IC 6-5.5-2-1 Computation of franchise tax
Sec. 1. (a) There is imposed on each taxpayer a franchise tax
measured by the taxpayer's apportioned income for the privilege of
exercising its franchise or the corporate privilege of transacting the
business of a financial institution in Indiana. The amount of the tax
for a taxable year shall be determined by multiplying eight and
one-half percent (8.5%) times the remainder of:
(1) the taxpayer's apportioned income; minus
(2) the taxpayer's deductible Indiana net operating losses as
determined under this section; minus
(3) the taxpayer's net capital losses minus the taxpayer's net
capital gains computed under the Internal Revenue Code for
each taxable year or part of a taxable year beginning after
December 31, 1989, multiplied by the apportionment
percentage applicable to the taxpayer under IC 6-5.5-2 for the
taxable year of the loss.
A net capital loss for a taxable year is a net capital loss carryover to
each of the five (5) taxable years that follow the taxable year in
which the loss occurred.
(b) The amount of net operating losses deductible under
subsection (a) is an amount equal to the net operating losses
computed under the Internal Revenue Code, adjusted for the items
set forth in IC 6-5.5-1-2, that are:
(1) incurred in each taxable year, or part of a year, beginning
after December 31, 1989; and
(2) attributable to Indiana.
(c) The following apply to determining the amount of net
operating losses that may be deducted under subsection (a):
(1) The amount of net operating losses that is attributable to
Indiana is the taxpayer's total net operating losses under the
Internal Revenue Code for the taxable year of the loss, adjusted
for the items set forth in IC 6-5.5-1-2, multiplied by the
apportionment percentage applicable to the taxpayer under
IC 6-5.5-2 for the taxable year of the loss.
(2) A net operating loss for any taxable year is a net operating
loss carryover to each of the fifteen (15) taxable years that
follow the taxable year in which the loss occurred.
(d) The following provisions apply to a combined return
computing the tax on the basis of the income of the unitary group
when the return is filed for more than one (1) taxpayer member of the
unitary group for any taxable year:
(1) Any net capital loss or net operating loss attributable to
Indiana in the combined return shall be prorated between each
taxpayer member of the unitary group by the quotient of:
(A) the receipts of that taxpayer member attributable to
Indiana under section 4 of this chapter; divided by
(B) the receipts of all taxpayer members of the unitary group
attributable to Indiana.
(2) The net capital loss or net operating loss for that year, if
any, to be carried forward to any subsequent year shall be
limited to the capital gains or apportioned income for the
subsequent year of that taxpayer, determined by the same
receipts formula set out in subdivision (1). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.21; P.L.68-1991, SEC.4; P.L.1-1992, SEC.19; P.L.6-2000,
SEC.1.
IC 6-5.5-2-2
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-3 Apportioned income of taxpayer not filing combined return
Sec. 3. For a taxpayer that is not filing a combined return, the
taxpayer's apportioned income consists of the taxpayer's adjusted
gross income for that year multiplied by the quotient of:
(1) the taxpayer's total receipts attributable to transacting
business in Indiana, as determined under IC 6-5.5-4; divided by
(2) the taxpayer's total receipts from transacting business in all
taxing jurisdictions, as determined under IC 6-5.5-4. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.6-2000,
SEC.2.
IC 6-5.5-2-4 Apportioned income of taxpayer filing combined return for unitary
group
Sec. 4. For a taxpayer filing a combined return for its unitary
group, the group's apportioned income for a taxable year consists of:
(1) the aggregate adjusted gross income, from whatever source
derived, of the members of the unitary group; multiplied by
(2) the quotient of:
(A) all the receipts of the taxpayer members of the unitary
group that are attributable to transacting business in Indiana;
divided by
(B) the receipts of all the members of the unitary group from
transacting business in all taxing jurisdictions. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.5; P.L.6-2000, SEC.3.
