A tax is hereby imposed for each tax year on each corporation's taxable income. The reimbursement request period closed: the application review period began More information Q. What is the corporate income tax rate in Delaware? TO. Any domestic or foreign corporation doing business in Delaware that is not specifically exempt under Section 1902 (b), Title 30 of the Delaware Code, must file a corporate income tax return (Form 1100 or Form 1100EZ) regardless of the amount, if any, of its gross or taxable income.
The tax status of a corporation in Delaware follows the federal treatment of the corporation. What is the deadline for filing a Delaware corporate income tax return? TO. Delaware corporate income tax returns are due for a calendar year taxpayer on or before April 15 of the following year. In the case of a tax year taxpayer, the return is due on or before the fifteenth of the fourth month following the close of the tax year.
Keep in mind that a federal extension automatically extends the Delaware deadline. An extension of the deadline for submitting an application is not an extension of the deadline for paying. Does Delaware accept consolidated returns? A. Delaware law does not allow consolidated corporate income tax returns.
Each corporation that is a member of a consolidated group must file a separate return stating income and deductions, as if a separate federal income tax return had been filed. How does Delaware treat S corporations? TO. Any S corporation that derives income from sources within Delaware must file a Form 1100S, settlement statement, and information for S Corporation shareholders. Delaware recognizes federal election S and does not impose corporate income taxes on transferred income.
What are the estimated tax filing requirements of an S Corporation? TO. Any S corporation that derives income from sources within Delaware must make estimated personal income tax payments on behalf of its non-resident shareholders. The payments are based on the participation of non-residents in the corporation's distributive revenues. Resident and non-resident shareholders must declare their respective share of distributive income S on their individual personal income tax returns.
Does Delaware have a minimum corporate income tax? TO. Delaware law does not require payment of a minimum corporate income tax. Does Delaware allow the return of a net operating loss (NOL)? Q. Is it necessary to attach a copy of a corporation's federal income tax return (Forms 1120, 1120A, or 1120S) to the Delaware corporate return? TO.
Delaware requires all companies that file a Delaware corporate income tax return to attach a full copy of a pro forma federal tax return, including all schedules and annexes. The forms can be found at www, irs, gov. What are the corporate income tax filing requirements for an exempt corporation? A. Generally, nonprofit organizations recognized by the IRS as 501 (c) nonprofit organizations don't have to file a Delaware corporate income tax return.
See Section 1902 (b), Title 30 of the Delaware Code, for a detailed list of exempt companies. Keep in mind that most nonprofit organizations must file an annual report with the Delaware Division of Corporations. What are the corporate income tax reporting requirements for a holding company? TO. Corporations whose activities in Delaware are limited to the maintenance and management of their intangible investments may be exempt under Section 1902 (b) (, Title 30) of the Delaware Code.
Corporations can obtain a specific resolution from the Revenue Division by filing an exemption request, Form 1902AP, describing their operations and stating the reasons for the exemption under Section 1902 (b) (. Please note that Section 1904 (f), Title 30 of the Delaware Code, requires companies exempt under Section 1902 (b) (file an annual information return (Form 1902 (b)) to declare sources of revenue and services provided within and outside of Delaware. Corporate income tax returns filed late are subject to a penalty of 5% per month, plus interest of 0.5% per month from the original due date until they are paid. In addition to the above penalties and interest, an additional penalty of 1% per month (not more than 25%) is imposed for not paying (fully or partially) the tax liability that is proven due on a timely filed return.
Does Delaware accept the submission of corporate income tax return information through electronic data or magnetic media? A. No, Delaware does not currently accept the submission of corporate income tax return information through electronic data or magnetic media. You are required to submit corporate income tax returns, including attachments, on paper. Delaware Governor State Agencies Elected Officials General Assembly Delaware Courts State Employees Cities% 26 Cities Delaware State Code State Regulations First Business Steps Directory Public Meetings Voting% 26 Elections Delaware Market Transparency Delaware Market Transparency Tax Center Personal Income Tax Policy Privacy Policy Climate% 26 Travel.
All corporations and entities taxed as corporations for federal income tax purposes that obtain income from Louisiana sources, whether or not they have net income, must file an income tax return. Businesses that obtain an exemption resolution from the Internal Revenue Service must submit a copy of the judgment to the Department to obtain an exemption. Calculate net income as if they had filed a return from a C corporation at the federal level, and returns and payments are due on or before the 15th of the fifth month following the close of an accounting period (May 15 for a calendar year). Organized under the laws of Louisiana.
Qualified to do business in this state or do business in this state. Exercise or continue corporate status within this state. Qualified and eligible to make a choice to pay taxes in accordance with the provisions of 26 U, S, C. Subtitle A, Chapter 1, and Subchapter S on the first day of the franchise tax period are not subject to franchise tax.
If, after paying any portion of the estimated tax, the taxpayer determines that a new estimate is required, the remaining installment payment amounts may be increased or decreased, as the case may be. The amount required by the new estimate is calculated by calculating the difference between the amount of the previous estimated tax and the new amount of estimated tax and dividing that difference by the number of installments that remain to be paid. The estimated income tax paid by the corporation during the tax year. Amount that the corporation estimates to be its tax liability for the tax year.
Within 45 days after the date an adjustment request is submitted, the adjustment will be allowed or rejected if the request is determined to contain significant omissions or errors. If the adjustment is allowed, the secretary can credit the amount of the adjustment to any other tax liability owed by the corporation and refund the rest. If it is later determined that the amount of the adjustment was excessive, a penalty of 12 percent per year will apply to the excess amount from the date the credit was allowed or the refund was paid until the due date of the tax year. For the purposes of the fine, the excessive amount is the amount of the adjustment or the amount by which the company's tax liability exceeds the estimated income tax paid during the tax year, reduced by the amount of the adjustment.
