Instructions For Form Ct-240 - Foreign Corporation License Fee Return

CT-240 (10/03) (back)

Instructions

A foreign corporation must pay a license fee for the privilege of exercising its

Line 8 — Enter total license fee paid with prior license fee returns. Do not

corporate franchise or carrying on its business in New York State. This fee is in

include interest or additional charges paid with prior returns.

addition to the annual franchise tax and is payable only once, unless the capital

Line 10 — If you do not pay the license fee on or before the due date of the

share structure changed or the amount of capital stock employed in New York

return, you must pay interest on the amount of the underpayment

State increased since the last license fee return was filed. Some changes in

from the due date to the date paid. (See Note below.)

capital share structure are:

Line 11 — Late filing and late payment penalties

— stock split;

Compute charges for late filing and late payment on the amount of the fee minus

— issuance of authorized stock;

any payment made on or before the due date (with regard to any extension of

— change of par value stock to no-par value stock; and

time for filing).

— change of no-par value stock to par value stock.

A If you do not file a return when due, add to the fee 5% per month up to 25%

(section 1085(a)(1)(A)).

Who must file —

All foreign corporations (except banking corporations as

defined in paragraphs 1 - 8 of section 1452(a), insurance corporations,

B If you do not file a return within 60 days of the due date, the addition to the

limited liability companies (LLC), limited liability partnerships (LLP), and

fee in item A above cannot be less than the smaller of $100 or 100% of the

amount required to be shown (section 1085(a)(1)(B)).

publicly traded partnerships taxed as corporations under the Internal

Revenue Code) that do business in New York State must file Form CT-240. This

C If you do not pay the fee shown on a return, add to the fee ½% per month up

includes foreign corporations that have elected to be New York State

to 25% (section 1085(a)(2)).

S corporations.

D The total of the additional charges in items A and C above may not exceed

5% for any one month, except as provided for in item B above (section

A foreign corporation that is subject to the New York State franchise tax under

1085(a)).

Article 32, section 1452(a)(9), or a foreign bank holding company that is

included in a combined return under Article 32, section 1462(f), is required to

If you think you are not liable for these additional charges, attach a statement to

file a license fee return. However, a foreign corporation or bank holding company

your return explaining the delay in filing or payment (section 1085).

that would not otherwise be taxable in New York State, except for its inclusion in

Note: You may compute the interest and penalty by accessing our Web site at

a combined return under Article 9-A or Article 32 of the Tax Law, is not required

to file a license fee return.

www3.tax.state.ny.us/PAIC/PAICHomeServlet

or you may call 1 800 972-1233, and we will compute the interest and penalty

All foreign corporations included in a combined return under Article 9-A or

for you.

Article 32 of the Tax Law that would be taxable in New York State if they filed

separate returns are required to file the license fee return and compute the

Schedule A — License fee allocation — foreign corporations

license fee on an individual basis.

(including S corporations and corporations included in a

When and where to file —

File Form CT-240 with the first franchise tax

combined return) taxable under Article 9-A, Tax Law

return, within 2½ months after the end of the fiscal or calendar year, and

Add the allocated New York State business capital, allocated New York State

whenever a change is made in the capital share structure of the corporation or

investment capital, and the allocated New York State subsidiary capital, then

whenever the amount of capital stock employed in New York State has increased

divide the result by total capital.

since the last license fee return was filed. When filing Form CT-240 other than

Allocated NYS capital

Capital everywhere

Example:

with your franchise tax return, mail to:

NYS CORPORATION TAX, PROCESSING UNIT,

PO BOX 22038, ALBANY NY 12201-2038

Business capital

$750,000

$1,000,000

Investment capital

5,000

50,000

Private delivery services — If you choose, you may use a private delivery

Subsidiary capital

100,000

service, instead of the U.S. Postal Service, to file your return and pay tax.

However, if, at a later date, you need to establish the date you filed your return

$855,000

$1,150,000

or paid your tax, you cannot use the date recorded by a private delivery service

License fee allocation percentage: 74.3478% (855,000 ÷ 1,150,000)

unless you used a delivery service that has been designated by the

Combined filers: If you file Form CT-3-A, calculate, as if you were filing on a

U.S. Secretary of the Treasury or the Commissioner of Taxation and Finance.

separate basis, your allocated business and investment capital, and total capital,

(Currently designated delivery services are listed in Publication 55, Designated

on Form CT-3, and your allocated subsidiary capital on Form CT-3-ATT. If you file

Private Delivery Services. See Need help? below for information on ordering

Form CT-3-S-A, calculate, as if you were filing on a separate basis, these capital

forms and publications.) If you have used a designated private delivery service

items on Form CT-3-S-ATT.

and need to establish the date you filed your return, contact that private delivery

Line 13 — Enter the amount from Form CT-3, line 39, or add the amounts from

service for instructions on how to obtain written proof of the date your return was

Form CT-3-S-ATT, lines 41 and 42, and enter the total, whichever is applicable.

given to the delivery service for delivery. If you use any private delivery service,

whether it is a designated service or not, address your return to: State

Line 14 — Enter the amount from Form CT-3-ATT, line 55, or Form CT-3-S-ATT,

Processing Center, 431C Broadway, Albany NY 12204-4836.

line 43, whichever is applicable.

License fee rates —

The license fee rate is five cents on each share of

Line 16 — Enter the amount from Form CT-3, line 32, or Form CT-3-S-ATT,

no-par value stock and 1/20th of 1% of the value of par value stock. The

line 36, whichever is applicable.

minimum license fee is $10.

Schedule B — License fee allocation — foreign corporations

When the license fee is recomputed, the amount of any license fee previously

taxable under Article 9, Tax Law

paid may be taken as a credit against the recomputed license fee. However, no

credit for license fees previously paid will be allowed for a foreign corporation

Compute your license fee allocation percentage by dividing assets employed in

that merges or reincorporates in another state. Refunds will not be made to a

New York State by total assets. Do not include cash or U.S. obligations as part of

corporation when a recomputed fee is less than the fee previously paid.

assets.

Whole dollar amounts —

You may elect to show amounts in whole dollars

Schedule C — License fee allocation — foreign corporations

rather than in dollars and cents. Round any amount from 50 cents through

taxable under Article 32, Tax Law

99 cents to the next higher dollar. Round any amount less than 50 cents to the

next lower dollar.

Add together business capital and subsidiary capital allocated to New York State

Negative amounts —

and divide the result by total capital. Foreign corporations taxable under section

Show any negative amounts in parentheses.

1452(a)(9), and foreign bank holding companies included in a combined return

Percentages —

When computing allocation percentages, convert decimals

under section 1462(f), are required to compute the license fee allocation in the

into percentages by moving the decimal point two spaces to the right. Carry

same manner as the issuer’s allocation percentage. The computation of the

percentages to four decimal places. For example: 5,000/7,500 = 0.6666666 =

issuer’s allocation percentage is described in the instructions for Form CT-32,

66.6667%.

Banking Corporation Franchise Tax Return.

Specific instructions

Need help?

Computation of license fee

Internet access:

Line 1 — Enter the total face value of issued par value stock. Do not include

(for information, forms, and publications)

treasury stock.

Fax-on-demand forms: 1 800 748-3676

Line 4 — Enter the total number of shares of no-par value stock issued. Do

not include treasury stock.

Business Tax Information Center:

1 800 972-1233

From areas outside the U.S. and outside Canada:

(518) 485-6800

Hearing and speech impaired (telecommunications device for the deaf

41602030094

(TDD) callers only): 1 800 634-2110

Instructions For Form Ct-240 - Foreign Corporation License Fee Return - New York

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