reglab/statecodes huggingface dataset:
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.8 - Single Sales Factor Apportionment and Market Based Sourcing (applicable to entities taxed as C corporations)

Current through June 14, 2024
A. Applicability of
				 Single Sales Factor Apportionment and Market Based Sourcing. This apportionment
				 Rule applies to the following taxpayers for tax years beginning on or after
				 January 1, 2015:
1. C corporations deriving
				 income from sources both within and outside of this state, or engaging in any
				 activities or transactions both within and outside of this state for the
				 purpose of profit or gain;
2. all
				 members in a combined group that derives income from sources both within and
				 outside of this state, or engages in any activities or transactions both within
				 and outside of this state for the purpose of profit or gain, when such a
				 combined group includes at least one C corporation member; and
3. all combined groups deriving income from
				 sources both within and outside of this state, or engaging in any activities or
				 transactions both within and outside of this state for the purpose of profit or
				 gain, when such a combined group includes at least one C corporation
				 member.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.9 - Three-Factor Apportionment Using Sales, Property and Payroll

Current through June 14, 2024
A. Applicability of Three-Factor
				 Apportionment. This apportionment Rule applies to the following taxpayers,
				 unless the taxpayer is eligible to use a special apportionment formula
				 available under R.I. Gen. Laws §§
										44-11-14.1 through
				  44-11-14.6 and §§
										9.10  and
				   9.11     of this Part:
1. 2015 and Thereafter. For tax years
				 beginning on or after January 1, 2015, any taxpayer that derives income from
				 sources both within and outside of this state or engages in any activities or
				 transactions both within and outside of this state for the purpose of profit or
				 gain, but which is not:
a. a C
				 corporation,
b. a combined group
				 with a C corporation member, or
c.
				 a member in a combined group with a C corporation member.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.10 - Special Apportionment Formulas - Pre-2015

Current through June 14, 2024
A.
				 Applicability of Special Apportionment Formulas - Pre-2015. For tax years
				 beginning before January 1, 2015, special apportionment rules, as set forth in
				 §§
										9.10(B) through
				 (J)     of this Part, shall apply to the
				 categories of taxpayers listed below when such taxpayers derive their income
				 from sources both within and outside of this state for the purpose of profit or
				 gain:
1. Manufacturers;
2. Motor carriers;
3. Airlines;
4. Taxpayers with specialty
				 receipts;
5. Taxpayers with
				 qualified USFDA manufacturing facilities in Rhode Island;
6. Regulated investment companies and
				 securities brokerage services;
7.
				 Credit card banks;
8. Retirement
				 and pension plans;
9. Sellers of
				 international investment management services.
10. In all such cases, apportionment
				 fractions shall be determined in the same manner that applied in Rhode Island
				 prior to the introduction of mandatory unitary combined reporting. For tax
				 years beginning on or after January 1, 2015, refer to §
											9.11     of this Part.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.11 - Special Apportionment Formulas - 2015 and Thereafter

Current through June 14, 2024
A. Applicability of Special Apportionment
				 Formulas - 2015 and Thereafter.
1. For tax
				 years beginning on or after January 1, 2015, taxpayers deriving income from
				 sources both within and outside of this state, or engaging in any activities or
				 transactions both within and outside of this state for the purpose of profit or
				 gain, shall generally apportion income according to the manner prescribed in
				 §
											9.8     of
				 this Part, using single sales factor apportionment and the principle of
				 market-based sourcing. Notwithstanding this general rule, certain categories of
				 taxpayers or members in combined groups listed below remain eligible to
				 apportion income to Rhode Island according to modified formulas of
				 apportionment, as set forth in §
											9.11(B)(G)     of this Part:
a. Motor carriers;
b. Airlines;
c. Regulated investment companies and
				 securities brokerage services;
d.
				 Credit card banks;
e. Retirement
				 and pension plans;
f. Sellers of
				 international investment management services.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.12 - Variation of Method of Apportioning Income