Request extensions electronically through the bulk extension request or the online extension request on the LDR website; or request extensions electronically through tax preparation software that supports electronic filing of the extension request to file Louisiana corporate income tax and franchise taxes. A) a client, as that term is defined in Section 91.001 of the Labor Code; or (B) a client of a temporary employment service, as that term is defined in Section 93.001 (of the Labor Code), to whom people are assigned for a purpose described in that subdivision. C) is a broker or agent as defined by the Securities Exchange Act of 1934 at 15 U, S, C. Section 78c; or B) reimbursement of specific costs incurred in carrying out the managed entity's active business or business activity, including salaries and cash compensation, as determined in Sections 171, 1013 (a) and (b).
A) a business entity that provides professional services for employers, as that term is defined in Section 91.001 of the Labor Code; or B) a temporary employment service, as that term is defined in Section 93.001 of the Labor Code. A passive entity as defined in Section 171.0003; or a grantor trust as defined in Sections 671 and 701 (a) (30) (E) of the Internal Revenue Code, whose grantors and beneficiaries are individuals or charitable entities, as described in Section 501 (c) (, Internal Revenue Code, excluding a taxable trust as a business entity pursuant to Section 301, 7701-4 (b) of the Treasury Regulations; an estate of a natural person as defined in Section 301, 7701-4 (b) of the Treasury Regulations; an estate of a natural person as defined in 7701 (a) (30) (D) del Internal Revenue Code, excluding taxable estate as a business entity pursuant to Section 301 of Treasury Regulation 7701-4 (b); a real estate mortgage investment pipeline (REMIC), as defined in Section 860D of the Internal Revenue Code; a trust qualified under Section 401 (a) of the Internal Revenue Code; a trust or other entity that is exempt under Section 501 (c) (, Internal Revenue Code; or D) An entity that can file a return as a company sole proprietorship for federal tax purposes is not a sole proprietorship for the purposes of subsection (b) (and is not exempt under that subsection if the entity is formed in accordance with the statutes of this state, another state, or a foreign country that limit the entity's liability. C) capital gains from the sale of real estate, profits from the sale of commodities listed on a commodity exchange, and profits from the sale of securities; and A- When performing the calculation under subsection (a) (), the income described in subsection (a) (cannot be treated as income from carrying out an active operation or business). Text of the section effective until January 1, 2026 Text of the subsection effective until January 1, 2026 (B) The additional tax equals the corresponding rate under section 171.002 of the taxing entity's taxable margin, calculated in the period beginning on the day following the last day for which the tax on the taxable margin or net taxable surplus was calculated and ends on the date the taxable entity is no longer subject to the tax established under this chapter.
D) Unless otherwise provided in this section, the provisions of this chapter apply to tax imposed under this section. B) Subject to Sections 171,003 and 171.1016, the franchise tax rate is 0.375 percent of the taxable margin for taxable entities that are primarily engaged in retail or wholesale trade. Except as provided in subsection (c), less than 50 percent of the total revenues from retail or wholesale activities come from the sale of the products it produces or from the products produced by an entity that is part of an affiliated group to which the tax entity also belongs; and C- Subsection (c) (does not apply to total revenues from activities in a retail store described in Main Group 58 of the Standard Industrial Classification Manual published by the Office of Federal Administration) and Budget. C- For the purposes of subsection (c) (), the provision of telecommunications services does not include the sale of prepaid telephone cards.
B) This section does not apply to a decrease in a rate provided for in Section 171.002 (a) or (b). If a rate is reduced, this section applies to any subsequent increase in that rate. (C) The amounts determined in subsection (b) apply to a report that is originally due on or after the date the determination is made. (D) The controller will make the determination required in this section and may adopt rules related to the making of that determination.
E) The controller's determination under this section is final and cannot be appealed. C) The exemption provided for in Section 171,063 of this code must be established as provided in that section, but a corporation may request and receive other exemptions as provided in this section. D) Neither this section nor section 171.063 of this code requires that a corporation that was granted an exemption from franchise tax before September 1, 1975, that was entitled to the exemption on September 1, 1975, and that has maintained the exemption since that date, submit an application, report, exemption letter, or other additional proof of qualification for that exemption. C) An entity is subject to franchise tax for a tax year in which the entity violates an order issued by the Texas Department of Insurance under Section 2254.003 (b) of the Insurance Code, that is final upon appeal, or that is no longer subject to appeal, or that is no longer subject to appeal.
A nonprofit corporation exempt from federal income tax under Section 501 (c) (, (, (, (, (or (1) of the Internal Revenue Code, which in the case of a nonprofit hospital means a hospital that provides community benefits that include charitable care and government-sponsored health care for the indigent, as set forth in subchapter D, chapter 311, of the Health and Safety Code; a corporation exempt under Section 501 (c) (or (2) Revenue Code, if the corporation or corporations whose property title holds are exempt or are not subject to franchise tax; and a corporation exempt from federal income tax under Section 501 (c) (1) of the Internal Revenue Code. (B) A corporation is entitled to an exemption under this section based on the corporation's exemption from federal income tax if the corporation submits evidence to the controller establishing the corporation's exemption. C) A corporation's exemption under subsection (b) of this section is established by providing the controller with a copy of the exemption letter from the Internal Revenue Service issued to the corporation. D) If the Internal Revenue Service has not timely issued an exemption letter to a corporation, the evidence establishing the corporation's provisional exemption under this section is sufficient if the corporation timely submits to the comptroller evidence that the corporation has in good faith requested exemption from federal tax.
