reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-01 - Credit for taxes paid to another state

Current through Supplement No. 393, July, 2024
1. A resident who
				pays income tax to another state or territory of the United States or the
				District of Columbia on income which is also taxed by this state, is entitled
				to a tax credit. The tax credit may be deducted from the North Dakota income
				tax liability. A copy of the income tax return filed with another jurisdiction
				must be filed with the North Dakota income tax return and the tax commissioner
				may require the taxpayer to have the copy certified by the other jurisdiction.
2. If a North Dakota resident is
				paying income tax to more than one jurisdiction other than North Dakota, on
				income which is also taxed by this state, a separate computation must be made
				to determine the amount of the tax credit available from each jurisdiction.
				These separate tax credits must be added together to determine the total tax
				credit which may be reported on the taxpayer's North Dakota tax return.
3. A taxpayer who is a part-year
				resident of North Dakota may claim a credit for taxes paid to another state
				only if the income taxed by North Dakota and the other state was earned or
				received during the time the taxpayer was a North Dakota resident. A copy of
				the income tax return filed with the other state must be filed with the North
				Dakota income tax return. The tax commissioner may require a certified copy of
				the other state's return.
4. If
				married taxpayers file a joint federal income tax return and each spouse had
				different states of residence during the tax year, the credit is available to
				the spouse who is required to file a North Dakota income tax return.
5. Subsections 3 and 4 are effective for tax
				years beginning after December 31, 2000.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-04,
					 57-38-30.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-02 - Deduction for federal income tax liability - Limitation

Current through Supplement No. 393, July, 2024
The federal alternative minimum tax may not be deducted in
				  computing North Dakota taxable income.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01.2
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-03 - Moving expenses - Adjustment

Current through Supplement No. 393, July, 2024
1. An individual
				who moves out of this state and who claims moving expenses as a deduction on
				that individual's federal income tax return for the year in which the move was
				made may not deduct those expenses for purposes of computing North Dakota
				taxable income on individual income tax form ND-2 or form 37.
2. An individual who moves into this state
				and who claims moving expenses as a deduction on that individual's federal
				income tax return for the year in which the move was made may deduct those
				expenses for the purpose of computing North Dakota taxable income on individual
				income tax form ND-2 or form 37.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-04 - Reporting - Resident trusts or estates

Current through Supplement No. 393, July, 2024
1. Every fiduciary
				for a resident trust or estate must file an income tax return with the tax
				commissioner.
2. A trust or estate
				is a resident trust or estate when it has a relationship to the state
				sufficient to create nexus. This includes, but is not limited to, the following
				contacts:
a. A beneficiary of the trust or
				estate is a domiciliary or resident of this state.
b. The trustee or executor is a domiciliary
				or resident of this state.
c.
				Assets making up any part of the trust or estate have situs in this state.
d. Any or all of the
				administration or income production of the trust or estate takes place within
				this state.
e. The laws of this
				state are specifically made applicable to the trust or estate or to the
				opposite parties with respect to their fiduciary relationship.
f. The trust is a revocable trust, and the
				grantor is a domiciliary or resident of this state.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-05

Current through Supplement No. 393, July, 2024
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-34.2
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-06 - Adjustments for pay received from armed forces

Current through Supplement No. 393, July, 2024
A portion of the pay received for service in the armed forces
				  by a resident of this state is not subject to income tax imposed by this state.
				  This portion is determined as follows:
1. An amount up to a maximum of one thousand
				dollars for pay received by an individual for services performed while on
				active duty for the armed forces of the United States or as payment for
				attending periodic training meetings for drill and instruction as a member of
				the national guard or of a reserve unit of the armed forces of the United
				States may be deducted from income taxable in this state subject to the
				following:
a. The deduction may not exceed
				actual total pay received from such services for the tax year.
b. The deduction may not be claimed as an
				adjustment on the North Dakota individual income tax return if the amount
				received for such services was excluded or deducted from gross income for
				federal income tax purposes.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-07 - Adjustments for sale or lease of agricultural land to beginning farmer

