reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SUBJECTABILITY TO TAX REPORTING › Section 153.1 - Taxpayers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Inclusions.
The following entities organized and incorporated
						under the statutes of this Commonwealth, the United States or another state,
						territory, foreign country or dependency, and doing business in this
						Commonwealth, or carrying on activities in this Commonwealth, or owning
						property in this Commonwealth, or having capital or property employed or used
						in this Commonwealth by or in the name of itself, or a person, partnership,
						association, limited partnership, joint-stock association or corporation are
						taxpayers for purposes of this article. See section 401(1) of the TRC
						(72
						P. S. §
													7401(1)).
(1) Corporations having capital
						stock.
(2) Joint-stock
						associations.
(3) Limited
						partnerships, including:
(i) Registered
						partnerships formed and existing under the act of May 9, 1899 (P. L. 261, No.
						153) (59 P. S. §§
															241-311) prior to January 1, 1971, the
						effective date of its repeal by section 1203(e)(2) of the Business Corporation
						Law (15 P. S. §
															2203(e)(2)).
(ii) Partnership associations formed and
						existing under the act of June 2, 1874 (P. L. 271, No. 153) (15 P. S.
						§§
															12701-12710) prior to its
						repeal, effective August 9, 1970, by section 14(a)(1) of the Professional
						Corporation Law (15 P. S. §
															2914(a)(1)).
(4) Professional corporations formed under
						the Professional Corporation Law (15 P. S. §§
														2901-2914) and professional associations
						formed under the Professional Association Act (15 P. S. §§
														12601-12619) which elect, under section 4 of
						the Professional Corporation Law (15 P. S. §
														2904), to accept the provisions
						thereof.
(5) Corporations having
						authority to issue capital stock and organized or created by or under the
						nonprofit corporation law of a state.
(6) S corporations, as provided for under
						section 1361 of the IRC (26
						U.S.C.A. §
														1361).
(7) Domestic International Sales
						Corporations, commonly known as DISCs, as provided for under section 991 of the
						IRC (26 U.S.C.A. §
														991).
(8) Foreign Sales Corporations, commonly
						known as FSCs, as provided for under section 921 of the IRC (26 U.S.C.A. §
														921).
(9) General or limited partnerships formed
						under the statutes of the Commonwealth which elect to be governed by 15 Pa.C.S.
						Ch. 87 (relating to electing partnerships).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › TAX BASE › Section 153.11 - Definition of "taxable income

Current through Register Vol. 54, No. 28, July 13, 2024
As used in this chapter, the term "taxable income"
						  means "Federal taxable income before net operating loss deduction and special
						  deductions" (presently Line 28 of Page 1 of Federal IRS Form 1120 or Line 24 of
						  Page 1 of Federal IRS Form 1120-A) as returned to and ascertained by the
						  Federal government and as modified or adjusted under section 401(3)1. of the
						  TRC (72 P. S. §
													7401(3) 1.) and under this
						  chapter, unless the context clearly indicates otherwise.
The provisions of this §
														153.11 amended under section 408
							 of the Tax Reform Code of 1971 (72 P. S. §
															7408).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › TAX BASE › Section 153.12 - Altering Federal taxable income

Current through Register Vol. 54, No. 28, July 13, 2024
Foreign taxes paid.
Foreign taxes
						  taken by the taxpayer as a credit against Federal taxes are not allowed to
						  reduce taxable income. Reference should be made to §
												153.13 (relating to Federal tax
						  credits). Foreign taxes taken by the taxpayer as a deduction in arriving at
						  Federal taxable income are a proper deduction (reflected presently on Line 17
						  of Page 1 of Federal IRS Forms 1120 and 1120-A). See §
						  153.13.
The provisions of this §
														153.12 issued under section 270 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7270); amended under section 408 of the Tax
							 Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.13 (relating to Federal tax
							 credits); and 61 Pa. Code §
														153.25 (relating to payroll
							 factor).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › TAX BASE › Section 153.13 - Federal tax credits

Current through Register Vol. 54, No. 28, July 13, 2024
In the determination of taxable income, Federal tax
						  credits, for example the Federal tax credit for taxes paid to a foreign
						  country, is not allowed to reduce the "Federal taxable income before net
						  operating loss deduction and special deductions" (presently Line 28 of Page 1
						  of Federal IRS Form 1120 or Line 24 of Page 1 of Federal IRS Form 1120-A).
						  Reference should also be made to §
												153.12 (relating to altering
						  Federal taxable income).
The provisions of this §
														153.13 amended under section 408
							 of the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.12 (relating to altering
							 Federal taxable income).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › TAX BASE › Section 153.15 - Net loss deduction

