rents received from
property, whether real or personal, located within this State.
(c) Every resident estate or trust
which is required to file a Federal return for any year shall file a Georgia
return for such year on Form 501.
(d) Every non-resident estate or trust which
is required to file a Federal return for any year, which return includes income
from sources within Georgia, shall file a Georgia return for such year on Form
501.
(e) Every resident individual
not required to file a Federal return who has income exempt from Federal income
tax but subject to State income tax shall file a Georgia return on Form 500,
computing his Georgia taxable net income as though such income were not
excluded from Federal tax, and furnish therewith schedules in support of all
computations.
(f) Every resident
estate or trust not required to file a Federal return which has income exempt
from Federal income tax but subject to State income tax shall file a Georgia
return on Form 501, computing its Georgia taxable net income as though such
income were not excluded from Federal tax, and furnish therewith schedules in
support of all computations.
(2) All taxpayers are required to file with
their Georgia income tax return a copy of all or any part of their Federal
income tax return for the corresponding period. The State Revenue Commissioner
shall promulgate instructions specifying taxpayers not required to file a copy
of their Federal returns, and permitting some taxpayers to submit specified
excerpts from Federal returns in lieu of submitting copies of the entire
Federal return. A return filed without the required whole or part of the
Federal return shall be deemed incomplete.
(a) A complete copy of the Federal
partnership return must be filed with the Georgia partnership return for the
corresponding period.
Notes
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