Current through Supplement No. 393, July, 2024
Adjustments to determine net taxable income received from the
				  sale or lease of agricultural land and from interest income received on a
				  contract for deed are subject to the conditions and limitations established in
				  North Dakota Century Code chapter 57-38 and as follows:
1. Net rental income up to twenty-five
				thousand dollars, interest income, capital gains, or ordinary income of an
				individual selling or leasing agricultural land to a beginning farmer is
				deductible, for North Dakota income tax purposes, only in the year that the
				income is reported on the individual's federal income tax return. Unused
				deductions may not be carried back or forward to another year.
2. Deductions for rental income may not be
				claimed by the landowner for lease agreements with more than one beginning
				farmer on the same tract or parcel of land.
3. A beginning farmer must be eighteen years
				of age or older at the time of the sale or lease. (See North Dakota Century
				Code section
				14-10-09.)
4. A husband and wife living together who
				together purchase agricultural land are regarded as one beginning farmer.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01.2, 57-38-67, 57-38-68,
					 57-38-69, 57-38-70
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-08 - Adjustments for sale or lease of revenue-producing enterprise to beginning businessman

Current through Supplement No. 393, July, 2024
Adjustments to determine net taxable income received from the
				  sale or lease of a revenue-producing enterprise and from interest received on a
				  contract are subject to conditions and limitations established in North Dakota
				  Century Code chapter 57-38 and as follows:
1. Net rental income up to twenty-five
				thousand dollars, interest income, capital gains in the year of the sale, or
				ordinary income, of a businessman selling or leasing a revenue-producing
				enterprise is deductible for North Dakota income tax purposes, only in the year
				that the income is reported on the businessman's federal income tax return.
				Unused deductions may not be carried back or forward to another year.
2. Deductions for rental income
				cannot be claimed by the businessman for lease agreements with more than one
				beginning businessman on the same revenue-producing enterprise.
3. A beginning businessman must be eighteen
				years of age or older at the time of sale or lease. (See North Dakota Century
				Code section
				14-10-09.)
4. A husband and wife living together who
				together purchase a revenue-producing enterprise are regarded as one beginning
				businessman.
5. "Year of sale" for
				purposes of North Dakota Century Code section 57-38-72 means the year during
				which the revenue-producing enterprise was sold to the beginning businessman.
				In the case of a contract, it means the year during which the contract was
				entered into between the seller and the beginning businessman.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01.2, 57-38-71, 57-38-72,
					 57-38-73, 57-38-74
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-09 - Exemptions - Separate filers [Repealed]

Current through Supplement No. 393, July, 2024
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-10 - Limitations on adjustments available on form ND-2 or form 37

Current through Supplement No. 393, July, 2024
An individual who files North Dakota individual income tax
				  return form ND-2 or form 37 for the current year may make the following
				  adjustments only if form ND-2 or form 37 was filed for the applicable prior
				  year:
1. Refunds of state and local
				income taxes may only be deducted on form ND-2 or form 37 if they were reported
				on federal form 1040 for the current year and if form ND-2 or form 37 was filed
				for the year in which the state and local income taxes were added back.
2. The deduction provided for in
				subdivision b of subsection 3 of North Dakota Century Code section
				57-38-01 for the amount of
				accelerated cost recovery system depreciation disallowed in a prior year may
				only be allowed on form ND-2 or form 37 if form ND-2 or form 37 was filed for
				the prior year when the disallowance of accelerated cost recovery system
				depreciation occurred.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01(3)(b),
					 57-38-01.2(1)(f),
					 57-38-30.3(9)
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-11 - Credit for premiums for long-term care insurance coverage

Current through Supplement No. 393, July, 2024
1. An individual is entitled to a credit for
				premiums paid for long-term care insurance coverage if the policy complies with
				the provisions of North Dakota Century Code title 26.1 and all other applicable
				insurance laws insofar as they do not conflict with North Dakota Century Code
				title 26.1.
2. "Long-term care
				insurance" for purposes of this article means an insurance policy as defined by
				subsection 4 of North Dakota Century Code section 26.1-45-01.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-29.2
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.1 - Income Tax on Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.1-12.1 - Agricultural commodity processing facility investment credit - Limitations on credit - Carryover

