reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.13 - Regulated investment company; definition

Current through Register Vol. 56, No. 14, July 15, 2024
(a) "Regulated
				investment company" means any corporation which for a period covered by its return
				is registered and regulated under the Investment Company Act of 1940 (54 Stat. 789),
				as amended. (See
				15 U.S.C. §§
										80a-1 et seq.)
(b) A regulated investment company may also
				qualify as an investment company.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.14 - Subjectivity of foreign banks and foreign national banks

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following terms,
				as used in this section, shall have the following meanings:
1. "Banking corporation" means those banking
				corporations subject to tax under
				N.J.S.A.
				54:10A-34, which are defined in
				N.J.S.A.
				54:10A-36 as New Jersey chartered banks, national
				banks headquartered in New Jersey, and foreign national banks.
2. "Foreign bank" means commercial banks chartered
				in foreign states of the United States or in foreign countries.
3. "Foreign national bank" means national banks
				headquartered in foreign states of the United States.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.15 - Investment company; definition

Current through Register Vol. 56, No. 14, July 15, 2024
(a) "Investment company"
				means any corporation:
1. Whose business for the
				period covered by its return consisted to the extent of at least 90 percent of
				"qualified investment activities" which are: investing or reinvesting in stocks,
				bonds, notes, mortgages, debentures, patents, patent rights, and other securities or
				the holding thereof after investing or reinvesting therein for its own account. As
				used in this rule, "qualified investment assets" are stocks, bonds, notes,
				mortgages, debentures, patents, patent rights, publicly traded limited partnership
				or limited liability company interests and other securities and cash on
				deposit;
2. Which had for the period
				covered by the return 90 percent or more of its average gross assets in New Jersey,
				at cost, invested in "qualified investment assets" referred to in (a)1
				above;
3. Which meets the numerical
				tests in (f) below;
4. Which is not a
				banking corporation as defined by the Corporation Business Tax Act;
5. Which is not a financial business corporation
				as defined by the Corporation Business Tax Act; and
6. Which is not a merchant or dealer in stocks,
				bonds, or other securities, and which is regularly engaged in buying and selling
				such securities to customers.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.16 - Financial business corporation; definition

Current through Register Vol. 56, No. 14, July 15, 2024
(a) "Financial business
				corporation" means a corporation that is, in fact, in substantial competition with
				the business of national banks, and which also employs moneyed capital with the
				object of making profit by its use as money through any of the following:
1. Discounting and negotiating promissory notes,
				drafts, bills of exchange, and other evidences of debt;
2. Buying and selling exchange;
3. Making of or dealing in secured or unsecured
				loans and discounts;
4. Dealing in
				securities or shares of corporate stock by purchasing and selling such securities
				and stock without recourse, solely upon the order and for the account of
				customers;
5. Investing and reinvesting
				in marketable obligations evidencing indebtedness of any person, copartnership,
				association, or corporation in the form of bonds, notes, or debentures, commonly
				known as investment securities; or
6.
				Dealing in or underwriting obligations of the United States, any state or any
				political subdivision thereof or of a corporate instrumentality of any of
				them.
7. Certain leasing transactions
				which approximate secured loans by meeting each of the following requirements:
i. Lessor must look primarily to the
				creditworthiness of the lessee in order to recover its investment.
ii. Lessor may not rely on repetitious leasing of
				the same property.
iii. The lease must
				be a net lease.
iv. The lessor must
				recover its full investment plus its cost of financing through the rental payments,
				tax benefits, and the residual value of the property.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.17 - Application of the tax to licensees pursuant to the Casino Control Act; casino business consolidated return