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The following words and terms, when used in this
						section, have the following meanings, unless the context clearly indicates
						otherwise:
(1)
Net loss
-For a
						corporation ineligible to allocate or apportion its income, the negative amount
						for a taxable year arrived at under section 401(3)1. of the TRC (72 P. S. §
														7401(3) 1.). For a
						corporation eligible to allocate or apportion its income, the negative amount
						for a taxable year arrived at under section 401(3)2. of the TRC. Negative
						amounts shall be allocated and apportioned in the same manner as positive
						amounts.
(2)
Net loss
						deduction
-The net loss deduction for a taxable year is the lesser of
						the amount of the net loss which may be carried over to the taxable year or
						taxable income for the taxable year.
(3)
Taxable year
-The taxable
						year of a corporation is the taxable year which the corporation, or a
						consolidated group with which the corporation participates in the filing of
						consolidated returns, actually used in reporting taxable income to the Federal
						government.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.21 - Transacting business outside

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
						taxpayer may allocate and apportion if in addition to transacting business
						outside this Commonwealth as established in subsection (b) it is either
						"subject to" a tax in another state as provided in §
												153.22 (relating to subject to) or
						another state has "jurisdiction to subject" as provided in §
												153.23 (relating to jurisdiction
						to subject) the taxpayer to a Corporate Net Income Tax.
(b) What constitutes transacting business
						outside cannot be precisely defined. It may be generally stated that a taxpayer
						is "transacting business outside" when its presence outside this Commonwealth
						is related to its actual business activity. The presence may be through, but
						not limited to, administrative functioning, property ownership, or sales
						activity.
Example 1.
Taxpayer actively engaged
						  in manufacturing farm equipment in this Commonwealth. In State W taxpayer owned
						  a manufacturing plant. Taxpayer leased the plant to another company to be used
						  for the manufacturing farm equipment. Taxpayer acquired the lessee's products
						  and subsidized its operations by advancing money to it. Upon the expiration of
						  the lease, the manufacturing operations in State W ceased completely. Up to the
						  expiration of the lease, taxpayer was transacting business outside this
						  Commonwealth. After the expiration of the lease, taxpayer's ownership of the
						  property in State W was not related to its actual business activity, and,
						  therefore, taxpayer was not transacting business outside this
						  Commonwealth.
Example 2.
Taxpayer manufactures
						  sparkplugs in this Commonwealth and all activities are carried on in this
						  Commonwealth except that administrative function and executive policies are
						  performed and established by taxpayer's officers located in the State O. The
						  activities in State O are related to the manufacturing activity in this
						  Commonwealth and are part of the taxpayer's business. Thus, taxpayer is
						  transacting business outside of this Commonwealth.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.22 - Subject to

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A taxpayer is
						"subject to" one of the four taxes specified in section 401(3)2.(a)(3) of the
						TRC (72 P. S. §
													7401(3) 2.(a)(3)) in a
						particular state if it carries on business activity in the state and the state
						in fact requires it to file, and, in fact, does file one of the four enumerated
						tax reports based on the business activity. A taxpayer claiming it is "subject
						to" one of the four specified taxes may be required by the Bureau to furnish
						proof that the taxpayer has filed the required tax report in the other state
						and the other necessary information.
Example:
State A has a corporation
						  franchise tax measured by net income for the privilege of doing business in
						  that state. Taxpayer files a return based upon its business activity in the
						  state but the amount of computed liability is less than the minimum tax.
						  Taxpayer pays the minimum tax. Taxpayer is subject to State A's corporation
						  franchise tax.
(b) A
						taxpayer is not "subject to" one of the specified taxes within the meaning of
						section 401(3)2.(a)(3) (72 P. S. §
													7401(3) 2.(a)(3)) if the
						taxpayer voluntarily files one or more of the tax reports when not required to
						do so by the laws of that state or pays a minimum fee for qualification,
						organization or the privilege of doing business in that state, but:
(1) Does not engage in business activity in
						that state.
(2) Does actually
						engage in some business activity, but not sufficient for nexus.
Example:
State A has a corporation
						  franchise tax measured by net income, for the privilege of doing business in
						  that state. Taxpayer files a return and pays the $50 minimum tax, although it
						  carries on no business activity in State A. Taxpayer is not "taxable" in State
						  A.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.23 - Jurisdiction to subject

