CT-1 PA CORPORATION TAX INSTRUCTIONS 2014

Transcription

1 BUREAU OF CORPORATION TAXES PO BOX HARRISBURG PA CT-1 PA CORPORATION TAX INSTRUCTIONS 2014 FOR CALENDAR YEAR 2014 AND FISCAL YEARS BEGINNING IN 2014 PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES. HIGHLIGHTS 1. New: The penaty imposed for faiure to fie reports when due is now a minimum of $500, regardess of the determined tax iabiity, pus an additiona 1 percent of any determined tax iabiity over $25, IMPORTANT: Taxpayers granted an extension to fie the federa income tax return wi automaticay be granted an extension to fie the PA Corporate Tax Report, RCT-101. Corporate taxpayers granted a federa extension must indicate this on Page 1 of RCT-101 and incude a copy of the federa extension request with the report. 3. New: Act 52 of 2013 increased the imitation of the net oss deduction from the greater of 20 percent of PA taxabe income or $3 miion to the greater of 25 percent of PA taxabe income or $4 miion. 4. The PA Corporate Tax Report, RCT-101, is no onger year specific. This form must be used for a corporate tax reports fied on or after Jan. 1, 2012, regardess of tax year. 5. The Amended PA Corporate Tax Report, RCT-101X, has been discontinued. Beginning Jan. 1, 2012, taxpayers fiing amended reports must use RCT-101 and indicate the report is an amended report by checking the Amended Report box on Page 1. See Page 8 of the instructions for detais. 6. New: Loans tax has been repeaed for tax periods beginning on or after Jan. 1, Do not compete Section D. 7. Revenue ID: A corporation s Revenue ID is a new, unique, 10-digit number assigned by the department to a taxpayer, separate from any federay issued identification number(s) or Pennsyvania icense number(s). As the department continues to transition into an integrated tax system, a 10-digit Revenue ID wi be assigned and communicated to each taxpayer. A corporation s seven-digit PA Tax Account ID wi continue to be accepted by the department on tax forms and schedues, but upon assignment of a 10-digit Revenue ID to a taxpayer, the department wi begin using the 10-digit Revenue ID on outbound correspondence in ieu of referencing the seven-digit Tax Account ID. 8. Corporations participating in a consoidated federa tax fiing must provide consoidating income statements and baance sheets to the department, incuding separate company schedues and a eiminations. 9. Business income wi be apportioned to Pennsyvania by use of the saes factor ony. This does not affect the apportionment formua used for capita stock/foreign franchise tax. 10. The timeframe for reporting changes in federa taxabe income is increased from 30 days to six months. This appies to tax years beginning on or after Jan. 1, The eectronic funds transfer requirement was reduced from $10,000 to $1,000; a payments of $1,000 or more made after Dec. 31, 2013, must be made eectronicay 12. The PA corporate tax report and schedues are avaiabe on the PA Department of Revenue website at Schedues are indexed by form number. The form numbers for supporting schedues begin with REV. These numbers can be found on Page 3 of the instructions. IMPORTANT - Use the department s website to stay up-to-date on tax aw changes, tax rates and specia instructions regarding form changes. Estimated payments and requests for extension of time to fie shoud be made onine. Visit the e-services Center at A third party preparers who prepared 11 or more PA corporate tax reports in the prior caendar year are required to eectronicay fie a PA corporate tax reports in subsequent years. Once a third-party preparer is subject to this fiing mandate, the thirdparty preparer sha continue to be subject to the mandate regardess of how many PA corporate tax reports he prepares during a caendar year. Reports requiring a specia cacuation of tax iabiity cannot be eectronicay fied. These reports must be fied in paper form with a compete expanation of the fiing. See Page iii (Specia Handing) for the maiing address. Page 1 of RCT-101 contains a check box abeed E-Fie Opt Out. This box is used to indicate that the taxpayer has instructed the preparer to not fie the report eectronicay. A ist of software vendors approved for eectronic fiing of the PA corporate tax report can be found by visiting the e-services Center at For information on refunds and transfers of overpayment, see Page 10. Tax rates for years beginning in Capita Stock/Foreign Franchise Tax.67 mis.45 mis Corporate Net Income Tax 9.99 % 9.99 % REV-1200 CT (08-14)

2 What must be incuded with the PA Corporate Tax Report..1 Assemby of the Corporate Tax Report RCT Federa S Corporations Inactive Corporations Copy of Federa Form 1120 or 1120S Confirmation of Deposits on Account for a Non-Fied Year..5 Where to Fie/Pay Eectronic Payment Requirement Due Date of Report and Payment Fiing Requirements Out of Existence/Withdrawa LINE BY LINE INSTRUCTIONS FOR THE PA CORPORATE TAX REPORT RCT-101 RCT-101-PAGE 1 STEP A Tax Period STEP B Check Specia Fiing Status STEP C Name, Address, Business Activity Code & Revenue ID STEP D Tax Summary STEP E Payment Due/Overpayment STEP F Transfer/Refund Methods STEP G Signature RCT-101-PAGE 2 SECTION A: CAPITAL STOCK/FOREIGN FRANCHISE TAX Investment in LLC Hoding Company Famiy Farm Average Book Income Net Worth Capita Stock Vaue/Taxabe Vaue/Tax Cacuation.11 RCT-101-PAGE 3 SECTION B Schedue A Schedue A Schedue C Schedue X PA Schedues L, M-1 and M RCT Schedue C Schedue OA, Schedue OD PAGE Apportionment of Taxabe Income Specia Apportionment Fractions Rairoad, Truck, Bus or Airine Companies...19 Pipeine or Natura Gas Companies Water Transportation Companies Operating on High Seas Water Transportation Companies Operating on Inand Waters Apportionment of Capita Stock/ Foreign Franchise Tax Three-Factor Apportionment Property Factor TABLE OF CONTENTS GENERAL INSTRUCTIONS PAGE SPECIFIC INSTRUCTIONS PAGE SUPPLEMENTAL SCHEDULES PAGE i PAGE Reinstatement Recording Doar Amounts Fiing Period Extension of Time to Fie Penaties Interest Transfers/Refunds of Corporate Taxes Assignment of Tax Credit (Overpayment) Department Notices Amended Reports/Reports of Change Changes In Federa Taxabe Income PAGE SECTION C: CORPORATE NET INCOME TAX Business Trust Soicitation Ony LLC PA-S Taxabe Buit-in Gains Deductions from and Additions to Income Apportionment and Aocation Net Operating Loss Deduction Determination of Tax RCT-101-PAGE 4 SECTION D: LOANS TAX SCHEDULE A-1: APPORTIONMENT SCHEDULE FOR CAPITAL STOCK/FOREIGN FRANCHISE TAX SCHEDULE C-1: APPORTIONMENT SCHEDULE FOR CORPORATE NET INCOME TAX RCT-101-PAGES 5 and 6 SECTION E: CORPORATE STATUS CHANGES SECTION F: GENERAL INFORMATION QUESTIONNAIRE..14 Paid Preparer s Maiing Address APPORTIONMENT, EXEMPTIONS AND ALLOCATION PAGE Schedue DA, Schedue REV Instament Saes REV REV RCT-101D Schedue C Schedue C Schedue AR, REV PAGE Payro Factor Saes Factor Apportionment & Investments in Unincorporated Entities Caiming Exemptions to Capita Stock/ Foreign Franchise Tax Exemptions to Capita Stock Tax Constitutiona Exemptions Statutory Exemptions Hoding Companies Famiy Farm Nonbusiness Income MISCELLANEOUS PAGE PAGE Reguated Investment Companies Restricted Credits

3 CONTACT NUMBERS ESTIMATED PAYMENTS PATAXES ( ) GENERAL BUSINESS TAX QUESTIONS EXTENSION TO FILE ANNUAL REPORT TRANSFER/REFUND OF OVERPAYMENTS E-FILED REPORTS TAX CREDITS CONTACT NUMBERS KEYSTONE OPPORTUNITY ZONE CREDIT EDUCATIONAL IMPROVEMENT/OPPORTUNITY SCHOLARSHIP TAX CREDIT or NEIGHBORHOOD ASSISTANCE CREDIT or EMPLOYMENT INCENTIVE PAYMENT CREDIT JOBS CREATION TAX CREDIT or PENNSYLVANIA RESEARCH & DEVELOPMENT TAX CREDIT ORGAN AND BONE MARROW DONOR ACT FORMS ORDERING SERVICE To obtain tax bookets, singe copies of PA corporation tax forms, coupons or brochures, use one of these services: Internet: To-Free Phone Services PATAXES ( ) Touch-tone service is required for this automated 24-hour to-free ine. Ca to order forms or check the status of a corporate tax account. Automated 24-hour Forms Ordering Message Service Serves taxpayers without touch-tone phone service. Services for Taxpayers with Specia Hearing and/or Speaking Needs (TTY ony) Written Requests: PA DEPARTMENT OF REVENUE TAX FORMS SERVICE UNIT 711 GIBSON BLVD. HARRISBURG PA Onine Customer Service Center Find the answer to your question using the department s Onine Customer Service Center at Pennsyvania Tax Update Stay up-to-date on Department of Revenue news with the PA Tax Update, a free, bi-monthy e-newsetter. Visit to sign up for a PA Tax Update e-aert. ii

