Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-7 - INCOME TAX DIVISION › Subject 560-7-8 - RETURNS AND COLLECTIONS › Rule 560-7-8-.01 - Requirements for Filing

Current through Rules and Regulations filed through June 27, 2024
(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.