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
						particular state has "jurisdiction to subject" the taxpayer to a net income
						tax, if the taxpayer's business activity in the state is sufficient to give the
						State jurisdiction to impose at least a net income tax under the constitution
						and statutes of the United States. See section 401(3)2.(a)(1)(F) of the TRC
						(72
						P. S. §
													7401(3)
						2.(a)(1)(F)). Whether the state does in fact impose a tax is not relevant.
						Jurisdiction to tax is not present where the state is prohibited from imposing
						the tax by reason of the provisions of
						15 U.S.C.A. §§
													381-385.
(b) The determination of whether the state
						has "jurisdiction to subject" the taxpayer to a net income tax shall be made
						upon the same rules that are applied in determining whether a taxpayer has
						sufficient activity in this Commonwealth to subject the taxpayer at least to
						the Pennsylvania Corporate Net Income Tax. See section 401 of the TRC
						(72
						P. S. §
													7401).
Example 1.
Taxpayer manufactures pin
						  ball machines in this Commonwealth. Taxpayer has salesmen in State N who have
						  the right to, and do in fact, accept orders there. State N has no corporate tax
						  statutes. State N has "jurisdiction to subject" taxpayer to a net income tax
						  because 15 U.S.C.A.
						  §§
														381-385 does not
						  apply.
Example 2.
Taxpayer manufactures farm
						  equipment in this Commonwealth and in foreign country B. Both the Commonwealth
						  and foreign country B impose a net income tax, but foreign country B exempts
						  corporations engaged in manufacturing farm equipment. Foreign country B has
						  jurisdiction to subject taxpayer to a net income tax.
The provisions of this §
														153.23 amended under section 408
							 of the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.21 (relating to transacting
							 business outside).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.25 - Payroll factor

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
The payroll factor is a fraction, the numerator of
						which is the total amount of compensation paid in this Commonwealth during the
						tax period by the taxpayer to its employes and the denominator of which is the
						total amount of compensation paid everywhere during the tax period by the
						taxpayer to its employes.
(b)
Effect of method of accounting.
If the taxpayer uses either
						the cash or accrual method of accounting in reporting its taxable income to the
						IRS, the total amount paid to individuals for a tax period is determined upon
						the basis of the accounting method of the taxpayer.
(c)
Effect of denial of deduction for
						wages and salaries.
The payroll factor shall include compensation
						whether or not included as part of the deduction for wages and salaries of the
						taxpayer. Reference should also be made to §
												153.12 (relating to altering
						Federal taxable income).
This section cited in 61 Pa. Code §
														153.29 (relating to corporation
							 tax: interest in partnership/joint
							 venture).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.27 - Railroad, truck, bus and airline companies

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The taxpayer shall be transacting
						business outside this Commonwealth in order to be entitled to the use of the
						appropriate special statutory apportionment fraction. See section 401(3)2. of
						the TRC (72 P. S. §
													7401(3) 2.).
(b) The taxpayer is not required to have
						income from business activity which is taxable both within and without this
						Commonwealth as a further condition precedent to its use of the revenue miles
						apportionment fraction but is entitled to the use of the revenue miles
						apportionment fraction without regard to whether or not the taxpayer has income
						from business activity which is taxable outside this Commonwealth. See section
						401(3)2.(a)(2) and (3) of the TRC (72 P. S. §
													7401(3) 2.(a)(2) and
						(3)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.28 - Property factor