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to
				N.J.S.A. 5:12-148.b,
				any business conducted by an individual, partnership, corporation, or any other
				entity, or any combination thereof, holding a license pursuant to the Casino Control
				Act shall, in addition to all other taxes imposed by that act, file a consolidated
				corporation business tax return pursuant to the Corporation Business Tax Act and pay
				the taxes indicated thereon.
(b) The
				consolidated return to be filed under the Casino Control Act is in addition to, and
				not in lieu of, any return due under the Corporation Business Tax Act. Provided,
				however, that where any corporation is a licensee under the Casino Control Act, it
				may exclude from the return due under the corporation business tax any item of
				income, loss, or deduction appearing on its consolidated return, but which would
				have been reported on its own separate return under the Corporation Business Tax Act
				for the year for which that item would otherwise have been reported. Provided
				further, that where any corporation is a partner in a licensee under the Casino
				Control Act, it may similarly exclude its share of distributable income or loss
				attributable to its partnership interest in the licensee which would otherwise have
				been reported by it on its own separate return under the Corporation Business Tax
				Act.
1. In no event may the tax reduction arising
				out of any such exclusion exceed the portion of the tax paid with the consolidated
				return which is clearly attributable to the net effect of the existence of the
				amount which is duplicated in entire net income on the separate return filed under
				the Corporation Business Tax Act.
2. The
				return filed under the Corporation Business Tax Act shall reflect taxable income
				before net operating loss deduction and special deductions which is required to be
				reported to the United States Treasury Department for the purposes of computing its
				Federal income tax. Claims for exclusion for any duplication shall be separately
				identified in computing entire net income and be documented and reconciled on the
				return due under the Corporation Business Tax Act.
3. The amount of net worth reported on the
				separate return filed under the Corporation Business Tax Act by a corporate member
				of a consolidated group may be reduced by an amount also reported on the
				consolidated corporation business tax return of the casino business to the extent
				that such net worth would have been duplicated on both returns.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.18 - Definition of S corporation

Current through Register Vol. 56, No. 14, July 15, 2024
"S corporation" means a corporation included in the definition of
				  an "S corporation" pursuant to I.R.C. § 1361.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.19 - Definition of New Jersey S corporation

Current through Register Vol. 56, No. 14, July 15, 2024
"New Jersey S corporation" means a corporation that is an S
				  corporation which has made a valid election pursuant to section 3 of P.L. 1993,
				  c.173 (54:10A-5.2 2); and which has been an S
				  corporation continuously since the effective date of the valid election made
				  pursuant to section 3 of P.L. 1993, c.173 (54:10A-5.2 2).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.20 - Definition of public utility

Current through Register Vol. 56, No. 14, July 15, 2024
"Public utility" means "public utility" as defined in
				  48:2-13.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.21 - Definition of qualified investment partnership

Current through Register Vol. 56, No. 14, July 15, 2024
(a) "Qualified
				investment partnership" means a partnership under this Act that has more than 10
				members or partners with no member or partner owning more than a 50 percent interest
				in the partnership and that derives at least 90 percent of its gross income from
				dividends, interest, payments with respect to securities loans, and gains from the
				sale or other disposition of stocks or securities or foreign currencies or
				commodities or other similar income (including, but not limited to, gains from
				swaps, options, futures or forward contracts) derived with respect to its business
				of investing or trading in those stocks, securities, currencies, or commodities, but
				"investment partnership" shall not include a "dealer in securities" within the
				meaning of I.R.C. § 1236.
				26 U.S.C. §
										1236.
1. If a
				partnership would otherwise qualify as a "qualified investment partnership," except
				that it has 10 or fewer partners, such partnership is deemed a "qualified investment
				partnership," if:
i. It is managed by an
				independent third party for a fee;
ii.
				There is no direct or indirect relationship between the manager and any of the
				partners; and
iii. There is no direct or
				indirect affiliation between or among the partners.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.22 - Definition of savings institution

Current through Register Vol. 56, No. 14, July 15, 2024
"Savings institution" means a State or Federally chartered
				  building and loan association, savings and loan association, or savings bank.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.23 - Definition of partnership

Current through Register Vol. 56, No. 14, July 15, 2024
"Partnership" means an entity classified as a partnership for
				  Federal income tax purposes.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.24 - Certain insurance companies subject to the corporation business tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Combinable captive insurance companies, as
				defined at
				N.J.S.A.
				54:10A-4(y), are subject to the
				corporation business tax. A combinable captive insurance company is exempt from the
				tax imposed pursuant to
				N.J.S.A.
				17:47B-12 and any other insurance premiums taxes
				imposed pursuant to any other laws of the State of New Jersey. A combinable captive
				insurance company that has nexus with New Jersey, but is not included as a member of
				a New Jersey combined return, must file a separate return.
(b) Captive insurance companies that do not meet
				the definition of a combinable captive insurance company are exempt from the
				corporation business tax and are excluded from the combined group reported on the
				combined return. Such captive insurance companies are subject to the insurance
				premiums tax at
				N.J.S.A.
				17:47B-12.
(c) For the purposes of determining whether a
				captive insurance company is a combinable captive insurance company, the entity must
				use the same method of accounting used for Federal purposes.
(d) For more information on combined groups and
				combined reporting, see N.J.A.C. 18:7-21.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 1 - CORPORATIONS SUBJECT TO TAX UNDER THE ACT › Section 18:7-1.25 - Nexus and combined groups