Evidence must be submitted no later than 15 months after the last day of a calendar month and the one closest to the date of the corporation's statute or certificate of authority. E) An exemption established under subsection (c) or (d) of this section shall be recognized, once finally established, as of the date of the corporation's statute or certificate of authority. F) If a corporation timely submits evidence to the comptroller under subsection (d) of this section that it has requested a federal tax exemption and if the Internal Revenue Service ultimately denies the request, this chapter does not impose any penalty on the corporation from the date of its statute or certificate of authority until the date of the final denial. G) If the Internal Revenue Service withdraws a corporation's federal tax exemption for failing to meet the requirements or maintain its requirements for the exemption, the corporation's exemption under this section ends on the effective date of that withdrawal by the Internal Revenue Service.
The effective date of the retirement is considered the start date of the corporation for the purposes of determining the periods of privilege of the corporation and for all other purposes of this chapter, except that if the corporation had been subject to Section 171.001 (d) in the absence of exemption from federal tax, and the effective date of the withdrawal is a date prior to the date on which the corporation would have become subject to franchise tax as provided in Section 171.001 (d), the date on which the corporation would have become subject to franchise tax under that section it is considered the start date of the corporation for those purposes. The effective date of the retirement is considered the start date of the corporation for the purposes of determining the corporation's privilege periods and for all other purposes of this chapter. The money is donated to be used for a purpose described in Section 109.033 (c) of the Health and Safety Code; and the donation cannot cover more than 10 percent of the charitable care required under any provision of Section 311.045 of the Health and Safety Code. B) For the purposes of this section, a condominium project is considered residential if the project is legally restricted for use as residences.
A real estate development is considered residential if the property is legally restricted for use as residences. (B) For the purposes of this section, the request for orders is carried out on an occasional basis only if the request is carried out for no more than five periods during the business period of the corporation to which the tax report applies and if no single period during which the request is made exceeds 120 hours. C) In this section, wholesale center means a permanent wholesale facility that has permanent tenants and that promotes at least four national or regional trade shows in a calendar year. A tenant who leases space at a wholesale center for a period longer than the period prescribed in subsection (b) may qualify for the exemption provided for in this section only if the tenant requests orders on an occasional basis at the trade show, as prescribed in subsection (b).
I) 70 percent of the tax entity's total revenue from its entire business, as determined in Section 171.1011; or the cost of goods sold, as determined in Section 171.1012; or compensation, as determined in Section 171.1013, paid to a person during the period the person is on active duty as a member of the United States armed forces if the person is a resident of this state at the time he or she is ordered to serve on active duty and the cost of training a replacement the person; distributing the tax entity's margin to this state as provided in Section 171.106 to determine the taxing entity's pro-rated margin; and C) When performing a calculation under this section, an amount that is zero or less is calculated as zero. (D) The tax entity will make an election under subsection (a) (B) (ii) in its annual report and it will only take effect for that annual report. A tax entity shall notify the controller of its election no later than the due date of the annual report. B) In this section, a reference to an amount reportable as income in a line number of an Internal Revenue Service form is the amount entered to the extent that the amount entered complies with federal income tax law and includes the corresponding amount entered in a variant of the form, or a subsequent form, with a different line number to the extent that the amount entered complies with federal income tax law.
iii) any total income declared by a lower-tier entity as included in the taxable entity's total income under Section 171.1015 (b); and I) expenses for bad debts for federal income tax purposes that correspond to the gross income items included in subsection (c) (A) for the current reporting period or a previous reporting period; ii) to the extent that foreign royalties and foreign dividends, including amounts determined in subsection (c) (A), foreign royalties and foreign dividends, including amounts determined in Section 78 or Sections 951-964 of the Internal Revenue Code; iii) to the extent included in subsection (c) (A), net distributive income of a taxable entity treated as a corporation or S corporation for federal income tax purposes; V) to the extent included in subsection (c) (A), income items attributable to an entity that is an excluded entity for federal income tax purposes; and Vi) to the extent that they are included in subsection (c) (A), other amounts authorized by this section ; Vi) any total income reported by a lower level entity included in the taxable entity's total income under Section 171.1015 (b); and Iv) to the extent that it is included in subsection (c) (A), items of income attributable to an entity that is an entity excluded for federal income tax purposes; and (V) to the extent included in subsection (c) (A), other amounts authorized by this section; or (D) subject to Section 171.1014, an entity taxable that is part of a federal consolidated group you will calculate your total income under subsection (c) as if you had filed a separate return for federal income tax purposes. F) A tax entity shall exclude from its total revenues, to the extent that they are included in subsection (c) (A), (c) (A) or (c) () (), continuous flow funds that are required by law or trust duty to be distributed to other entities, including taxes collected from a third party by the tax entity and remitted by the tax entity to a tax authority. G- A tax entity that is a credit institution shall exclude from its total revenues, to the extent that it is included in subsection (c) (A), (c) (A) or (c) (), income from the repayment of the principal of loans. G- A tax entity shall exclude from its total revenues, to the extent that it is included in subsection (c) (A), (c) (A) or (c) (), the tax base determined in the Internal Revenue Code from the securities and loans sold.
To the extent included in subsection (c) (A) or (c) (, the reimbursement of tax entity expenses incurred in processing a claimant's matter that are specific to the matter and are not general operating expenses; and G- A tax entity that is a pharmacy cooperative shall exclude from its total revenues, to the extent included in subsection (c) (A), (c) (A) or (c) (, continuous flow funds from reimbursements from pharmacy wholesalers that are distributed to shareholders of the cooperative of pharmacies. A tax entity that provides a pharmacy network shall exclude from its total revenues, to the extent included in subsection (c) (A), (c) (A), or (c) (), reimbursements, in accordance with contractual agreements, for payments to pharmacies in the pharmacy network. G- A tax entity that is a qualified live event promotion company shall exclude from its total revenues, to the extent included in subsection (c) (A), (c) (A) or (c) (,), a payment made to an artist in connection with the provision of a live entertainment event or live event promotion services. G- A tax entity that is mainly engaged in the business of transporting aggregates shall exclude from its total revenues, to the extent that it is included in subsection (c) (A), (c) (A) or (c) (), subcontracting payments made by the tax entity to independent contractors for the provision of delivery services on behalf of the tax entity.