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The following words and terms, when used in this
						section, have the following meanings, unless the context clearly indicates
						otherwise:
(1)
Net annual rental
						rate
-The annual rental rate paid by the taxpayer for an item of real
						or tangible personal property less annual rental income received by the
						taxpayer from subrentals, but not less than zero.
(2)
Original cost
-The basis
						of the real or tangible personal property for Federal income tax purposes at
						the time of acquisition by the taxpayer and adjusted by subsequent capital
						additions or improvements thereto and partial disposition thereof, by reason of
						sale, exchange, abandonment and the like.
(3)
Owned
-Property to which
						the taxpayer has both legal and equitable title, property to which the taxpayer
						has legal title subject to the security interest of another and property which
						the taxpayer is purchasing under an installment sales agreement or similar
						agreement under the terms of which legal title remains in the seller for
						security purposes until the purchase price is paid.
(4)
Owned or rented and
						used
-Property owned by the taxpayer and used by the taxpayer. Property
						rented to the taxpayer and used by the taxpayer.
(5)
Real and tangible personal
						property
-Land, buildings, machinery, equipment, furniture, fixtures,
						automobiles, trucks, inventory and other similar property. The term does not
						include coin, currency, shares of stock or evidence of indebtedness.
(6)
Used
-Actually used or
						available for or capable of being used during the taxable year by the
						taxpayer.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.29 - Corporation tax: interest in partnership/joint venture

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
(1) When a taxpayer has an interest in a
						partnership, joint venture, association or other unincorporated enterprise
						(hereinafter referred to in this section as partnership), the amount of its
						distributive share of partnership income shall be determined in accordance with
						the IRC. The taxpayer's interest in the partnership shall, for purposes of
						Commonwealth corporate taxation, be considered a direct interest in the assets
						of the partnership rather than an intangible interest. Accordingly, the
						taxpayer's share of the partnership's payroll, property and sales-as hereafter
						determined-shall be included in the apportionment factors of the taxpayer
						unless otherwise excluded by this section.
(2) A taxpayer's partnership interest for the
						purpose of computing the portion of the partnership's property, payroll and
						sales to be included in the taxpayer's property, payroll and sales factors
						shall be determined under the partnership agreement and in accordance with the
						IRC
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.30 - Safe harbor leases

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The following words and terms, when used in this
						section, have the following meanings, unless the context clearly indicates
						otherwise:
(1)
Lessee
-The
						lessee under a safe harbor lease.
(2)
Lessor
-The lessor under
						a safe harbor lease.
(3)
Safe harbor lease
-An agreement which is characterized as a
						lease under section 168(f)(8) of the IRC (26 U.S.C.A. §
														168(f)(8)) and the Treasury
						regulations thereunder.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › EQUITABLE REMEDIES › Section 153.43 - Sales factor

Current through Register Vol. 54, No. 28, July 13, 2024
If the apportionment provisions do not fairly represent
						  the extent of the taxpayer's business activity in this Commonwealth, section
						  401(3)2.(a)(18) of the TRC (72 P. S. §
													7401(3) 2.(a)(18)) may be
						  utilized on a case-to-case basis to effectuate an equitable apportionment by
						  any of the methods provided therein.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › REPORTS AND PAYMENT OF TAX › Section 153.54 - Changes made by Federal government

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
If the amount
						of taxable income, as returned by a taxpayer to the Federal government, is
						finally changed or corrected by the Commissioner of the Internal Revenue or by
						another agency or court of the United States, the taxpayer, within 30 days
						after the receipt of the final change or correction, shall make a report of
						change, under oath or affirmation, to the Department showing the finally
						changed or corrected taxable income, upon which tax is required to be paid to
						the United States. See section 406 of the TRC (72 P. S. §
													7406). A change or correction of taxable
						income includes an increase or decrease in Federal taxable income before net
						operating loss deduction and special deductions.
(b)
What is required to be filed with
						the Department.
The following are required to be filed with the
						Department:
(1) A Report of Change as
						prescribed by the Department.
(2)
						Where a Federal audit has been conducted a copy of the summary of the Federal
						agent's report, commonly referred to as an "RAR."
(3) The Department may require the taxpayer
						to submit additional information or proof as it deems necessary.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SETTLEMENT AND RESETTLEMENT › Section 153.61 - Settlement

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General
						rule.
Settlement of taxes due shall be made, so far as possible, so
						that notice thereof may be mailed to the taxpayer within 18 months after the
						tax report was required to be made. See section 407(a) of the TRC
						(72
						P. S. §
													7407(a)).
(b)
Extensions of time to file
						reports.
If a taxpayer requests an extension of time in which to file
						its Federal return, settlement will be made, so far as possible, so that notice
						thereof may reach the taxpayer within 18 months after the taxpayer files its
						Pennsylvania return. In the case of a taxpayer requesting a Pennsylvania
						extension which did not request a Federal extension, settlement will be made,
						so far as possible, so that notice may be mailed to the taxpayer within 18
						months after the taxpayer files the return. See section 405 of the TRC
						(72
						P. S. §
													7405).
(c)
Delinquent reports.
In
						the case of a tax report which is filed after the original due date, or if an
						extension has been requested, after the extended due date, settlement will be
						made, so far as possible, so that notice may be mailed to the taxpayer within
						18 months after the tax report was filed with the Department.
The provisions of this §
														153.61 amended under section 408
							 of the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.66 (relating to
							 applicability).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SETTLEMENT AND RESETTLEMENT › Section 153.62 - Copy of the settlement will be sent to the taxpayer