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For purposes of the
				Corporation Business Tax Act, the combined group and the members of the combined
				group are both taxpayers pursuant to
				N.J.S.A. 54:10A-4(h)
				 and the combined group is taxed as one taxpayer.
				A member of a combined group may have nexus with New Jersey by deriving New Jersey
				receipts from the unitary business (whether such receipts are the member's own
				receipts or are receipts derived from intercompany transactions with other members
				of the combined group, regardless of whether the receipts are eliminated). A member
				may have nexus consistent with other factors giving rise to nexus with New Jersey
				pursuant to
				N.J.A.C.
				18:7-1.6 through 1.14. A member may also have
				nexus independent of a combined group. Such member will be a taxable member of the
				combined group.
(b) Pursuant to
				N.J.S.A. 54:10A-4(h) and
				(z), a combined group is a taxpayer for purposes
				of the Corporation Business Tax Act, and taxed as one taxpayer on the taxable income
				from the unitary business activities of the combined group.
1. A combined group shall be treated, for
				privilege periods ending on and after July 31, 2020, as one taxpayer for purposes of
				paragraph (1) of subsection (c) of section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5) and
				section 1 at
				P.L.
				2018, c. 48 (N.J.S.A.
				54:10A-5.41) for the income derived from the
				unitary business; provided, however, with regard to the surtax imposed pursuant to
				section 1 at
				P.L.
				2018, c. 48 (N.J.S.A.
				54:10A-5.41) and for that purpose only, the
				portion of income that is attributable to a member that is a public utility exempt
				from the surtax shall not be included when computing the surtax due by the combined
				group.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.1 - Nature of tax; in general

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Corporation
				Business Tax Act imposes a franchise tax on every domestic corporation not otherwise
				exempt, and upon every foreign corporation not otherwise exempt, falling within any
				of the taxable categories and as also enumerated at
				N.J.A.C.
				18:7-1.6.
(b) All corporations incorporated in New Jersey
				and all foreign corporations acquiring a taxable status in New Jersey immediately
				become subject to the tax.
(c) A
				combined group shall immediately become subject to the tax if one member of the
				group is either incorporated in New Jersey or acquires taxable status in New Jersey.
				For the purposes of the Corporation Business Tax Act, a combined group is a taxpayer
				pursuant to
				N.J.S.A.
				54:10A-4(h). For more information
				on combined groups and combined reporting, see N.J.A.C. 18:7-21.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.2 - Calendar and fiscal years; definitions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The term "calendar
				year" means an accounting period ending on December 31.
(b) The term "fiscal year" means an accounting
				period ending on the last day of any month other than December of a calendar
				year.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.3 - Federal calendar or fiscal year for reporting

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In general, the
				calendar or fiscal year on the basis of which the taxpayer is required to report for
				Federal income tax purposes is the calendar or fiscal year on the basis of which it
				is required to report for purposes of the Corporation Business Tax Act.
(b) Reports based on a 52 to 53-week account year
				will be accepted where that method of reporting is permissible and used for Federal
				tax purposes. If that method is used, a fiscal year which begins within seven days
				from the beginning of any calendar month shall be deemed to have begun on the first
				day of that calendar month, and any fiscal year which ends within seven days from
				the end of any calendar month shall be deemed to have ended on the last day of that
				calendar month.
(c) Subsection (b) above
				shall be used to determine the applicability of the Business Tax Reform Act,
				P.L.
				2002, c. 40 to a taxpayer
				having a 52-53 week year beginning on or about January 1, 2002.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.6 - Subject corporations must file on the basis of a calendar year period unless otherwise permitted

Current through Register Vol. 56, No. 14, July 15, 2024
A subject corporation which is not required to file a Federal
				  income tax return must file its corporation business tax return on the basis of a
				  calendar year accounting period unless permission to employ a fiscal year basis has
				  been granted in writing by the Division of Taxation upon application having been
				  made.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.7 - Effect of failure by a corporation to establish accounting period

Current through Register Vol. 56, No. 14, July 15, 2024
A corporation which has not established an accounting period for
				  Federal income tax purposes shall be deemed to be operating on the basis of a
				  calendar year accounting period until proof has been submitted to the Division of
				  Taxation of the establishment of a fiscal year accounting period for Federal income
				  tax purposes.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.8 - Effect of failure by a corporation to submit proof of an established fiscal year accounting period