In this subsection, aggregates are understood to mean any commonly recognized building material removed or extracted from the earth, including dimensional stone, crushed and broken limestone, crushed and broken granite, other crushed and broken stones, construction sand and gravel, industrial sand, soil, cementitious material, and caliche. G- A tax entity that is mainly engaged in the barite transportation business shall exclude from its total revenues, to the extent that it is included in subsection (c) (A), (c) (A) or (c) (), subcontracting payments made by the tax entity to agents who are not employed for the provision of transportation services on behalf of the tax entity. For the purposes of this subsection, barite means barium sulfate (BaSO), a mineral used as a weighing agent in oil and gas exploration. (H) If the tax entity belongs to an affiliated group, the tax entity cannot exclude payments described in subsections (f), (g), (g), (g), or (g) from being made to entities that are members of the affiliated group.
(I) Except as provided in subsection (g), a payment made under an ordinary contract for the provision of services in the ordinary course of business cannot be excluded. M) A tax entity shall exclude from its total revenues, to the extent included in subsection (c) (A), (c) (A), or (c) (), dividends and interest received from federal obligations. M- A taxable entity that is a management company shall exclude from its total revenues reimbursements for specific costs incurred in carrying out the active commercial or business activity of a managed entity, including salaries and cash compensation, as determined in Sections 171, 1013 (a) and (b). The calculation of the actual cost to a health care provider of any uncompensated care provided under subsection (n) (; and O) A health care provider that is a health care institution shall exclude from its total income 50 percent of the amounts described in subsection (n).
H) an intermediate care facility for people with mental retardation or a home and community services exemption program for people with mental retardation adopted pursuant to Section 1915 (c) of the federal Social Security Act (42 U, S, C. Section 1396n); K) an authorized end-stage renal disease center under Section 251.011, of the Health and Safety Code; or T) The Comptroller shall adopt the rules necessary to comply with the legislative intent prescribed in this section. (V) A tax entity that is primarily engaged in the business of transporting goods by waterways that does not subtract the cost of goods sold when calculating its taxable margin shall exclude from its total revenues the direct costs of providing intrastate or interstate waterway transportation services, to the same extent that a tax entity that sells tangible real or personal property in the ordinary course of business would be authorized by Section 171, 1012 to subtract those costs as costs of goods sold in calculating your taxable margin, without prejudice to Section 171.1012 (e) (. W- A taxable entity that is primarily engaged in the provision of services such as the operation of agricultural aircraft, as defined in Articles 14 C, F, R.
Section 137.3 shall exclude from its total income the cost of labor, equipment, fuel and materials used in the provision of those services. (B) Subject to Section 171.1014, a tax entity that chooses to subtract the cost of goods sold for the purpose of calculating its taxable margin will determine the amount of that cost of goods sold as provided in this section. Storage costs, including the costs of transporting, storing, or storing properties, subject to subsection (e); Depreciation, Depletion, and Amortization, reported in the federal income tax return on which the report in this chapter is based, to the extent that they are associated with and necessary for the production of goods, including recovery described in Section 197 of the Internal Revenue Code; costs attributable to research, experimentation, engineering, and design activities directly related to the production of the goods, including all research or experimentation expenses described in Section 174 of the Internal Revenue Code; if the property is retained for future production, direct pre-production costs shall be allocated to the property, including the costs of purchasing the goods and of storing and handling the goods, as provided in subsections (c) (and (c) (; direct post-production costs attributable to the property, including storage and handling costs, as provided in subsections (c) (and (c) (; license or franchise costs, including fees incurred to secure the contractual right to use a trademark, corporate plan, manufacturing procedure, special prescription, or other similar right directly related to the goods produced. F) A taxable entity may deduct general indirect or administrative costs, including all costs of mixed services, such as security services, legal services, data processing services, accounting services, accounting services, personnel operations, and general costs of financial planning and financial management, that it can show that they are allocable to the acquisition or production of goods, except that the amount subtracted cannot exceed four percent of the costs total general administrative or indirect tax entity, including all mixed service costs.
Any costs excluded under subsection (e) cannot be subtracted under this subsection. G) A tax entity that this section allows subtracting the cost of goods sold and that is subject to Sections 263A, 460, or 471 of the Internal Revenue Code, may capitalize that cost in the same way and to the same extent that the tax entity capitalized that cost on its federal income tax return or may spend those costs, except for the costs excluded in subsection (e) or in accordance with subsections (c), (d) and (f). If the taxable entity decides to capitalize the costs, it must capitalize every cost allowed in this section that you capitalized on your federal income tax return. If the taxable entity subsequently decides to start accounting as expenses a cost that may be allowed under this section as the cost of goods sold, the entity will not be able to deduct any costs from the final inventory from a previous report.
If the taxable entity chooses to spend a cost of goods sold that may be allowed under this section, the cost incurred before the first day of the period on which the report is based cannot be subtracted as the cost of goods sold. If the taxable entity decides to account for the cost of goods sold as expenses and subsequently decides to capitalize that cost of goods sold, a cost counted as an expense in a previous report may not be capitalized. H) A taxable entity shall determine the cost of goods sold, except as otherwise provided in this section, in accordance with the methods used in the federal income tax return on which the report in this chapter is based. This subsection does not affect the type or category of the cost of goods sold that can be subtracted under this section.
(I) A tax entity may make a subtraction under this section in relation to the cost of goods sold only if that entity owns the goods. The determination of whether a taxable entity is an owner is based on all facts and circumstances, including the various benefits and burdens of ownership that fall on the taxable entity. A taxable entity that supplies labor or materials to a project for construction, improvement, remodeling, repair, or industrial maintenance (as the term maintenance is defined in 34 T, A, C). Section 3.35 of real estate is considered to own that labor or materials and may include costs, as allowed in this section, in calculating the cost of goods sold.