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
Promptly after
						the date of settlement, the Bureau is required to send a copy of the settlement
						of corporate taxes to the taxpayer. See section 407(c) of the TRC
						(72
						P. S. §
													7407(c)).
(b)
Where the tax settlement
						computations differ from the tax computations as submitted by the
						taxpayer.
Where the tax settlement computations differ from the tax
						computations as submitted by the taxpayer, the Bureau will send a copy of the
						tax settlement in the form of a photocopy of the settlement sheet, which is
						located on the back of the submitted report, as settled by the Bureau and
						audited and approved by the Department of the Auditor General.
(c)
Where the tax settlement
						computations show no change from the tax computations as submitted by the
						taxpayer.
Where the tax settlement computations show no change from
						the tax computations as submitted by the taxpayer, the Bureau will send a copy
						of the settlement.
The provisions of this §
														153.62 issued under section 408 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.66 (relating to
							 applicability).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SETTLEMENT AND RESETTLEMENT › Section 153.63 - Resettlement by the Department

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Resettlement of settlements.
If, within a period of 1 year
						after the date of a settlement, the Department is not satisfied with the
						settlement, the Department may resettle the tax due based upon the facts
						contained in the report, or upon information within its possession. See section
						407(b) of the TRC (72 P. S. §
													7407(b)).
(b)
Appealed settlements.
In
						the case of a settlement of tax which has been appealed to the Board of Finance
						and Revenue, the Department is authorized to resettle under section 407(b) of
						the TRC if the Board of Finance and Revenue has not acted upon taxpayer's
						petition, or, if the Board of Finance and Revenue has acted upon taxpayer's
						petition, the Department will have authority to make a resettlement, if the
						resettlement is consistent with the action of the Board of Finance and Revenue
						on any issue raised before the Board.
(c)
Petitions for refund.
The filing of a Petition for Refund with the Board of Finance and Revenue does
						not affect the jurisdiction of the Department to make a resettlement of tax
						due. Action taken on a Petition for Refund by the Board of Finance and Revenue
						does not affect the jurisdiction of the Department to make a resettlement of
						tax due, if the resettlement is consistent with the action of the Board of
						Finance and Revenue on any issue raised before the Board.
The provisions of this §
														153.63 issued under section 408 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														153.54 (relating to changes made
							 by Federal government); and 61 Pa. Code §
														153.66 (relating to
							 applicability).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SETTLEMENT AND RESETTLEMENT › Section 153.64 - Amended report

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General
. An amended report may be filed by a taxpayer within 1
						year after settlement of the original report. An amended report may be filed
						for the purpose of bringing to the attention of the Department a correction to
						the original report the taxpayer requests the Department to consider. If an
						amended Federal return is filed or would have been filed with the Federal
						government, a corrected report shall be filed with the Department under §
												153.65 (relating to corrected
						reports).
(b)
Amended
						report filed before settlement
. When an amended report is filed in the
						Department before settlement of the original report, settlement will be based
						upon consideration of the information contained in the amended report, subject
						to verification by the Department.
(c)
Amended report filed after
						settlement but within 90 days of settlement mailing date
. After
						settlement of the original report but within 90 days after the date upon which
						the copy of the original settlement notice was mailed to the tax-payer, the
						taxpayer, if it seeks to have the settlement changed, shall file in the
						Department a Petition for Resettlement to which may be attached an amended
						report, subject to verification by the Department, in support of its petition.
						See section 1102 of the FC (72 P. S. §
													1102).
(d)
Amended report filed after 90
						days of settlement mailing date but within 1 year of settlement
. An
						amended report may be filed in the Department beyond 90 days after the date
						upon which the copy of the original settlement notice was mailed to the
						taxpayer but within 1 year after the date of settlement of the original report.
						The Department may resettle the original report based upon consideration of the
						information contained and verified in the amended report, subject to
						verification by the Department. See section 407(b) of the TRC (72 P. S. §
													7407(b)).
(e)
Amended report received after 1
						year after settlement
. After an amended report is received after 1
						year of the date of settlement of the original report, the Department is
						without jurisdiction to make a resettlement, but the taxpayer may pursue its
						normal statutory remedy by timely filing a Petition for Refund. See section 503
						of the FC (72 P. S. §
													503).
The provisions of this §
														153.64 amended under section 6 of
							 The Fiscal Code (72 P. S. §
															6).
This section cited in 61 Pa. Code §
														153.66 (relating to
							 applicability).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › SETTLEMENT AND RESETTLEMENT › Section 153.66 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
Sections
						  153.61-153.65, regarding settlement and
						  resettlement, apply to taxes settled prior to January 1, 2008.
The provisions of this §
														153.66 issued under section 6 of
							 The Fiscal Code (72 P. S. §
															6).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ENFORCEMENT › Section 153.71 - Inquisitorial powers of the Department

