Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-194 - Doing business inside and outside the state

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
(a) This section explains the apportionment
			 requirements of persons entitled to apportion income under
			 RCW
			 82.04.460(1), and applies
			 only to tax liability incurred during the period of January 1, 2006, through
			 May 31, 2010. Chapter 23, Laws of 2010, sp. sess. (2ESSB 6143) changed the
			 apportionment provisions of
			 RCW
			 82.04.460(1) effective June
			 1, 2010. This section specifically applies to taxpayers who maintain places of
			 business both within and without the state that contribute to the rendition of
			 services and who are taxable under
			 RCW
			 82.04.290,
			 82.04.2908, or any other statute
			 that provides for apportionment under
			 RCW
			 82.04.460(1) during this
			 period.
Persons subject to the service and other activities,
				international investment income, licensed boarding home, and low-level
				radioactive waste disposal business and occupation (B&O) tax
				classifications, and who are not required to apportion their income under
				another statute or rule, should use this section. In addition, this section
				describes Washington nexus standards for business activities subject to
				apportionment under
				RCW
				82.04.460(1) for tax
				liability incurred between January 1, 2006, through May 31, 2010. Nexus is
				described in subsection (2) of this section; separate accounting in subsection
				(3) of this section; and cost apportionment in subsection (4) of this
				section.
(b) Readers may
			 also find helpful information in the following rules:
(i) WAC
			 458-20-19401, Minimum nexus
			 thresholds for apportionable activities. This section describes minimum nexus
			 thresholds that are effective June 1, 2010.
(ii) WAC
			 458-20-19402, Single factor
			 receipts apportionment -- Generally. This section describes the general
			 application of single factor receipts apportionment that is effective June 1,
			 2010.
(iii) WAC
			 458-20-19403, Single factor
			 receipts apportionment -- Royalties. This section describes the application of
			 single factor receipts apportionment to gross income from royalties and applies
			 only to tax liability incurred after May 31, 2010.
(iv) WAC
			 458-20-19404, Single factor
			 receipts apportionment -- Financial institutions. This section describes the
			 application of single factor receipts apportionment to certain income of
			 financial institutions and applies only to tax liability incurred after May 31,
			 2010.
(v) WAC
			 458-20-14601, Financial
			 institutions -- Income apportionment. This section describes the apportionment
			 of income for financial institutions for tax liability incurred prior to June
			 1, 2010.
(c) The
			 examples included in this section identify a number of facts and then state a
			 conclusion. These examples should be used only as a general guide. The tax
			 results of all situations must be determined after a review of all the facts
			 and circumstances.