4 MAILING ADDRESSES RCT-101-PA CORPORATE TAX REPORT, RCT-101-I-INACTIVE PA CORPORATE TAX REPORT, RCT-101D-DECLARATION OF DE MINIMIS ACTIVITY, RCT-128C-REPORTS OF CHANGE IN CORPORATE NET INCOME TAX If you are incuding payment, pease use the foowing address: PA DEPT OF REVENUE PAYMENT ENCLOSED PO BOX HARRISBURG PA If you are requesting a refund or transfer of credit, pease use the foowing address: PA DEPT OF REVENUE REFUND REQUESTED PO BOX HARRISBURG PA If you are neither incuding payment nor requesting a refund or transfer of credit, pease use the foowing address: PA DEPT OF REVENUE NO PAYMENT, NO REFUND PO BOX HARRISBURG PA REV-857-ESTIMATED TAX PAYMENTS BUREAU OF CORPORATION TAXES PO BOX HARRISBURG PA SPECIAL HANDLING PA DEPT OF REVENUE BUREAU OF CORPORATION TAXES P O BOX HARRISBURG PA REV-854-EIN/FILING PERIOD/ADDRESS CHANGE BUREAU OF CORPORATION TAXES PO BOX HARRISBURG PA REV-976-ELECTION NOT TO BE TAXED AS A PENNSYLVANIA S CORPORATION BUREAU OF CORPORATION TAXES PA S UNIT PO BOX HARRISBURG PA PA-20S/PA-65, PA S CORPORATION/ PARTNERSHIP INFORMATION RETURN PA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES PO BOX HARRISBURG PA REV-853-ANNUAL EXTENSION BUREAU OF CORPORATION TAXES PO BOX HARRISBURG PA REV-1605-SCHEDULE CO-NAME OF CORPORATE OFFICERS BUREAU OF CORPORATION TAXES PO BOX HARRISBURG PA OVERNIGHT MAILING PA DEPARTMENT OF REVENUE BUREAU OF IMAGING AND DOCUMENT MANAGEMENT 1854 BROOKWOOD ST HARRISBURG, PA ADDRESSES NOTICE OF ADJUSTMENT LETTER If you beieve the adjustments are in error, pease contact the department via emai at: RA-PANOTICEOFADJUSTMENT@PA.GOV iii

5 NEW FOR 2014 Act 52 of 2013 increased the imitation of the net oss deduction from the greater of 20 percent of PA taxabe income or $3 miion to the greater of 25 percent of PA taxabe income or $4 miion. The penaty imposed for faiure to fie reports when due is now a minimum of $500, regardess of the determined tax iabiity, pus an additiona 1 percent of any determined tax iabiity over $25,000. Act 52 of 2013 estabished the foowing criteria for determining if receipts from other than the sae of tangibe persona property are sourced to PA: Saes from the sae, ease, renta or other use of rea property, if the rea property is ocated in this state. If a singe parce of rea property is ocated both inside and outside this state, the sae is in this state based upon the percentage of origina cost of the rea property ocated in this state. Saes from the renta, ease or icensing of tangibe persona property, if the customer first obtained possession of the tangibe persona property in this state. If the tangibe persona property is subsequenty taken out of this state, the taxpayer may use a reasonaby determined estimate of usage in this state to determine the extent of sae in this state. Saes from the sae of service, if the service is deivered to a ocation in this state. If the service is deivered both to a ocation inside and outside this state, the sae is in this state based upon the percentage of tota vaue of the service deivered to a ocation in this state. If the state or states of assignment cannot be determined for a customer who is an individua who is not a soe proprietor, a service is deemed to be deivered at the customer's biing address. If the state or states of assignment cannot be determined for a customer who is a soe proprietor, a service is deemed to be deivered at the ocation from which the services were ordered in the customer's reguar course of operations. If the ocation from which the services were ordered in the customer's reguar course of operations cannot be determined, a service is deemed to be deivered at the customer's biing address. Act 52 of 2013 estabished a specia apportionment for sateite teevision services providers. Loans tax has been repeaed for tax periods beginning after Dec 31, The eectronic funds transfer requirement was reduced from $10,000 to $1,000 for a payments made after Dec. 31, Corporations fiing a report for any of the conditions isted beow must fie a paper form, RCT-101. To ensure timey processing of the report, pease mai to the address beow. Exampes of reports having specia handing status: NOTE: This ist may not be a incusive. Corporations requesting Extra Statutory Treatment Corporations with two distinct activities (Warehousing/Trucking & Distribution Trucking); (Persons/Transportation & Property/Transportation) Reguated Investment Companies (RIC) Corporations having Net Operating Loss (NOL) imitations under IRC Section 381 and IRC Section 382 Corporations fiing any tax report for a tax year beginning prior to 2001 Maiing Address: PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES P O BOX HARRISBURG, PA REMINDER If an amended report must be fied, taxpayers must compete the most current non-year specific RCT-101, competing a sections of the report. This incudes those sections originay fied and those sections being amended. The amended report check box under Step B, Page 1 of RCT-101 must be checked and REV-1175 must be incuded with the report. Use ONLY the most current non-year specific RCT-101 form for fiing ALL tax years. NEW FOR TAX YEARS BEGINNING ON OR AFTER JAN 1, 2015 Act 52 of 2013 requires the add-back of intangibe expenses to income for interest, royaties, patents, trademarks, etc., between affiiated companies in certain instances.

6 ATTENTION PENNSYLVANIA BUSINESSES: YOU MAY OWE USE TAX If you purchase items or services subject to saes tax for which the seer does not charge and coect saes tax on the invoice or receipt, you are personay responsibe for remitting the use tax directy to the PA Department of Revenue. Use tax is often due when saes tax was underpaid or not paid on purchases made over the internet, through to-free numbers (800, 888, 866 and 877), from mai order cataogs and from out-of-state ocations. Use tax aso appies to purchases of taxabe items and services in Pennsyvania when saes tax was not paid. The use tax rate is the same as the saes tax rate: 6 percent state, with an additiona 1 percent oca tax for items purchased or used in Aegheny County. Two percent oca tax appies to items purchased or used in Phiadephia. Businesses currenty registered for saes tax shoud report and remit use tax iabiities when fiing saes and use tax returns. Use tax iabiities can be reported on a PA-1 Use Tax Return. Use tax is due on or before the 20th day of the month after the month in which the purchase was made. The department can identify businesses that report minima use tax, and underreporting of use tax can trigger an audit by the department. For detaied information on use tax reporting responsibiities and options, visit UNAUTHORIZED INSURANCE Any individua or business purchasing insurance for coverage within Pennsyvania from insurance companies or agents not icensed to do business in Pennsyvania must fie an Unauthorized Gross Premiums Tax Report (RCT-122) within 30 days of each purchase or renewa. Such purchases are subject to a 2 percent premiums tax for ife insurance (the rate is appied against the premium), and 3 percent premiums tax for a other types. Any questions on the reporting and payment of unauthorized insurance gross premiums tax can be directed to BANK SHARE TAX Institutions, as defined in 72 P.S , doing business in this commonweath and having PA gross receipts in excess of $100,000, must fie a compete Bank Shares Tax Report, RCT-132B, for tax years beginning on or after Jan. 1, Institutions which are corporations may aso be subject to capita stock/foreign franchise and corporate net income tax and have a corporate tax fiing requirement for tax years when their PA gross receipts are $100,000 or ess.

7 When fiing a PA Corporate Tax Report, RCT-101, a corporate taxpayers are required to attach forms and schedues to support the cacuation of the tax iabiity. The type of information required depends on how the entity reports income to the IRS. The foowing chart ists the forms and schedues the taxpayer must incude with the RCT-101 each year. This ist is not meant to be a-incusive. Expanation of forms appears on Pages IMPORTANT: Taxpayers fiing amended PA corporate tax reports must incude Schedue AR, REV-1175, in addition to the isted items. Corporation Business Trust WHAT MUST BE INCLUDED WITH THE PA CORPORATE TAX REPORT IF TAXPAYER IS ORGANIZED AS Limited Liabiity Company or Any other entity eecting to fie as a corporation under federa Check the Box rues TAXPAYER FILES WITH THE IRS Federa Form 1120, Federa Form 1120C, Federa Form 1120S, (Taxpayer eected to not be taxed as a Pennsyvania S Corporation) Federa Form 1120F, or Any other Corporate Income Tax Return TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT Compete copy of federa income tax return, on separate company basis, with a supporting schedues. Corporations participating in a consoidated federa income tax fiing must provide consoidating income statements and baance sheets to the department, incuding separate company schedues and a eiminations. 2. Competed federa Schedues L, M-1 & M-2 regardess of federa requirements.* 3. Consoidated baance sheet (Corporation owns more than 50 percent of another corporation). See Page 11 of these instructions. 4. RCT-103 to support net operating oss carry-forward, if appicabe. 5. Schedue C-5 Schedue of Taxes. 6. Schedue OA, Other Additions, and Schedue OD, Other Deductions, if appicabe. 7. RCT-106 to support apportionment factors, if appicabe. 8. RCT-102 or RCT-105 to support the manufacturing exemption, if appicabe. 9. Schedue C-2 to support the dividend deduction, if appicabe. 10. Schedues C-3 and C-4 to support adjustments for bonus depreciation, if appicabe. 11. Schedue X, if appicabe. 12. Other supporting statements if necessary, with references to supporting statements on the appicabe form. 13. Schedue A-2 Reconciiation of Retained Earnings of a Federa Subchapter S Corporation, if appicabe. 14. Schedue A-3 Adjustment to Net Income per Books, if appicabe. 15. REV-934 Schedue of Non-Business Income, if appicabe. 16. REV-986 Schedue to Support Caim of Exemption From Corporate Net Income Tax Under P.L , if appicabe. Corporation Business Trust Limited Liabiity Company or Any other entity eecting to fie as a corporation under federa Check the Box rues Business Trust or Limited Liabiity Company Business Trust or Limited Liabiity Company (Singe-Member) Federa Form 1120S Federa Form 1065 Disregarded Entity: Income reported on Persona Income Tax Return of the Singe Member 1. Compete copy of federa income tax return, on separate company basis, with a supporting schedues. Corporations participating in a consoidated federa income tax fiing must provide consoidating income statements and baance sheets to the department, incuding separate company schedues and a eiminations. 2. Competed federa Schedues L, M-1 & M-2, regardess of federa requirements.* 3. RCT-102 or RCT-105 to support the manufacturing exemption, if appicabe. 4. RCT-106 to support apportionment factors, if appicabe. 5. Schedue X, if appicabe. 6. Other supporting statements if necessary, with references to supporting statements on the appicabe form. 7. Must separatey fie the PA-20S/PA-65 with the Pass-Through Business Office at the address noted in the instructions. 8. Schedue A-2 Reconciiation of Retained Earnings of a Federa Subchapter S Corporation, if appicabe. 9. Schedue A-3 Adjustment to Net Income per Books, if appicabe. 1. Compete copy of federa Form 1065 on a separate company basis with a supporting schedues. 2. Competed federa Schedues L, M-1 & M-2 regardess of federa requirements.* 3. RCT-106 to support apportionment factors, if appicabe. 4. RCT-102 or RCT-105 to support the manufacturing exemption, if appicabe. 5. Schedue X, if appicabe. 6. Other supporting statements if necessary, with references to supporting statements on the appicabe form. 7. Must separatey fie the PA-20S/PA-65 with the Pass Through Business Office at the address noted in the instructions. 8. Schedue A-3 Adjustment to Net Income per Books, if appicabe. 1. PA Schedue L Baance Sheets for the Beginning and End of the Tax Period. 2. PA Schedue M-1, Reconciiation of Income (Loss) per Books to Income (Loss) per Return. 3. PA Schedue M-2, Reconciiation of Member s Capita Account. 4. Federa Schedue C, E or F of federa Form Schedue X. 6. RCT-106 to support apportionment factors, if appicabe. 7. RCT-102 or RCT-105 to support the manufacturing exemption, if appicabe. 8. Schedue A-3 Adjustments to Net Income per Books, if appicabe. 9. Other supporting statements if necessary, with references to supporting statements on the appicabe form. *Taxpayers required to fie federa Schedue M-3 may submit such in ieu of federa Schedue M-1. Page 1