Current through Register Vol. 54, No. 28, July 13, 2024
(a) [Reserved].
(b) [Reserved].
(c)
Duties of the taxpayer.
Taxpayers shall have the following duties:
(1)
General.
Every taxpayer
						shall maintain and keep for a period of 3 years after a report is filed under
						the TRC records of its business within this Commonwealth for the period covered
						by the report and other pertinent papers required by the Department. See
						section 409 of the TRC (72 P. S. §
														7409).
(2)
What constitutes records and
						papers. [Reserved].
(3)
Microfilm (including microfiche) reproduction.
A taxpayer may
						utilize microfilm (including microfiche) reproduction of general books of
						account and supporting records of detail which are records of its business
						within this Commonwealth and other pertinent papers as a method of maintaining
						and keeping the records and papers if the IRS approves of the taxpayer's system
						of microfilm (including microfiche) reproduction and the general books of
						account and supporting records of detail produced by the reproduction. A
						taxpayer utilizing this system of record retention will make available upon
						request by the Department a reader-printer for the reading, location and
						reproduction of records and papers being maintained on microfilm.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › SUBJECTABILITY TO TAX REPORTING › Section 155.1 - Taxpayers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Inclusions.
The following entities organized and incorporated
						under the statutes of the Commonwealth, the United States or another state,
						territory, foreign country or dependency and doing business in and liable for
						taxation in this Commonwealth or carrying on activities in this Commonwealth,
						including solicitation or either owning or having capital or property employed
						or used in this Commonwealth by or in the name of a limited partnership or
						joint-stock association, company, corporation, association, copartnership,
						person or in another manner are taxpayers for the purpose of this article (See
						section 601 of the TRC (72 P. S. §
													7601)):
(1)
						Corporations having capital stock.
(2) Joint-stock associations.
(3) Limited partnerships, including:
(i) Registered partnerships formed and
						existing under the act of May 9, 1899 (P. L. 261, No. 153) (59 P. S.
						§§
															241-311) prior to January 1,
						1971, the effective date of its repeal by section 1203(e)(2) of the Business
						Corporation Law (15 P. S. §
															2203(e)(2)).
(ii) Partnership associations formed and
						existing under the act of June 2, 1874 (P. L. 271, No. 153) (15 P. S.
						§§
															12701-12710) prior to its repeal
						effective August 9, 1970, by section 14(a)(1) of the Professional Corporation
						Law (15 P. S. §
															2914(a)(1)).
(4) Professional corporations formed under
						the Professional Corporation Law (15 P. S. §§
														2901-2914) and professional associations
						formed under the Professional Association Act (15 P. S. §§
														12601-12619) which elect, under section 4 of
						the Professional Corporation Law (15 P. S. §
														2904) to accept the provisons
						thereof.
(5) Corporations having
						authority to issue capital stock and organized or created by or under the
						nonprofit corporation law of a state but which are not in fact nonprofit
						corporations.
(6) S corporations,
						as provided for under section 1361 of the IRC (26 U.S.C.A. §
														1361) whether or not they have made a
						Pennsylvania election.
(7) Domestic
						International Sales Corporations, commonly known as DISCs, as provided for
						under section 991 of the IRC (26 U.S.C.A. §
														991).
(8) Foreign Sales Corporations, commonly
						known as FSC's, as provided for under section 921 of the IRC (26 U.S.C.A. §
														921).
(9) General or limited partnerships formed
						under the statutes of the Commonwealth which elect to be governed by
						59 Pa.C.S. §§
														701-707 (relating to electing
						partnerships).
(10) Cooperative
						associations formed under the act of June 7, 1887 (P. L. 365, No. 252)
						(15
						P. S. §§
														12001-12023).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › SUBJECTABILITY TO TAX REPORTING › Section 155.2 - Family farm corporation exemption

