006.05.523-II. Definitions.
AR ADC 006.05.523-IIArkansas Administrative CodeEffective: November 28, 2022
Effective: November 28, 2022
Ark. Admin. Code 006.05.523-II
006.05.523-II. Definitions.
As used in this rule:
(a) “Affected business entity” means a business entity in which members that hold more than fifty percent (50%) of the voting rights in the business entity elect on an annual basis before the due date or extended due date of the business entity's income tax return to be taxed under the Elective Pass-Through Entity Act. Ark. Code Ann. § 26-65-101 et seq.
(k) “Substantially Similar Tax” means a tax that is levied on the aggregate taxable income of each of the persons that have an ownership interest in an entity that is engaged in business for profit. The Department will annually publish a non-exhaustive list of states that have enacted a substantially similar tax on its website prior to February 1 of each year. The final such list will be published in February 2026 unless the Secretary, in his or her sole discretion, decides to publish the list in one or more subsequent years. Any changes in law that affect the levy, collection, implementation, administration, remittance, or calculation of a substantially similar tax could result in that tax being treated as not substantially similar, regardless of its inclusion in the annual list of substantially similar taxes. The fact that a tax is not included on the annual list is not conclusive to the determination of whether the tax is a substantially similar tax.
Credits
Adopted Nov. 28, 2022.
Authority. Ark. Code Ann. § 26-65-102; Ark. Code Ann. § 26-65-105.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.523-II, AR ADC 006.05.523-II
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