Current through Supplement No. 393, July, 2024
For the purpose of administering the credit under North
				  Dakota Century Code chapter 57-38.6, the following apply:
1. The credit must first be credited against
				the taxpayer's income tax liability for the taxpayer's taxable year in which
				the investment is received by the qualified business. "Received" means that the
				qualified business has exclusive access to the funds.
2. For purposes of applying the annual
				limitation on the total amount of credits allowed for investments in all
				qualified business under North Dakota Century Code section
				57-38.6-03, the total amount of
				investments and related credits must be determined on a calendar year basis.
3. For purposes of applying
				subsection 3 of North Dakota Century Code section
				57-38.6-03, the amount of the
				credit which may be carried forward from the taxpayer's taxable year in which
				the related investment was made is the amount of the credit not allowed because
				of subsection 2 of North Dakota Century Code section
				57-38.6-03.
4. If a partnership makes an investment in a
				qualified business, and if the taxable year of the partnership differs from the
				taxable year of the partner, the amount of credit allocated to the partner
				under subsection 4 of North Dakota Century Code section
				57-38.6-03 must first be credited
				in the partner's taxable year in which the partnership's taxable year ends.
5. If a taxpayer makes an
				investment in a qualified business and then sells the investment back to the
				qualified business within three years of making the investment, the credit must
				be disallowed. If a taxpayer makes an investment in a qualified business and
				then sells the investment to a second taxpayer, the credit attributable to the
				investment must be allowed to the first taxpayer provided the investment is
				held by the qualified business for three years, and no credit may be allowed to
				the second taxpayer.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38.6
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.2 - Income Tax on Nonresident Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.2-01 - Nonresident filing status and reporting of income

Current through Supplement No. 393, July, 2024
1. A
				nonresident individual who moves into this state with the intent to establish
				permanent residence acquires status as a resident immediately upon entering
				this state. That individual may file an individual income tax return for the
				first tax year either as a resident or as a nonresident.
2. An individual who elects to file an
				individual income tax return as a resident the first tax year in this state
				must report to this state total income from all sources for the entire year and
				must pay taxes on that income. That individual is entitled to a tax credit for
				taxes paid to another state on any portion of that income.
3. An individual who elects to file an
				individual income tax return as a nonresident the first tax year in this state
				must report to this state total income from all sources for that portion of the
				tax year during which the individual resided in this state. Income from
				tangible property located in this state must be reported to this state for the
				entire year.
4. If a resident
				individual moves out of this state during a tax year with the intent to change
				residency, that individual must file an individual income tax return as a
				nonresident and must report to this state total income from all sources for
				that portion of the tax year during which the individual resided in this state.
				Income from tangible property located in this state must be reported to this
				state for the entire year.
5. This
				rule is effective for taxable years beginning before January 1, 2001.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.2 - Income Tax on Nonresident Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.2-01.1 - Part-year resident filing status and reporting of income

Current through Supplement No. 393, July, 2024
1.
				An individual who moves into this state during the tax year with the intent to
				establish permanent residence acquires status as a resident immediately upon
				entering this state. That individual must file an individual income tax return
				for the first tax year as a part-year resident.
2. An individual who moves out of this state
				during the tax year with the intent to change residency must file an individual
				income tax return for that year as a part-year resident.
3. An individual, who files an individual
				income tax return as a part-year resident, must report to this state total
				income from all sources for that portion of the tax year during which the
				individual resided in this state. Income from sources in this state must also
				be reported to this state for the portion of the year the individual was not a
				resident. The individual is entitled to a tax credit for taxes paid to another
				state on any portion of the income reported to this state.
4. This rule is effective for taxable years
				beginning after December 31, 2000.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-04
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.2 - Income Tax on Nonresident Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.2-02 - Income of nonresident from tangible property located in North Dakota

Current through Supplement No. 393, July, 2024
A nonresident must report to this state income from tangible
				  property located in this state and must pay North Dakota tax on that income.
				  Such income may not be excluded by a reciprocal agreement or for any other
				  reason unless specifically excluded by statute.
Income from tangible property located in this state includes,
				  but is not limited to, income from royalty interests and all other lease
				  interests in minerals, income from rental of tangible property, gains from
				  sales of tangible property, and gains from the sale or assignment of land
				  contracts.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-04,
					 57-38.1-04,
					 57-38.1-05,
					 57-38.1-06
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.2 - Income Tax on Nonresident Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.2-03

Current through Supplement No. 393, July, 2024
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-30.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-02.2 - Income Tax on Nonresident Individuals, Estates, Trusts, and Fiduciaries › Section 81-03-02.2-04 - Deduction for federal income tax liability - Limitation