Current through June 14, 2024
A.
				 Tax Administrator's Authority to Vary Methods of Apportionment. If at any time
				 the Tax Administrator, on his or her own motion or acting upon a complaint by a
				 taxpayer, determines that the methods of apportionment provided are inequitable
				 either to the state or to the taxpayer, the tax administrator, after affording
				 the taxpayer reasonable opportunity to be heard, may apply any other method of
				 apportionment that is equitable and, if necessary, shall re-determine the
				 tax.
B. Disputes Regarding
				 Applicable Methods of Apportionment. When a dispute arises between the Tax
				 Administrator and a taxpayer with respect to the method of apportionment
				 applied, both the taxpayer and the Tax Administrator shall be entitled to
				 initiate an appeals process through an independent arbitrator who has specific
				 expertise in state tax matters. In all cases, the arbitration process must be
				 mutually agreed to by the parties, the arbitrator shall be selected by the
				 taxpayer from a list of independent arbitrators approved by the American
				 Arbitration Association, and all costs and fees of the arbitral tribunal shall
				 be borne by the taxpayer, regardless of the outcome of the arbitration on the
				 merits. Legal fees for the arbitration shall be borne separately by the
				 respective parties, unless the outcome of the arbitration is in favor of the
				 Tax Division, in which case all legal fees shall be borne by the taxpayer. For
				 purposes of the independent appeals process described in this provision, the
				 various methods of apportionment are set forth in §§
										9.8,
				   9.9,
				   9.1  and
				   9.11     of this Part. The
				 independent appeals process described in this provision shall be available only
				 for disputes where proper selection of the method of apportionment to be
				 applied to the taxpayer, in any given year, is the sole issue in dispute. The
				 independent appeals process is not intended to resolve disputes concerning
				 composition of a combined group, determination of combined group net income,
				 the actual determination of apportionment factors, or to any other matter
				 arising before or after selection of the taxpayer's method of apportionment.
				 The decision resulting from the independent appeals process shall not prohibit
				 either party from pursuing any legal remedy otherwise available if the issue is
				 not resolved as a result of the appeal process. The limited arbitration option
				 set forth in this §
										9.12     of this Part is not a necessary step for pursuing
				 tax appeals. The decision resulting from the independent appeals process can be
				 used as evidence.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.13 - Record Keeping

Current through June 14, 2024
All C corporations shall maintain documentary evidence of
					 all market sourcing determinations. A taxpayer's application of the rules set
					 forth in this Regulation shall be based on objective criteria and shall
					 consider all sources of information reasonably available to the taxpayer at the
					 time of its tax filing including, without limitation, the taxpayer's books and
					 records kept in the normal course of business. A taxpayer's method of assigning
					 its receipts shall be determined in good faith, applied in good faith, and
					 applied consistently with respect to similar transactions and year to year. A
					 taxpayer shall retain contemporaneous records that explain the determination
					 and application of its method of assigning its receipts, including its
					 underlying assumptions, and shall provide such records to the Division of
					 Taxation upon request. Failure to keep such records may result in market
					 sourcing determinations by the Tax Administrator. In any case in which a
					 taxpayer fails to retain contemporaneous records that explain the determination
					 and application of its method of assigning receipts, including its underlying
					 assumptions, or fails to provide such records to the Division of Taxation upon
					 request, the Division of Taxation may treat the taxpayer's assignment of
					 receipts as unsubstantiated, and may adjust the assignment of such receipts in
					 a manner consistent with the applicable rules in this Regulation. Such
					 determinations by the Tax Administrator shall be presumptively valid. The
					 burden shall be on the taxpayer to maintain necessary evidence supporting
					 classification of all income and all information related to calculation of
					 Rhode Island income. The record keeping requirements of this Regulation are not
					 intended to discourage taxpayers from refining methods of approximation based
					 on demonstrably improved systems of tracking information.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.14 - Effective Date

Current through June 14, 2024
The effective date of this regulation is January 12, 2016.
					 It supersedes and replaces regulation CT 04-04 Corporate Tax - Allocation of
					 Income and Net Worth.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 9 - Apportionment of Net Income (280-RICR-20-25-9) › Section 280-RICR-20-25-9.15 - Appendix - Additional Examples