Current through Register Vol. 56, No. 14, July 15, 2024
Every corporation which has not submitted satisfactory proof to
				  the Division of Taxation that it is operating on a basis other than a calendar year
				  accounting period for Federal income tax purposes, shall be deemed to be operating
				  on the basis of a calendar year accounting period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.9 - Effect of proof of established fiscal year accounting period submitted late

Current through Register Vol. 56, No. 14, July 15, 2024
Upon proof of the establishment of a fiscal accounting period and
				  the filing of a proper return covering such period accompanied by payment of the tax
				  liability, a corporation shall be credited with any payment made in connection with
				  a return previously filed on the basis of a calendar year period by reason of this
				  section.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.10 - Period of application of tax

Current through Register Vol. 56, No. 14, July 15, 2024
The tax is imposed for each calendar or fiscal period of the
				  taxpayer, or any part thereof, during which the taxpayer had a taxable status as
				  described in N.J.A.C. 18:7-1.6.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.11 - Component factors of tax base

Current through Register Vol. 56, No. 14, July 15, 2024
The tax for the period or partial period prescribed in
				  N.J.A.C.
				  18:7-2.10 is measured by a taxpayer's allocable
				  entire net income. The tax liability may also be the Alternative Minimum Assessment
				  amount calculated pursuant to
				  N.J.S.A.
				  54:10A-5a and N.J.A.C. 18:7-18.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.12 - Application of State franchise tax to corporations

Current through Register Vol. 56, No. 14, July 15, 2024
The franchise tax is imposed for all or any part of each calendar
				  or fiscal year during which the taxpayer possessed a New Jersey franchise or
				  otherwise has a taxable status as set forth in
				  18:7-1.6 or other provision of these
				  rules.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 2 - NATURE OF TAX › Section 18:7-2.13 - Conditions destroying franchise and franchise tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A domestic
				corporation may cease to possess a franchise as a result of proof provided to the
				Division of Taxation of:
1. Its
				dissolution;
2. Its consolidation or
				merger into another corporation;
3. The
				surrender, revocation, or annulment of its charter; or
4. The expiration of the term of duration
				prescribed in its charter.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.1 - General bases for computation of tax

Current through Register Vol. 56, No. 14, July 15, 2024
On a return for any accounting period which begins after June 30,
				  1986, no portion of the tax is measured by net worth.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.4 - Minimum tax of separate return filers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The tax paid in the
				case of an investment company, a regulated investment company, or real estate
				investment trust shall not be less than $ 250.00; provided, however, for calendar
				year 2002 and thereafter, the minimum tax shall be $ 500.00, unless the taxpayer is
				a member of an affiliated group or a controlled group pursuant to I.R.C.
				§§ 1504 or 1563, and whose group has total payroll of $ 5,000,000, or
				more, for the privilege period, the minimum tax shall be $ 2,000. The minimum tax
				for other corporations (filing separate returns) is set forth at (b) through (d)
				below.
(b) For accounting or privilege
				periods beginning in calendar year 2012 and thereafter the minimum tax for
				corporations that are not New Jersey S corporations shall be based on the New Jersey
				gross receipts, as defined for the purposes of this subsection pursuant to
				N.J.S.A. 54:10A-5a and
				N.J.A.C. 18:7-18.1, of the
				taxpayer pursuant to the following schedule:
New Jersey Gross Receipts:
Minimum Tax:
Less than $ 100,000
$ 500.00
$ 100,000 or more but less than $ 250,000
$ 750.00
$ 250,000 or more but less than $ 500,000
$ 1,000
$ 500,000 or more but less than $ 1,000,000
$ 1,500
$ 1,000,000 or more
$ 2,000
1. For accounting or
				privilege periods beginning in calendar year 2002 and thereafter, a taxpayer that is
				a member of an affiliated group or a controlled group pursuant to I.R.C. § 1504
				or 1563, and whose group has total payroll of $ 5,000,000 or more for the privilege
				period, the minimum tax shall be $ 2,000 for the accounting or privilege period. If
				the related corporations do not have the same fiscal years, the overlapping portion
				shall be placed upon the equivalent fiscal basis to arrive at the threshold
				amount.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.6 - Tax rates-corporations, S corporations

