TITLE 44
Taxation
CHAPTER 44-11
Business Corporation Tax
SECTION 44-11-2
§ 44-11-2 Imposition of tax.
[Effective until January 1, 2016.].
(a) Each corporation shall annually pay to the state a tax equal to nine
percent (9%) of net income, as defined in § 44-11-11, qualified in §
44-11-12, and apportioned to this state as provided in §§ 44-11-13
44-11-15, for the taxable year. For tax years beginning on or after
January 1, 2015, each corporation shall annually pay to the state a tax equal
to seven percent (7.0%) of net income, as defined in § 44-11-13 -
44-11-15, for the taxable year.
(b) A corporation shall pay the amount of any tax as computed
in accordance with subsection (a) of this section after deducting from "net
income," as used in this section, fifty percent (50%) of the excess of capital
gains over capital losses realized during the taxable year, if for the taxable
year:
(1) The corporation is engaged in buying, selling, dealing
in, or holding securities on its own behalf and not as a broker, underwriter,
or distributor;
(2) Its gross receipts derived from these activities during
the taxable year amounted to at least ninety percent (90%) of its total gross
receipts derived from all of its activities during the year. "Gross receipts"
means all receipts, whether in the form of money, credits, or other valuable
consideration, received during the taxable year in connection with the conduct
of the taxpayer's activities.
(c) A corporation shall not pay the amount of the tax
computed on the basis of its net income under subsection (a) of this section,
but shall annually pay to the state a tax equal to ten cents ($.10) for each
one hundred dollars ($100) of gross income for the taxable year or a tax of one
hundred dollars ($100), whichever tax shall be the greater, if for the taxable
year the corporation is either a "personal holding company" registered under
the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq.,
"regulated investment company", or a "real estate investment trust" as defined
in the federal income tax law applicable to the taxable year. "Gross income"
means gross income as defined in the federal income tax law applicable to the
taxable year, plus:
(1) Any interest not included in the federal gross income;
minus
(2) Interest on obligations of the United States or its
possessions, and other interest exempt from taxation by this state; and minus
(3) Fifty percent (50%) of the excess of capital gains over
capital losses realized during the taxable year.
(d)(1) A small business corporation having an election in
effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be subject
to the Rhode Island income tax on corporations, except that the corporation
shall be subject to the provisions of subsection (a), to the extent of the
income that is subjected to federal tax under subchapter S. Effective for tax
years beginning on or after January 1, 2015, a small business corporation
having an election in effect under subchapter S, 26 U.S.C. § 1261 et seq.,
shall be subject to the minimum tax under § 44-11-2(e).
(2) The shareholders of the corporation who are residents of
Rhode Island shall include in their income their proportionate share of the
corporation's federal taxable income.
(3) [Deleted by P.L. 2004, ch. 595. art. 29, §
1.]
(4) [Deleted by P.L. 2004, ch. 595, art. 29, §
1.]
(e) Minimum tax. The tax imposed upon any corporation
under this section, including a small business corporation having an election
in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be less
than five hundred dollars ($500).
History of Section.
(G.L. 1938, ch. 37, § 2; P.L. 1947, ch. 1887, art. 1, § 1; P.L. 1949,
ch. 2168, § 1; P.L. 1951, ch. 2733, art. 1, § 1; P.L. 1952, ch. 3026,
art. 1, § 1; P.L. 1953, ch. 3150, art. 1, § 1; P.L. 1954, ch. 3254,
art. 1, § 1; P.L. 1955, ch. 3521, art. 1, § 1; G.L. 1956, §
44-11-2; P.L. 1956, ch. 3739, art. 1, § 1; P.L. 1957, ch. 44, art. 1,
§ 1; P.L. 1958, ch. 17, art. 3, § 1; P.L. 1959, ch. 169, art. 2,
§ 1; P.L. 1960, ch. 66, art. 2, § 1; P.L. 1965, ch. 34, § 1;
P.L. 1966, ch. 238, § 1; P.L. 1966, ch. 245, § 7; P.L. 1968, ch. 263,
art. 5, §§ 1, 2; P.L. 1970, ch. 139, art. 1, § 1; 1970, ch. 226,
§ 1; P.L. 1974, ch. 151, art. 4, § 1; impl. am. P.L. 1974, ch. 200,
art. 2, § 2; P.L. 1977, ch. 133, § 2; P.L. 1983, ch. 2, art. 8,
§ 1; P.L. 1988, ch. 12, § 1; P.L. 1989, ch. 126, art. 20, § 1;
P.L. 1992, ch. 15, art. 4, § 1; P.L. 2004, ch. 595, art. 17, § 6;
P.L. 2004, ch. 595, art. 29, § 1; P.L. 2014, ch. 145, art. 12, §
15.)