Current through Supplement No. 393, July, 2024
In determining the North Dakota taxable income of a
				  nonresident, the deduction for the federal income tax liability must be
				  adjusted as follows:
1. The federal
				foreign income tax credit must be subtracted.
2. After subtracting the federal foreign
				income tax credit, the result must be multiplied by a fraction in which the
				numerator is the amount of the federal adjusted gross income allocated and
				apportioned to North Dakota reduced by the amount of income that is excludable
				from North Dakota taxable income due to North Dakota statutes, federal
				statutes, or constitutional provisions, and the denominator is federal adjusted
				gross income.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01.2,
					 57-38-06
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-03.1 - Income Tax Withholding › Section 81-03-03.1-02 - Employer's application for registration

Current through Supplement No. 393, July, 2024
An employer who is required to withhold state income tax must
				  register with the office of tax commissioner within seven days of hiring an
				  employee. The application must be made on a form prescribed by the tax
				  commissioner.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-59,
					 57-38-60
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-03.2 - New Jobs Credit From Withholding › Section 81-03-03.2-01 - Definitions

Current through Supplement No. 393, July, 2024
. For purposes of implementing section 3 of chapter 493 of
				  the 1993 Session Laws, unless the context clearly indicates:
1. "Act" means chapter 493 of the 1993 Session Laws of North
				  Dakota.
2. "New job" means a job for which training is actually
				  provided for under the Act.
3. "Program funds" means any money loaned to a business as a
				  result of a training agreement entered into with job service North Dakota under
				  the Act.
4. "Training" means a new job training program or project
				  approved by job service North Dakota.
General Authority: NDCC 52-02.1,
					 57-38-56
Law Implemented: NDCC
					 52-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-03.2 - New Jobs Credit From Withholding › Section 81-03-03.2-02 - New jobs credit from withholding

Current through Supplement No. 393, July, 2024
. Except as provided in section
				  81-03-03.2-03, the new jobs credit
				  from withholding is the total amount of income tax the employer actually
				  withholds pursuant to North Dakota Century Code section
				  57-38-59 from the wages paid to
				  all individuals employed in a new job during the taxable period. The new jobs
				  credit from withholding does not reduce the amount an employer must pay
				  pursuant to North Dakota Century Code section
				  57-38-60.
General Authority: NDCC 52-02.1,
					 57-38-56
Law Implemented: NDCC
					 52-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-03.2 - New Jobs Credit From Withholding › Section 81-03-03.2-03 - Withholding not included in new jobs credit from withholding calculation

Current through Supplement No. 393, July, 2024
The income tax withheld for an individual employed in a new
				  job may not be included in determining the amount of credit if any of the
				  following apply:
1. Training for the
				new job has not commenced.
2. The
				individual employed in the new job is exempt from the individual income tax
				provisions of North Dakota Century Code chapter 57-38.
General Authority: NDCC 52-02.1,
					 57-38-56
Law Implemented: NDCC
					 52-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-03.2 - New Jobs Credit From Withholding › Section 81-03-03.2-04 - New jobs credit from withholding statement

Current through Supplement No. 393, July, 2024
An employer shall complete and file a new jobs credit from
				  withholding statement as prescribed by the tax commissioner. The new jobs
				  credit from withholding statement must be attached to each return the employer
				  is required to file pursuant to subsection 2 of North Dakota Century Code
				  section 57-38-60. The employer shall file
				  the new jobs credit withholding statement for each taxable period until the
				  employer is no longer eligible for the new jobs credit from withholding. The
				  tax commissioner shall not transfer the equivalent credit amount until such
				  time as the statement required by this section is filed and the amount deducted
				  and withheld by the employer as required by North Dakota Century Code section
				  57-38-60 is paid.
General Authority: NDCC 52-02.1,
					 57-38-56
Law Implemented: NDCC
					 52-02.1
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-04 - Estimated Tax › Section 81-03-04-01 - Corporation required to report and pay estimated tax and interest - Refund of overpayment

Current through Supplement No. 393, July, 2024
1. Any corporation
				may elect to make a payment of estimated income tax with the tax commissioner.
2. A corporation is required to
				make a payment of estimated tax with the tax commissioner if:
a. The corporation's previous year's state
				income tax liability exceeded five thousand dollars; and
b. The corporation reasonably expects the
				current state income tax liability to be in excess of five thousand dollars.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-04 - Estimated Tax › Section 81-03-04-02 - Payments of estimated taxes by individuals, estates, and trusts