For the purposes of this section only, a taxable entity shall be treated as the owner of the assets manufactured or produced by the entity under a contract with the federal government, including subcontracts that support a contract with the federal government, notwithstanding that the Federal Acquisition Regulation may require that title or risk of loss with respect to those assets be transferred to the federal government before the manufacturing or production of those goods is completed. J) A tax entity cannot subtract under this section the cost of goods sold to the extent that the cost of the goods sold was financed by the contributions of the partners and was deducted under subsection (c) (1.K). Without prejudice to any other provision of this section, if the tax entity is a credit institution that offers loans to the public and chooses to subtract the cost of goods sold, the entity, other than an entity that is primarily engaged in an activity described by category 59.32 of the Manual of Uniform Industrial Classification of 1987 published by the Federal Office of Management and Budget, you can subtract as the cost of goods sold an amount equal to interest expenses. For the purposes of this subsection, an entity that provides loans to unrelated parties solely for agricultural production provides loans to the public.
A motor vehicle rental or lease company that remits a gross revenue tax imposed under Section 152.026; K- For the purposes of subsection (k), processing means the extraction, separation, or physical or mechanical treatment of crude oil, including finished oil products, natural gas, condensate, and natural gas liquids after those materials are produced on land. The term does not include the chemical or biological transformation of those materials. (L) Notwithstanding any other provision of this section, a payment made by a member of an affiliated group to another member of that affiliated group not included in the combined group may be subtracted as the cost of goods sold only if it is a transaction carried out under conditions of full competition. M) In this section, equal conditions mean the standard of conduct under which entities that are not related parties and that have substantially equal bargaining power, each acting in its own interest, would negotiate or carry out a particular transaction.
N) In this section, related party means a person, corporation, or other entity, including an entity that is treated as a transferred or excluded entity for federal tax purposes, whether the person, corporation, or entity is subject to tax under this chapter or not, in which a person, corporation, or entity, or group of related individuals, corporations, or entities, directly or indirectly owns or controls a majority interest in another entity. O) If a tax entity, including a tax entity with respect to which the cost of goods sold is determined in accordance with Section 171.1014 (e) (, whose principal business activity is the production or broadcasting of movies or television or the distribution of tangible personal property described in subsection (a) (A) (ii), or any combination of these activities, chooses to subtract the cost of the goods sold, the cost of the goods sold to the tax entity will be the costs described in this section in relation with the property and shall include depreciation, amortization, and other expenses directly related to the acquisition, production, or use of the property, including expenses for the right to transfer or use the property. T) If a tax entity that is a movie theater decides to subtract the cost of the goods sold, the cost of the goods sold to the tax entity will be the costs described in this section in connection with the acquisition, production, exhibition, or use of a film or film, including expenses for the right to use the film or film. Subject to the limitation of subsection (c), all salaries and cash compensation paid by the tax entity to its officers, directors, owners, partners, and employees; and during the second 12-month period on which the margin is based and on which the tax entity provides health care benefits to all of its employees, an additional amount equivalent to 25 percent of the cost of health care benefits provided to its employees during that period.
C- Subject to Section 171.1014, a tax entity that chooses to subtract compensation for the purpose of calculating its taxable margin under Section 171.101 cannot subtract any wage or cash compensation paid to an undocumented worker. As used in this section, an undocumented worker means a person who does not have the legal right to be present and employed in the United States. You cannot include as salary or cash compensation the payments described in Section 171.1011 (k); and you will determine compensation as provided in this section only for the tax entity's own employees who are not covered employees. You will determine compensation as provided in this section only for those wage and compensation payments that are not reimbursed by a managed entity.
You shall exclude from your total income, to the extent included in Section 171.1011 (c) (A), (c) (A), or (c) () (), income from qualifying loans or grants; may include as the cost of goods sold under Section 171.1012 any expenses paid with the income of a qualifying loan or grant, to the extent that the expense may otherwise be included as the cost of goods sold under that section; and may include as compensation under Section 1.10.171 13 any expenses paid with income of a qualifying loan or grant, to the extent that the expense can be included as compensation under that section. B) The combined group is a single taxable entity for the purposes of applying the tax imposed under this chapter, including Section 171.002 (d). Determine the total income of each of its members as provided in Section 171.1011 as if the member were an individual taxable entity; subtract, to the extent included in Section 171.1011 (c) (A), (a), or (c) (), the items from the total income received from a member of the combined group. D- A member of a combined group may declare as the cost of goods sold those costs that meet the requirements of Section 171.1012 if the goods for which the costs are incurred are owned by another member of the combined group.
Determine the cost of goods sold for each of its members as provided in Section 171.1012 as if the member were an individual taxable entity; subtract from the amount determined in the Subdivision (any cost of goods sold) the amounts paid from one member of the combined group to another member of the combined group, but only to the extent that the corresponding item of total revenue would be subtracted under subsection (c) (. Determine compensation for each of its members as provided in Section 171.1013 as if each member were an individual taxable entity, subject to the limitation prescribed in Section 171.1013 (c); subtract from the amount determined in the Subdivision (any amount of compensation paid from one member of the combined group to another member of the combined group), but only to the extent that the corresponding item from total revenues will be subtracted under subsection (c) (. It would not meet the requirements of Section 171.002 (c) solely because one or more members of the combined group provide retail or wholesale electrical services; and (C) This section does not apply to that percentage of total revenue attributable to a higher-level entity by a lower-level entity if the higher-level entity is not subject to tax under this chapter. In this case, the lower-tier entity is responsible for tax on its taxable margin.
