New York Tax Compliance Map
Email: nyc4ww@evershinecpa.com
or
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685
GLA – United States – New York Corporate Income Tax
GLA-US(NY)-01 GLA Tax Entity
Question from client:
Is United States corporate income tax a federal income tax? A state income tax? Or is there a federal and states income tax?
What if the federal income tax and the states income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?
Answer from Evershine RD:
United States (U.S.) companies must pay both Federal Tax and State Tax.
Federal
Federal Corporate Income Tax Rate is 21%.
S corporation is exempt from federal income tax and exempt from paying taxes at the corporate level.
States – New York
State of New York imposed corporation a franchise tax.
New York corporation franchise tax determines the amount of tax due by applying a different rate (applicable for period 01.01.2021-01.01.2024) to each of the following three bases:
(1) business income
| No. | Taxpayer | Tax rate |
| 1 | General business taxpayers | 6.5% |
| 2 | General business taxpayers with a business income base of more than $5million | 7.25% |
| 3 | Qualified New York manufacturers | 0% |
| 4 | Qualified emerging technology companies (QETCs) | 4.875% |
(2) business capital
| No. | Taxpayer | Tax rate |
| 1 | General business taxpayers (Tax on capital limited to $5,000,000) |
0.1875% |
| 2 | Qualified NY manufacturers, QETCs, small businesses and cooperative housing corporations | 0% |
(3) fixed dollar minimum
| No. | General business taxpayers – Corporation with New York State receipts of: | Tax |
| 1 | Not more than $100,000 | $25 |
| 2 | More than $100,000 but not more than $250,000 | $75 |
| 3 | More than $250,000 but not more than $500,000 | $175 |
| 4 | More than $500,000 but not more than $1 million | $500 |
| 5 | More than $1 million but not more than $5 million | $1,500 |
| 6 | More than $5 million but not more than $25 million | $3,500 |
| 7 | More than $25 million but not more than $50 million | $5,000 |
| 8 | More than $50 million but not more than $100 million | $10,000 |
| 9 | More than $100 million but not more than $250 million | $20,000 |
| 10 | More than $250 million but not more than $500 million | $50,000 |
| 11 | More than $500 million but not more than $1 billion | $100,000 |
| 12 | More than $1 billion | $200,000 |
C corporation’s tax liability is equal to the highest of these three (1), (2), (3) amounts.
New York allows localities to impose corporate income tax.
GLA-US(NY)-02 Registration
Question from client:
Which government unit is responsible for the collection of United States corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?
Answer from Evershine RD:
Federal
Federal taxes are governed by Inland Revenue Service (IRS).
Employer Identification Number (EIN) serves as a tax ID number for organizations.
EIN can be registered online via www.irs.gov/ein and get the EIN immediately online.
It must be registered under the responsible party, who is someone in control and must be an individual.
States – New York
The New York Department of Taxation and Finance is the agency authorized to administer and collect taxes.
When the New York State Department of State notifies the New York State Tax Department that a new corporation has been formed, the New York State Tax Department automatically assigns an identification number prefixed by the letters TF.
The New York State Tax Department will notify you of this identification number by mailing a form CT-198, Corporation Tax Account Information, to the address provided by the Department of State.
To create a Business Online Services account at https://www8.tax.ny.gov/OSBZ/osbzStart.
GLA-US(NY)-03 GLA Order (OD)
Question from client:
What is the order of United States corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?
Answer from Evershine RD:
Deposit first (DF). Pay by installment first and declare later.
GLA-US(NY)-04 Mechanism of Filing (MOF)
Question from client:
What is the return method for United States corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?
Answer from Evershine RD:
Federal
Filing deadline for final corporate tax return:
C corporation – 15th day of the 4th month following the fiscal year.
S corporation – 15th day of the 3rd month following the fiscal year.
Filing form:
C corporation – 1120 (income tax), 1120-W (estimated tax)
S corporation – 1120S (income tax), 1120-W (estimated tax)
Filing method:
File returns either on paper or electronically.
If file electronically and choose to make their own income tax returns, purchase software approved for electronic filing and take steps to register and complete the IRS e-filing application. Should discuss various electronic filing methods with the software vendor.
Otherwise, check with a tax professional to prepare their electronic income tax returns earlier and ensure they are an IRS-authorized electronic document provider.