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Tax rates for C
				corporations are as follows:
1. Except as may be
				provided in (a)3 and 4 below, for all fiscal periods beginning on or after January
				1, 1980, the net income tax rate is nine percent, for a corporation that is not a
				New Jersey S corporation.
2. Except as
				may be provided in (a)3 and 4 below, for a foreign corporation acquiring a taxable
				status in New Jersey on or after January 1, 1980, and filing its New Jersey return
				Form CBT-100 on a short period basis, the tax rate is nine percent on adjusted
				entire net income after proper proration.
3. For privilege periods beginning on or after
				July 1, 1996, a taxpayer that is not a New Jersey S corporation that has entire net
				income of $ 100,000 or less for a 12 month privilege period, the rate for that
				privilege period shall be 7 1/2 percent. A corporation having an accounting period
				of less than 12 months may qualify for this reduced rate if its income when prorated
				does not exceed $ 8,333 per month.
Example: A taxpayer having a five month accounting period
				  qualifies for the 7 1/2 percent rate if its income for the period does not exceed $
				  41,666.
4. For privilege periods
				beginning on or after January 1, 2002, a taxpayer that is not a New Jersey S
				corporation that has entire net income of $ 50,000 or less for a 12-month privilege
				period, the rate for that privilege period shall be 6 1/2 percent. A corporation
				that is not a New Jersey S corporation having an accounting period less than 12
				months may qualify for this reduced rate if its income when prorated does not exceed
				$ 4,166 per month.
5. For privilege
				periods ending on and after July 31, 2019, the tax rates at (a)1, 2, 3, and 4 above
				shall be applied to taxable net income, as defined at
				N.J.S.A.
				54:10A-4(w), and the
				non-operational income that is specifically assigned to New Jersey.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.8 - Investment company; tax self-assessed and payable

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The tax payable by
				an investment company entitled and electing to report as such is a tax measured by
				40 percent of its entire net income at the rate provided by law.
(b) In no case shall the total tax be less than $
				250.00 provided that for privilege periods beginning on and after January 1, 2002,
				the tax shall not be less than $ 500.00, except that for a taxpayer that is a member
				of an affiliated group or a controlled group pursuant to I.R.C. § 1504 or 1563
				and whose group has total payroll of $ 5,000,000 or more for the privilege period,
				the minimum tax shall be $ 2,000 for the privilege period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.10 - Regulated investment company; tax payable

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For the privilege
				periods beginning before January 1, 2002, the tax payable by a regulated investment
				company, entitled and electing to report as such, is $ 250.00.
(b) For privilege periods beginning on and after
				January 1, 2002, the tax applicable to a regulated investment company shall be $
				500.00, provided, however, that for a taxpayer that is a member of an affiliated
				group or a controlled group pursuant to I.R.C. § 1504 or 1563 and whose group
				has total payroll of $ 5,000,000 or more for the privilege period, the minimum tax
				shall be $ 2,000 for the privilege period.
(c) A regulated investment company, as defined at
				N.J.S.A.
				54:10A-4(g), which also qualifies
				as an investment company, as defined at
				N.J.S.A.
				54:10A-4(f), is not subject to
				the AMA. Such a company shall annually file the applicable New Jersey corporation
				business tax return for the respective privilege period. In addition, a statement
				should be attached to the taxpayer's return indicating that the regulated investment
				company qualifies as an investment company.
(d) A taxpayer that qualifies as both a regulated
				investment company and an investment company shall pay the minimum tax applicable to
				all taxpayers of $ 500.00 unless it is a member of a controlled or consolidated
				group having total payroll of $ 5,000,000 or more, in which case the minimum tax
				would rise to the level of $ 2,000.
(e)
				A regulated investment company that does not qualify as an investment company is
				subject to the alternative minimum assessment.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.12 - Method of accounting

Current through Register Vol. 56, No. 14, July 15, 2024
In general, the method of accounting, whether cash, accrual, or
				  other basis, used in computing net income for Federal income tax purposes is to be
				  used in computing entire net income under the Corporation Business Tax
				  Act.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.13 - Estimated tax

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For any privilege periods beginning on or
				after January 1, 1985, each taxpayer shall pay its estimated tax in four
				installments as follows:
1. Twenty-five percent on
				or before the 15th day of the fourth month;
2. Twenty-five percent on or before the 15th day
				of the sixth month;
3. Twenty-five
				percent on or before the 15th day of the ninth month; and
4. The balance on or before the 15th day of the
				12th month of its current accounting period.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.14 - Estimated payment for fourth quarter 2002