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
A domestic or
						foreign corporation which qualifies as a family farm corporation is exempt from
						Capital Stock or Foreign Franchise taxation if the corporation is actually
						engaged in the business of agriculture.
(1)
						For the purposes of this exemption, the business of agriculture means
						commercially cultivating the ground to produce products in fields or in large
						quantities, including the preparation of soil, the planting of seeds, the
						raising and harvesting of crops, beekeeping and the rearing, feeding, breeding
						and management of livestock. The business of agriculture also includes
						aquaculture, which is defined as the raising of fish and other aquatic animals
						for direct commercial use as a food or food product.
(2) The following activities are not
						considered to be the business of agriculture:
(i) Recreational activities, such as hunting,
						fishing, camping, skiing, show competition or racing.
(ii) The raising, breeding or training of
						game animals or game birds, fish, cats, dogs or pets or animals intended for
						use in sporting or recreational activities.
(iii) Fur farming.
(iv) Stockyard and slaughterhouse
						operations.
(v) Manufacturing or
						processing operations.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › APPORTIONMENTS › Section 155.10 - Single factor apportionment

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
(1)
All
						corporations.
Corporations subject to either the Capital Stock or
						Foreign Franchise Tax, except regulated investment companies, shall be entitled
						each taxable year to use the single factor fraction. Taxpayers electing to use
						the single factor fraction for a taxable year shall be prohibited from
						simultaneously using three factor apportionment for the same taxable year, and
						use of the single factor fraction shall be limited to the Capital Stock or
						Foreign Franchise Tax, and will have no applicability to the Corporate Net
						Income Tax. See the act of June 22, 1931 (P. L. 685, No. 250) (72 P. S. §
														1896).
(2)
Foreign corporations.
Foreign corporations may elect to compute and pay Foreign Franchise Tax on a
						property tax basis and utilize the single factor fraction. A foreign
						corporation electing to do so shall be treated as if it were a domestic
						corporation for the purpose of determining which of its assets are exempt from
						taxation and for the purpose of determining the proportion of the value of its
						capital stock which is subject to taxation.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › APPORTIONMENTS › Section 155.11 - Exemption

Current through Register Vol. 54, No. 28, July 13, 2024
Pollution control devices exemption.
Exemptions for pollutions control devices shall be as follows:
(1)
General.
An exemption
						will be given for water and air pollution control or abatement devices which
						have been employed or utilized for the benefit of the general public during the
						tax year in question. The pollution control devices exemption is expressed as a
						deduction from the Capital Stock Tax exempt assets fraction, or as a deduction
						from the Property Factor in the case of a Foreign Franchise Tax taxpayer or a
						Capital Stock Tax taxpayer which elects to compute and pay its tax on the basis
						of the Three Factor Formula as provided in section 602(b) of the TRC
						(72
						P. S. §
													7602(b)).
(2)
Condition precedent.
As
						a condition precedent to the granting by the Department to the taxpayer of the
						pollution control device exemption, the taxpayer is required to apply to the
						Department of Environmental Protection and obtain a certificate for the purpose
						of claiming exemption for each specific pollution control device. This
						certification is designated "Notice of State Certification" (DEP Form
						ER-BWQ-21). See section 602.1 of the TRC (72 P. S. §
													7602.1). The taxpayer is required to file
						with the Department the Notice of State Certification covering the specific
						control device for which exemption is claimed during the tax period in
						question. This requirement for the filing of a Notice of State Certification
						may apply not only to a new device but may also apply to modifications or
						changes of an existing device.
(3)
Notice of State Certification by Department of Environmental
						Protection.
Notice of State Certification shall conform with the
						following:
(i) The Notice of State
						Certification issued by the Department of Environmental Protection shall
						certify:
(A) That certain components are
						components to a water or air pollution device.
(B) That a device is installed and completed
						in place.
(C) That is employed or
						utilized to remove pollutants commencing in, or during, the tax year in
						question.
(D) That, where a plan
						approval or permit is required by the Department of Environmental Protection,
						plan approval or permit has been obtained.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.21 - General