IC 6-5.5-2-5
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-5.3
(Repealed by P.L.6-2000, SEC.5.) IC 6-5.5-2-6 Credit for nonresident taxpayer
Sec. 6. (a) A nonresident taxpayer is entitled to a credit against the
tax due under this article for the amount of net income tax, franchise
tax, or other tax measured by net income that is due to the
nonresident taxpayer's domiciliary state for a taxable year if:
(1) the receipt of interest or other income from a loan or loan
transaction is attributed both to the taxpayer's domiciliary state
under that state's laws and also to Indiana under IC 6-5.5-4; and
(2) the principal amount of the loan is at least two million
dollars ($2,000,000).
(b) The amount of the credit for each taxable year is the lesser of:
(1) the portion of the net income tax, franchise tax, or other tax
measured by net income actually paid by the nonresident
taxpayer to its domiciliary state that is attributable to the loan
or loan transaction; or
(2) the portion of the franchise tax due to Indiana under this
article that is attributable to the loan or loan transaction.
The amount determined under subdivisions (1) and (2) shall be
reduced by the amount of any credit for the tax due from the
nonresident taxpayer under this article (calculated without the
allowance for the credit provided under this section) and that may be
used by the nonresident taxpayer in calculating the income tax due
under the laws of the nonresident taxpayer's domiciliary state.
(c) As used in this section:
(1) "loan" or "loan transaction" refers to an obligation created
in a single transaction to pay or repay a sum of money attributed
as provided in subsection (a)(1);
(2) the "principal amount" of a loan is limited to the principal
amount specified in the loan documents at the time of making
the loan and reasonably expected to be advanced during the
term of the loan, even though there is more than one (1)
advancement. If the loan is a participation loan (as defined in
IC 6-5.5-4-13), the principal amount must be calculated
separately for each participant and is equal to that portion of the
loan committed by each participant; and
(3) a "taxpayer's domiciliary state" is the taxing jurisdiction in
which its commercial domicile is located.
(d) The amount of tax attributable to a loan or loan transaction,
under the laws of the taxpayer's domiciliary state or under this
article, is the portion of the total tax due to each state in an amount
equal to the same proportion as the receipts from the loan or loan
transaction bear to the total of the taxpayer's receipts. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.24; P.L.68-1991, SEC.7.
IC 6-5.5-2-7 Exemptions
Sec. 7. Notwithstanding any other provision of this article, there
is no tax imposed on the adjusted gross income or apportioned
income of the following:
(1) Insurance companies subject to the tax under IC 27-1-18-2
or IC 6-3.
(2) International banking facilities (as defined in Regulation D
of the Board of Governors of the Federal Reserve System).
(3) Any corporation that is exempt from income tax under
Section 1363 of the Internal Revenue Code.
(4) Any corporation exempt from federal income taxation under
the Internal Revenue Code, except for the corporation's
unrelated business income. However, this exemption does not
apply to a corporation exempt from federal income taxation
under Section 501(c)(14) of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.25; P.L.68-1991, SEC.8; P.L.1-2003, SEC.47; P.L.269-2003,
SEC.11.
IC 6-5.5-2-8 Partnerships; grantor or beneficiary of a trust; information
return; withholding
Sec. 8. (a) If a corporation is:
(1) transacting the business of a financial institution (as defined
in IC 6-5.5-1-17(d)); and
(2) is a partner in a partnership or the grantor and beneficiary of
a trust transacting business in Indiana and the partnership or
trust is conducting in Indiana an activity or activities that would
constitute the business of a financial institution if transacted by
a corporation;
the corporation is a taxpayer under this article and shall, in
calculating the corporation's tax liability under this article, include
in the corporation's adjusted or apportioned income the corporation's
percentage of the partnership or trust adjusted gross income or
apportioned income.
