SECTION .0600 – FRANCHISE TAX RETURN
17 NCAC 05F .0601 PROCEDURES FOR FILING A FRANCHISE TAX
(a) The provisions of this Rule apply unless the Secretary
authorizes a combined group to file a combined franchise tax return under G.S.
105-122. Each corporation that is doing business in this State pursuant to
G.S. 105-114(b)(3) shall file a separate North Carolina franchise tax return
and pay any franchise tax due. Any corporation that is included in a combined
income tax return but that is not doing business in this State pursuant to G.S.
105-114(b)(3) is not subject to North Carolina franchise tax.
(b) The principal member shall file its franchise tax
return on the combined group's CD-405.
(c) All other members' separate returns shall include zero
dollars ($0) on the "Net Taxable Income" and "NC Net Income Tax"
lines on the CD-405 and include a statement with the return that:
(1) Indicates its income is included in the
combined income tax return filed by the principal member; and
(2) Identifies the name and Federal Employer
Identification Number of the principal member.
(d) If the corporation filing a franchise tax return is a
multistate taxpayer, then it shall calculate an apportionment factor to be used
in calculating its capital stock base using its separate entity property,
payroll, and sales before intercompany eliminations. Schedule O of the CD-405
must reflect the entity's apportionment factor for franchise tax purposes.
History Note: Authority G.S. 105-114(b)(3); 105-122;
Eff. January 31, 2013.