Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-401 - Basis of Filing › Section 35-3-08-06-401.05 - DIVISIONAL ACCOUNTING

Current through June 25, 2024
1. If the total net
					 business income of a division or divisions of the taxpayer is derived solely
					 from business activities in Mississippi and such division or divisions, when
					 considered the same as a separate entity, are not taxable in another state, the
					 total net business income derived from a trade or business activity of such
					 division or divisions shall be directly assigned to Mississippi. Business
					 income, on a company-wide basis, derived from sales of capital assets,
					 interest, dividends, rent and royalties shall be apportioned to Mississippi in
					 the ratio that total sales of the included division or divisions bears to total
					 company-wide sales everywhere. Non-business income of the taxpayer shall be
					 allocated to Mississippi in accordance with the further provisions of this
					 Regulation.
2. If the business
					 income of a division or divisions of the taxpayer is derived from business
					 activities both within and without the state and by reason of such business
					 activities such division or divisions, when considered the same as a separate
					 entity, are taxable in another state, Mississippi taxable income shall be
					 computed and determined as follows:
a. The
					 total net business income derived from a trade or business activity of each
					 division doing business in Mississippi shall be determined on a divisional
					 direct or separate accounting basis. In determining the net business income for
					 each division, a proportionate part of non-allocable general and administrative
					 expenses may be deducted by using the ratio that total sales (gross receipts)
					 of each division bears to total company-wide sales (gross receipts).
b. Business income, on a company wide basis,
					 derived from the sale of capital assets, interest, dividends, rents and
					 royalties shall be apportioned to each division in the ratio that total sales
					 (gross receipts) by the division bears to total company wide sales (gross
					 receipts).
c. The amounts
					 determined in the above paragraphs, shall be combined of each division. If more
					 than one division is involved, separate combinations are required for each
					 division.
d. To the combined amount
					 determined in the previous paragraph, for each division, there shall be applied
					 the apportionment formula specified in this Regulation for the trade or
					 business activity of the division. Separate computations are required for each
					 included division. The amount so apportioned to Mississippi for each division
					 may be combined to determine the total apportioned amount of business income of
					 the taxpayer assignable to Mississippi.
e. The non-business income of the taxpayer
					 shall be allocated to Mississippi in accordance with the further provisions of
					 this Regulation.
f. The total of
					 the amount apportioned and the total of the amount allocated for all divisions
					 when combined, shall constitute the Mississippi taxable income of the
					 taxpayer.