8 IF TAXPAYER IS ORGANIZED AS TAXPAYER FILES WITH THE IRS TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101 Business Trust or Limited Liabiity Company (Singe-Member) Disregarded Entity: Income reported on federa return of another business entity 1. Proforma federa tax return.* 2. Competed federa Schedues L, M-1 & M-2 regardess of federa requirements. 3. RCT-106 to support apportionment factors, if appicabe. 4. RCT-102 or RCT-105 to support the manufacturing exemption, if appicabe. 5. Schedue of Net Income per Books if different than Line 1 of federa Schedue M-1, if appicabe. 6. Schedue X, if appicabe. 7. Other supporting statements if necessary, with references to supporting statements on the appicabe form. 8. Schedue A-2 Reconciiation of Retained Earnings of a Federa Subchapter S Corporation, if appicabe. 9. Schedue A-3 Adjustment to Net Income per Books, if appicabe. *If the singe member of the LLC or business trust is a corporation for federa income tax purposes, the LLC or business trust sha attach a pro forma separate company federa Form 1120 or 1120S. If the singe member of the LLC is a partnership for federa income tax purposes, the LLC sha attach a pro forma separate company federa Form In certain situations corporate taxpayers are aso required to provide additiona information when fiing RCT-101. Exampes of these are as foows. IF THE CORPORATE TAXPAYER IS A non-pa Corporation, with activity outside of PA in prior years, fiing a PA Corporate Tax Report for the first time. Caiming a Manufacturing, Processing or Research and Deveopment Exemption. Apportioning income for the first time. Fiing the fina PA Corporate Tax Report. Apportioning income or Capita Stock Vaue, or caiming a Manufacturing, Processing, or Research and Deveopment Exemption, and has an investment in passthrough entities. See Pages 19, 20 and 21 for detais. Caiming the Keystone Opportunity Zone/Keystone Opportunity Expansion Zone or Strategic Deveopment Area Credit. Caiming an Empoyment Incentive Payment Credit. TAXPAYER MUST ALSO PROVIDE A five-year history of earnings. (If the corporation has not been in existence for five years, a schedue of the Net Income per Books for a tax periods since incorporation must be provided). 1. A detaied description of activity from raw materias to finished product (i.e., company or product brochures in first year). 2. A schedue reporting the end-of-month baance of interest generating accounts (singe-factor manufacturing exemption ony). A copy of a tax return from another state. A compete Schedue DA - Disposition of Assets Schedue (REV-861). A compete copy of federa Form 1065 for the investee partnership. If the investee partnership provided the corporate taxpayer with Schedue H-Corp of the PA 20S/PA-65, the corporate taxpayer shoud submit a copy of this schedue, aong with federa Schedue-K, in ieu of the federa Form 1065 for the investee partnership. 1. A competed RCT-101 KOZ, showing the cacuation of the credit. 2. A copy of the Keystone Opportunity Zone approva etter issued by the Department of Community and Economic Deveopment for the current year. Schedue W Certifications for New Empoyees. Page 2

9 WHEN IS A FORM OR SCHEDULE REQUIRED? FORM USED FOR REQUIRED WHEN CORPORATE TAXPAYER RCT-106, Page 1 RCT-106, Page 2 RCT-102 RCT-105 RCT-103 Schedue C-2 REV-798 Schedue C-3 REV-799 Schedue C-4 REV-799 Schedue C-5 REV-860 Schedue OA REV-860 Schedue OD REV-860 REV-860 PA Schedue L PA Schedue M-1 PA Schedue M-2 Schedue X REV-798 Schedue A-2 REV-961 Schedue A-3 REV-961 REV-934 REV-986 Schedue AR REV-1175 Cacuating Proportion of Taxabe Assets Support of Three-Factor Apportionment or Specia Apportionment Support of Singe-Factor Manufacturing Exemption Support of Three-Factor Manufacturing Exemption Support of Net Operating Loss Deduction Support of Dividend Deduction Bonus Depreciation Adjustment Adjustment for Sae of Sec. 168(k) Property Schedue of Tax Expense Other Additions Other Deductions Beginning and Ending Baance Sheets Reconciiation of Income (Loss) per Books to Income (Loss) per Return Reconciiation of Member's Capita Account Parent and Subsidiary Corporations Reconciiation of Beginning and Ending Retained Earnings reported on Schedue L of federa Form 1120S Adjustments to Net Income per Books Schedue of Non-Business Income Schedue to Support Caim of Exemption From Corporate Net Income Tax Under P.L Schedue to Provide Reason for Fiing an Amended Report and Summary of Change in Tax Liabiity for Amended Report Is caiming exemption for the foowing assets when cacuating capita stock foreign/franchise tax: 1. Rea and tangibe persona property ocated outside PA 2. Stock of corporations incorporated under the aws of PA 3. Net worth of corporation of which the taxpayer owns more than 50 percent interest 4. U.S. Government Securities 5. PA Municipa Securities 6. Investment in the stock of a Nationa Bank or Student Loan Assets Has taxabe activity in at east one other state and is apportioning income to the other state based on property, payro and saes. RCT-106 is aso required by taxpayers who are required to utiize specia apportionment methods (revenue mies, etc.). Quaifies for the manufacturing exemption and either eects to use the singe-factor manufacturing exemption or does not quaify for the three-factor manufacturing exemption. Ony appies to capita stock/foreign franchise tax. Has taxabe activity in at east one other state and quaifies for the manufacturing exemption. Ony appies to capita stock/foreign franchise tax. Is deducting a net operating oss carry-forward in the cacuation of corporate net income tax. Is caiming a Dividend Received Deduction in the cacuation of corporate net income tax. Is caiming a deduction to recover disaowed federa bonus depreciation in the cacuation of corporate net income tax. Is caiming a deduction to recover remaining federa bonus depreciation in the cacuation of corporate net income tax in the year an asset is sod. Is subject to corporate net income tax and reports taxes paid as an expense on the federa income tax return. Is reporting an "Other Addition" on RCT-101, Section C, Line 3E. Is reporting an "Other Deduction" on RCT-101, Section C, Line 2D. Is a singe-member imited iabiity company. Income reported on persona income tax return of member. Has more than 50 percent of its stock owned by another corporation, individua or other business entity or owns more than 50 percent of another corporation. Is fiing federa Form 1120S and the change in the retained earnings pus distributions of a federa subchapter S corporation is different than the net income per books of the corporation. Is adjusting the net income per books reported on federa Schedue M-1 or federa Schedue M-3, to arrive at the net income per books reported on RCT-101. Is caiming non-business income. Is a non-pa corporation caiming to be exempt from corporate net income tax under P.L Is amending a PA Corporate Tax Report. Page 3

10 ASSEMBLY OF THE COMPLETED PA CORPORATE TAX REPORT RCT-101 PACKAGE Assembe the competed PA Corporate Tax Report in the foowing order. Faiure to submit a propery competed and signed report may resut in the imposition of ate fiing penaties and/or estimated assessments. 1. RCT-101 PA Corporate Tax Report Pages 1 through 6 competed and assembed in order. 2. RCT-103, Net Operating Loss Schedue, if appicabe. 3. Federa Form 7004, if appicabe 4. Pennsyvania Extension Approva Letter, if appicabe 5. Pennsyvania schedues and forms, as required and in the foowing order: Schedue AR (REV-1175) - If fiing an amended PA Corporate Tax Report. Schedue C-2, PA Dividend Deduction Schedue (REV-798) Schedue X, (REV-798) Schedue C-3, Adjustment for Bonus Depreciation (REV-799) Schedue C-4, Adjustment for Disposition of Section 168(k) Property & Recapture of Depreciation on Listed Property (REV-799) Schedue A-2, (REV-961) Schedue A-3, Adjustments to Net Income per Books (REV -961) PA Schedue L, Baance Sheets for Singe-Member Limited Liabiity Companies when the Income is Reporting of the Persona Income Tax Return of the Member; PA Schedue M-1, Reconciiation of Income (Loss) per Books to Income (Loss) per Return; PA Schedue M-2, Reconciiation of Member s Capita Account (REV-860) Schedue C-5 - Schedue of Taxes; Schedue OA - Other Additions; Schedue OD - Other Deductions (REV-860) RCT-106, Insert Sheet RCT-102, Singe-Factor Manufacturing Exemption RCT-105, Three-Factor Manufacturing Exemption Schedue of Nonbusiness Income (REV-934) Schedue to Support Caim of Exemption From Corporate Net Income Tax (REV-986) 6. A other documentation to support the RCT-101 PA Corporate Tax Report 7. Compete federa tax return and supporting schedues, as required: Federa Form 1120 Federa Form 1120S Federa Form 1120C Federa Form 1120F Federa Form 1065 Schedue C, E or F of federa Form Consoidating schedues, when appicabe Page 4

11 PENNSYLVANIA CORPORATE TAX REPORT INSTRUCTIONS FOR FORM RCT-101 GENERAL INSTRUCTIONS FEDERAL S CORPORATIONS Effective with tax years beginning on or after Jan. 1, 2006, any corporation with a vaid federa subchapter S corporation eection is considered a Pennsyvania S corporation. Any federa subchapter S corporation that does not desire to be a Pennsyvania S corporation must fie the Eection Not to be Taxed as a Pennsyvania S Corporation (REV-976) on or before the due date or extended due date of the report for the first year in which the eection is to be in effect. This eection must be signed by a of the sharehoders and once made cannot be revoked for five years. The competed REV-976 shoud be maied to the foowing address: BUREAU OF CORPORATION TAXES PA S UNIT PO BOX HARRISBURG PA To revoke an eection, the corporation must send a etter signed by sharehoders hoding more than one-haf of the shares of stock of the corporation on the day on which the revocation is made. This etter must contain the name of the corporation, federa EIN, Revenue ID number and the effective date of the revocation. If no effective date is provided, the revocation wi be effective for the first tax period for which the revocation was timey submitted. In the case of a corporation with quaified subchapter S subsidiaries, the etter must aso incude the names and Revenue ID numbers of a quaified subchapter S subsidiaries doing business in Pennsyvania. Quaified subchapter S subsidiaries may not be Pennsyvania S corporations, or eect not to be Pennsyvania S corporations, separate from the parent corporation. Federa subchapter S corporations doing business in Pennsyvania that do not make this eection are required to fie both RCT-101 and PA-20S/PA-65, and the sharehoders of these corporations must report the income from these corporations on their PA persona income tax returns. IMPORTANT: This eection must be fied by a federa subchapter S corporations that do not want to be taxed as Pennsyvania S corporations, regardess of any prior actions taken by a corporation on this issue. If a corporation has eected to be taxed as an S corporation for federa tax purposes, but has eected not to be taxed as a PA S corporation, it must: (1) compete Section C of RCT-101, (2) attach a copy of federa Form 1120S to the PA Corporate Tax Report, and (3) attach a schedue refecting adjustments to Line 21 of federa Form 1120S for the pass-through items on Schedue K (Sharehoders Share of Income, Credits, Deductions, etc.). These adjustments shoud produce taxabe income simiar to that for a C corporation and must be reported in Section C, Line (1) of the RCT-101. INACTIVE CORPORATIONS Inactive corporations must compete and fie form RCT-101-I. Ony skeeton corporations - those performing no business activity and owning no assets anywhere - may use the RCT-101-I. Corporations that have business activity outside Pennsyvania must compete and fie the PA Corporate Tax Report, RCT-101. A copy of federa Form 1120 must be attached and apportionment fractions must be reported. IMPORTANT: Prior period forms are not acceptabe. Do not use forms for other years when fiing a PA Corporate Tax Report, RCT-101, or an Inactive PA Corporate Tax Report, RCT-101I. COPY OF FEDERAL FORM 1120 OR 1120S IMPORTANT: A copy of the federa income tax return - Form 1120, 1120C, 1120S, 1065, 990 or other appicabe federa form must be attached to the PA Corporate Tax Report. This is in addition to any requirement to suppy a copy of the federa tax return with any other fiing. An LLC that is a disregarded entity must attach a pro forma federa return. If the singe member of the LLC is a corporation for federa income tax purposes, the LLC sha attach a pro forma separate company federa Form If the singe member of the LLC is a partnership for federa income tax purposes, the LLC sha attach a pro forma separate company federa Form If the singe member of the LLC is an individua the LLC sha attach a copy of Schedue C, E or F of federa Form 1040 aong with PA Schedues L, M-1 and M-2 (REV-860) and Schedue X (REV-798). Pennsyvania does not aow consoidated fiing of corporate tax reports. A corporation fiing a consoidated return to the federa government must incude the foowing: 1. Separate company income statement refecting taxabe income that woud have been returned to and ascertained by the federa government, if a separate return had been made to the federa government. 2. Separate company baance sheet refecting financia position of the taxpayer at the beginning and end of the taxabe period, if separate return had been made to the federa government. A corporation with subsidiaries aso must incude a consoidated baance sheet. 3. Schedues refected on the federa Form 1120 or 1120S on a separate company basis, incuding a schedue of taxes expensed. 4. Corporations participating in a consoidated federa income tax fiing must provide consoidating income statements and baance sheets to the department, incuding separate company schedues and a eiminations. IMPORTANT: Faiure to submit a propery competed and signed report may resut in the imposition of ate fiing penaties and/or estimated assessments. CONFIRMATION OF DEPOSITS ON ACCOUNT FOR A NON-FILED TAX YEAR. Prior to fiing a corporation tax report, taxpayers can confirm the tota amount of deposits on account by caing PATAXES ( ). You wi be asked to enter your Revenue ID number and a specific tax year. Once confirmed, the system wi provide: 1. Tota deposits by tax type for a specific tax year; or 2. A detaied response for each cash deposit and credit by tax type for a specific tax year. (Note: restricted credits are NOT uniquey identified by name of program) The system wi provide detais on up to 20 transactions. WHERE TO FILE/PAY Submit PA Corporate Tax Reports (RCT-101, RCT-101I, RCT-101D, RCT- 128C) and payments using one of the foowing addresses. If you are incuding payment, pease use the foowing address: PA DEPT OF REVENUE PAYMENT ENCLOSED PO BOX HARRISBURG PA Page 5

12 If you are requesting a refund or transfer of credit, pease use the foowing address: PA DEPT OF REVENUE REFUND REQUESTED PO BOX HARRISBURG PA If you are neither incuding payment nor requesting a refund, pease use the foowing address: PA DEPT OF REVENUE NO PAYMENT, NO REFUND PO BOX HARRISBURG PA If the tota taxes owed are ess than $1,000, you may send a check, made payabe to the PA Dept. of Revenue, to the above address. If the tota taxes owed are $1,000 or more, you must pay eectronicay. ELECTRONIC PAYMENT REQUIREMENT The PA Departments of Treasury and Revenue have impemented programs that enabe taxpayers to pay certain taxes eectronicay. A payments of $1,000 or more made after Dec. 31, 2013 must be remitted eectronicay. Faiure to make a payment by an approved method may resut in the imposition of a 3 percent penaty of the tax due, up to $500. For information on eectronic fiing options, visit the e-services Center at DUE DATE OF REPORT AND PAYMENT The PA Corporate Tax Report (RCT-101) is due annuay on Apri 15 of the year foowing the year for which the report is submitted for a caendar year reporting corporation, or 30 days after the federa due date for corporations reporting to the federa government on a fisca year basis. Domestic Internationa Saes Companies (DISC) must fie on or before the 15th day of the 10th month foowing the cose of the fisca year. If the due date fas on a Saturday, Sunday or hoiday, the report is due the next business day. FILING REQUIREMENTS First reports of domestic corporations must begin with the date of incorporation. A domestic corporations are required to fie annua reports even if no business activity was conducted during the taxabe period. First reports of foreign corporations must begin with the beginning date of the fisca period in which the Certificate of Authority was issued or the date Pennsyvania activity began, whichever date is earier. IMPORTANT: A corporations are required to fie annua reports even if no business activity was conducted within the commonweath during the tax period. In genera, PA Corporate Tax Reports are due 30 days after the origina due date of the federa tax return. OUT-OF-EXISTENCE/WITHDRAWAL A PA corporation that has ceased doing business and competey or totay divested itsef of ALL assets, or a foreign corporation that has ceased to do business in Pennsyvania and iquidated ALL PA assets may be reieved of the responsibiity of fiing corporate tax reports by indicating Fina Report in Section E, Corporate Status Change, found on Page 5 of RCT-101. NOTE: Entities formed under the aws of the Commonweath of Pennsyvania must answer the questions under PA Corporations in this section. Entities formed under the aws of another jurisdiction are required to answer the questions under Foreign Corporations. By competing this section of RCT-101, a corporate taxpayer wishing to be removed from the active records of the PA Department of Revenue wi no onger be required to fie the Out of Existence/Withdrawa Affidavit. However, taxpayers desiring to dissove or formay withdraw with the Department of State are sti required to fie an Appication for Corporate Cearance (REV-181). To quaify for out-of-existence or withdrawn status, the corporation must: 1. Fie a corporate tax reports and pay a taxes due the commonweath up to and incuding the date of cessation of activities and divestiture of assets. Where capita assets have been sod prior to iquidation, compete in detai a schedue refecting the gain or oss reaized as a resut of the sae. 2. Incude with the corporate tax reports a Disposition of Assets, Schedue DA (REV-861) which must refect the date or dates of divestiture of a assets. Where a distribution of assets is made directy by the corporation to its sharehoders in return for their stock, attach to the Distribution of Assets a copy of federa Form 1099-DIV. IMPORTANT: Faiure to submit the Distribution of Assets coud deay the acceptance of the return as a fina report resuting in continued corporate tax reporting requirements. Corporate taxpayers reporting the disposition of PA rea estate must provide evidence that the transfer of tite has been fied with the Recorder of Deeds of the respective county. This information must be provided in order to be removed from the active records of the Bureau of Corporation Taxes. PA corporations that never transacted business or hed tite to assets, or foreign corporations that never transacted business in Pennsyvania, are required to fie annua tax reports unti they fie fina returns and quaify for out-of-existence or withdrawn status. Such inactive corporations shoud mai the executed Out-of- Existence/Withdrawa Affidavit (REV-238) directy to: PA DEPARTMENT OF REVENUE BUREAU OF COMPLIANCE PO BOX HARRISBURG PA REINSTATEMENT A corporation considered out-of-existence through the acceptance of an affidavit may reinstate with the PA Department of Revenue by confirming with the PA Department of State, that the corporation name is avaiabe for use by caing A corporation considered out-of-existence/withdrawn, must be reinstated on Department of Revenue records before its corporate franchise can again be utiized. This can be effected by fiing corporate tax reports from the date of out-of-existence status through the end of the ast caendar or fisca period of no activity. The minimum tax is waived for the years covered by these reports. Taxpayer s fiing RCT-101-I for this purpose must check the reinstatement box found in Step J, Corporate Status Changes, and enter the beginning date of the first tax period in which business resumed (effective date). IMPORTANT: Foreign corporations that conducted business outside of Pennsyvania whie out-of-existence with the PA Department of Revenue must provide a five-year history of earnings when competing the PA Corporate Tax Report for the first period the taxpayer resumed PA activity. RECORDING DOLLAR AMOUNTS A tax cacuations must be shown in whoe doar amounts. Any amount ess than 50 cents is eiminated, and any amount 50 cents or more is rounded up to the next doar. Negative amounts shoud be written as foows: -3,456. Page 6

13 FILING PERIOD Reports must be fied on the same fiing basis as reported to the federa government. Where a change in fiing period has occurred, the taxpayer must provide the new month, day and year by eectronicay fiing REV-854 using the e-services Center at Indicate a permanent change in fiing period on the RCT-101 (Page 1, Step B). EXTENSION OF TIME TO FILE A request for an extension of time to fie must be submitted on or before the due date of the PA Corporate Tax Report. Taxpayers granted an extension to fie the federa income tax return wi automaticay be granted an extension to fie PA Corporate Tax Report, RCT-101. Corporate taxpayers granted a federa extension must indicate this on Page 1 of RCT-101 and incude a copy of the federa extension request with the report. Corporations that do not request an extension to fie the federa income tax return may sti request a 60-day extension to fie the PA corporate tax report. To appy for an annua extension, compete the Annua Extension Request, REV-853, eectronicay using the e-services Center at After review by the PA Department of Revenue, you wi receive written notification as to whether your extension was approved or denied. You may aso use REV-853 to make an annua tax payment with the extension request. If the taxes tota more than $1,000, you must make the required payment by an eectronic payment method. (Refer to Page 6, Eectronic Payment Requirement.) PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE If a report is fied ate, the taxpayer shoud wait unti bied by the department to remit the penaty amount. Interest does not accrue on penaties. Do not incude penaty with tax amounts reported on form RCT-101. The penaty imposed for faiure to fie reports when due is now a minimum of $500, regardess of the determined tax iabiity, pus an additiona 1 percent of any determined tax iabiity over $25,000. INTEREST Interest is charged on ate payments received after the due date of a tax report. Taxpayers shoud not precacuate interest or incude interest with the tax amount reported on the RCT-101 (Step D, coumn A). The department wi forecast interest on unpaid tax baances and provide a notice to the taxpayer. Taxpayers may request a payoff of unpaid baances (that incudes interest on unpaid tax and coection agency fees, if appicabe) by contacting the Bureau of Corporation Taxes Accounting Division at TRANSFERS/REFUNDS OF CORPORATE TAXES After competing Step D on Page 1 of the RCT-101 Annua Report, if an overpayment exists taxpayers must instruct the department to either transfer any avaiabe credit to the next tax year or consider any avaiabe credit for refund. Taxpayers provide this instruction by seecting one of the options under Step F. If no option is seected, the department wi automaticay transfer any overpayment to the next tax year for estimated tax purposes after offsetting current period iabiities and other unpaid iabiities or commonweath obigations within the account. A tax period overpayment summary wi be maied to the taxpayer confirming the disposition of the credit. ASSIGNMENT OF TAX CREDIT (OVERPAYMENT) Department reguation (61 Pa. Code ) provides authorization for taxpayers to assign a credit to another taxpayer. To accompish the assignment, the Department of Revenue requires both assignor and assignee to compete REV-774, Assignment of Tax Credit. Ony credits that meet the foowing conditions can be assigned: A taxes (corporate, saes/use, empoyer withhoding, iquid fues, etc), interest, penaties, fees and additions to tax owed by the taxpayer (assignor) must be paid in fu. Restricted credits (credits originating from specia credit programs) may be sod or assigned. These credits incude the Research and Deveopment Tax Credit (R&D), Fim Production Tax Credit (FPT), Neighborhood Assistance Tax Credit (NAT), Resource Enhancement and Protection Tax Credit (REAP), Keystone Innovation Zone Tax Credit (KIZ) and Keystone Specia Deveopment Zone Credit (KSDZ). For information regarding the sae or assignment of R&D, KIZ, NAT, FPT and KSDZ credits, ca the Department of Community and Economic Deveopment at or visit For information regarding the sae or assignment of REAP tax credits, ca the State Conservation Commission at or visit Additiona information regarding the sae or assignment of tax credits can be obtained from Corporation Tax Buetin found on the Department of Revenue website at Ca the Bureau of Corporation Taxes Accounting Division at if you have questions regarding credit assignment or restricted credits imitations or to request the Rev-774 Assignment of Tax Credit Form. The form can aso be obtained at Send REV-774, in dupicate, directy to: PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES ACCOUNTING DIVISION PO BOX HARRISBURG, PA DEPARTMENT NOTICES Notice of Adjustment This notice provides a copy of the changes if the department made one or more adjustment that resuted in a recacuation of tax. The accompanying worksheet detais the amounts originay reported and the adjustments made by the department. The notice aso provides instructions for amending if taxpayers beieve they submitted incorrect data on the origina report, and instructions of what taxpayers shoud do if they beieve the department s adjustments are in error. Biing Notice This notice identifies a specific tax type and tax period having unpaid baances(s) due the commonweath that resuted from a recent event that occurred on the taxpayer s account. These events incude fiing of a tax report, adjustments to tax, penaty and payments or a direct resut of account maintenance initiated by the department. Taxpayers have 30 days to remit payment or request credit offset prior to the department issuing an assessment. Assessment Notice This notice is provided to taxpayers as officia notification of an unpaid or underpaid baance due the commonweath. Baances incude tax, interest, penaty, other fees and forecasted interest. The eements of the notice are unique to a specific tax type and tax period. The date of the notice estabishes a ien with the commonweath and initiates the window to petition for reassessment. Taxpayers must fie petitions for reassessment on or before the due dates specified on notices. For additiona information visit the Board of Appeas website at Basis of Assessment Attached to every Assessment Notice is a Basis of Assessment, which expains the adjustments made by the department in the determination of the iabiity. This is in addition to other detaied worksheets that may have been prepared and provided to the taxpayer. Estimated Assessment Notice This notice identifies estimated iabiities that have been imposed for a specific tax type and tax period. Estimated iabiities are imposed for faiure to fie a compete corporate tax report. The assessment incudes tax, interest and penaties that represent a first ien upon the entity s franchise and property, both rea and persona. These iabiities are not subject to appea. To Page 7

14 resove the estimate, taxpayers must fie a compete corporate tax report. The Department of Revenue is required to remove estimated assessments 90 days foowing receipt of a compete tax report. Tax Period Overpayment Summary This notice confirms the disposition of a tax overpayment. Tax credits may deveop from the fiing of tax reports, adjustments to a tax iabiity by the Department of Revenue and the Department of the Auditor Genera, tax reief granted from various eves of appea or from account maintenance initiated by the department. Statement of Account This notice provides a summary of a taxpayer s account. Three categories of information are contained on the notice: Summary of Active (fied) tax periods Tax periods dispayed incude periods most recenty fied and those with open unpaid baances. Summary of Non-fied tax periods (incudes estimated tax and estimated prepayments) Tax periods dispayed incude the current non-fied tax period estimated prepayments and restricted credits. Summary of Restricted Credits This section incudes a summary of restricted tax credits avaiabe for future periods. Audit Assessment Notice This notice is provided to taxpayers as officia notification of an unpaid or underpaid baance due the commonweath as the resut of a fied audit. Baances incude tax, interest, penaty, other fees and forecasted interest. The eements of the notice are unique to a specific tax type and tax period. The date of the notice estabishes a ien with the commonweath and initiates the window to petition for reassessment. Taxpayers must fie petitions for reassessment on or before the due dates specified on notices. For additiona information visit the Board of Appeas website at AMENDED REPORTS Regardess of the tax year being amended, taxpayers must compete the most current non-year specific RCT-101, competing a sections of the report. This incudes those sections originay fied and those sections being amended. The amended report check box under Step B, Page 1 of RCT-101 must be checked and REV-1175 must be incuded with the report. Amended reports must be fied when requesting the Bureau of Corporation Taxes to adjust the capita stock/foreign franchise, oans or corporate net income taxes for a particuar year. Phone cas and/or etters submitted to the department are not acceptabe and wi not be considered an amended report. A taxpayer may fie an amended report anytime within three years of the fiing of the origina report. When fiing the amended report the taxpayer must consent to an assessment period of three years from the fiing of the origina report or one year from the fiing of the amended report, whichever expires ast. If you fai to provide such consent the department might not consider the amended report. This consent to extend the assessment period is incuded as part of the affirmation statement at the bottom of Page 1 of RCT-101. If, after reviewing the amended report, the department determines the tax iabiity refected on the taxpayer s PA corporate tax account is incorrect, an adjustment wi be made to the iabiity. The department wi then generate a credit for the amount of any overpayment, strike a or part of any previous assessment or issue an assessment for any additiona tax iabiity. An amended report shoud ony be fied if an origina PA Corporate Tax Report, RCT-101, was previousy fied for the same tax period. An amended report must contain documentation to support the adjustment(s). A amended RCT-101s must incude Schedue AR, REV-1175, which incudes a detaied expanation of the reason for fiing the amended report and a summary of the change to the tax iabiity. In competing the Summary of Tax Change, enter the type of tax (capita stock/foreign franchise, oans or corporate net income tax); the tax iabiity currenty refected on the taxpayer s account; the amended tax iabiity; and the amount of change in the tax. When fiing an amended RCT-101, the tax iabiity in Coumn A of Step D shoud refect the amended iabiity. Coumn B, Estimated Payments and Credits on Deposit, must refect the payments and credits on the account at the time the amended report is fied. Coumn C, Restricted Credits, must report the restricted credits the taxpayer is entited to based on the fiing of the amended report. Amended reports cannot be fied for the foowing: 1. Chaenging PA statute or reguations 2. Chaenging department poicy or interpretation of statutes or reguations 3. For the soe purpose of caiming the report is a fina report (REV- 238 or REV-181 shoud be fied instead) 4. To change or correct taxpayer information such as the Revenue ID or EIN 5. Changing the end of the tax year (A new origina report must be fied incuding an expanation why the origina tax year end was incorrect) See the foowing section concerning changes in federa taxabe income. IMPORTANT: The fiing of an amended PA corporate tax report does not repace the fiing of a petition, nor does it extend a corporate taxpayer s time to fie an appea. The department is not obigated to revise tax due the commonweath upon review of an amended report. Its faiure to revise tax due the commonweath is not an appeaabe action and wi not change any existing appea rights of the taxpayer. CHANGES IN FEDERAL TAXABLE INCOME/REPORTS OF CHANGE Changes in federa taxabe income must be reported to the department within the statutory period to report the change. This incudes changes in federa taxabe income resuting from the taxpayer fiing an amended federa income tax return and changes initiated by the federa government due to an audit or examination of the federa return. For tax years beginning prior to Jan. 1, 2013, changes in federa taxabe income must be reported to the department within 30 days of the change. This has been extended to six months for tax years beginning after Dec. 31, If a taxpayer fies an amended federa income tax return for a period for which the department issued an Officia Notice of Settement, the taxpayer must report the change on an amended PA corporate tax report. When competing an amended report, the taxpayer must indicate that the report is being fied due to the fiing of an amended federa income tax return and enter the date on Page 1 that the amended federa return was fied. If a taxpayer fies an amended federa return for a period for which the department did not issue an Officia Notice of Settement, the taxpayer must report the change on a Report of Change in Corporate Net Income Tax, RCT-128C. Changes to federa taxabe income initiated by the federa government as part of an audit or examination of the federa income tax return must be reported on RCT-128C, regardess of whether the PA corporate net income tax for that period was setted by the department. This ony appies to corporate net income tax. Page 8