(b) A partnership or trust covered by subsection (a):
(1) shall file an information return on an appropriate schedule,
with capital and operating losses, modifications, and credits
required by this article and any other items specified in the
return form by the department. If the taxpayer is a nonresident,
or is a member of a unitary group with nonresident members
filing a combined return, the return must show the
apportionment percentage and supporting amounts necessary to
compute the tax under IC 6-5.5-4. A partner's percentage share
of the receipts of a taxpayer, for the purpose of apportionment,
shall be calculated by using the partner's share of the
partnership adjusted gross income;
(2) is subject to the provisions of IC 6-5.5-7-3 relating to
taxpayers and IC 6-5.5-7-4 relating to persons when filing the
information return; and
(3) shall withhold from all nonresident corporate partners or
beneficiaries an amount prescribed in withholding instructions
issued by the department. The amount required to be withheld
shall be based upon the rate of tax prescribed in IC 6-5.5-2,
unless the partner or beneficiary provides the partnership or
trust with a written declaration that the partner or beneficiary is
not subject to the tax. In such a case the amount withheld shall
be the amount prescribed in the withholding instructions issued
by the department based upon the Indiana adjusted gross
income tax rates. The department shall issue procedures and
directions for the withholding required by this subsection that
are similar to those contained in IC 6-3-4 concerning the
withholding of taxes. As added by P.L.21-1990, SEC.26. Amended by P.L.68-1991, SEC.9.
IC 6-5.5-2-1 Computation of franchise tax
Sec. 1. (a) There is imposed on each taxpayer a franchise tax
measured by the taxpayer's apportioned income for the privilege of
exercising its franchise or the corporate privilege of transacting the
business of a financial institution in Indiana. The amount of the tax
for a taxable year shall be determined by multiplying eight and
one-half percent (8.5%) times the remainder of:
(1) the taxpayer's apportioned income; minus
(2) the taxpayer's deductible Indiana net operating losses as
determined under this section; minus
(3) the taxpayer's net capital losses minus the taxpayer's net
capital gains computed under the Internal Revenue Code for
each taxable year or part of a taxable year beginning after
December 31, 1989, multiplied by the apportionment
percentage applicable to the taxpayer under IC 6-5.5-2 for the
taxable year of the loss.
A net capital loss for a taxable year is a net capital loss carryover to
each of the five (5) taxable years that follow the taxable year in
which the loss occurred.
(b) The amount of net operating losses deductible under
subsection (a) is an amount equal to the net operating losses
computed under the Internal Revenue Code, adjusted for the items
set forth in IC 6-5.5-1-2, that are:
(1) incurred in each taxable year, or part of a year, beginning
after December 31, 1989; and
(2) attributable to Indiana.
(c) The following apply to determining the amount of net
operating losses that may be deducted under subsection (a):
(1) The amount of net operating losses that is attributable to
Indiana is the taxpayer's total net operating losses under the
Internal Revenue Code for the taxable year of the loss, adjusted
for the items set forth in IC 6-5.5-1-2, multiplied by the
apportionment percentage applicable to the taxpayer under
IC 6-5.5-2 for the taxable year of the loss.
(2) A net operating loss for any taxable year is a net operating
loss carryover to each of the fifteen (15) taxable years that
follow the taxable year in which the loss occurred.
(d) The following provisions apply to a combined return
computing the tax on the basis of the income of the unitary group
when the return is filed for more than one (1) taxpayer member of the
unitary group for any taxable year:
(1) Any net capital loss or net operating loss attributable to
Indiana in the combined return shall be prorated between each
taxpayer member of the unitary group by the quotient of:
(A) the receipts of that taxpayer member attributable to
Indiana under section 4 of this chapter; divided by
(B) the receipts of all taxpayer members of the unitary group
attributable to Indiana.
(2) The net capital loss or net operating loss for that year, if
any, to be carried forward to any subsequent year shall be
limited to the capital gains or apportioned income for the
subsequent year of that taxpayer, determined by the same
receipts formula set out in subdivision (1). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.21; P.L.68-1991, SEC.4; P.L.1-1992, SEC.19; P.L.6-2000,
SEC.1.