D) Section 171.002 (d) does not apply to a higher-level entity if, prior to the attribution of any total revenue by a lower-level entity to a higher-level entity under this section, the lower-level entity does not meet the criteria of Section 171.002 (d) (or (d) (. E) The Comptroller shall adopt rules to administer this section. Determine the tax entity's total revenue from its entire business, as determined in Section 171.1011; distribute the amount calculated under the Subdivision (to this state, as provided in Section 171.106) to determine the taxing entity's total pro-rated income; and C) A tax entity that chooses to pay tax as provided in this section cannot request a credit, deduction, or other adjustment that is not specifically authorized by this section. E) A reference in this chapter or other law to the franchise tax rate means, as appropriate, the rate in Section 171.002 or, for a tax entity that chooses to pay tax as provided in this section, the rate in this section.
Every service provided in this state, except receipts derived from servicing loans secured by real estate, is in this state if the real estate is in this state; B) A combined group shall include in its gross income calculated in subsection (a) the gross income of each taxable entity that is a member of the combined group and that has a link with this state for tax purposes. C) A combined group shall include in its gross revenues calculated in subsection (a) the gross income of each taxable entity that is a member of the combined group, regardless of whether that entity has a link with this state for tax purposes. (B) When apportioning the margin, receipts derived from transactions between individual members of a combined group that are excluded under Section 171.1014 (c) (cannot be included in the tax entity's receipts for its business conducted in this state, as determined in Section 171.103), except for receipts that ultimately result from the sale of tangible personal property between individual members of a combined group when a member party to the transaction has no connection in this state. will be included in the tax entity's receipts for its activity done in this state, as determined in Section 171.103, to the extent that the member of the combined group that has no connection in this state resells tangible personal property without substantial modification to a buyer in this state.
Receipts ultimately derived from the sale mean the amount paid for tangible personal property by the third buyer. B) The margin of a taxable entity that derives, directly or indirectly, from the sale of management, distribution, or administration services to or on behalf of a regulated investment firm, including a tax entity that includes trustees or sponsors of employee benefit plans that have accounts with a regulated investment company, is distributed to this state to determine the amount of tax imposed under Section 171.002 by multiplying the tax entity's total margin with respect to the sale of services to or on behalf of an investment company regulated by a fraction, whose numerator is the average of the sum of the shares owned at the beginning of the year and the sum of the shares owned at the end of the year by the shareholders of the investment company that have their business address in this state or, if the shareholders are individuals, are residents of this state, and whose denominator is the average of the sum of the shares owned at the beginning of the year and the sum of the shares owned at the end of the year for all investment companies shareholders. In this subsection, regulated investment company has the meaning assigned by Section 851 (a) of the Internal Revenue Code. C) The margin of a taxable entity that derives, directly or indirectly, from the sale of management, administration, or investment services to an employee retirement plan is distributed to this state to determine the amount of tax imposed under Section 171.002 by multiplying the tax entity's total margin derived from the sale of services to an employee retirement plan company by a fraction, whose numerator is the average of the sum of the beneficiaries residing in Texas at the beginning of the year and the sum of the beneficiaries residing in Texas at the end of the year and whose denominator is the average of the sum of all the beneficiaries at the beginning of the year and the sum of all the beneficiaries at the end of the year.
In this section, employee retirement plan means a plan or other agreement that meets the requirements of Section 401 (a) of the Internal Revenue Code or that meets the requirements of Section 403 of the Internal Revenue Code or a government plan described in Section 414 (d) of the Internal Revenue Code. The term does not include an individual retirement account or an individual retirement annuity within the meaning of Section 408 of the Internal Revenue Code. (D) A banking corporation shall exclude from the numerator of the bank's assessment factor interest earned on federal funds and interest earned on securities sold under a repurchase agreement held in this state by a correspondent bank domiciled in this state. In this subsection, correspondent has the meaning assigned by 12 C, F, R.
(F) Notwithstanding Section 171.1055, if a loan or security is treated as a seller's inventory for federal income tax purposes, the gross income from the sale of that loan or security is considered gross income. (G) An Internet hosting receipt, as defined in Section 151.108 (a), is a receipt for business conducted in this state only if the customer to whom the service is being provided is in this state. The cost of the device is amortized according to subsection (c). (D) The tax entity that makes a deduction under this section shall submit to the controller a repayment schedule showing the period in which the deduction will be made.
At the request of the controller, the tax entity shall submit to the controller a proof of the cost of the solar energy device or a test of the operation of the device in this state. whose cost is amortized in accordance with subsection (c). (D) The tax entity that makes a deduction under this section shall submit to the controller an amortization schedule showing the period during which the deduction will be made. At the request of the controller, the tax entity shall submit to the controller a proof of the cost of the equipment or a proof of the operation of the equipment in this state.
C) The tax entity must make the deduction authorized by subsection (b) of the report based on the tax entity's initial period described in Section 171 151 (. D) At the request of the controller, the tax entity making a deduction authorized by this section shall submit to the controller proof of the deducted relocation costs. For the expiration date of this section, see subsection (e). C) The controller may request that the tax entity submit, with each annual report in which the tax entity is eligible to apply for a credit, information related to the amount determined in subsection (b) (.
The tax entity shall submit, in the form and content required by the controller, any information related to the amount determined in subsection (b) (or any other matter relevant to the calculation of the credit for which the tax entity is eligible). (B) Unless otherwise provided in this section, a tax entity shall use the same accounting methods to distribute the margin that are used to calculate the margin. A second period that begins on the first anniversary of the start date and ends on December 31 following that date; and B) The payment of the tax that covers the second period is due on the same date as the tax that covers the initial period. The name and address of the agent of the tax entity designated under Section 171 354; and B) The tax entity will file the report on the due date of payment or before the due date of Section 171 152 (a).
