Instructions For Pa-20s/pa-65 Schedule H-Corp - Pennsylvania Department Of Revenue - 2012
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Pennsylvania Department of Revenue
Instructions for PA-20S/PA-65 Schedule H-Corp
Apportioned Business Income (Loss) Calculation of PA
Net Business Income (Loss)
Important.
Non Filing Corporate Partner
Do not use PA-
General Information
If the partnership is required to
20S/PA-65 Schedule H-Corp
withhold corporate net income tax for
to arrive at the calculations for non-
nonfiling corporate partner(s), it
corporate owner’s income.
Purpose of Schedule
must complete PA-20S/PA-65
The PA-20S/PA-65 Schedule H-Corp
Schedule CP. The apportionment
Apportionment for
is for information purposes only.
figure used to calculate the corporate
Tax Type
Partnerships are required to
net income tax withholding should be
complete this schedule and provide a
the Pennsylvania apportionment
Certain types of entities – such as
copy of the PA-20S/PA-65 Schedule
figure derived from PA-20S/PA-65
limited liability companies and
H-Corp to all partners who are PA S
Schedule H-Corp prepared for the
business trusts – are generally
corporations, partnerships, limited
corporate net income tax.
subject to the capital stock/foreign
liability companies and C
franchise tax even though they may
corporations. All amounts not in
Apportioned Business
not be subject to the corporate net
agreement with information on
income tax consistent with their
Income (Loss) for
federal Form 1065 must be
federal income tax classification as a
reconciled.
Corporate Partners
partnership or disregarded entity.
In situations where a corporate
Only
Important.
Railroad, truck,
taxpayer has an investment in a
bus, airline, pipeline, natural
If the partnership derives business
limited liability company or other
gas or water transportation
income from sources within and
business entity subject to capital
companies do not use the 3 factor
outside Pennsylvania or totally within
stock/foreign franchise tax, but not
approach shown on PA-20S/PA-65
Pennsylvania, complete this form.
subject to corporate net income tax,
Schedule H-Corp. Rather, they use a
The entity calculates a decimal
the apportionment factors used in
special apportionment at the bottom
figure from a formula, which consists
the calculation of corporate net
of the schedule.
of an average of the sum of the
income tax will include the property,
following three fractions: property
payroll and sales of the limited
For the corporate partner, the
factor, payroll factor and sales factor.
liability company or business trust.
partnership uses PA-20S/PA-65
However, the activity of the limited
Schedule H-Corp to calculate the
Note.
A partnership with no
liability company will not be included
apportionment for Line 14 of the PA-
in the apportionment factors used for
Pennsylvania activity (no
20S/PA-65 Schedule CP if they are
the calculation of capital
Pennsylvania-source income
required to file a PA-65 Corp for
stock/foreign franchise tax.
and/or no Pennsylvania assets) is still
nonfiling C corporation(s).
Accordingly, a limited liability
required to complete the PA-20S/PA-
For the partner who is a
company or business trust that is
65 Schedule H-Corp showing the
partnership, the PA-20S/PA-65
subject to the capital stock/foreign
total property, payroll and sale of the
Schedule H-Corp ensures that if the
franchise tax but not subject to the
partnership.
partnership, as an owner, has
corporate net income tax, should
When completing this form, enter
corporate partners, the corporate
check the box for “Corporate Net
the name, the federal employer
partners will have the necessary
Income Tax Only” when reporting its
identification number (FEIN) and the
documentation for apportionment to
apportionment factors and provide a
date the taxable period ended for the
calculate PA corporate net income
second PA-20S/PA-65 Schedule
partnership.
tax, capital stock/foreign franchise
H-Corp marked “Capital Stock/
tax.
Foreign Franchise Tax Only”
Completing
For a limited liability company
reporting zeros for each factor.
and PA S corporation, the PA-
A partnership with investments in
PA Schedule H-Corp
20S/PA-65 Schedule H-Corp is used
these types of entities is also
to calculate capital stock/foreign
required to provide two PA-20S/PA-
franchise tax.
Apportionment for (Tax
65 Schedules H-Corp: one for
The PA-20S/PA-65 Schedule H-
Type)
“Corporate Net Income Tax Purposes
Corp property, payroll and sales
Only” including the activity of the
Check the appropriate box for the
factors of this entity should be
underlying limited liability companies
type of tax the entity is reporting.
included with the other respective
and business trusts, and another for
See
Apportionment for Tax
Type.
property, payroll and sales factors at
“Capital Stock/Foreign Franchise Tax
the corporate level to determine the
Only” excluding the property, payroll
applicable corporate net income tax
and sales of those entities.
associated with the distributive share
from the entity.
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