Form Co-420 - Vermont Foreign Dividend Factor Increments Page 2
ADVERTISEMENT
1
2Vermont Department of Taxes
FOREIGN DIVIDEND FACTOR INCREMENTS, FORM CO-420
INSTRUCTIONS
– Unitary Filing Only (VT Form CO-411U)
Please print clearly in BLUE or BLACK ink only.
Prepare a VT Form CO-420 to support each CO-419 that is included with the unitary return.
Vermont provides factor relief for the dividends received from overseas business organizations as defined in 1.5862(d). In
order to obtain factor relief, a separate apportionment percentage for foreign dividends must be calculated.
Column A
Column F
List in Column A the unitary foreign dividend
Enter the total Salaries and Wages. Refer to
payors whose dividends qualify for factor
Vermont Reg. §1.5833.
relief, including those from:
Columns
Enter the beginning and ending property
Vermont overseas business organization
valued at original cost. Refer to Vermont
as defined in Vermont Reg. §1.5862(d)-5
Reg. §1.5833.
is an entity whose income is included in
G & H
a consolidated US income tax return but
Column I
Enter the results of the sum of Column G and
whose activities are primarily outside the US
Column H divided by 2.
because 80 percent or more of the average of
payroll and property is outside the 50 states
Column J
Enter the valuation of rented real and personal
and the District of Columbia.
property valued at 8 times the gross annual
rental rate.
Controlled foreign corporations (CFC) that
meet the payroll and property requirements
Column K
Enter the total of Columns I and J.
of an overseas business organization as
Columns
Enter the product of Column D multiplied
defined in Vermont Reg. §1.5862(d)-5.
L, M, and N
by Columns E, F, and K, respectively. The
IRC Section 936 Sales Companies that meet
total of Columns L, M, and N will be used
the payroll and property requirements of an
on Form CO-419, Lines 2, 7, and 11 to
overseas business organization.
modify the apportionment percentage used
to determine the amount of foreign dividends
Foreign sales corporation (FSC) that meet
from unitary sources subject to Vermont
the payroll and property requirements of
Corporate Income Tax.
an overseas business organization.
USE ADDITIONAL SHEETS IF NECESSARY
Business organizations meeting the payroll
and property requirements of an overseas
NOTE: A printed copy containing all information required
business organization which made deemed
on CO-420 may be substituted.
dividends to a member of the unitary group.
FOR EACH UNITARY DIVIDEND PAYOR LISTED ABOVE,
CONTACTING THE DEPARTMENT
PROVIDE THE FOLLOWING INFORMATION IN US DOLLARS:
Mailing address:
Column B
Enter the amount of the dividend paid or
Vermont Department of Taxes
deemed paid.
133 State Street
Montpelier, VT 05633-1401
Column C
Enter the taxable income computed using US
tax standards.
Taxpayer Services: (802) 828-5723
Column D
Enter the result of Column B divided by
Email Address: tax-corpincome@state.vt.us
Column C, expressed as a decimal to 6
Web site Address:
places. If this amount is greater than 1, enter
Fax: (802) 828-5787
“1.000000”. If this amount is less than zero,
enter “0”.
Forms: (802) 828-2515
Column E
Enter the Sales and Receipts less returns and
Form CO-420
allowances. Refer to Vermont Reg. §1.5833.
Rev. 10/11
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial