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FORM

NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION

FOREIGN DIVIDEND FACTOR INCREMENTS

NH-1120-WE

Schedule III

INSTRUCTIONS

Instructions

New Hampshire law provides for factor relief for the dividends received from overseas business organizations as defined in RSA 77-A:1, XIX. In

order to obtain factor relief, a separate apportionment percentage for foreign dividends must be calculated.

Column A

List in column A the unitary foreign dividend payors whose dividends qualify for factor relief, including those from:

NH 80/20 business organization is defined in Rev 301.11 as an entity whose income is included in a consolidated

US income tax return but whose activities are primarily outside the US because 80 percent or more of the

average of payroll and property is outside the 50 states and the District of Columbia.

Controlled foreign corporations (CFC) that meet the payroll and property requirements of an overseas business

organization as defined in RSA 77-A:1, XIX.

IRC Section 936 Sales Companies that meet the payroll and property requirements of an overseas business

organization.

Foreign sales corporation (FSC) that meet the payroll and property requirements of an overseas business

organization.

Business organizations meeting the payroll and property requirements of an overseas business organization

which made deemed dividends to a member of the unitary group.

FOR EACH UNITARY DIVIDEND PAYOR LISTED ABOVE, PROVIDE THE FOLLOWING INFORMATION IN US DOLLARS:

Column B

Enter the amount of the dividend paid or deemed paid.

Column C

Enter the taxable income computed using US tax standards.

Column D

Enter the result of column B divided by column C, expressed as a decimal to 6 places. If this amount is greater

than 1, enter 1.000000. If this amount is less than zero, enter zero.

Column E

Enter the sales and receipts less returns and allowances pursuant to RSA 77-A:3,I(c). Refer to Rev 304.05.

Column F

Enter the total payroll pursuant to RSA 77-A:3, I(b). Refer to Rev 304.04.

Columns G & H

Enter the beginning and ending property valued at original cost pursuant to RSA 77-A:3, I(a). Refer to Rev 304.03.

Column I

Enter the results of the sum of Column G and Column H divided by the number 2.

Column J

Enter the valuation of rented property valued at 8 times the net annual rental rate pursuant to RSA 77-A:3, I(a).

Refer to Rev 304.03(e).

Column K

Enter the total of Columns I and J.

Columns L, M,& N

Enter the product of Column D times Columns E, F, and K, respectively.

The total of Columns L,M, and N will be used on Schedules II, Lines 1(b), 2(b), and 3(b) to modify the apportionment

percentage used to determine the amount of foreign dividends from unitary sources subject to New Hampshire

Business Profits Tax.

USE ADDITIONAL SHEETS IF NECESSARY

NH-1120-WE

Schedule III

Instructions

Rev. 12/00

Form Nh-1120-We - Combined Business Profits Tax Return - New Hampshire Department Of Revenue Administration Page 4

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