Current through June 14, 2024
A. Additional
				 Examples - from §
										9.8(I)(11)(d)     of this Part, sales of in-person services
1.
				 Camera Corp provides camera repair services at an in-state retail location to
				 walk-in individual and business customers. In some cases, Camera Corp actually
				 repairs a camera that is brought to its in-state location at a facility that is
				 in another state. In such cases, the repaired camera is then returned to the
				 customer at Camera Corp's in-state location. The receipts from sale of such
				 services are in Rhode Island.
2.
				 Same facts as in Example 1 above, except that a customer located in Rhode
				 Island mails the camera directly to the out-of-state facility owned by Camera
				 Corp to be fixed, and receives the repaired camera back in Rhode Island by
				 mail. The receipts from sale of the service are in Rhode Island.
3. Teaching Corp provides seminars in Rhode
				 Island to individual and business customers. The seminars and the materials
				 used in connection with the seminars are prepared outside the state, the
				 teachers who teach the seminars include teachers that are resident outside the
				 state, and the students who attend the seminars include students that are
				 resident outside the state. Because the seminars are taught in Rhode Island the
				 receipts from sales of the services are in Rhode Island.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.1 - Purpose

Current through June 14, 2024
These rules and regulations implement R.I. Gen. Laws §
										44-11-4.1 et
					 seq., as well as other provisions of R.I. Pub. Laws 2014, Chapter 145, Art. 12,
					 which changed the Rhode Island corporate income tax structure to one of
					 mandatory unitary combined reporting in lieu of separate entity reporting for
					 tax years beginning on or after January 1, 2015.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.2 - Authority

Current through June 14, 2024
These rules and regulations are promulgated pursuant to
					 R.I. Gen. Laws §
										44-11-4.1(g),
					 which requires the Rhode Island Tax Administrator to prescribe and amend, from
					 time to time, rules and regulations as he or she may deem necessary in order
					 that the tax liability of any group of corporations filing as a combined group
					 and each corporation in the combined group, liable to taxation, may be
					 determined, computed, assessed, collected, and adjusted in a manner as to
					 clearly reflect the combined income of the combined group and the individual
					 income of each member of the combined group. These rules and regulations are
					 also promulgated pursuant to R.I. Gen. Laws §
										44-1-4,
					 which authorizes and empowers the Rhode Island Tax Administrator to make rules
					 and regulations, as he or she may deem necessary, for the proper administration
					 and enforcement of the tax laws of this state. These rules and regulations have
					 been prepared in accordance with the requirements R.I. Gen. Laws §
										42-35-1 et
					 seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.3 - Application

Current through June 14, 2024
These rules and regulations shall be liberally construed so
					 as to permit the Division of Taxation to effectuate the purpose of R.I. Gen.
					 Laws §
										44-11-4.1 et
					 seq., as well as other provisions of R.I. Pub. Laws 2014, Chapter 145, Art. 12,
					 which changed the Rhode Island corporate income tax structure to one of
					 mandatory unitary combined reporting in lieu of separate entity reporting for
					 tax years beginning on or after January 1, 2015, as well as other applicable
					 state laws and regulations. This regulation explains Rhode Island's mandatory
					 unitary combined reporting regime for entities that are treated as C
					 corporations for federal income tax purposes. All examples in this regulation
					 are provided solely for the purpose of illustrating basic concepts that are set
					 forth in the rules herein, and may not introduce all relevant considerations.
					 Such examples shall not serve as precedents in administrative hearings or other
					 legal proceedings, and are not intended to cover all possible
					 situations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstance, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.5 - Definitions

Current through June 14, 2024
A. "Affiliated group" means the same as it
				 does in Internal Revenue Code (IRC)
				  26 U.S.C. §
											1504.
B. "Apportionment" means, for purposes of
				 Rhode Island's combined reporting requirements, the formula used to determine
				 the amount of a combined group's income that is to be taxed under the Rhode
				 Island corporate income tax. The term "allocation" is used interchangeably with
				 the term "apportionment" and shall have the same meaning and effect.
C. "Captive REIT" means, as further defined
				 in R.I. Gen. Laws §
										44-11-1(a),
				 a corporation, trust or association:
1. that
				 is considered a real estate investment trust for the taxable year under IRC
				  26 U.S.C. §
												856;
2. that is not regularly traded on an
				 established securities market; and
3. more than fifty percent (50%) of the
				 voting power or value of the beneficial interests or shares of which at any
				 time during the last half of the taxable year, is owned or controlled, directly
				 or indirectly, by a single entity that is subject to the provisions of
				 Subchapter C of the Internal Revenue Code.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.6 - Combined Reporting - Overview

Current through June 14, 2024
A. For tax years
				 beginning on or after January 1, 2015, each entity treated as a C corporation
				 for federal income tax purposes which is part of a combined group, under common
				 ownership, and engaged in a unitary business with one or more other
				 corporations must file a return, in a manner prescribed by the Tax
				 Administrator, for the combined group containing the combined income of the
				 combined group. (See, also, §
										10.17     of this Part, "Filing
				 of Return," and §
										10.19     of this Part,
				 "Designated Agent.")
B. Where an
				 entity treated as a C corporation for federal income tax purposes is taxed or
				 will be taxed under R.I. Gen. Laws Chapter 44-11, the entity must determine its
				 Rhode Island tax liability based upon the income and apportionment information
				 of all corporations included in the combined group using a combined return,
				 unless it is an excluded entity as further described in §
										10.7     of this Part. The use
				 of a combined return does not disregard the separate identities of the members
				 of the combined group; each taxpayer member is responsible for tax based on its
				 taxable income or loss apportioned to Rhode Island. (See also "Designated
				 Agent" in §
										10.19     of this
				 Part.)
C. "Combined return" is not,
				 in and of itself, a tax return; it is, in fact, a computational schedule or
				 schedules - as required by Rhode Island General Laws and regulations - which
				 are to be attached to a taxpayer member's tax return and which report the
				 income and apportionment information of all entities of the taxpayer member's
				 combined group, as well as any supporting information required by the Tax
				 Administrator. The combined return shall include, for each taxable year, the
				 following:
1. Listing of companies included in
				 the combined report, along with each company's federal Employer Identification
				 Number (EIN) and North American Industry Classification System (NAICS)
				 code;
2. Combined federal taxable
				 income;
3. Combined Rhode Island
				 deductions;
4. Combined Rhode
				 Island additions;
5. Adjusted
				 taxable income;
6. Combined
				 receipts for Rhode Island using Finnigan method;
7. Combined receipts for everywhere using
				 Finnigan method;
8. Combined Rhode
				 Island tax;
9. First four pages of
				 the completed U.S. Form 1120 as filed with the IRS;
10. Separate company income and loss
				 consolidation spreadsheet as filed with the IRS; and
11. Information on credits, net operating
				 losses (NOLs), and other items on such forms or schedules that the Tax
				 Administrator may prescribe.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.7 - Combined Group - Composition; Water's Edge; Tax Havens

Current through June 14, 2024
A. "Combined group" means a group of two or
				 more entities treated as C corporations for federal income tax purposes in
				 which more than 50 percent (50%) of the voting stock of each member corporation
				 is directly or indirectly owned by a common owner or owners, either corporate
				 or non-corporate, or by one or more of the member corporations, and that are
				 engaged in a unitary business. Common ownership is determined without regard to
				 the location, residence, or domicile of the owner(s).
1. Example: Parent Corp. is organized and
				 based in Japan. Its two subsidiaries - Unit One Corp. and Unit Two Corp. - are
				 U.S. corporations and are treated as C corporations for federal tax purposes.
				 Unit One Corp. and Unit Two Corp. have Rhode Island nexus. Parent Corp. owns
				 seventy-five percent (75%) of each subsidiary. Because of their common
				 ownership, Unit One Corp. and Unit Two Corp. are deemed to comprise a combined
				 group for purposes of Rhode Island's mandatory unitary combined reporting
				 regime. Common ownership is determined without regard to the location,
				 residence, or domicile of the owner(s). (The entities in this example must be
				 engaged in a unitary business to file a combined return for Rhode
				 Island.)
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.9 - Election to Use Federal Consolidated Group

Current through June 14, 2024
A. An
				 affiliated group of C corporations, as defined in IRC,
				  26 U.S.C. §
											1504, may elect to be treated
				 as a combined group with respect to the combined reporting requirement imposed
				 by Rhode Island General Laws. When such an election is made, the entities that
				 appear on the federal consolidated return shall be considered a combined group
				 for Rhode Island corporate income tax purposes. To make the election, the
				 affiliated group shall check the appropriate box on Form RI-1120C. The
				 consolidated return can include entities that would not otherwise be subject to
				 combination. The election shall be upon the condition that all entities which
				 are included on the federal consolidated return for the taxable year consent to
				 be included in the group for Rhode Island purposes. Checking the appropriate
				 box on Form RI-1120C and filing the completed return shall be considered as
				 such consent.
B. For purposes of
				 this §
										10.9     of this Part, an affiliated group is one or more chains of
				 includible corporations connected through stock ownership with a common parent
				 corporation - as further defined in IRC,
				  26 U.S.C. §§
											1504(a) and (b). The common parent must be an includible
				 corporation and the following requirements must be met:
1. The common parent must own directly stock
				 that represents at least eighty percent (80%) of the total voting power and at
				 least eighty percent (80%) of the total value of the stock of at least one of
				 the other includible corporations;
2. Stock that represents at least eighty
				 percent (80%) of the total voting power, and at least eighty percent (80%) of
				 the total value of the stock of each of the other corporations (except for the
				 common parent), must be owned directly by one or more of the other includible
				 corporations.
3. For this purpose,
				 the term "stock" generally does not include any stock that:
a. is nonvoting;
b. is nonconvertible;
c. is limited and preferred as to dividends
				 and does not participate significantly in corporate growth; and
d. has redemption and liquidation rights that
				 do not exceed the issue price of the stock (except for a reasonable redemption
				 or liquidation premium).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.10 - Apportionment; Single Sales Factor; Market-Based Sourcing

Current through June 14, 2024
A. For the convenience of taxpayers and their
				 advisers, this §
										10.10     of this Part summarizes apportionment information
				 for entities that are part of a combined group and that are engaged in a
				 unitary business for purposes of Rhode Island's combined reporting regime. For
				 additional information, taxpayers and their advisers should refer to the Rhode
				 Island Division of Taxation's regulations on apportionment and nexus.
B. For tax years beginning on or after
				 January 1, 2015, all entities that are treated as C corporations for federal
				 income tax purposes shall apportion net income to this state by means of a
				 single factor representing total receipts - gross receipts - from sales and
				 other applicable sources during the taxable year which are attributable to the
				 entity's activities or transactions.
1. When
				 income is reported or recognized by a pass-through entity to the combined
				 group, only the sales (total receipts) of the pass-through entity are used for
				 apportionment purposes at the group level.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.11 - Combined Net Income of Group

Current through June 14, 2024
A. In this Part,
				 "group" refers to the collective members of a combined group, at least one of
				 which is doing business in Rhode Island.
B. Determination of taxable income or loss of
				 the group using a group report.
1. Except as
				 otherwise provided in this regulation, the taxable income of the combined group
				 shall be determined under the provisions of R.I. Gen. Laws Chapter 44-11. The
				 use of a group return does not disregard the separate identities of the
				 taxpayer members of the group; each taxpayer member is responsible for tax
				 based on its taxable income or loss apportioned to Rhode Island.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.12 - Corporate Minimum Tax

Current through June 14, 2024
A. The annual
				 corporate minimum tax payable is the amount provided under R.I. Gen. Laws
				 §
										44-11-2(e).
				 The combined group pays either the tax due based on the amount of its net
				 income apportioned to Rhode Island, using the applicable rate, or the minimum
				 tax, whichever amount is higher.
B.
				 To compute the minimum tax, the combined group must determine the number of its
				 members that have nexus in Rhode Island and multiply that number by the amount
				 of the minimum tax as listed in R.I. Gen. Laws §
										44-11-2(e).
				 The sum must be compared to the actual tax due for the entire combined group.
				 The combined group shall pay whichever amount is higher.
1. Taxpayers and their advisers should review
				 R.I. Gen. Laws §
											44-11-2 to
				 determine the current tax rate and the current minimum tax, as well as other
				 applicable provisions of Rhode Island General Laws, and the Division of
				 Taxation regulation on nexus.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.13 - Net Operating Losses

Current through June 14, 2024
A. For purposes of
				 this regulation, a tracing protocol shall apply to net operating losses (NOLs).
1. No deduction is allowable for a net
				 operating loss sustained during any taxable year in which a taxpayer was not
				 subject to Rhode Island business corporation tax.
2. For the year in which the loss is allowed,
				 such loss is limited by the amount of that corporation's federal taxable income
				 for that year.
3. NOLs created
				 before January 1, 2015, are allowed to offset the income only of the
				 corporation that created the NOL; the NOL cannot be shared with other members
				 of the combined group.
4. NOLs
				 created in tax years beginning on or after January 1, 2015, shall receive the
				 same treatment by Rhode Island for purposes of combined reporting and the Rhode
				 Island corporate tax as they do under IRC,
				  26 U.S.C. §
												172, except that:
a. Any NOL included in determining the
				 deduction shall be adjusted to reflect the inclusions for, and exclusions from,
				 entire net income required under the applicable section of R.I. Gen. Laws
				 Chapter 44-11;
b. The deduction
				 shall not include any NOL sustained during any taxable year in which the member
				 was not taxed under R.I. Gen. Laws Chapter 44-11; and
c. The deduction shall not exceed the
				 deduction for the taxable year allowable under IRC,
				  26 U.S.C. §
													172  - provided that the deduction for a
				 taxable year may not be carried back to any other taxable year for Rhode Island
				 purposes but shall only be allowable on a carryforward basis for the five (5)
				 succeeding taxable years.
5. Groups that make the federal consolidated
				 election (see §
											10.9     of this Part) are nevertheless not allowed to
				 carryback NOLs. Also, consolidated groups must follow the same tracing
				 provisions as combined groups.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.14 - Add-Backs

