Quick guide to completing Form CT-3, General Business Corporation Franchise Tax Return
Corporate tax filing requirements
For tax years beginning on or after January 1, 2015, including short periods, all New York C corporations subject to tax under Tax Law Article 9-A (including former Tax Law Article 32 taxpayers) must file using the following returns, as applicable:
- Form CT-3, General Business Corporation Franchise Tax Return
- Form CT-3-A, General Business Corporation Combined Franchise Tax Return
- Form CT-3-M, General Business Corporation MTA Surcharge Return
Note: Form CT-4, General Business Corporation Franchise Tax Return Short Form, is no longer available for any tax year beginning on or after January 1, 2015.
Any return filed on an incorrect form, or on a form for the wrong year, will not be processed and will not be considered timely filed. As a result, penalties and interest may be incurred.
Corporations subject to tax under Tax Law Article 9-A generally must compute three distinct taxes and pay the tax that results in the largest amount owed. The three taxes include a tax on business income, a tax on capital, and a fixed dollar minimum tax.
Content of Form CT-3
|Part 1 – General corporate information||Part 5 – Computation of investment capital for the current tax year|
|Part 2 – Computation of balance due or overpayment||Part 6 – Computation of business apportionment factor|
|Part 3 – Computation of tax on business income base||Part 7 – Summary of tax credits claimed|
|Part 4 – Computation of tax on capital base|
What parts you must complete on Form CT-3
You must complete the following parts of Form CT-3:
- Part 1 – General corporate information
- Part 2 – Computation of balance due or overpayment
- Part 3 – Computation of tax on business income base
- Part 4 – Computation of tax on capital base
- Part 6 – Computation of business apportionment factor
Note: Part 6 must be completed, even if your business apportionment factor is 100%, to account for the receipts your fixed dollar minimum tax amount is based on.
What parts you may have to complete on Form CT-3
If you have investment capital, Part 5 must be completed. Also, Form CT-3.1, Investment and Other Exempt Income and Investment Capital must be filed.
If you are claiming any tax credits, Part 7 must be completed. Also, each applicable tax credit form must be filed.
Other forms you may need to file:
|If||you must file|
|you are reporting any required New York State additions to, or subtractions from, federal taxable income in Part 3,||Form CT-225, New York State Modifications.|
|at the end of your last tax year that began before January 1, 2015, you have an amount of unabsorbed New York State net operating loss available to carry forward into your first tax year that begins on or after January 1, 2015,||Form CT-3.3, Prior Net Operating Loss Conversion (PNOLC) Subtraction.|
|you are carrying a balance of any portion of a net operating loss attributable to any tax year that first began on or after January 1, 2015,||Form CT-3.4. Net Operating Loss Deduction (NOLD).|
|you do business or derive receipts from activity in any of the 12 counties of the MCTD,||Form CT-3-M, General Business Corporation MTA Surcharge return.|
|any of the following apply:
||Form CT-60, Affiliated Entity Information Schedule.|