Current through Register Vol. 56, No. 14, July 15, 2024
Notwithstanding contrary provisions of law, for the privilege
				  period of the taxpayer beginning in calendar year 2002, an underpayment of the
				  installment payment due on or before the 15th day of the 12th month of the period
				  exists if the amount actually paid is less than the amount that would have been paid
				  if the taxpayer had paid 25 percent of its actual liability for the current
				  privilege period. The underpayment is the amount of this difference.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.15 - Interest on underpayment of installment payments

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
									N.J.S.A.
				54:10A-15.4 imposes an addition to the tax on the
				amount of the underpayment of any installment of estimated tax by a corporation
				(with certain exceptions). This addition to the tax is imposed irrespective of any
				reason for the underpayment. The amount of the underpayment for any installment date
				is the excess of:
1. The amount of the installment
				payment which would be required to be paid if all installment payments were equal to
				90 percent of the tax shown on the return for the accounting year or, if no return
				was filed, 90 percent of the tax for that year, over
2. The amount, if any, of the installment paid on
				or before the last day prescribed for such payment.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.16 - Banking corporations and financial business corporations

Current through Register Vol. 56, No. 14, July 15, 2024
N.J.A.C.
				  18:7-3.13, 3.15, 11.12, and 13.6 apply to banking
				  corporations and financial business corporations. See
				  N.J.S.A.
				  54:10A-34 through
				  54:10A-40(regarding
				  banking corporation and financial business corporation taxability under the
				  Corporation Business Tax Act in general) and N.J.A.C. 18:7-21 (for banking
				  corporations and financial business corporations in the context of combined
				  reporting).
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.17 - Tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following are credits permitted against
				the corporation business tax:
1. Business
				Employment Incentive Grant (BEIP),
				N.J.S.A.
				34:1B-129;
2. Urban Enterprise Zone Employee Tax Credit,
				N.J.S.A.
				52:27H-78;
3. Urban Enterprise Zone Investment Tax Credit,
				N.J.S.A.
				52:27H-78;
4. Redevelopment Authority Project Tax Credit,
				N.J.S.A.
				55:19-13;
5. Research and Development Tax Credit,
				N.J.S.A.
				54:10A-5.24;
6. Manufacturing Equipment and Employment
				Investment Tax Credit,
				N.J.S.A.
				54:10A-5.18;
7. New Jobs Investment Tax Credit,
				N.J.S.A.
				54:10A-5.6;
8. Business Retention and Relocation Assistance
				Act (BRRAG), N.J.S.A. 34:1B-114;
9. Small New Jersey Based High Technology Business
				Investment Tax Credit,
				N.J.S.A.
				54:10A-5.30;
10. HMO Assistance Fund Tax Credit,
				N.J.S.A.
				17B:32B-12;
11. Effluent Equipment Tax Credit,
				N.J.S.A.
				54:10A-5.31;
12. Neighborhood Revitalization State Tax Credit,
				N.J.S.A.
				52:27D-492;
13. AMA Tax Credit,
				N.J.S.A.
				54:10A-5a.f;
14. Economic Recovery Tax Credit, N.J.S.A.
				52:27BBB-55;
15. Sheltered Workshop Tax
				Credit, N.J.S.A 54:10A-5.38;
16. Urban
				Transit Hub, N.J.S.A 34:1B-209;
17.
				Offshore Wind Economic Development,
				N.J.S.A.
				34:1B-209.4;
18. Grow New Jersey Assistance Tax Credit,
				N.J.S.A.
				34:1B-244;
19. Angel Investor Credit,
				N.J.S.A.
				54:10A-5.30; and
20. Residential Economic Recovery and Growth Tax
				Credit, N.J.S.A. 52:27D-489f.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.22 - New jobs investment tax credit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Corporate taxpayers
				are allowed a credit against the portion of the corporation business tax that is
				attributable to, and the direct consequence of, the taxpayer's qualified investment
				in a new or expanded business facility in this State which results in the creation
				of new jobs.
1. For a small business taxpayer, as
				defined in N.J.S.A. 54:10A-5.5, at least five new
				jobs must be created. For any other taxpayer, at least 50 new jobs must be created.
				The median annual compensation for the new jobs must be at least $ 27,000, adjusted
				for inflation beginning January 1, 1994, as provided in N.J.S.A. 54:10A-5.6e. The
				employer should rank the new employees by annual compensation. If the middle
				employee has compensation less than $ 27,000, the lowest ranking jobs should be
				deleted from the list until the median of the remaining list is at least $ 27,000.
				(If there is an even number on the list, the top half must be greater than $
				27,000.) The number of employees on this revised list is the number of new jobs
				created for purposes of this credit.
2.For privilege periods beginning on and after
				January 1, 2002, the eligibility standards for the New Jobs Investment Tax Credit
				Act have been expanded to include small or mid-size business taxpayers. For tax year
				2002 such taxpayers shall have annual payroll of $ 5,000,000 or less and annual
				gross receipts of not more than $ 10,000,000. Such amounts will be adjusted annually
				for inflation commencing January 1, 2003, by an annual inflation adjustment factor,
				which prescribed amount shall be rounded to the next lowest multiple of $ 50.00.
				"Annual inflation adjustment factor" means the factor calculated by dividing the
				consumer price index for urban wage earners and clerical workers for the nation, as
				prepared by the United States Department of Labor for September of the calendar year
				prior to the calendar year in which the tax year begins, by that index for September
				of the calendar year two years prior to the calendar year in which the tax year
				begins.
i. In addition for privilege periods
				beginning on and after January 1, 2002, for eligible taxpayers the applicable new
				jobs factor for five new jobs is 0.01. For each five additional new jobs over the
				additional five, up to 100 total new jobs, the applicable new jobs factor of 0.01
				shall be increased by adding to it 0.01, up to a maximum new jobs factor
				0.20.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.23 - Research credit for privilege periods beginning before January 1, 2018