15 SPECIFIC INSTRUCTIONS LINE BY LINE INSTRUCTIONS FOR THE PA CORPORATE TAX REPORT RCT-101 RCT PAGE 1. Indicate the type of return fied with the IRS. If the activity is incuded in the federa tax return of another company, either as part of a consoidated group or as a disregarded entity, indicate the type of return fied by the entity reporting the activity. If the taxpayer is a singe-member imited iabiity company and the member is an individua reporting the income on his/her persona income tax return, the 1040 Box shoud be checked. Step A Step B Step C TAX PERIOD (REQUIRED) Taxpayers must enter month, day and year (MM DD YYYY) for the tax period beginning and month, day and year (MM DD YYYY) for tax period ending. CHECK SPECIAL FILING STATUS Amended Report Check this box if the corporation is amending a PA corporate tax report previousy fied with the department. Federa Extension Granted Check this box if the corporation was granted an extension of time to fie its federa income tax return. A copy of the extension request must be incuded. Reguated Investment Company Check the bock if the corporation is a reguated investment company. See Page 25 for detais Week Fier Check the bock if the corporation is a week fier. Address Change Check the bock if the address reported in Step C is a change from prior tax periods. Be sure to fie REV-854 eectronicay using the e-services Center at Change Fed Group Check this box if the corporate taxpayer is fiing a PA Corporate Tax Report for ess than a fu year due to a change in federa consoidated group. This must be indicated on the ast report prior to the change. First Report Check the bock if this is the corporation s first PA corporate tax report fiing. KOZ/EIP/SDA Credit Check the bock if the corporate taxpayer is caiming the Keystone Opportunity Zone Credit, Empoyer Incentive Payment Credit or the Strategic Deveopment Area Credit. Fie Period Change Check the bock if the fiing period (tax period ending) is a permanent change. Be sure to fie REV-854 eectronicay using the e-services Center at This must be indicated on the first report fied with the new tax year end. NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE, REVENUE ID AND PARENT CORPORATION EIN. Print or type the corporation name, compete address, 10-digit Revenue ID and nine-digit Federa ID (EIN). The Revenue ID is a new, unique, 10-digit number assigned by the Department of Revenue to repace your seven-digit Tax Account ID number. You may continue to use your seven-digit number if you do not know your Revenue ID. You must provide one of these numbers on Page 1 of RCT-101. DO NOT LEAVE BLANK. Step D Step E IMPORTANT: If using your seven-digit Tax Account ID number, eft justify and do not use additiona zeros to fi the space. This is not the same number as the seven-digit Entity ID issued by the Department of State. Be sure to use ony address information for Address Line 1 and Address Line 2 on Page 1 of RCT-101 and a other tax forms. IMPORTANT: Do not incude individua s names on these ines. The six-digit Business Activity Code entered here is the same Business Activity Code reported to the IRS on the federa income tax return. Parent Corporation EIN Taxpayers that are incuded in a consoidated federa income tax return must provide the nine-digit EIN of the corporation that fies the consoidated federa income tax return. If you are not incuded in a consoidated federa return, eave bank. TAX SUMMARY Coumn A. Tax Liabiity from Tax Report. Carry tax iabiities from Pages 2, 3 and 4, Section A, C and D to Page 1: Line 18, Section A for capita stock/foreign franchise tax (on Page 2). Line 13, Section C for corporate net income tax (on Page 3). Loans Tax, Section D for oans tax (on Page 4). A tax cacuations must be shown in whoe doar amounts. Any amount ess than 50 cents is eiminated and any amount 50 cents or more is rounded up to the next doar. Do not carry a vaue ess than zero to Step D, Page 1, Coumn A. Add the individua tax iabiity amounts, and enter the sum on the Tota Line of Coumn A. Coumn B. Estimated Payments & Credits on Deposit. See Confirmation of Deposits on Account, Page 5. For each tax type, enter the tota of estimated payments and transfer credits appied to the current tax period. Coumn C. Restricted Credits For each tax type, enter the amount of restricted credit to be appied to the current tax year. Restricted credits may incude those originating from specia tax credit programs administered by various state agencies. See Page 23. PAYMENT DUE/OVERPAYMENT For each tax type, determine the tota payment due or overpayment by subtracting Coumn B and Coumn C from Coumn A. Negative amounts (identifying an overpayment) shoud be written as -1,000. If a net tota overpayment deveops, see instructions for competing Step F. Reminders: Payments due must be zero or greater; overpayments may be ess than zero. If the tota payment due with your RCT-101 is ess than $1,000, you may pay eectronicay or make a check payabe to the PA Department of Revenue. Page 9

16 Step F Use whoe doars ony. Attach the check to Page 1 of the RCT-101. If the tota payment due with your RCT-101 is $1,000 or more, you must make payment by an eectronic method. Refer to Page 6 for EFT requirements and options for submitting eectronic payments. TRANSFER/REFUND METHODS Transfer: Identify the amount to transfer from the current tax period overpayment to the next tax period for estimated tax purposes. Prior to any transfer, the department wi offset current period iabiities and other unpaid iabiities or commonweath obigations within the account. Refund: Identify the amount to refund from the current tax period overpayment. Prior to any refund, the department wi offset current period iabiities and other unpaid iabiities or commonweath obigations within the account. NOTE: If no option is seected, the department wi automaticay transfer any overpayment to the next tax year for estimated tax purposes after offsetting current period iabiities and other unpaid iabiities or commonweath obigations within the account. A tax period overpayment summary wi be maied to the taxpayer confirming the disposition of the credit. Step G SIGNATURE A corporate officer must sign the report. The signature must be origina; photocopies or faxes wi not be accepted. Aso provide teephone number, emai address and tite of the officer aong with the date signed. RCT-101 PAGE 2. SECTION A: CAPITAL STOCK/FOREIGN FRANCHISE TAX Investment in LLC If the corporation is not incorporated under the aws of the Commonweath of Pennsyvania and the corporation s ony activity in Pennsyvania is an investment in a imited iabiity company, check this bock. If this bock is checked, do not compete the remainder of Page 2. Attach schedue with the name, EIN and Revenue ID number of the LLC(s) in which the company has investments. Hoding Company Check the bock if the corporation is a quaified hoding company and is eecting to use the specia 10 percent apportionment for capita stock/foreign franchise tax. See Page 21 for detais. Taxpayers eecting the specia 10 percent hoding company apportionment shoud aso enter 1 on Line 4a of Schedue A-1 and 10 on Line 4b of Schedue A-1. Famiy Farm Check the bock if the corporation is a famiy farm and is not subject to the capita stock/foreign franchise tax. AVERAGE BOOK INCOME: History of Earnings: The history of earnings shoud incude a taxabe periods within the ast five years regardess of when PA activity commenced. Due to short tax periods, there may be more than five tax periods in the ast five years; however, the beginning of the odest tax period must not be more than five years prior to the end of the current tax period. IMPORTANT: First-year corporations must use the fractiona part of the year actuay in existence as the divisor. Enter the taxabe period s beginning and ending dates - month (MM), day (DD) and year (YYYY) - in the appropriate spaces. Enter the data for the first year on the first ine of the history of earnings. Continue entering the dates and book income (oss) of each taxabe period up through the immediate prior taxabe period. Losses shoud be indicated by signed fieds. Skip ines not required for competing the history of earnings. Line 1. Enter the dates and book income (oss) of the current tax period. The book income of imited iabiity companies (LLCs) and business trusts that are corporations or partnerships for federa income tax purposes is derived from their federa returns. In the case of a singe-member LLC or business trust disregarded for federa income tax purposes, whose member is a business entity, book income is derived from the pro-forma federa income tax return. If the singe member of the federa disregarded entity LLC or business trust is a natura person, the LLC is required to fie a copy of Schedue C or Schedue E of federa Form 1040 aong with PA Schedues L, M-1 and M-2 (REV-860) and Schedue X (REV-798). An LLC or business trust taxabe as a partnership for federa income tax purposes may adjust book income for distributions to members deemed materiay participating in the activities conducted by such LLC or business trust for purposes of Section 469 of the Interna Revenue Code of 1986 (Pubic Law , 26 U.S.C. 469). This provision was expanded to a LLCs and business trusts not cassified as corporations for federa income tax purposes, effective Jan. 1, In addition, singe-member LLCs and business trusts disregarded for federa income tax purposes and whose incomes are reported on persona income tax returns of individuas are entited to a deduction for any distributions to the natura person. For this purpose, distributions made to a member of a LLC or business trust within 30 days of the end of a given year may be treated as made in the preceding year. If net income per books is being adjusted for this item, the taxpayer is required to compete Schedue A-3, of REV-961. When cacuating the net income per books of a taxpayer with an investment in a LLC or business trust, the taxpayer must remove the income (oss) of this LLC or business trust from the net income per books reported on the federa income tax return and add to the net income per books any distributions received from the LLC during the year. Taxpayers making this adjustment must provide the foowing: 1. A copy of the federa Schedue K-1 issued by the LLC or business trust, if the LLC or business trust fies federa Form Beginning and ending baance sheets for the LLC or business trust and a reconciiation of the beginning and ending member s capita account, if the LLC or business trust is a disregarded entity. 3. A compete PA Schedue A-3 (REV-961). Other Book Income Issues Corporations iquidating under IRC Section 337 must incude the gains on sae of assets in book income in the history of earnings. Forgiveness of debt is incuded in book income. Line 2. Line 3. Add/subtract each book income (oss) entry, and enter the tota on Line 2. Enter in years (incuding fractiona part if necessary) the number of taxabe years in the corporation s history of earnings, carried three paces to the right of the decima point. a. If a corporation has existed for more than five fu years and there has been no change in its fiing period during this time, enter b. If a corporation has existed for ess than five years or if it has changed its fiing period, enter the number of fu years to the eft of the decima point. To the Page 10

