Form Nyc-245 Draft - Activities Report Of Business And General Corporations

Instructions

Form NYC-245 - 2017

Page 2

for

that occupy the time or labor of people for

a) the maintenance of cash balances with

For purposes of the Business Corporation

profit. Regardless of the nature of its activi-

banks or trust companies or brokers in

Tax, an alien corporation that under any pro-

ties, every corporation organized for profit

the City;

vision of the Internal Revenue Code is not

and carrying out any of the purposes of its or-

treated as a “domestic corporation” as de-

ganization is deemed to be “doing business”

b) the ownership of shares of stock or secu-

fined in IRC §7701 and has no effectively

for the purpose of the tax. In determining

rities kept in the City, if kept in a safe de-

connected income for the taxable year pur-

whether a corporation is doing business, it is

posit box, safe, vault or other receptacle

suant to clause (iii) of the opening paragraph

immaterial whether its activities actually re-

rented for the purpose, or if pledged as

of Administrative Code §11-652(8) is not

sult in a profit or a loss.

collateral security, or if deposited with

subject to the Business Corporation Tax for

one or more banks or trust companies, or

that taxable year. For purposes of the Busi-

Under the Business Corporation Tax applica-

brokers who are members of a recog-

ness Corporation Tax, an alien corporation is

ble to federal C Corporations for tax years

nized security exchange, in safekeeping

defined as a corporation organized under the

beginning on or after January 1, 2015, a cor-

or custody accounts;

laws of a country, or any political subdivision

poration is doing business in the city if:

thereof, other than the United States, or or-

c) the taking of any action by any such bank

ganized under the laws of a possession, terri-

(1) it has issued credit cards to one thousand

or trust company or broker which is in-

tory or commonwealth of the United States.

or more customers who have a mailing

cidental to the rendering of safekeeping

See Administrative Code Section 11-653(2-

address within the city as of the last day

or custodial service to the corporation;

a).

of its taxable year,

NOTE: For additional guidance concerning

d) the maintenance of an office in the City

(2) it has merchant customer contracts with

by one or more officers or directors of

what activities constitute "doing business,"

merchants and the total number of loca-

the corporation who are not employees

"employing capital," "owning or leasing

tions covered by those contracts equals

of the corporation as long as the corpo-

property," and "maintaining an office" in

one thousand or more locations in the city

ration is not otherwise doing business or

New York City, see Sections 11-03 and 11-

to whom the corporation remitted pay-

employing capital in the City and does

06 of Title 19 of the Rules of the City of New

ments for credit card transactions during

not own or lease property in the City;

York. For additional information concerning

the taxable year, or

corporations not subject to tax, see Section

e) the keeping of books or records of a cor-

11-04 of those rules and Administrative Code

(3) the sum of the number of customers de-

poration in the City if the books or

Sections 11-603 and 11-653.

scribed in item #1 plus the number of lo-

records are not kept by employees of the

REFUNDS: If a corporation has previously

cations covered by its contracts described

corporation and the corporation is not

in item #2 equals one thousand or more.

otherwise doing business or employing

paid tax or made estimated tax payments for

capital in the City and does not own or

the taxable year and is filing this form dis-

For purpose of these provisions, the term

lease property in the City; or

claiming liability for those taxes, the corpo-

“credit card” includes bank, credit, travel and

ration should file a refund claim and attach

entertainment cards.

See Administrative

f) any combination of the foregoing activities.

this form to that claim.

Code Section 11-653(1)(c).

In addition, a corporation will not be sub-

The term “employing capital” includes any

ject to the General Corporation Tax or

of a large variety of uses, which may overlap

Business Corporation Tax if its sole con-

other categories and give rise to taxable sta-

nection with New York City is:

tus. In general, the use of assets instrumen-

tal in maintaining or aiding the corporate

(i) the maintenance of a statutory office

enterprise or activity in the City will create

at the address of its registered agent

liability. Employing capital includes activi-

or the maintenance of a mailing ad-

ties such as:

dress; or

a) maintaining stockpiles of raw materials

(ii) the mere ownership of shares of

or inventories; and

stock of corporations doing business

in the City.

b) maintaining securities in the City for

trading purposes.

Under Administrative Code Section 11-

653(2-a), an alien corporation is not consid-

Under Sections 11-603.2 and 11-653(2) of

ered to be doing business, etc. in the City if

the Administrative Code, a corporation is not

its activities in the City are limited solely to

considered to be doing business, employing

investing or trading in stocks, securities or

capital, owning or leasing property, or main-

commodities for its own account within the

taining an office in New York City by reason

meaning of the Internal Revenue Code

of:

§864(b)(2)(A) or §864(b)(2)(B).

Form Nyc-245 Draft - Activities Report Of Business And General Corporations - 2017 Page 3

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