Visit https://www.irs.gov/tax-professionals/e-file-provider-services
States – New York
| Form | Conditions | File and pay due date | Installment | |||
| CT-300 (MFI) | If C corporation’s estimated franchise, or gross receipts tax for 2nd preceding tax year >$1,000 | 15th of the 3rd month of the tax year | Estimated franchise, or gross receipts tax | MFI | ||
| Not more than $100,000 | 25% | |||||
| More than $100,000 | 40% | |||||
| CT-400 | If do not have 2nd preceding tax year because a return was not required to be filed, or If the estimated franchise, or gross receipts tax will >$1,000 in the current tax year |
15th of the 6th, month of current tax year | Installment | MFI at 25% | MFI at 40% | Without MFI |
| 2nd (6th month) | 25% | 20% | 33% | |||
| 3rd (9th month) | 25% | 20% | 33% | |||
| 4th(12th month) | 25% | 20% | 34% | |||
| CT-3 | C corporation | 15th of the 4th month of tax year | N/A | |||
| CT-3-S | S corporation | Within 2 ½ months after the end of reporting period. | N/A | |||
Filing methodsCT-300: Mandatory First Installment (MFI) of Estimated Tax for Corporations
CT-400: Estimated Tax for Corporation
CT-3: General Business Corporation Franchise Tax Return
CT-3-S: New York S Corporation Franchise Tax Return
- Log in to or create Business Online Services account at https://www.tax.ny.gov/online/ and select Corporation Tax Web File.
- Tax preparation approved software to submit Form CT-400.
- File paper and mail to the following address:
CT-300 / CT-400
NYS ESTIMATED CORPORATION TAX
PO BOX 15200
ALBANY NY 12212-5200
CT-3
NYS CORPORATION TAX
PO BOX 15181
ALBANY NY 12212-5181
CT-3-S
NYS CORPORATION TAX
PO BOX 15182
ALBANY NY 12212-5182
GLA-US(NY)-05 Mechanism of Payment (MOP)
Question from client:
What is the funding method for United States corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?
Answer from Evershine RD:
Federal
Payment deadline for estimated corporate tax return (Form 1120-W):
15th day of the 4th, 6th, 9th, and 12th months of the tax year.
It is 25% of the corporation’s estimated total taxes for the current year or 25% of the corporation’s taxable income for the previous year (the latter option is not available to corporations with annual income of over $1 million).
Installment payments are not required if the estimated tax is less than $500.
Any corporation that is required to deposit estimated taxes must do so through electronic funds transfer. A U.S. bank account is not required for such transfers if other requirements are met.
Payment method:
EFTPS – Electronic Federal Tax Payment System via https://www.eftps.gov/eftps/.
States – New York
| Form | Conditions | File and pay due date | Installment | |||
| CT-300 (MFI) | If C corporation’s estimated franchise, or gross receipts tax for 2nd preceding tax year >$1,000 | 15th of the 3rd month of the tax year | Estimated franchise, or gross receipts tax | MFI | ||
| Not more than $100,000 | 25% | |||||
| More than $100,000 | 40% | |||||
| CT-400 | If do not have 2nd preceding tax year because a return was not required to be filed, or If the estimated franchise, or gross receipts tax will >$1,000 in the current tax year |
15th of the 6th, month of current tax year | Installment | MFI at 25% | MFI at 40% | Without MFI |
| 2nd (6th month) | 25% | 20% | 33% | |||
| 3rd (9th month) | 25% | 20% | 33% | |||
| 4th(12th month) | 25% | 20% | 34% | |||
| CT-3 | C corporation | 15th of the 4th month of tax year | N/A | |||
| CT-3-S | S corporation | Within 2 ½ months after the end of reporting period. | N/A | |||
Payment methods
CT-300: Mandatory First Installment (MFI) of Estimated Tax for Corporations
CT-400: Estimated Tax for Corporation
CT-3: General Business Corporation Franchise Tax Return
CT-3-S: New York S Corporation Franchise Tax Return
- Electronic payments through Online Services at https://www.tax.ny.gov/online/.
- non-electronic payments such as checks and money orders when a taxpayer files a paper return or when an electronic filer is unable to pay electronically.
SUT – United States – New York Sales and Use Tax
SUT-US(NY)-01 VAT Tax Entity
Question from client:
Is United States Sales and Use Tax (SUT) levied at Federal? States? Or is there a federal plus States SUT?
What if the Federal and States SUT are levied separately or levied together?
What is the standard SUT rate? What are the special SUT rate?
Answer from Evershine RD:
There is no VAT in the United States.
The U.S. federal government currently does not levy either a national VAT or a national general sales tax. Nor do any states impose a VAT.