17 right of the decima point, enter the resut of dividing the number of days in the short period by the number of days in the fu year. A taxabe periods faing competey within the ast five years must be incuded in the history of earnings. EXAMPLE: Assume BJM Corporation has a fisca year end of June 30 from 2009 through On Jan. 16, 2014, it is purchased by VMJ Corporation and changes to a caendar year-end. On Dec. 31, 2014, its five year history of earnings woud incude the foowing: BEGINNING ENDING Odest Period Year Year Year Year Current Tax Period Year The fisca year ending June 30, 2010, is excuded since it woud extend the history of earnings beyond five years. Since the history of earnings is 4.5 years in ength, 4 is paced to the eft of the decima point. The period extending beyond the four fu years is 184 days. Therefore, =.504, which is paced to the right of the decima point. The entry on Line 3 woud be Line 4. Divide the amount on Line 2 by the amount on Line 3. Line 5. Enter the amount on Line 4, but not ess than 0. Line 6. Capitaize the average book income by dividing Line 5 by EXAMPLE: If average book income on Line 5 is $ 100,000, Line 6 woud be $1,052,632 (100, = 1,052,632). See Page 26 for an exampe of the correct competion of the History of Earnings. NET WORTH: Line 7. Enter the end of the period net worth. To determine net worth, add capita stock, paid-in capita and retained earnings, and subtract treasury stock. A vaues are determined as of the end of the year. If negative, use negative numbers. The net worth for LLCs is the entity s assets minus its iabiities. A corporation with one or more subsidiaries must use consoidated net worth in computing its capita stock vaue and shoud attach a consoidated baance sheet that incudes a foreign and domestic subsidiaries. A taxpayers must incude beginning and ending baance sheets regardess of federa requirements. Line 8. Enter the beginning of the period net worth. See Line 7 above. If negative, use negative numbers. Line 9. Enter the amount on Line 7 uness: a. Line 7 is more than two times greater than Line 8 OR b. Line 7 is ess than one-haf of Line 8. If either (a) or (b) is true, add the end of the period net worth sum (Line 7) to the beginning of the period net worth sum (Line 8) and divide by 2. If either Line 7 or Line 8 is ess than 0, raise the vaue to 0 before averaging. Enter the amount on Line 9. Line 10. Enter the amount on Line 9 or 0, whichever is greater. Line 11. Mutipy Line 10 by CAPITAL STOCK VALUE: Line 12. Add Line 6 to Line 11. Line 13. Divide Line 12 by 2. Line 14. Enter the $160,000 vauation deduction on this ine. Line 15. The $160,000 vauation deduction (Line 14) is subtracted from Line 13 to determine capita stock vaue. On Line 15 enter this amount or 0, whichever is greater. TAXABLE VALUE AND TAX CALCULATIONS: Line 16. Enter the proportion from Schedue A-1, Line 5. See instructions for Schedue A-1, on Page 13. If there are no exempt assets and a business is conducted in Pennsyvania, make no entry on Line 16. Line 17. If Line 16 is bank, enter the amount from Line 15. If there is an entry on Line 16, mutipy Line 15 by the proportion on Line 16 to determine Line 17. If negative, enter 0. EXAMPLE: 1. Assume BJM, Inc. has a capita stock vaue of $200,000, has no exempt assets and is not eigibe to apportion. Line 16 woud be eft bank and $200,000 woud be entered on Line Assume VMJ, Inc. has a capita stock vaue of $200,000 with a 75 percent manufacturing exemption. Line 16 woud be and Line 17 woud be $50,000 ($200,000 x = $50,000). Line 18. Mutipy Line 17 by the tax rate appicabe for the current year, (See Page 24) and enter this amount on Line 18. Taxpayers fiing reports for short periods may prorate the tax based on the number of days in the tax year. TOTAL BEGINNING OF TAXABLE YEAR ASSETS TOTAL END OF TAXABLE YEAR ASSETS These amounts must equa the tota assets reported on the baance sheets submitted with the report. A corporate taxpayers are required to provide beginning and ending baance sheets on a separate company basis, regardess of IRS requirements. RCT-101 PAGE 3. SECTION B: This information is used by the Department of Revenue to hep cacuate the additiona depreciation deduction and must be competed if caiming this deduction. See instructions for Schedue C-3 and C-4 for additiona detais. See Page 26 for an exampe of the correct competion of this section. SECTION C: CORPORATE NET INCOME TAX A copy of federa Form 1120 or other appicabe form on a separate company basis (federa income tax return) must accompany the PA Corporate Tax Report (RCT-101). Business Trust Check the bock if the taxpayer is a business trust and fies as a partnership or disregarded entity for federa income tax purposes. Soicitation Ony Check the bock if the corporate taxpayer s activity in Pennsyvania is imited to activity protected under P.L REV-986 must be incuded. Page 11

18 LLC Singe-Member/Muti-Member - Check the appropriate bock if the corporate taxpayer is an LLC fiing as a partnership or a disregarded entity for federa income tax purposes. PA-S Check the bock if the corporate taxpayer is a federa subchapter S corporation that has not eected to not be taxed as a Pennsyvania S corporation, or a quaified subchapter S subsidiary whose parent has not made the eection to not be a Pennsyvania S corporation for the current year. Taxabe Buit-in Gains PA S corporations and QSSS are subject to PA corporate net income tax. Their taxabe income is their net recognized buit-in gains as determined for federa income tax purposes pursuant to IRC Section 1374(d) (2). To report taxabe buit-in gains, check the bock and compete Line 1 of Section C. IMPORTANT: If any of these bocks are checked, do not compete the remainder of Page 3 uness the corporate taxpayer is a PA S corporation with taxabe buit-in gains. DEDUCTIONS FROM AND ADDITIONS TO INCOME: Line 1. Income represents taxabe income as returned to and ascertained by the federa government before the net operating oss deduction and specia deductions. (Line 28 of federa Form 1120.) Line 2. a. Corporate dividends received. Dividends received from U.S. corporations are deductibe to the same extent as aowed to arrive at the federa dividend deduction as indicated on federa Schedue C, Coumn C. An additiona deduction wi be aowed for dividends received from foreign corporations and reported on Lines 13 and 14 of the federa Schedue C, pus a deduction wi be aowed for dividends received under Section 78 (foreign dividend gross-up) of the Interna Revenue Code of Taxpayers must compete Schedue C-2, PA Dividend Deduction Schedue. Specific instructions for Schedue C-2 are shown on Page 17 in this booket. b. Interest on U.S. Securities. Interest on U.S. securities is deductibe, but must be reduced by: Any interest on indebtedness incurred to carry the securities; Any expenses incurred in the production of such interest income; Any other expenses deducted on the federa income tax return that woud not have been aowed under Section 265 of the Interna Revenue Code of 1986, if the interest were exempt from federa income tax. However, interest from repurchase agreements is not considered interest from U.S. securities. Therefore, it is not deductibe. To cacuate the net U.S. interest deduction on Line (2b): Provide a detaied schedue showing the cacuation of net U.S. interest deduction and incude a isting of investments that generated the exempt interest income. Pennsyvania aows a pass-through exemption from corporate net income for interest or dividend income received from a reguated investment company to the extent such distribution or dividend is derived from obigations free from state taxation. Such obigations incude those issued by the U.S. Government; the Commonweath of Pennsyvania; any pubic authority, commission, board or other agency created by the commonweath; any poitica subdivision of the commonweath; or any pubic authority created by any such subdivision. To support any caim for a pass-through deduction for corporate net income tax purposes, the taxpayer must submit evidence that the income was received from a reguated investment company. A schedue must be submitted indicating the percentage of income appicabe to exempt obigations and the percentage of income appicabe to nonexempt obigations, incuding repurchase agreements, obigations of the Federa Nationa Mortgage Association, (Fannie Mae), the Government Nationa Mortgage Association (Ginnie Mae) and any other obigations that were not actuay issued by the U.S. Government. A income caimed to be exempt must be reduced by any expenses incurred in the production of such income and this information must be incuded to support a entries on Line 2b. c. This is the amount of additiona depreciation aowed under Act 89 of 2002 for IRC Section 168(k) property. See instructions for Schedue C-3 for additiona detais. d. Other aowabe deductions. As an exampe, certain charitabe contributions may be deductibe for a subsidiary corporation which has income on a separate company basis. Targeted jobs credit wages is another deductibe item. If issued prior to Feb. 4, 1994, net gains on the sae of U.S. or PA securities are deductibe. FICA tax obigation on empoyee tips, if taken as a credit for federa purposes, are aso deductibe. The 50 percent of trave and entertainment expense that is disaowed on the federa form is not permitted as a deduction for Pennsyvania purposes. A other deductions must be reported on PA Schedue OD, Other Deductions. Insert the sum of Lines 2a, 2b, 2c and 2d on Line 2, Tota Deductions. Line 3. a. Enter the tota amount of taxes imposed on or measured by net income and deducted on the attached copy of the federa tax return. A taxpayers reporting expenses for taxes on federa income tax returns must compete Schedue C-5, Schedue of Taxes, even if no taxes are imposed on or measured by net income. If a state s tax is based on the higher of a tax on net income or a tax on another item, such as gross receipts or net worth vaue, the taxpayer is required to add back the entire amount of the tax in periods where the iabiity is based on net income. If a state s tax is a combination of a tax on net income and a tax on another item, such as gross receipts or net worth, the income portion of the tax is added back. NOTE: The PA capita stock/foreign franchise tax is not a tax measured by net income. The portion of Phiadephia business tax measured by net income must be incuded. b. Enter the tota of the tax preference items as defined in Section 401 of the Tax Reform Code of 1971, to the extent that such preference items are not incuded in Taxabe Income as returned to and ascertained by the federa government. A copy of federa Form 4626 must be attached to the report even though the tax preference items do not exceed the appicabe federa deductions. The acceerated cost recovery deduction under Section 57(a)(12)(B) of the Interna Revenue Code (recovery property which is 15 year reaty) is a tax preference item. It shoud be incuded on this ine, but ony to the extent it is not incuded in taxabe income as returned to and ascertained by the federa government. Page 12