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For
				privilege periods beginning before January 1, 2018, a taxpayer may be allowed a
				credit against its corporation business tax liability in an amount equal to 10
				percent of the excess of the qualified research expenses for the fiscal or calendar
				accounting year over the base amount, and 10 percent of the basic research payments
				determined in accordance with I.R.C. § 41 in effect on June 30, 1992, provided
				that I.R.C. § 41(h), relating to termination of the availability of the credit
				in 1995, does not apply.
(b) For
				purposes of this section, the term "qualified research expenses" means the sum of
				the following amounts which are paid or incurred by the taxpayer during the taxable
				year in carrying on any trade or business of the taxpayer:
1. In-house research expenses; and
2. Contract research expenses.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.25 - Computation of the tax on dividends included in entire net income for privilege periods beginning on and after January 1, 2017, but beginning before January 1, 2019

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For
				privilege periods beginning on and after January 1, 2017, but beginning before
				January 1, 2019, the tax liability owed for the five percent of dividends paid , or
				deemed paid , by an 80 percent or more owned subsidiary included in the taxpayer's
				entire net income must be based on either the three-year average allocation factor
				for the taxpayer's 2014 through 2016 privilege periods reported on the taxpayer's
				tax returns, or 3.5 percent, whichever is lower.
(b) Notwithstanding the allocation factor in (a)
				above, pursuant to
				N.J.S.A.
				54:10A-8, the Director of the Division of Taxation
				may adjust a taxpayer's allocation factor, as prescribed pursuant to (a) above, if
				the allocation factor does not properly reflect the activity, business, receipts,
				capital, entire net worth, or entire net income of a taxpayer reasonably attributed
				to New Jersey.
(c) In privilege periods
				beginning on and after January 1, 2019, a taxpayer is not allowed to use the
				statutory formula provided at (a) above. Dividends included in the entire net income
				in privilege periods on and after January 1, 2019, must follow the standard
				allocation formula set forth at
				N.J.A.C.
				18:7-8.7 and 8.12.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.26 - Additional estimated payments resulting from P.L. 2018, c. 48, and P.L. 2020, c. 118

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				If the retroactive provisions at
				P.L.
				2018, c. 48, result in an
				additional tax liability for privilege periods beginning on or after January 1,
				2017, no penalties or interest shall accrue for underpayment of tax; provided,
				however, that additional payments must be made by either the second next estimated
				payment subsequent to the enactment of
				P.L.
				2018, c. 48, by December 31,
				2018, for privilege periods beginning on or after January 1, 2017, or by the first
				estimated payment due after January 1, 2019, for privilege periods beginning on or
				after January 1, 2018.
(b) In the first
				privilege period that a mandatory combined return is due, no penalties or interest
				shall accrue due to underpayment that may result from the change from separate
				returns to mandatory combined returns. Any overpayment by a member of the combined
				group from the prior privilege period will be credited as an overpayment of the tax
				owed by the combined group, credited toward future estimated payments by the
				combined group.
(c) For the first
				privilege period of the taxpayer impacted by the enactment of
				P.L.
				2020, c. 118, where such
				privilege period began before January 1, 2021, no penalties or interest shall accrue
				for underpayment of tax, due to the provisions at
				P.L.
				2020, c. 118, applying
				retroactively to privilege periods ending on or after July 31, 2020, that create an
				additional tax liability due to the provisions at
				P.L.
				2020, c. 118; provided,
				however, the additional estimated payments shall be made by the later of the second
				next estimated payment subsequent to the enactment of
				P.L.
				2020, c. 118, or the second
				estimated payment due after January 1, 2021.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.27 - Tax rate for privilege periods ending on and after July 31, 2019