Current through Supplement No. 393, July, 2024
1. Except as otherwise provided, an
				individual, estate, or trust subject to section 6654 of the Internal Revenue
				Code, relating to failure to pay estimated income taxes, shall make payments of
				estimated state income tax.
2. For
				purposes of subsection 5 of North Dakota Century Code section
				57-38-62:
a. An amended return filed on or before the
				due date, including extensions for filing the original return, is the
				individual's, estate's, or trust's return for that taxable year.
b. An audit assessment does not affect the
				calculation of estimated tax payments.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-04 - Estimated Tax › Section 81-03-04-03 - Estimated income tax payment

Current through Supplement No. 393, July, 2024
Any amount received by the tax commissioner designated as an
				  estimated state income tax payment, including an overpayment of income tax that
				  is credited to the taxpayer's estimated income tax for the following tax year,
				  may not be used by the tax commissioner to offset any liability owed to North
				  Dakota by the taxpayer, nor may the taxpayer request that the tax commissioner
				  use any amount designated as an estimated payment to offset a state liability
				  of the taxpayer. Prior to crediting an overpayment of income tax to the
				  taxpayer's estimated income tax for the following tax year, the tax
				  commissioner may apply an overpayment to offset unpaid child support or may
				  apply an overpayment as provided in North Dakota Century Code section
				  57-01-12.1 and subsection 3 of
				  North Dakota Century Code section
				  57-38-35.1.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-62
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-01 - Cooperatives required to file

Current through Supplement No. 393, July, 2024
Cooperative corporations, such as grain elevators, oil
				  companies, creameries, locker plants, and others, which distribute their income
				  through patronage dividends are not exempted from filing state income tax
				  returns.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-09,
					 57-38-09.1,
					 57-38-32
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-03 - DISC and FSC subject to North Dakota income tax

Current through Supplement No. 393, July, 2024
A DISC (domestic international sales corporation) is treated
				  as an ordinary corporation and subject to state income tax. If the domestic
				  international sales corporation has no activity within this state, but the
				  parent corporation is required to file a tax return with this state, the deemed
				  and actual distributions made by the domestic international sales corporation
				  must be included in business income of the parent and subject to state tax.
The tax commissioner may require a combined report whereby
				  income of the domestic international sales corporation is included in the
				  parent's income for state tax purposes and deemed distributions and
				  intercompany items are eliminated.
If both the parent corporation and the domestic international
				  sales corporation are nonapportioning North Dakota corporations, the domestic
				  international sales corporation must be required to file a return and compute
				  income subject to state tax based on its total income, and the parent
				  corporation will be allowed a deduction for the deemed distribution to the
				  extent of the domestic international sales corporation's business activity
				  taxed in this state. If the domestic international sales corporation is taxed
				  on its total income, then the parent corporation may deduct one hundred percent
				  of the deemed distribution.
An FSC (foreign sales corporation) must be treated the same
				  as a domestic international sales corporation for state tax purposes.
				  Distributions made by the foreign sales corporation to the parent corporation
				  must be included in the parent's income for state tax purposes. The tax
				  commissioner may also require a combined report by the parent corporation to
				  include the total income of the foreign sales corporation, with deemed
				  distributions and intercompany items eliminated.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01,
					 57-38-01.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-04 - DISC distributions

Current through Supplement No. 393, July, 2024
Actual distributions received from a DISC (domestic
				  international sales corporation), or a former domestic international sales
				  corporation, after December 31, 1984, on accumulated earnings derived before
				  January 1, 1985, must be treated as taxable income and included in
				  apportionable income for state tax purposes. Therefore, the taxable income of a
				  corporation as computed pursuant to the provisions of the Internal Revenue Code
				  of 1954, as amended, must be adjusted as necessary to include the actual
				  domestic international sales corporation distributions received after December
				  31, 1984, in apportionable income for state tax purposes.
Actual distributions received after December 31, 1984, from
				  accumulated earnings before January 1, 1985, from a domestic international
				  sales corporation, or a former domestic international sales corporation,
				  previously included in a combined report filed with this state, must be treated
				  as previously taxed income and no adjustment to income for state tax purposes
				  is necessary.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38-01,
					 57-38-01.3
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-05 - Subchapter S corporation tax credits

Current through Supplement No. 393, July, 2024
1. The following tax credits may be claimed
				only by a subchapter S corporation required to pay state income tax pursuant to
				subsection 1 of North Dakota Century Code section
				57-38-01.4:
a. Corporate tax credit for new
				industry.
b. Corporate tax credit
				for research and experimental expenditures.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-06 - Tax credit for research and experimental expenditures