Current through June 14, 2024
A. For tax year 2014, "net income" under R.I.
				 Gen. Laws §
										44-11-11 includes, for a captive REIT, an amount equal to the amount of the dividends
				 paid deduction allowed under the Internal Revenue Code for the taxable
				 year.
B. For tax year 2014, a
				 corporate taxpayer must add back to net income any otherwise deductible
				 interest expenses and costs and intangible expenses and costs directly or
				 indirectly paid, accrued or incurred to, or in connection directly or
				 indirectly with one or more direct or indirect transactions with, one or more
				 related members.
C. For tax years
				 beginning on or after January 1, 2015, the captive REIT provision described in
				 §
										10.14(A)     of this Part and the intangibles add-back provision described in §
										10.14(B)     of this Part above are repealed.
D.
				 For purposes of Rhode Island combined reporting, all dividends paid by one
				 member to another member of the combined group shall be eliminated from the
				 income of the recipient.
E. If a
				 combined group includes a parent and a captive-REIT subsidiary, there shall be
				 no elimination for the REIT payment to the parent, and no dividends-received
				 deduction for the parent. In the case of a group filing a consolidated return
				 in lieu of a combined return for Rhode Island tax purposes, there shall be no
				 dividends-received deduction for the parent of a captive REIT.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.15 - Tax Rate

Current through June 14, 2024
A. For tax year
				 2014, corporations pay either the Rhode Island corporate income tax or the
				 Rhode Island franchise tax, whichever is higher.
B. For tax year 2014, the corporate income
				 tax rate is nine percent (9%); the franchise tax is equal to $2.50 per $10,000
				 of a corporation's authorized capital stock.
C. For tax year 2015, the corporate income
				 tax rate is seven percent (7.0%) and the franchise tax is repealed. Thus, for
				 tax year 2015, the maximum corporate income tax rate for a combined group
				 engaged in a unitary business is seven percent (7.0%).
D. For additional information on the
				 application of the minimum tax with respect to combined groups, please see
				 §
										10.12     of this Part.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.16 - Tax Credits; Tracing; JDA; Life Sciences

Current through June 14, 2024
A.
				 For purposes of this regulation, a tracing protocol shall apply to all Rhode
				 Island corporate income tax credits. The tracing protocol is the same as the
				 one which applies to NOLs (see §
										10.13     of this
				 Part).
B. Rhode Island tax credits
				 earned before January 1, 2015, shall be allowed to offset only the tax
				 liability of the corporation that earned the credits; such credits cannot be
				 shared with other members of the combined group.
C. Rhode Island tax credits earned in tax
				 years beginning on or after January 1, 2015, may be applied to other members of
				 the group unless prohibited under the terms of this Part.
D. Jobs Development Act.
1. The Jobs Development Act rate reduction
				 under R.I. Gen. Laws Chapter 42-64.5 applies to eligible companies filing as
				 part of a combined group and to a group making the federal consolidated
				 election for Rhode Island combined reporting purposes. The reduction shall be
				 allowed against the net income of the entire combined group for credits earned
				 in tax years beginning on or after January 1, 2015.
2. For tax year 2014, the corporate income
				 tax rate is nine percent (9.0%), and the amount of the Jobs Development Act
				 rate reduction cannot exceed six (6) percentage points. Thus, the eligible
				 corporation's tax rate cannot be less than three percent (3.0%).
3. For tax year 2015, the corporate income
				 tax rate is seven percent (7.0%), and the amount of the Jobs Development Act
				 rate reduction cannot exceed four (4) percentage points. Thus, the eligible
				 corporation's tax rate cannot be less than three percent (3.0%).
4. As a result of legislation enacted on June
				 30, 2015 (R.I. Gen Laws §
											44-48.3-12), the tax rate reduction provision allowed under the Jobs Development Act is
				 discontinued as of July 1, 2015. However, any company that has qualified for a
				 rate reduction under the Jobs Development Act before July 1, 2015, will be
				 allowed to maintain the rate reduction in effect as of June 30, 2015, although
				 no additional rate reduction under the program will be
				 allowed.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.18 - Estimated Tax

