2023 Delaware Code › Title 30 - State Taxes › Chapter 19. CORPORATION INCOME TAX › § 1902. Imposition of tax on corporations; exemptions.

§ 1902. Imposition of tax on corporations; exemptions.
(a) Every domestic or foreign corporation that is not exempt under subsection (b) of this section shall annually pay a tax of 8.7 percent on its taxable income, computed in accordance with § 1903 of this title, which shall be deemed to be its net income derived from business activities carried on and property located within the State during the income year. Any receiver, referee, trustee, assignee or other fiduciary or any officer or agent appointed by any court who conducts the business of any corporation shall be subject to the tax imposed by this chapter in the same manner and to the same extent as if the business were conducted by the corporation.
(b) The following corporations shall be exempt from taxation under this chapter:
(1) Fraternal beneficiary societies, orders or associations:
a. Operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system; and
b. Providing for the payment of life, sick, accident or other benefits to the members of such society, order or association or their dependents;
(2) Cemetery corporations and corporations organized or trusts created for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual;
(3) Business leagues, chambers of commerce, fire companies, merchants' associations or boards of trade not organized for profit, and no part of the net earnings of which inures to the benefit of any private stockholder or individual;
(4) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare;
(5) Clubs organized and operated exclusively for pleasure, recreation and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private stockholder or member;
(6) A corporation maintaining a statutory corporate office in the State but not doing business within the State;
(7) Insurance companies paying taxes upon gross premiums to the Insurance Commissioner;
(8) Corporations whose activities within this State are confined to the maintenance and management of their intangible investments or of the intangible investments of corporations or statutory trusts or business trusts registered as investment companies under the Investment Company Act of 1940, as amended (15 U.S.C. 80a-1 et seq.) and the collection and distribution of the income from such investments or from tangible property physically located outside this State. For purposes of this paragraph (b)(8), “intangible investments” shall include, without limitation, investments in stocks, bonds, notes and other debt obligations (including debt obligations of affiliated corporations), patents, patent applications, trademarks, trade names and similar types of intangible assets;
(9) A corporation that is an S corporation for federal income tax purposes for any taxable year beginning on or after January 1, 1961;
(10) A corporation which qualifies as a domestic international sales corporation (DISC) under the provisions of subchapter N of Chapter 1 of the federal Internal Revenue Code [26 U.S.C. § 861 et seq.] and which has in effect for the entire taxable year a valid election under federal law to be treated as a DISC. If a corporation makes such an election under federal law, each person who at any time is a shareholder of such corporation shall be subject to taxation under Chapter 11 or Chapter 19 of this title on the earnings and profits or taxable income of this DISC in the same manner as provided by federal law for all periods for which the election is effective;
(11) An entity that is a real estate mortgage investment conduit as defined in § 860D of the Internal Revenue Code of 1986 [26 U.S.C. § 860D], as amended;
(12) An entity that is registered as an investment company under the Investment Company Act of 1940, as amended (15 U.S.C. § 80a-1 et seq.); and
(13) An entity that is a real estate investment trust as defined in § 856 of the Internal Revenue Code of 1986 (26 U.S.C. § 856) as amended;
(14) An entity that is a homeowners association as defined in § 528 of the Internal Revenue Code (26 U.S.C. § 528) or successor provision.
30 Del. C. 1953, §  1902;  51 Del. Laws, c. 298;  51 Del. Laws, c. 315, §§  2, 3;  57 Del. Laws, c. 136, §  1;  57 Del. Laws, c. 737, §  2;  58 Del. Laws, c. 293, §  1;  58 Del. Laws, c. 396, §  1;  59 Del. Laws, c. 150, §  1;  61 Del. Laws, c. 76, §  1;  64 Del. Laws, c. 461, §  10;  65 Del. Laws, c. 155, §  2;  65 Del. Laws, c. 160, §  4;  66 Del. Laws, c. 267, §  2;  67 Del. Laws, c. 295, §  1;  67 Del. Laws, c. 408, §§  4, 5;  68 Del. Laws, c. 423, §  1;  69 Del. Laws, c. 188, §§  6, 7;  71 Del. Laws, c. 314, §  4;  73 Del. Laws, c. 329, §  72;  75 Del. Laws, c. 412, §  1;