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In computing the tax
				liability owed pursuant to
				N.J.S.A. 54:10A-5 for
				privilege periods ending on and after July 31, 2019 (beginning on and after August
				1, 2018, if a full tax year), the tax rate shall be applied against the taxable net
				income as defined at
				N.J.S.A.
				54:10A-4(w), in addition to the
				non-operational income specifically assigned to New Jersey, and the rates shall be
				based on the taxable net income of the taxpayer according to the following schedule:
1. If the taxable net income is more than $
				100,000 in a 12-month period, the rate is nine percent;
2. If the taxable net income is $ 100,000 or less
				in a 12-month period, the rate is 7.5 percent; and
3. If the taxable net income is $ 50,000 or less
				in a 12-month period, the rate is 6.5 percent.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.28 - Tiered Subsidiary Dividend Pyramid Tax Credit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to
				N.J.S.A.
				54:10A-5.46, for privilege periods ending on and
				after July 31, 2020, a taxpayer shall be allowed a credit against the tax imposed by
				subsection c. of section 5 at P.L. 1945, c. 162 (N.J.S.A.
				54:10A-5) to the extent a subsidiary of the
				taxpayer received dividends and deemed dividends from other subsidiaries and
				included those dividends in its entire net income for the purposes of determining
				its tax liability pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5) and
				paid tax on those dividends and deemed dividends to the State on a timely filed New
				Jersey corporation business tax return; provided, however, the taxpayer received
				those same dividends and deemed dividends from the subsidiary that paid tax to the
				State.
(b) For purposes of this section,
				the members of a combined group filing a New Jersey combined return shall be treated
				as one taxpayer.
(c) For purposes of
				this section, "paid tax" means the amount that the subsidiary paid to the State, or
				would have paid but for the use of other tax credits, or but for subsections (u) and
				(v) of section 4 at P.L. 1945, c. 162 (N.J.S.A.
				54:10A-4), or, for a combined group filing a
				combined return, but for subsections g and h of section 18 at
				P.L.
				2018, c. 48 (N.J.S.A.
				54:10A-4.6).
(d) In order for a taxpayer to qualify for the
				Tiered Subsidiary Dividend Pyramid Tax Credit, the taxpayer must have received the
				same dividends and deemed dividends from a subsidiary that paid tax to the State.
				Such subsidiary must have received the same dividends and deemed dividends from
				other subsidiaries and included those dividends and deemed dividends in its entire
				net income for the purposes of determining its tax liability pursuant to section 5
				at P.L. 1945, c. 162 (N.J.S.A.
				54:10A-5) and paid tax on those dividends and
				deemed dividends to the State on a timely filed New Jersey corporation business tax
				return.
(e) The Tiered Subsidiary
				Dividend Pyramid Tax Credit is a credit for:
1)
				dividends and deemed dividends from non-combined group subsidiaries that file
				separate New Jersey returns and paid the corporation business tax on dividends and
				deemed dividends from other subsidiaries; and
2) dividends and deemed dividends from a separate
				lower-tier combined group that files a New Jersey combined return separate and apart
				from another (dividend paying) combined group and that paid the corporation business
				tax on dividends and deemed dividends from other subsidiaries.
New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 7 - CORPORATION BUSINESS TAX ACT › Subchapter 3 - COMPUTATION OF TAX › Section 18:7-3.29 - Surtax imposed pursuant to N.J.S.A. 54:10A-5.41 for privilege periods beginning on or after January 1, 2018

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In addition to the
				tax paid by each taxpayer determined pursuant to section 5 at P.L. 1945, c. 162
				(N.J.S.A. 54:10A-5), each
				taxpayer shall pay a surtax as follows:
1. For a
				taxpayer, except as provided at (d) below, that has allocated taxable net income in
				excess of $ 1 million for the privilege periods, beginning on or after January 1,
				2018, through December 31, 2023, the surtax imposed shall be 2.5 percent.