Quick guide to completing Form CT-3, General Business Corporation Franchise Tax Return
Corporate tax filing requirements
All New York C corporations subject to tax under Tax Law Article 9-A 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
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.
Tax Bases
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 are:
- 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. |
| you have an amount of unabsorbed New York State net operating loss available to carry forward, | 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, employ capital, own or lease property, maintain an office, 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. |