IC 6-5.5-2-2
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-3 Apportioned income of taxpayer not filing combined return
Sec. 3. For a taxpayer that is not filing a combined return, the
taxpayer's apportioned income consists of the taxpayer's adjusted
gross income for that year multiplied by the quotient of:
(1) the taxpayer's total receipts attributable to transacting
business in Indiana, as determined under IC 6-5.5-4; divided by
(2) the taxpayer's total receipts from transacting business in all
taxing jurisdictions, as determined under IC 6-5.5-4. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.6-2000,
SEC.2.
IC 6-5.5-2-4 Apportioned income of taxpayer filing combined return for unitary
group
Sec. 4. For a taxpayer filing a combined return for its unitary
group, the group's apportioned income for a taxable year consists of:
(1) the aggregate adjusted gross income, from whatever source
derived, of the members of the unitary group; multiplied by
(2) the quotient of:
(A) all the receipts of the taxpayer members of the unitary
group that are attributable to transacting business in Indiana;
divided by
(B) the receipts of all the members of the unitary group from
transacting business in all taxing jurisdictions. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.5; P.L.6-2000, SEC.3.
IC 6-5.5-2-5
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-5.3
(Repealed by P.L.6-2000, SEC.5.) IC 6-5.5-2-6 Credit for nonresident taxpayer
Sec. 6. (a) A nonresident taxpayer is entitled to a credit against the
tax due under this article for the amount of net income tax, franchise
tax, or other tax measured by net income that is due to the
nonresident taxpayer's domiciliary state for a taxable year if:
(1) the receipt of interest or other income from a loan or loan
transaction is attributed both to the taxpayer's domiciliary state
under that state's laws and also to Indiana under IC 6-5.5-4; and
(2) the principal amount of the loan is at least two million
dollars ($2,000,000).
(b) The amount of the credit for each taxable year is the lesser of:
(1) the portion of the net income tax, franchise tax, or other tax
measured by net income actually paid by the nonresident
taxpayer to its domiciliary state that is attributable to the loan
or loan transaction; or
(2) the portion of the franchise tax due to Indiana under this
article that is attributable to the loan or loan transaction.
The amount determined under subdivisions (1) and (2) shall be
reduced by the amount of any credit for the tax due from the
nonresident taxpayer under this article (calculated without the
allowance for the credit provided under this section) and that may be
used by the nonresident taxpayer in calculating the income tax due
under the laws of the nonresident taxpayer's domiciliary state.
(c) As used in this section:
(1) "loan" or "loan transaction" refers to an obligation created
in a single transaction to pay or repay a sum of money attributed
as provided in subsection (a)(1);
(2) the "principal amount" of a loan is limited to the principal
amount specified in the loan documents at the time of making
the loan and reasonably expected to be advanced during the
term of the loan, even though there is more than one (1)
advancement. If the loan is a participation loan (as defined in
IC 6-5.5-4-13), the principal amount must be calculated
separately for each participant and is equal to that portion of the
loan committed by each participant; and
(3) a "taxpayer's domiciliary state" is the taxing jurisdiction in
which its commercial domicile is located.
(d) The amount of tax attributable to a loan or loan transaction,
under the laws of the taxpayer's domiciliary state or under this
article, is the portion of the total tax due to each state in an amount
equal to the same proportion as the receipts from the loan or loan
transaction bear to the total of the taxpayer's receipts. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.24; P.L.68-1991, SEC.7.
IC 6-5.5-2-7 Exemptions
Sec. 7. Notwithstanding any other provision of this article, there
is no tax imposed on the adjusted gross income or apportioned
income of the following:
(1) Insurance companies subject to the tax under IC 27-1-18-2
or IC 6-3.
(2) International banking facilities (as defined in Regulation D
of the Board of Governors of the Federal Reserve System).
(3) Any corporation that is exempt from income tax under
Section 1363 of the Internal Revenue Code.
