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NEW YORK CITY: STATE AND LOCAL TAX ADVISORY

General Corporation Tax (GCT) Conformity with State Law
The business corporation law was amended to bring City tax laws into closer conformity with New York State tax laws. For tax years beginning after January 1, 2009, the City provides for a single sales factor for the GCT and the Unincorporated Business Tax (UBT) to be phased in over a period of 10 years. The filing of combined general corporation tax returns by affiliated corporations is now mandatory where there are substantial inter-corporate transactions among the related corporations, regardless of the transfer prices charged in those inter-corporate transactions. This change brings conformity between the City and the current State rules.

Fixed Dollar Minimum Tax Change
Fixed dollar minimum tax has changed from a flat rate to graduated rates. For tax years beginning January 1, 2009 and after, New York City changes the fixed dollar minimum from a single amount of $300 applicable to all corporate taxpayers to a sliding scale ranging from $25 to $5,000 based on the taxpayer's annual receipts allocated to New York City.

Any tax advice in this communication is not intended or written by EisnerAmper to be used, and cannot be used, by a client or any other person or entity for purposes of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

 

All information provided is of general nature and is not intended to address the circumstances of any particular individual the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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