D) In the case of a taxpayer whose previous return was their initial report, the optional payment provided for in subsection (c) ((B) or (e) (B) must be equal to the amount produced by multiplying the taxable margin, as indicated in the initial report submitted on or before May 14, by the tax rate of Section 171.002 that takes effect on January 1 of the year in which the report is due. (H) If the sum of the amounts paid under subsections (e) (y) (f) (is at least 99 percent of the stated amount due in the report filed on or before November 15), you are exempt from penalties for underpayment with respect to the amount paid under subsection (f). I) If a tax entity requesting an extension under subsection (c) or (e) fails to file the report due in the previous calendar year on or before May 14, the tax entity will not be able to receive an extension under subsection (c) or (e) unless the tax entity complies with subsection (c) (A) or (e) (A), as appropriate. The name and address of the agent of the corporation, limited liability company, limited partnership, or professional association designated under Section 171.354; and C) The controller shall forward the report to the Secretary of State.
A copy of the report was mailed to each person identified in this subsection on the date the statement was filed. E) If the name of a person appears in a report under subsection (a) (and the person is not an officer or director of the corporation, limited liability company, or professional association, or general partner of the limited partnership, as applicable), on the date of submission of the report, the person may submit to the controller an affidavit waiving the individual's status as shown in the report. The controller shall keep a record of the statements submitted under this subsection and shall make that information available when requested using the same procedures that the controller uses for other public information requests. F) A public information report that is submitted electronically meets the signature and certification requirements prescribed in subsection (d).
(B) The controller may require a tax entity that does not owe any tax due to the application of Section 171.002 (d) () to file an abbreviated informational report with the controller stating the amount of the tax entity's total revenue from its entire business. The controller cannot require the tax entity described in this subsection to submit an informational report that requires the tax entity to declare or calculate its margin. D) The controller may require a tax entity that is not taxed under this chapter solely by application of Section 171.001 (d) to submit an informational report stating the tax entity's start date, as determined in Section 171,0001 (B), and any other information that the controller determines necessary. The controller cannot require the taxable entity to report or calculate its margin.
(B) The tax entity shall submit the modified report under subsection (a) (no later than 120 days after the date the revenue agent report or other adjustment is final). For the purposes of this subsection, a revenue agent's report or other adjustment is final on the date all administrative remedies before the Internal Revenue Service or other competent authority have been exhausted or waived. (C) The tax entity shall submit the modified report under subsection (a) (no later than 120 days after the date the tax entity files the modified federal income tax return or other return). For the purposes of this subsection, a tax entity is considered to have filed a modified federal income tax return if the tax entity is a member of an affiliated group during a period in which a modified consolidated federal income tax report is submitted.
D) If a tax entity fails to comply with this section, the tax entity will be liable for a penalty of 10 percent of the tax that should have been declared under this section and that had not been previously reported to the controller. The penalty prescribed in this subsection is in addition to any other sanction provided by law. It does not allow the controller to examine, under section 171.211 of this code, the corporation's records. B) The provisions of this subchapter, including Section 171.255, that apply to the loss of corporate privileges apply to the loss of the right of a taxable entity to transact business in this state.
Each director or officer of the corporation is responsible for a debt of the corporation as provided in Section 171,255 of this code. D) If a corporation's statutes or certificates of authority and its corporate privileges are lost and reactivated under this chapter, the liability under this section of a director or officer of the corporation is not affected by the reactivation of the statute or certificate and corporate privileges. Submit, within the time period established in Section 171.251 of this code, the report referred to in that section; or pay, within the time period established by Section 171.251 of this code, the delinquent tax and penalty referred to in that section. The corporation does not allow the controller to examine the corporation's records under section 171.211 of this code.
B) If an appeal of the judgment is finalized, the court clerk shall promptly certify to the Secretary of State that the appeal has been completed. Upon receipt of the certification, the Secretary of State shall record in the corporation's registry in the clerk's office the word Appeal and the date on which the appeal was completed. C) If the final decision on an appeal is issued, the clerk of the court making the decision shall promptly certify to the Secretary of State the type of provision issued and the date of the resolution. Upon receipt of the certification, the Secretary of State shall record in the corporation's registry in the clerk's office a brief note of the type of final disposition made and the date of the disposition.
The corporation pays the tax, penalty, and interest imposed by this chapter and which are due at the time the lawsuit is filed under Section 171.306 of this code to override the forfeiture; and the forfeiture of the corporation's statute or certificate is overturned in a lawsuit under Section 171.306 of this code. The secretary receives certification from the controller under Section 171 302; and the corporation pays the taxes, penalties, and interest imposed by this chapter and which are due at the time the request is submitted under Section 171 313 of this code to void the forfeiting; and the forfeiting of the statute or certificate of the corporation is voided in a proceeding under section 171 313 of this code. B) The Secretary of State may adopt rules to implement this section. B) If a request is submitted, the Secretary of State will determine if each delinquency report has been submitted and if any tax, penalty, or delinquent interest has been paid.
If each report has been submitted and the tax, penalty, or interest paid, the secretary will cancel the loss of the corporation's statute or certificate of authority. If the local agent of the corporation or if the officers named in the corporation's statute or the annual report filed in the file of the Secretary of State do not reside or cannot be located in the county in which the principal office of the corporation is located, as indicated in the statute; or B) full and valid notification of the process is made to a corporation through the Secretary of State by delivering duplicate copies of the process to the Secretary of State or the Undersecretary of State. D) The failure of the Secretary of State to mail a copy of the legal process to a corporation does not affect the validity of the notice of the process. It is competent and sufficient proof of notification of the process for the Secretary of State to certify, with the state seal, the receipt of the process.
E) The Secretary of State shall maintain a record of each legal process notified to the Secretary under this section, showing the date and time of receipt of the process and the Secretary's action thereon. F) This section is a cumulative of other laws related to notification of process. C) A person who commits an offence under this section may also, in addition to the punishment provided for in this section, be punished under this chapter. D) An offense under this section is a third degree felony.