U.S. state SUT rates range between 2.9% and 7.25%.
Many municipalities also levy local sales taxes.
States – New York
New York imposes 4% state sales and use tax.
Localities (cities, counties) impose additional local sales and use tax.
The minimum local tax rate in 2022 is 3%. The maximum local tax rate in 2022 is 4.875%.
There is no uniform local rate in New York.
An additional sales tax rate of 0.375% applies to taxable sales made within the Metropolitan Commuter Transportation District (MCTD).
For example, Combined States and local Sales and Use Tax in New York City is 8.875%.
SUT-US(NY)-02 Registration
Question from client:
Which government unit is responsible for the levying of Sales and Use Tax in the United States?
The registration of United States Sales and Use Tax levy status, that is, the application procedure for Sales and Use Tax certificate number, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for a Sales and Use Tax certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?
Answer from Evershine RD:
States customarily require sellers, vendors, and retailers to register with the state to obtain a permit to collect and remit sales and use tax, provided certain thresholds are met.
You need a sales permit when you have physical presence or economic nexus of $100,000 annual sales.
Businesses that conduct taxable transactions in several states are required to register separately in each state.
States – New York
New York’s sales and use taxes are administered and collected by the New York Department of Taxation and Finance.
Every person who sells taxable tangible personal property or taxable services must register with the Department of Taxation and Finance as a vendor.
You must register with the Tax Department and obtain a Certificate of Authority if you make sales in New York State that are subject to sales tax.
The application date is at least 20 days before the business operation.
To apply, you need to create a NY.gov Business account to access New York Business Express via https://www.businessexpress.ny.gov/app/loginregister/?p_next_page=%2Fcc%2FCore%2FstartIntake%3FlicenseTypeCode%3DDTF17%26appTypeCode%3DINITAPP .
File the application online or paper, Form DTF-17 Application to Register for a Sales Tax Certificate of Authority.
The average processing time is 5 days.
If approved, the tax department will mail the Certificate of Authority to you.
SUT-US(NY)-03 WWT Order (OD)
Question from client:
What is the order of United States Sales and Use Tax declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay? At the same time as the declaration and payment?
Answer from Evershine RD:
Same period (SP): Filing of SUT return and pay the taxes.
SUT-US(NY)-04 Mechanism of Filing (MOF)
Question from client:
What is the return method for United States Sales and Use Tax declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?
Answer from Evershine RD:
U.S. state Sales and Use Tax laws most commonly require filings (with payment) monthly, although smaller sellers and special situations may be accorded less frequent filing intervals.
The most common times specified for filing and payment are 15 or 20 days after the close of a month.
States – New York
Sales tax vendors must Web file their sales tax returns if they meet all three of the following conditions:
- Prepare tax documents themselves, without the assistance of a tax professional.
- Use a computer to prepare, document or calculate the required filings, or are subject to the corporation tax e0file mandate.
- Have broadband internet access.
You can file the sales tax returns online using the Tax department’s Sales Tax Web File.
Visit https://www.tax.ny.gov/bus/st/stmp.htm. Create an Online Services account for your business.
| Filing Frequency | Taxable receipts Threshold | Filing Period end | Deadline | Form |
| Monthly | More than $300,000 in the preceding quarters
|
Every month | 20th every following month | Form ST-809 and Form ST-810 (Quarterly forms for monthly filers) |
| Quarterly | $300,000 or less in the preceding quarters | December – February March – May June – August September – November |
20th every following month of quarter end | Form ST-100 |
| Annually | Owe tax $3,000 or less during an annual filing period | March – February | 20th March every year | Form ST-101 |
SUT-US(NY)-05 Mechanism of Payment (MOP)
Question from client:
What is the funding method for United States Sales and Use Tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter? Or the above methods coexist?
Answer from Evershine RD:
States – New York
New York requires those who are mandated to file electronically, to pay electronically via direct debit.
Taxpayer with annual SUT liability of more than $500,000 in the preceding June 1 through May 31 period, are required to pay and file via the PrompTax program.
Login to Online Services account, under Services select Sales tax – file and pay, then select Sales tax web file and amend the return you want to make payment.
Payments must be made by either ACH debit, ACH credit, Federal Reserve Wire, or certified check.
New York also permits taxpayers who are not subject to a mandate to pay electronically via direct debit.
Please be aware below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.
Contact Us
New York City Evershine BPO Service Limited Corp.
Email: nyc4ww@evershinecpa.com
or
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685
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please send an email to HQ4nyc@evershinecpa.com
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