(4) Any corporation exempt from federal income taxation under
the Internal Revenue Code, except for the corporation's
unrelated business income. However, this exemption does not
apply to a corporation exempt from federal income taxation
under Section 501(c)(14) of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.25; P.L.68-1991, SEC.8; P.L.1-2003, SEC.47; P.L.269-2003,
SEC.11.
IC 6-5.5-2-8 Partnerships; grantor or beneficiary of a trust; information
return; withholding
Sec. 8. (a) If a corporation is:
(1) transacting the business of a financial institution (as defined
in IC 6-5.5-1-17(d)); and
(2) is a partner in a partnership or the grantor and beneficiary of
a trust transacting business in Indiana and the partnership or
trust is conducting in Indiana an activity or activities that would
constitute the business of a financial institution if transacted by
a corporation;
the corporation is a taxpayer under this article and shall, in
calculating the corporation's tax liability under this article, include
in the corporation's adjusted or apportioned income the corporation's
percentage of the partnership or trust adjusted gross income or
apportioned income.
(b) A partnership or trust covered by subsection (a):
(1) shall file an information return on an appropriate schedule,
with capital and operating losses, modifications, and credits
required by this article and any other items specified in the
return form by the department. If the taxpayer is a nonresident,
or is a member of a unitary group with nonresident members
filing a combined return, the return must show the
apportionment percentage and supporting amounts necessary to
compute the tax under IC 6-5.5-4. A partner's percentage share
of the receipts of a taxpayer, for the purpose of apportionment,
shall be calculated by using the partner's share of the
partnership adjusted gross income;
(2) is subject to the provisions of IC 6-5.5-7-3 relating to
taxpayers and IC 6-5.5-7-4 relating to persons when filing the
information return; and
(3) shall withhold from all nonresident corporate partners or
beneficiaries an amount prescribed in withholding instructions
issued by the department. The amount required to be withheld
shall be based upon the rate of tax prescribed in IC 6-5.5-2,
unless the partner or beneficiary provides the partnership or
trust with a written declaration that the partner or beneficiary is
not subject to the tax. In such a case the amount withheld shall
be the amount prescribed in the withholding instructions issued
by the department based upon the Indiana adjusted gross
income tax rates. The department shall issue procedures and
directions for the withholding required by this subsection that
are similar to those contained in IC 6-3-4 concerning the
withholding of taxes. As added by P.L.21-1990, SEC.26. Amended by P.L.68-1991, SEC.9.
IC 6-5.5-2-1 Computation of franchise tax
Sec. 1. (a) There is imposed on each taxpayer a franchise tax
measured by the taxpayer's apportioned income for the privilege of
exercising its franchise or the corporate privilege of transacting the
business of a financial institution in Indiana. The amount of the tax
for a taxable year shall be determined by multiplying eight and
one-half percent (8.5%) times the remainder of:
(1) the taxpayer's apportioned income; minus
(2) the taxpayer's deductible Indiana net operating losses as
determined under this section; minus
(3) the taxpayer's net capital losses minus the taxpayer's net
capital gains computed under the Internal Revenue Code for
each taxable year or part of a taxable year beginning after
December 31, 1989, multiplied by the apportionment
percentage applicable to the taxpayer under IC 6-5.5-2 for the
taxable year of the loss.
A net capital loss for a taxable year is a net capital loss carryover to
each of the five (5) taxable years that follow the taxable year in
which the loss occurred.
(b) The amount of net operating losses deductible under
subsection (a) is an amount equal to the net operating losses
computed under the Internal Revenue Code, adjusted for the items
set forth in IC 6-5.5-1-2, that are:
(1) incurred in each taxable year, or part of a year, beginning
after December 31, 1989; and
(2) attributable to Indiana.
