AAFCPAs would like to make clients aware, if you are subject to Pennsylvania’s corporate income tax, there are two significant changes instituted pursuant to H.B. 1342, signed by the governor on July 8th, 2022, effective starting in 2023. CORPORATE TAX...
AAFCPAs would like to make clients aware, if you are subject to Pennsylvania’s corporate income tax, there are two significant changes instituted pursuant to H.B. 1342, signed by the governor on July 8th, 2022, effective starting in 2023.
The current Corporate Net Income Tax (CNIT) rate is 8.99%. There will be an annual phase-down of this rate starting in 2023:
For tax years beginning after December 31, 2022, there will be a change to the method of calculating the sales factor for CNIT apportionment. Receipts from certain intangible property will be sourced using the market-based rules rather than the location of the income-producing activity.
Such intangibles include:
These changes are an important consideration in any tax forecasts or planning that include state effective rate calculations.
If you have any questions or need help managing your tax compliance, please contact Kelly Zack, MST at kzack@aafcpa.com, 774.512.4001; or your AAFCPAs Partner.
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