5 Del. Admin. Code § 1110-3.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 1110-3.0 - Estimated Franchise Tax

3.1 A resulting branch or branches in this State of an out-of-state bank whose franchise tax liability for the current year, on a consolidated basis, is estimated to exceed $10,000 shall file an estimated franchise tax report with the State Bank Commissioner and pay estimated tax.

3.2 Filing. The estimated franchise tax report shall be filed with the State Bank Commissioner on the first day of March of the current year.

3.3 Penalty for late filing. A late filing penalty shall be assessed against the taxpayer in the amount of $25 for each day after the due date that the taxpayer fails to file the estimated franchise tax report required above in subsection 3.2, unless the State Bank Commissioner is satisfied that such failure was not willful.

3.4 Form. The estimated franchise tax report shall be in the form set out in Regulation 1111.

3.5 Calculation of estimated tax. The total estimated annual franchise tax shall be calculated as follows:

3.5.1 The estimated net operating income before taxes of the resulting branch or branches in this State of the out-of-state bank, which includes the income of any corporation making an election as provided in Regulation No. 1101 ;

3.5.2 Adjusted for any estimated income from an insurance division or subsidiary;

3.5.3 Less any deductions set forth in 5 Del.C. § 1101;

3.5.4 Multiplied by .56 to arrive at estimated taxable income;

3.5.5 The appropriate rate of taxation set forth in 5 Del.C. § 1105 shall be applied;

3.5.6 The subtotal estimated annual franchise tax shall be adjusted for tax credits applicable pursuant 5 Del.C. § 1105, which are calculated in accordance with Regulation No. 1109 ;

3.5.7 The subtotal estimated annual franchise tax shall be adjusted for Travelink tax credits calculated in accordance with Department of Transportation Travelink tax credit reporting requirements;

3.5.8 The subtotal estimated annual franchise tax shall be adjusted for Historic Preservation Tax Credits calculated in accordance with 30 Del.C. §§ 1811 et seq. and the regulations thereunder. Claimed credits must be accompanied by a Certificate of Completion issued by the Delaware State Historic Preservation Office certifying that the credits have been properly earned, in accordance with 5 Del.C. § 1105 (g). If the credits have been transferred, sold or assigned to the taxpayer by another person, a Certificate of Transfer must also be attached, in accordance with 30 Del.C. § 1814 (c);

3.5.9 The subtotal estimated annual franchise tax shall be adjusted for any other applicable tax credit(s) [attach supporting schedule identifying the credit(s)].

3.6 Payment of estimated tax. The estimated tax liability shall be due and payable as follows:

3.6.1 40% due on or before June 1 of the current taxable year;

3.6.2 20% due on or before September 1 of the current taxable year;

3.6.3 20% due on or before December 1 of the current taxable year.

5 Del. Admin. Code § 1110-3.0

20 DE Reg. 654 (2/1/2017) (Final)