§ 7402. Imposition of tax
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 8, 2022
Effective: July 8, 2022
72 P.S. § 7402
§ 7402. Imposition of tax
<Section 24(3)(ii) of Act 2022, July 8, P.L. 513, No. 53, provides that the addition of subsec. (a)(5) by that Act shall apply to taxable years beginning after December 31, 2022.>
(5)(i) Having substantial nexus in this Commonwealth. Substantial nexus in this Commonwealth means a direct or indirect business activity that is sufficient to grant the Commonwealth authority under the Constitution of the United States to impose tax under this article and for which a basis exists under section 4011 to apportion or allocate the corporation's income to this Commonwealth.
<Section 24(3)(ii) of Act 2022, July 8, P.L. 513, No. 53, provides that the addition of subsec. (a)(6) by that Act shall apply to taxable years beginning after December 31, 2022.>
(6) Paragraph (5) shall not apply to an affiliated entity domiciled in a foreign nation which has in force a comprehensive income tax treaty with the United States providing for the allocation of all categories of income subject to taxation, or the withholding of tax, on royalties, licenses, fees and interest for the prevention of double taxation of the respective nations' residents and the sharing of information.
Taxable Year | Tax Rate |
January 1, 1995, through December 31, 2022 | 9.99% |
January 1, 2023, through December 31, 2023 | 8.99% |
January 1, 2024, through December 31, 2024 | 8.49% |
January 1, 2025, through December 31, 2025 | 7.99% |
January 1, 2026, through December 31, 2026 | 7.49% |
January 1, 2027, through December 31, 2027 | 6.99% |
January 1, 2028, through December 31, 2028 | 6.49% |
January 1, 2029, through December 31, 2029 | 5.99% |
January 1, 2030, through December 31, 2030 | 5.49% |
January 1, 2031, and each taxable year thereafter | 4.99% |
(c) An entity subject to taxation under Article VII, VIII, IX or XV2 shall not be subject to the tax imposed by this article.
Credits
1971, March 4, P.L. 6, No. 2, art. IV, § 402. Amended 1971, Aug. 31, P.L. 362, No. 93, § 5; 1971, Sept. 9, P.L. 437, No. 105, § 3, imd. effective; 1974, March 13, P.L. 179, No. 32, § 5, imd. effective; 1977, Dec. 21, P.L. 330, No. 98, § 3; 1979, July 4, P.L. 60, No. 27, § 2, imd. effective; 1981, May 5, P.L. 36, No. 14, § 3, imd. effective; 1981, Dec. 21, P.L. 482, No. 141, § 3, imd. effective; 1982, Dec. 9, P.L. 1047, No. 246, § 4, effective July 1, 1983; 1984, June 29, P.L. 445, No. 94, § 3, imd. effective; 1986, July 2, P.L. 318, No. 77, § 6, imd. effective; 1991, Aug. 4, P.L. 97, No. 22, § 17, imd. effective; 1994, June 16, P.L. 279, No. 48, § 11, retroactive effective Jan. 1, 1994; 1995, June 30, P.L. 139, No. 21, § 9, effective July 1, 1995; 2002, June 29, P.L. 559, No. 89, § 14, effective July 1, 2002; 2022, July 8, P.L. 513, No. 53, § 7, imd. effective.
72 P.S. § 7402, PA ST 72 P.S. § 7402
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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