(E) A person whose business address or residence is located in this state may only be prosecuted under this section in the county where the person's business address or residence is located, unless the person asserts the right to be prosecuted in another county. (F) The process for a violation of this section must begin before the fifth anniversary of the date of the violation. B) If the amount under subsection (a) is less than zero, the controller shall consider the amount to be zero. (B) Only qualified companies that have been certified as eligible for reimbursement under this section by the governing body to the comptroller are entitled to reimbursement.
C) Repealed by the laws of 2003, 78th stage. The Texas Railroad Commission has issued a certificate of project compliance to the entity, as provided in Section 120.004 of the Natural Resources Code; D) The total credit that a tax entity may request under this section for a report, including the amount of any credit transferred, cannot exceed the amount of franchise tax due by the tax entity for the report, after any applicable tax credit. If a tax entity is eligible to apply for a credit that exceeds the limit of this subsection, the tax entity may transfer the unused credit for no more than 20 consecutive reports. The remaining part of the credit that the taxable entity does not request in the current year due to the limitation is considered a transfer.
A) a higher education institution, as defined in Section 61.003 of the Education Code; or B) a private or independent higher education institution, as defined in Section 61.003 of the Education Code. (B) The ineligibility of a tax entity under this section to receive a credit on a report during the period on which the report is based does not affect the tax entity's eligibility to request a transfer of the unused credit under section 171.659 of that report. Qualified research expenses incurred during the period on which the report is based, subject to Section 171,655; and all qualified research expenses incurred during the period on which the report is based, subject to Section 171,655; and C) Except as provided in subsection (d), if the tax entity has no qualified research expenses in one or more of the three tax periods prior to the period on which the report is based, the credit for the period on which the report is based on 2.5 percent of the qualified research expenses incurred during that period. F) The controller may adopt rules to determine which research expenses are qualified research expenses for the purposes of subsection (a) or (b) to avoid disparities in determinations that may result from the tax entity's use of different accounting methods for the period on which the report is based, compared to any previous tax period used to determine the average amount of qualified research expenses under subsection (a) (or (b) (.
Subject to subsection (d), the amount of qualified research expenses incurred by the entity or taxable unit acquired during the part of the period on which the report is based that precedes the date of the acquisition. B) A tax entity that sells or otherwise transfers to another tax entity a majority interest in another taxable entity or in a separate unit of a taxable entity during a period on which a report is based cannot request a credit under this subchapter for qualified research expenses incurred by the entity or taxable unit transferred during the period if the tax entity is not eligible for the credit under Section 171.653 or if the acquiring tax entity applies for a credit in under Section 171.653 or if the acquiring tax entity requests a credit under Section 171.653 this subchapter for the corresponding period. Subject to subsection (e), included as qualified research expenses incurred by the tax entity that made the sale or other transfer during the tax period during which the refund was paid; and D) An acquiring tax entity cannot include in a report the amount of qualified research expenses otherwise authorized by subsection (a) (which will be included if the tax entity that made the sale or other transfer described in subsection (b) received an exemption under Section 151.3 182 during the part of the period in which the acquiring tax entity the report is based on data prior to the date of the acquisition. (B) A higher-level entity that includes the total revenues of a lower-level entity for the purposes of calculating its taxable margin, as authorized in Section 171, 1015, may apply for credit under this subchapter for qualified research expenses incurred by the lower-level entity to the extent of the higher-level entity's participation in the lower-level entity.
C) The Comptroller shall provide the estimates required by this section as part of the report required by Section 403.014 of the Government Code. (B) The expiration of this subchapter does not affect the transfer of a credit under Section 171.659 or a credit authorized under this subchapter established before the expiration date of this subchapter. (B) Except as provided in subsection (c), the depreciation and tax-exempt use provisions of Section 47 (c) (, Internal Revenue Code), do not apply to costs and expenses incurred by an entity exempt from tax under this chapter by Section 171.063, and those costs and expenses are eligible costs and expenses if the other provisions of Section 47 (c) (, Internal Revenue Code) are met. C) The expenses of an entity described in subsection (b) to rehabilitate a structure that is leased to a tax-exempt entity in a disqualified lease, as those terms are defined in Section 168 (h) of the Internal Revenue Code, are not eligible costs and expenses.
An audited cost report issued by a certified public accountant, as defined in Section 901.002 of the Occupations Code, which details the eligible costs and expenses incurred in the certified rehabilitation of the certified historic structure by the entity; D) For the purposes of approving the tax credit under subsection (c), the controller may rely on the audited cost report provided by the entity that requested the tax credit;. B) The total credit requested for a report, including the amount of any transfer under Section 171.9, does not exceed the amount of franchise tax due for the report after any other applicable tax credit. B) A transfer is considered the remaining part of a credit that cannot be requested in the current year due to the limitation set forth in Section 171.905 (b). (B) The entity shall submit, together with any report claiming credit, a copy of the certificate of eligibility issued by the commission under Section 171.904 and any other information required by the controller to sufficiently demonstrate that the entity is eligible for credit.
C) The sale or assignment of a credit in accordance with this section does not extend the period during which a credit can be transferred or increase the total amount of credit that can be requested. After an entity claims a credit for eligible costs and expenses, another entity will not be able to use the same costs and expenses as a basis for requesting credit. E) An entity to which all or part of a credit is sold or transferred and that is subject to a premium tax imposed under chapters 221, 222, 223, or 224 of the Insurance Code, may claim all or part of the credit against that tax. The provisions of this subchapter, including provisions relating to the total amount of credit that may be requested under a report, the transfer of the credit, and the sale or assignment of the credit, apply with respect to a credit claimed against a tax imposed under chapters 221, 222, 223, or 224 of the Insurance Code, to the same extent that those provisions apply to a credit claimed against the tax imposed under this chapter.
An entity that claims all or part of a credit, as authorized in this subsection, is not required to pay any additional retaliatory taxes collected under Chapter 281 of the Insurance Code as a result of applying for that credit. .
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