Quick guide to completing Form CT-3, General Business Corporation Franchise Tax Return
Corporate tax filing requirements
For tax years beginning on or after January 1, 2015, including short periods, all New York C corporations subject to tax under Tax Law Article 9-A must file using the following returns, as applicable:
- Form CT-3, General Business Corporation Franchise Tax Return
- Form CT-3-A, General Business Corporation Combined Franchise Tax Return
- Form CT-3-M, General Business Corporation MTA Surcharge Return
Any return filed on an incorrect form, or on a form for the wrong year, will not be processed and will not be considered timely filed. As a result, penalties and interest may be incurred.
Corporations subject to tax under Tax Law Article 9-A generally must compute three distinct taxes and pay the tax that results in the largest amount owed. The three taxes include a tax on business income, a tax on capital, and a fixed dollar minimum tax.
Content of Form CT-3
|Part 1 – General corporate information||Part 5 – Computation of investment capital for the current tax year|
|Part 2 – Computation of balance due or overpayment||Part 6 – Computation of business apportionment factor|
|Part 3 – Computation of tax on business income base||Part 7 – Summary of tax credits claimed|
|Part 4 – Computation of tax on capital base|
What parts you must complete on Form CT-3
You must complete the following parts of Form CT-3:
- Part 1 – General corporate information
- Part 2 – Computation of balance due or overpayment
- Part 3 – Computation of tax on business income base
- Part 4 – Computation of tax on capital base
- Part 6 – Computation of business apportionment factor
Note: Part 6 must be completed, even if your business apportionment factor is 100%, to account for the receipts your fixed dollar minimum tax amount is based on.
What parts you may have to complete on Form CT-3
If you have investment capital, Part 5 must be completed. Also, Form CT-3.1, Investment and Other Exempt Income and Investment Capital must be filed.
If you are claiming any tax credits, Part 7 must be completed. Also, each applicable tax credit form must be filed.
Other forms you may need to file:
|If||you must file|
|you are reporting any required New York State additions to, or subtractions from, federal taxable income in Part 3,||Form CT-225, New York State Modifications.|
|you have an amount of unabsorbed New York State net operating loss available to carry forward,||Form CT-3.3, Prior Net Operating Loss Conversion (PNOLC) Subtraction.|
|you are carrying a balance of any portion of a net operating loss attributable to any tax year that first began on or after January 1, 2015,||Form CT-3.4. Net Operating Loss Deduction (NOLD).|
|you do business, employ capital, own or lease property, maintain an office, or derive receipts from activity in any of the 12 counties of the MCTD,||Form CT-3-M, General Business Corporation MTA Surcharge return.|
|any of the following apply:
||Form CT-60, Affiliated Entity Information Schedule.|