19 c. Empoyment incentive payment credit adjustment. In cacuating wages as a cost for tax purposes, empoyment incentive payment credits sha be deducted, reducing the wages cost item by any empoyment incentive payment credit taken by the corporation. Attach PA Schedue W to the RCT-101. d. This is the amount of bonus depreciation caimed by the corporate taxpayer under IRC Section 168(k) in the cacuation of federa taxabe income. See instructions for Schedue C-3 for additiona detais. e. Other additions-attach PA Schedue OA, Other Additions. Insert the sum of Lines 3a, 3b, 3c, 3d and 3e on Line 3, Tota Additions. Line 4. Line 1 minus Line 2 pus Line 3. If a business is transacted in Pennsyvania, skip Lines 5 through 9. Enter amount from Line 4 on Line 10. APPORTIONMENT AND ALLOCATION: A taxpayer must have income from business activities taxabe by Pennsyvania and at east one other state to aocate and apportion income. For purposes of aocation and apportionment of income, a taxpayer is taxabe in another state if, in that state, the corporation is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the priviege of doing business or a corporate stock tax or if that state has jurisdiction to subject the taxpayer to a net income tax regardess of whether the state does or does not. Business income is income arising from transactions and activity in the reguar course of the taxpayer s trade or business and incudes income from tangibe and intangibe property if the acquisition, management or disposition of the property constitutes integra parts of the taxpayer s reguar trade or business operations. Business income incudes a income that is apportionabe under the U.S. Constitution. Nonbusiness income is a income other than business income. The Schedue of Nonbusiness Income (REV-934) must be competed by a taxpayers aocating nonbusiness income and apportioning business income. Refer to the Apportionment, Exemptions and Aocation portion of the booket for more detai. Line 5. Line 6. Line 7. Line 8. Line 9. Line 10. Enter the tota amount of nonbusiness income (oss) from Coumn C, REV-934. (Must be incuded with report) Enter the amount of income to be apportioned by adding the oss or subtracting the income refected on Line 5 to or from Line 4. Enter the apportionment percentage from Schedue C-1, Line 5. Enter the income apportioned to Pennsyvania by mutipying Line 6 by Line 7. Enter the tota amount of nonbusiness income (oss) aocated to Pennsyvania from Coumn A, REV-934. Add the income or deduct the oss refected on Line 9 to or from Line 8. If the entire business is transacted in Pennsyvania, enter the amount from Line 4 on Line 10. If a oss exists, add to RCT-103. NET OPERATING LOSS DEDUCTION Line 11. Net Operating Loss Deduction. Enter the tota of Coumn 3 from RCT-103. Compete RCT-103 incuded in this booket and attach the form to your RCT-101. See instructions for RCT-103, found on Page 16 for detais. Short periods are considered to be one tax year for purposes of computing the carryforward. DETERMINATION OF TAX Line 12. Line 13. PA Taxabe Income or Net Loss. Line 12 must equa Line 10 minus Line 11. Cacuate and enter the PA corporate net income tax by mutipying the amount refected on Line 12 by the current rate of 9.99 percent (0.0999). A taxes due shoud be shown in whoe doar amounts. RCT PAGE 4 SECTION D: LOANS TAX CORPORATE LOANS TAX INFORMATION New - Loans tax has been repeaed for tax periods beginning on or after Jan. 1, Do not compete Section D. SCHEDULE A-1 APPORTIONMENT SCHEDULE FOR CAPITAL STOCK/FOREIGN FRANCHISE TAX THREE-FACTOR Lines 1-3. Eigibe corporations eecting to use three-factor apportionment shoud compete these ines. Those caiming the manufacturing exemption shoud transfer the numerators and denominators for the property, payro and saes factors from RCT-105 to Schedue A-. Corporations not caiming the manufacturing exemption shoud obtain this information from RCT-106, Page 2. SINGLE-FACTOR Line 4. Corporations eecting to use the singe-factor taxabe assets proportion shoud compete this ine. Those caiming the manufacturing exemption shoud transfer the numerator and denominator from RCT-102 to Schedue A-1. Corporations not caiming the manufacturing exemption shoud obtain this information from RCT-106, Page 1. Foreign corporations eecting to use the singe-factor must cacuate the fraction exacty ike domestic corporations. See the instructions for Additiona Schedues for Apportionment of Franchise Tax. Line 5. For the apportionment proportion, enter either the three-factor or the singe-factor proportion, but do not combine the two methods. a. Three-factor apportionment: Add the decimas on Lines 1c, 2c and 3c, and divide by 3 if a three proportions appy. A factor is ignored if both the numerator and denominator are zero. Divide the sum by 2 if ony two of the proportions appy, or by 1 if ony one proportion appies. Enter the resuting decima on Line 5. Carry to six decima paces. OR b. Singe-factor proportion and specia apportionment: Divide Line 4a by 4b and enter the resut on Line 5. Carry to six decima paces. For corporations using specia apportionment, see Specia Apportionment Fractions Instructions section of these instructions. SCHEDULE C-1: APPORTIONMENT SCHEDULE FOR CORPORATE NET INCOME TAX For tax years beginning on or after Jan.1, 2013, income is apportioned by saes factor ony. Line 1A. Line 1B. Line 1D. Line 2A. Enter zero. Enter zero. Enter zero. Enter zero. Page 13

20 Line 2B. Line 2D. Enter zero. Enter zero. TABLE 3 (RCT-106) SALES FACTOR Amount for interest, rents and royaties shoud be added and refected on the appropriate ine of Tabe 3, Page 2 of the Insert Sheet (RCT-106). Gross saes price of assets sod excuding securities (not gains or osses) shoud be refected on the appropriate ine. A remaining income items shoud appear on the Other Income ine. Do not ist non-receipts such as discounts or receipts from saes of securities, uness a securities deaer. Line 3A. Enter the tota from RCT-106, Page 2, Tabe 3, Coumn A, Saes inside Pennsyvania. Line 3B. Enter the tota from RCT-106, Page 2, Tabe 3, Coumn B, Saes inside and outside Pennsyvania. Line 3D. Divide Line 3A by Line 3B, cacuate to six decima paces. IMPORTANT: Ony corporations required to use specia apportionment (such as rairoad, truck, bus, airine, pipeine, natura gas and water transportation companies - refer to instructions) shoud compete Line 4. Others shoud skip to Line 5. Line 4A. Enter PA revenue mies (or other specia factor). Line 4B. Enter tota revenue mies (or other specia factor). Line 5. For the apportionment proportion, enter either the saes factor apportionment or the specia apportionment, (Line 4A divided by Line 4B-carry to six decima paces) but do not combine the two methods. See Page 27 for exampes of the correct competion of this section. RCT PAGES 5 AND 6 SECTION E: CORPORATE STATUS CHANGES Corporate taxpayers that ceased a business activity (domestic corporations) or ceased business activity in Pennsyvania (foreign corporations) and disposed of a assets or Pennsyvania assets may be removed from the active records of the Bureau of Corporation Taxes by doing the foowing: 1. Indicate in this section that the current year report is the fina report by checking the box to the right of Fina Report. 2. Entities formed under the aws of the Commonweath of Pennsyvania must answer the questions under PA Corporations in this section. If a PA corporation ever transacted business anywhere, the date business activity ceased must be provided. If a PA corporation ever hed assets anywhere, it must provide the date of fina disposition of the assets. 3. Entities formed under the aws of another jurisdiction are required to answer the questions under Foreign Corporations. If a foreign corporation ever transacted business in Pennsyvania, the date Pennsyvania activity ceased must be provided. If a foreign corporation ever hed assets in the commonweath, it must discose the date a PA assets were disposed of or moved outside of Pennsyvania. Taxpayers who hed any assets during the year must compete Schedue DA, Disposition of Asset Schedue. If a taxpayer ses 51 percent or more of any cass of asset during the tax period, the taxpayer shoud check the box. This incudes any stock of goods, wares, merchandise of any kind, fixtures, machinery, equipment, buidings or rea estate. A taxpayer who ses 51 percent or more of any cass of asset is required to obtain a Buk Sae Certificate by competing an Appication for Corporate Cearance, REV-181, and fiing a PA Corporate Tax Report RCT-101, up to the date of the sae. Attach schedue if additiona space is needed. SECTION F: GENERAL INFORMATION QUESTIONNAIRE Taxpayers are required to provide a brief description of business activities in Pennsyvania. Mutistate corporations are required to provide a brief description of business activities outside of PA and indicate a other states where the taxpayer has business activity (use the two etter posta abbreviations). If taxpayer has no activity in Pennsyvania, indicate so in this area. Taxpayers shoud indicate in this section if they are incorporated under the aws of the Commonweath of Pennsyvania. Taxpayers incorporated under the aws of another jurisdiction whose ony activity in Pennsyvania is the soicitation of saes, must indicate so in this section. Taxpayers are required to indicate by what means these saes are soicited. The taxpayer must report the name of any corporation, individua or other business entity which hods a or a majority of the stock of the taxpayer, and the name(s) of any corporation in which the taxpayer owns a or a majority of the stock. This is done by checking the appicabe box(es) and competing Schedue X. If the federa government has changed the taxabe income for any prior year, the taxpayer must indicate this on RCT-101 to incude the first and ast tax periods changed. The taxpayer must aso fie RCT-128C reporting the changes in income for each tax year. Indicate the method of accounting used for federa income tax reporting and financia accounting purposes. Taxpayers must report the ocation of any rea property utiized in the Commonweath of Pennsyvania during the current tax period. Incude an indication if the property was rented or owned by the taxpayer and if the property was ocated in a Keystone Opportunity Zone/Keystone Opportunity Expansion Zone or Strategic Deveopment Area. IMPORTANT: Taxpayers annua affirmation of a corporate officer s information must be incuded on the RCT-101. When information is provided on RCT-101, REV-1605 is not required. REV-1605 shoud be fied eectronicay, using the e-services Center at to report changes in corporate officers during the tax year. When competing the affirmation of corporate officer section, LLCs, business trusts and other unincorporated entities required to fie RCT-101 must enter the names and Socia Security numbers of individuas who are responsibe for the tax and/or business matters of the entity (i.e. Tax Matter Partner, Managing Partner, Trustee). PAID PREPARER S MAILING ADDRESS Enter Y or N in the bock abeed Mai to Preparer to indicate if any notice resuting from the review of this tax report, or request for additiona information is to be maied to the preparer s address. If Y is entered in this box, the notices and a correspondence wi be sent to the name and address provided in this section. If N is entered, a notices wi be maied to the corporation s address. Paid preparers must sign and date a tax returns. The preparer s name, compete address, teephone number, emai address, federa PTIN and the date prepared must be typed or printed in the appropriate bocks. Page 14