(c) The following apply to determining the amount of net
operating losses that may be deducted under subsection (a):
(1) The amount of net operating losses that is attributable to
Indiana is the taxpayer's total net operating losses under the
Internal Revenue Code for the taxable year of the loss, adjusted
for the items set forth in IC 6-5.5-1-2, multiplied by the
apportionment percentage applicable to the taxpayer under
IC 6-5.5-2 for the taxable year of the loss.
(2) A net operating loss for any taxable year is a net operating
loss carryover to each of the fifteen (15) taxable years that
follow the taxable year in which the loss occurred.
(d) The following provisions apply to a combined return
computing the tax on the basis of the income of the unitary group
when the return is filed for more than one (1) taxpayer member of the
unitary group for any taxable year:
(1) Any net capital loss or net operating loss attributable to
Indiana in the combined return shall be prorated between each
taxpayer member of the unitary group by the quotient of:
(A) the receipts of that taxpayer member attributable to
Indiana under section 4 of this chapter; divided by
(B) the receipts of all taxpayer members of the unitary group
attributable to Indiana.
(2) The net capital loss or net operating loss for that year, if
any, to be carried forward to any subsequent year shall be
limited to the capital gains or apportioned income for the
subsequent year of that taxpayer, determined by the same
receipts formula set out in subdivision (1). As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.21; P.L.68-1991, SEC.4; P.L.1-1992, SEC.19; P.L.6-2000,
SEC.1.
IC 6-5.5-2-2
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-3 Apportioned income of taxpayer not filing combined return
Sec. 3. For a taxpayer that is not filing a combined return, the
taxpayer's apportioned income consists of the taxpayer's adjusted
gross income for that year multiplied by the quotient of:
(1) the taxpayer's total receipts attributable to transacting
business in Indiana, as determined under IC 6-5.5-4; divided by
(2) the taxpayer's total receipts from transacting business in all
taxing jurisdictions, as determined under IC 6-5.5-4. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.6-2000,
SEC.2.
IC 6-5.5-2-4 Apportioned income of taxpayer filing combined return for unitary
group
Sec. 4. For a taxpayer filing a combined return for its unitary
group, the group's apportioned income for a taxable year consists of:
(1) the aggregate adjusted gross income, from whatever source
derived, of the members of the unitary group; multiplied by
(2) the quotient of:
(A) all the receipts of the taxpayer members of the unitary
group that are attributable to transacting business in Indiana;
divided by
(B) the receipts of all the members of the unitary group from
transacting business in all taxing jurisdictions. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.68-1991,
SEC.5; P.L.6-2000, SEC.3.
IC 6-5.5-2-5
Repealed
(Repealed by P.L.6-2000, SEC.5.)
IC 6-5.5-2-5.3
(Repealed by P.L.6-2000, SEC.5.) IC 6-5.5-2-6 Credit for nonresident taxpayer
Sec. 6. (a) A nonresident taxpayer is entitled to a credit against the
tax due under this article for the amount of net income tax, franchise
tax, or other tax measured by net income that is due to the
nonresident taxpayer's domiciliary state for a taxable year if:
(1) the receipt of interest or other income from a loan or loan
transaction is attributed both to the taxpayer's domiciliary state
under that state's laws and also to Indiana under IC 6-5.5-4; and
(2) the principal amount of the loan is at least two million
dollars ($2,000,000).
(b) The amount of the credit for each taxable year is the lesser of:
(1) the portion of the net income tax, franchise tax, or other tax
measured by net income actually paid by the nonresident
taxpayer to its domiciliary state that is attributable to the loan
or loan transaction; or
(2) the portion of the franchise tax due to Indiana under this
article that is attributable to the loan or loan transaction.
The amount determined under subdivisions (1) and (2) shall be
reduced by the amount of any credit for the tax due from the
nonresident taxpayer under this article (calculated without the
allowance for the credit provided under this section) and that may be
used by the nonresident taxpayer in calculating the income tax due
under the laws of the nonresident taxpayer's domiciliary state.