Current through Supplement No. 393, July, 2024
When calculating the tax credit provided for in North Dakota
				  Century Code section
				  57-38-30.5, the taxpayer may
				  include in the base amount only those amounts that were incurred in or
				  attributable to North Dakota.
General Authority:
NDCC
					 57-38-56
Law Implemented:
NDCC
					 57-38-30.5
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-07 - Net operating losses

Current through Supplement No. 393, July, 2024
1.
				A North Dakota net operating loss must be computed after the allocation and
				apportionment of a taxpayer's income or loss to North Dakota.
2. A North Dakota net operating loss may be
				carried forward for the same number of years as a federal loss of like
				character, e.g., regular net operating loss, product liability loss, or foreign
				expropriation loss.
3. If a
				corporation does not file a consolidated corporation income tax return pursuant
				to section
				81-03-05.1-08, the corporation's
				North Dakota net operating loss may be carried forward even if:
a. The ownership of the corporation in the
				loss year is not the same as the ownership in each of the years to which the
				loss is carried, e.g., the corporation is acquired by another
				corporation.
b. The filing method
				used by the corporation in the loss year is not the same as the filing method
				used in each of the years to which the loss is carried, e.g., separate entity
				filing versus combined reporting.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.1 - Income Tax on Corporations › Section 81-03-05.1-08 - Consolidated returns

Current through Supplement No. 393, July, 2024
1.
				As used in this section:
a. "Combined report"
				means a tax return on which the tax liability is computed using the method
				described in chapters 81-03-05.2 and 81-03-05.3.
b. "Consolidated return" means a single
				corporation income tax return that reports the tax liability of more than one
				corporation engaged in business in or having sources of income from North
				Dakota.
c. "Taxpayer" means a
				corporation liable to report income or loss to North Dakota.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-02 - Water's edge election

Current through Supplement No. 393, July, 2024
A taxpayer may elect to use the water's edge method for any
				  taxable year beginning on or after January 1, 1989.
2. A water's edge election is made when each
				taxpayer in the unitary group checks the water's edge box on its original North
				Dakota income tax return for the first year to which the election applies.
3. If a water's edge taxpayer
				files a consolidated water's edge return, the election made on that return
				shall apply to all members of the water's edge group included in that return.
4. An affiliated corporation is
				considered to have consented to a water's edge election if the corporation
				becomes a member of the group after the group elects to use the water's edge
				method.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38.4-02
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-03 - Method of reporting

Current through Supplement No. 393, July, 2024
A water's edge group shall use a combined report to determine
				  the amount of income which should be assigned to North Dakota on behalf of each
				  member of the group. If the combined report assigns income to North Dakota on
				  behalf of a member of the group, that member shall report the assigned income
				  on its North Dakota income tax return.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-38.4-02
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-04 - Elements of the water's edge combined report

Current through Supplement No. 393, July, 2024
1. A
				taxpayer who elects to use the water's edge method shall include the income and
				the apportionment factors of the water's edge group in its combined report. The
				aforementioned group must include the following corporations:
a. A United States parent corporation.
b. An affiliated corporation
				incorporated in the United States, excluding, however, an 80/20 corporation.
c. An affiliated corporation
				incorporated in a possession of the United States as described in Internal
				Revenue Code sections 931 through 936.
d. A domestic international sales corporation
				as described in Internal Revenue Code sections 991 through 994.
e. A foreign sales corporation as described
				in Internal Revenue Code sections 921 through 927.
f. An export trade corporation as described
				in Internal Revenue Code sections 970 through 972.
g. A foreign corporation which derived gain
				or loss from disposing of a United States real property interest but only to
				the extent the gain or loss was recognized under Internal Revenue Code section
				897.
h. A foreign corporation if
				over fifty percent of its voting stock is owned, directly or indirectly, by a
				member of the water's edge group, and if more than twenty percent of the
				average of its property and payroll is assignable to a location within the
				United States or its possessions.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-05 - Domestic disclosure spreadsheet

Current through Supplement No. 393, July, 2024
1. A taxpayer
				electing to use the water's edge method shall file a domestic disclosure
				spreadsheet if the affiliated corporations as a group have:
a. Property, payroll, or sales in foreign
				countries exceeding ten million dollars.
b. Assets exceeding two hundred fifty million
				dollars.
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-06 - Failure to comply with water's edge election