Current through June 14, 2024
A. The provisions
				 of R.I. Gen. Laws Chapter 44-26, "Declaration of Estimated Tax by
				 Corporations," shall apply to a combined group engaged in a unitary business -
				 and to each member of such a group.
B. Notwithstanding any other provisions of
				 R.I. Gen. Laws §
										44-26-2.1,
				 any taxpayer required to file a combined return in accordance with R.I. Gen.
				 Laws §
										44-11-4.1 et
				 seq. in a tax year beginning on or after January 1, 2015, shall compute
				 estimated payments for that tax year as follows:
1. The installments must equal one hundred
				 percent (100%) of the tax due for the prior year plus any additional tax due to
				 the combined reporting provisions under R.I. Gen. Laws §
											44-11-4.1;
				 or
2. The installments must equal
				 one hundred percent (100%) of the current year tax liability.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.19 - Designated Agent

Current through June 14, 2024
A. A combined group
				 engaged in a unitary business shall appoint a designated agent. The combined
				 group may select any member of the combined group as the designated agent,
				 subject to a limitation that the designated agent itself has a Rhode Island
				 filing requirement under R.I. Gen. Laws Chapter 44-11.
B. The corporation which files, or will file,
				 the first combined return for the combined group is deemed to be appointed as
				 the designated agent assuming it has a Rhode Island filing requirement under
				 R.I. Gen. Laws Chapter 44-11. The Tax Administrator may treat any member of the
				 combined group as the designated agent.
C. The designated agent is required to act on
				 behalf of the combined group in its own name in all matters relating to the
				 combined return. This includes performing the following duties:
1. Filing the combined return, including the
				 reporting of any separate entity items attributable to combined group
				 members;
2. Filing any extension of
				 time to file the combined return;
3. Filing any amended combined returns - or
				 other filings relating to the combined return, including any separate entity
				 items attributable to combined group members;
4. Sending and receiving all correspondence
				 with the Rhode Island Division of Taxation regarding the combined return,
				 except that if correspondence relates to separate entity items or a payment
				 made by another member of the combined group, the Rhode Island Division of
				 Taxation may send the correspondence to that other member or the designated
				 agent, or both;
5. Participating on
				 behalf of the group in any audit, investigation, or hearing by the Division of
				 Taxation regarding the combined return, including producing all information
				 requested;
6. Executing any and all
				 documents relating to the combined return. (Unless the Tax Administrator and
				 taxpayer agree otherwise in writing, any waiver, power of attorney, or other
				 document executed by the designated agent relating to the combined return shall
				 be considered executed by all members of the combined group, including any
				 entities that were not included in the combined return but which the Division
				 of Taxation asserts are members of the combined group.); and
7. Receiving notices regarding the combined
				 return. In general, a notice received by the designated agent is considered
				 received by all members of the combined group, including any entities that were
				 not included in the combined return but which the Division of Taxation asserts
				 are members the combined group.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.20 - Tax Administrator's Authority

Current through June 14, 2024
A. The Tax
				 Administrator may prescribe and amend, from time to time, rules and regulations
				 as may be deemed necessary so that the tax liability of a combined group - or
				 of any member of the combined group - may be determined, computed, assessed,
				 collected, and adjusted in a manner so as to clearly reflect the combined
				 income of the combined group and the individual income of each member of the
				 combined group.
B. Such rules and
				 regulations may include, but are not be limited to, issues such as the
				 inclusion or exclusion of an entity in the combined group, the characterization
				 and sourcing of each member's income, and whether certain common activities
				 constitute the conduct of a unitary business.
C. The provisions of this Part shall also
				 apply to affiliated groups making the federal consolidated group election for
				 Rhode Island combined reporting purposes as described in §
										10.9     of this Part.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.21 - Special Appeals