(c) As used in this section:
(1) "loan" or "loan transaction" refers to an obligation created
in a single transaction to pay or repay a sum of money attributed
as provided in subsection (a)(1);
(2) the "principal amount" of a loan is limited to the principal
amount specified in the loan documents at the time of making
the loan and reasonably expected to be advanced during the
term of the loan, even though there is more than one (1)
advancement. If the loan is a participation loan (as defined in
IC 6-5.5-4-13), the principal amount must be calculated
separately for each participant and is equal to that portion of the
loan committed by each participant; and
(3) a "taxpayer's domiciliary state" is the taxing jurisdiction in
which its commercial domicile is located.
(d) The amount of tax attributable to a loan or loan transaction,
under the laws of the taxpayer's domiciliary state or under this
article, is the portion of the total tax due to each state in an amount
equal to the same proportion as the receipts from the loan or loan
transaction bear to the total of the taxpayer's receipts. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.24; P.L.68-1991, SEC.7.
IC 6-5.5-2-7 Exemptions
Sec. 7. Notwithstanding any other provision of this article, there
is no tax imposed on the adjusted gross income or apportioned
income of the following:
(1) Insurance companies subject to the tax under IC 27-1-18-2
or IC 6-3.
(2) International banking facilities (as defined in Regulation D
of the Board of Governors of the Federal Reserve System).
(3) Any corporation that is exempt from income tax under
Section 1363 of the Internal Revenue Code.
(4) Any corporation exempt from federal income taxation under
the Internal Revenue Code, except for the corporation's
unrelated business income. However, this exemption does not
apply to a corporation exempt from federal income taxation
under Section 501(c)(14) of the Internal Revenue Code. As added by P.L.347-1989(ss), SEC.1. Amended by P.L.21-1990,
SEC.25; P.L.68-1991, SEC.8; P.L.1-2003, SEC.47; P.L.269-2003,
SEC.11.
IC 6-5.5-2-8 Partnerships; grantor or beneficiary of a trust; information
return; withholding
Sec. 8. (a) If a corporation is:
(1) transacting the business of a financial institution (as defined
in IC 6-5.5-1-17(d)); and
(2) is a partner in a partnership or the grantor and beneficiary of
a trust transacting business in Indiana and the partnership or
trust is conducting in Indiana an activity or activities that would
constitute the business of a financial institution if transacted by
a corporation;
the corporation is a taxpayer under this article and shall, in
calculating the corporation's tax liability under this article, include
in the corporation's adjusted or apportioned income the corporation's
percentage of the partnership or trust adjusted gross income or
apportioned income.
(b) A partnership or trust covered by subsection (a):
(1) shall file an information return on an appropriate schedule,
with capital and operating losses, modifications, and credits
required by this article and any other items specified in the
return form by the department. If the taxpayer is a nonresident,
or is a member of a unitary group with nonresident members
filing a combined return, the return must show the
apportionment percentage and supporting amounts necessary to
compute the tax under IC 6-5.5-4. A partner's percentage share
of the receipts of a taxpayer, for the purpose of apportionment,
shall be calculated by using the partner's share of the
partnership adjusted gross income;
(2) is subject to the provisions of IC 6-5.5-7-3 relating to
taxpayers and IC 6-5.5-7-4 relating to persons when filing the
information return; and
(3) shall withhold from all nonresident corporate partners or
beneficiaries an amount prescribed in withholding instructions
issued by the department. The amount required to be withheld
shall be based upon the rate of tax prescribed in IC 6-5.5-2,
unless the partner or beneficiary provides the partnership or
trust with a written declaration that the partner or beneficiary is
not subject to the tax. In such a case the amount withheld shall
be the amount prescribed in the withholding instructions issued
by the department based upon the Indiana adjusted gross
income tax rates. The department shall issue procedures and
directions for the withholding required by this subsection that
are similar to those contained in IC 6-3-4 concerning the
withholding of taxes. As added by P.L.21-1990, SEC.26. Amended by P.L.68-1991, SEC.9.
