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 calculate 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 – Calculation of investment capital for the current tax year |
| Part 2 – Calculation of balance due or overpayment | Part 6 – Calculation of business apportionment factor |
| Part 3 – Calculation of tax on business income base | Part 7 – Summary of tax credits claimed |
| Part 4 – Calculation 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 – Calculation of balance due or overpayment
- Part 3 – Calculation of tax on business income base
- Part 4 – Calculation of tax on capital base
- Part 6 – Calculation 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. If you have no receipts required to be included in the denominator of the apportionment factor, you must mark the box at the beginning of Part 6 and attach a statement explaining why you have no receipts required to be included in the business apportionment factor.
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. |