Current through June 14, 2024
A. If at any time
				 the Tax Administrator, on his own motion or acting upon a complaint by a
				 taxpayer, determines that the methods of apportionment provided are inequitable
				 either to the State or to the taxpayer, the Tax Administrator - after affording
				 the taxpayer reasonable opportunity to be heard - may apply any other method of
				 apportionment that is equitable and, if necessary, shall re-determine the
				 tax.
B. The Division of Taxation is
				 required by statute to establish an independent appeals process - for tax years
				 beginning on or after January 1, 2015 - to attempt to resolve disputes between
				 the Tax Administrator and the taxpayer with respect to the method of
				 apportionment applied regarding the corporate income tax under R.I. Gen. Laws
				 Chapter 44-11, including combined reporting. The Division of Taxation intends
				 to address the requirement in the following manner:
1. When a dispute arises between the Tax
				 Administrator and a taxpayer with respect to the method of apportionment
				 applied, both the taxpayer and the Tax Administrator shall be entitled to
				 initiate an appeals process through an independent arbitrator. The Division of
				 Taxation's regulation on apportionment provides additional information on this
				 matter. It is recommended that the Tax Division's regulation on apportionment
				 be read in concert with the Tax Division's regulation on combined
				 reporting.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.22 - Tax Administrator's Report

Current through June 14, 2024
A. On or before
				 March 15, 2018, the Tax Administrator must file a report analyzing the policy
				 and fiscal ramifications of the changes enacted to the Rhode Island business
				 corporation tax statutes (R.I. Gen. Laws Chapter 44-11), as enacted in Article
				 12 of the fiscal year 2015 budget bill.
B. The report must be based on actual tax
				 filings of companies for a two-year period, and must include the impact based
				 on business category, business size, and other information - using information
				 similar to the report on pro forma combined reporting that the Tax
				 Administrator filed in March 2014.
C. The report is due on or before March 15,
				 2018, to the chairs of the House Finance Committee and Senate Finance
				 Committee, and to the House Fiscal Advisor and Senate Fiscal Advisor.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.23 - Appendix I - Combined Reporting Calculation

Current through June 14, 2024
A.
				 Following are the basic steps in computing tax for purposes of Rhode Island's
				 combined reporting regime:
1. Combine the
				 federal taxable income of all members of the combined group.
2. Combine all deductions of all members of
				 the combined group, including NOLs in accordance with this
				 regulation.
3. Combine all the
				 additions of all members of the combined group.
4. Net the combined additions and the
				 combined deductions against the combined federal taxable income of all members
				 of the combined group. The result is the adjusted taxable income of the
				 combined group for Rhode Island corporate income tax purposes.
5. Combine the receipts of all members of the
				 combined group using the Finnigan method. Calculate the apportionment ratio for
				 the combined group. Use, as the numerator, all Rhode Island receipts -
				 regardless of whether a group member has nexus in Rhode Island. Use, as the
				 denominator, everywhere receipts. (Divide the numerator by the denominator to
				 arrive at an apportionment ratio.)
6. Compute the apportioned Rhode Island
				 taxable income of the combined group by multiplying adjusted taxable income by
				 the combined apportionment ratio.
7. Compute and combine Rhode Island
				 adjustments, including research and development adjustments, pollution control
				 and hazardous waste adjustment, and capital investment deduction. Subtract
				 total such adjustments from apportioned Rhode Island taxable income computed in
				 §
											10.23(A)(6)     of this Part to arrive at Rhode Island adjusted taxable income.
8. Multiply result from §
											10.23(A)(7)     of this Part by applicable tax rate. (For tax year 2015, applicable tax rate is
				 seven percent (7%)).
9. Calculate
				 allowable credits in accordance with this regulation.
10. Subtract result in §
											10.23(A)(9)     of this Part (above) from the result in §
											10.23(A)(8)     of this Part (above). This is the tax due under combined reporting, before
				 annual corporate minimum tax. (See §
											10.23(A)(11)     of this Part.)
11. For purposes of
				 the minimum tax, determine the number of members of the combined group that
				 have Rhode Island nexus. Multiply that number by the amount of the annual
				 corporate minimum tax under R.I. Gen. Laws §
											44-11-2(e).
				 Compare that sum to the amount of net tax liability (after credits) from §
											10.23(A)(10)     of this Part. Pay whichever amount is higher.