Hearing On Proposed New Rules Could Dramatically Impact B&O Taxes For Service Industry Businesses

more+
less-

The Washington State Department of Revenue (“Department”) has recently announced that it will be holding a hearing on April 19 in Olympia on two proposed permanent rules implementing single factor receipts apportionment. Proposed Rule 19402 is the general rule that will apply to most businesses that report under apportionable business and occupation (“B&O”) tax classifications, which includes the “service and other” classification. Proposed Rule 19403 addresses apportionment of royalty income.

Under the single factor receipts apportionment, a business’s Washington taxable gross income is determined by multiplying “apportionable gross income” by a “receipts factor,” the numerator of which is gross income “attributable” to Washington business activities. The denominator of the receipts factor is world-wide gross income from the same class of activity.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Lane Powell PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×