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Taxable
						years prior to calendar year 1984.
The Department recognizes and
						understands that the determination of the capital stock value of a taxpayer is
						not precise or constant in every instance, and that the determination depends
						upon the pertinent factors relating to each taxpayer. This section and
						§§
												155.22-155.30 (relating to valuation of
						capital stock) are not intended to establish fixed or inflexible rules for the
						determination of the capital stock value in every instance. These sections
						provide general guidelines that are to be used as a general basis upon which,
						if necessary, adjustments can be made in determining the capital stock value of
						the taxpayer.
(b)
Calendar
						year 1984 and years thereafter.
The act of December 23, 1983 (P. L.
						360, No. 89) that amended Article VI of the TRC (72 P. S. §§
													7601-7606) made certain important changes to
						the Capital Stock and Foreign Franchise Taxes. Commencing with calendar year
						1984 and fiscal years beginning in 1984 and each year thereafter, "actual
						value" as the standard in determining the value of a corporation's capital
						stock has been eliminated. "Capital stock value" is now determined under the
						act by application of a defined and fixed formula, making the general
						guidelines set forth by §§
												155.22-155.24 (relating to definitions;
						determination of valuation factors; and valuation methods) inapplicable to the
						determination of fixed formula capital stock value. Rules applicable to the
						determination of fixed formula capital stock value are set forth in
						§§
												155.25-155.28 (relating to capital stock
						value-fixed formula; average net income-fixed formula; net worth-fixed formula;
						and capital stock value methods-fixed formula).
(c)
Calendar year 1983 and years
						thereafter.
The act of December 23, 1983 (P. L. 370, No. 90) provides
						for a minimum Capital Stock and Foreign Franchise Tax of $75. Reference should
						be made to §§
												155.28(c) and
						155.30 (relating to minimum tax).
The provisions of this §
														155.21 amended under section 408
							 of the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														155.22 (relating to definitions);
							 and 61 Pa. Code §
														155.28 (relating to capital stock
							 value methods-fixed formula).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.23 - Determination of valuation factors

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Selling price of stock shall be computed
						as an average price for the taxable year on a daily weighted or mean average.
						This selling price is that applicable to an active, continuing market involving
						a substantial number of capital stock transactions, that is, the capital stock
						of a corporation is registered or traded on a security exchange or over the
						counter on a regular and orderly basis under circumstances which usually and
						generally apply to the transactions. However, when the taxpayer's capital stock
						is not traded in an active and continuing market and the taxpayer disposes of a
						substantial number of shares of capital stock or the taxpayer is involved in a
						substantial number of capital stock transactions during the taxable year, the
						selling price of stock shall be the average selling price of the disposed
						stock. Isolated or sporadic sales or sales of fractional interests of minority
						holdings are generally not determinative of the selling price of stock.
						Reference should also be made to §
												155.22 (relating to definitions)
						wherein "corporate earnings" is defined. What is determined to be a substantial
						number of transactions shall depend upon the facts and circumstances pertinent
						to an individual case.
(b) Earnings
						of industrial taxpayers shall be capitalized at 10% (10 x earnings); for
						earnings of public utilities, at 8.0% (12 1/2 x earnings). If the earnings
						figure shows a loss, it shall be entered as zero. However, in the determination
						of the average earnings the loss shall be entered as computed. Reference should
						also be made to § 155.22 (relating to definitions).
(c) Dividends declared by industrial
						taxpayers shall be capitalized at 8.0% (12 1/2 x annual dividends); for public
						utilities, at 7.0% (14.285 x annual dividends). Reference should also be made
						to § 155.22.
(d) Stockholder
						equity shall be determined by taking the actual value, if available and
						determinable, of the total corporate assets less the total corporate
						liabilities.
(1) What is included as
						corporate assets and liabilities:
(i) Total
						corporate assets means real property and tangible and intangible personal
						property recorded on the corporate balance sheet.
(ii) Total corporate liabilities means
						current liabilities, funded debt and accrued liabilities. Generally, contingent
						liabilities and surplus reserves may not be considered corporate liabilities. A
						reserve for deferred Federal taxes may not be included as contingent liability.
						Other exclusions shall be made on a case-by-case basis.