Current through Supplement No. 393, July, 2024
1. If a
				taxpayer fails to make a valid water's edge election, the taxpayer will be
				prohibited from using this method to apportion its income for the year in
				question. If this occurs, the taxpayer shall determine its income and resulting
				tax liability pursuant to North Dakota Century Code chapters 57-38, 57-38.1,
				and 57-59, which chapters include reporting on a worldwide combined basis.
2. A taxpayer's failure to file a
				spreadsheet or to correct deficiencies in its spreadsheet will constitute a
				failure to file a return. If this occurs, the tax liability computed under the
				water's edge method will be subject to penalty and interest pursuant to North
				Dakota Century Code section
				57-38-45.
3. If a taxpayer fails to comply with the
				conditions in North Dakota Century Code section
				57-38.4-02 and this chapter, the
				commissioner may rescind the taxpayer's water's edge election for the entire
				election period. If this occurs, the commissioner will require the taxpayer to
				apportion its income for the period to which the election applied pursuant to
				worldwide combination or any other method of reporting permitted under North
				Dakota Century Code chapter 57-38, 57-38.1, or 57-59.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC 57-38, 57-38.1, 57-38.4,
					 57-38-45
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-06.1 - Recission of a water's edge election

Current through Supplement No. 393, July, 2024
1. The water's edge
				election of a corporation that has had more than fifty percent of its voting
				stock acquired by a nonaffiliated corporation is rescinded.
2. The water's edge election of a corporation
				formed due to a reorganization or spinoff from an existing taxpayer is
				rescinded if, after such reorganization or spinoff, it is no longer an
				affiliated member of the water's edge group.
3. The water's edge election of a corporation
				that is completely liquidated is rescinded. The election does not carry over to
				a corporation receiving the liquidated assets. This provision does not affect
				the water's edge election made by any corporation that receives liquidated
				assets.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC 57-38, 57-38.1,
					 57-38.4
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-07 - Procedure for review of tax commissioner's recision of water's edge election

Current through Supplement No. 393, July, 2024
1. The commissioner
				shall notify a taxpayer if there is a decision to rescind the taxpayer's
				water's edge election. The notice of recision must be sent to the taxpayer by
				certified mail with a return receipt requested, and it must state the reasons
				for the recision.
2. The notice of
				recision becomes final and irrevocable thirty days after the date the notice is
				received by the taxpayer unless within that thirty-day period the taxpayer
				files a written protest with the commissioner. The protest which will be deemed
				filed on the date it is sent by certified mail must state the grounds upon
				which the protest is based.
3. If
				a protest is filed, the commissioner shall reconsider the notice of recision.
				This reconsideration may include further examination by the commissioner of any
				affiliated corporation's books, papers, records, or memoranda pursuant to North
				Dakota Century Code sections
				57-01-02,
				57-38-56, and section
				81-01.1-01-03.
4. Upon request, the commissioner may grant
				the taxpayer an informal conference.
5. Within a reasonable time after receiving
				the protest, the commissioner shall notify the taxpayer as to whether the
				decision to rescind the taxpayer's water's edge election is affirmed or
				reversed. Notice of this reconsideration must be sent to the taxpayer by
				certified mail with a return receipt requested. A decision to affirm becomes
				final and irrevocable thirty days after the notice of reconsideration has been
				received by the taxpayer unless, within that thirty-day period, the taxpayer
				seeks formal administrative review by filing a complaint and requesting an
				administrative hearing. The provisions of North Dakota Century Code chapter
				28-32 will apply to and govern the filing of the complaint and the
				administrative hearing, including an appeal of the decision rendered by the
				commissioner.
6. Upon written
				request, the commissioner may grant an extension of time to file a protest or a
				complaint.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC
					 57-01-02,
					 57-38-56,
					 57-38.4
North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-05.2 - Water's Edge Method › Section 81-03-05.2-08 - Administrative provisions of income tax law applicable

Current through Supplement No. 393, July, 2024
Administration of the water's edge method under North Dakota
				  Century Code chapter 57-38.4 will be governed by those provisions in North
				  Dakota Century Code chapters 57-38, 57-38.1, and 57-59 which are not in
				  conflict with any provision in North Dakota Century Code chapter 57-38.4.
General Authority: NDCC
					 57-38-56
Law Implemented: NDCC 57-38, 57-38.1, 57-38.4,
					 57-59