Definitions for Article 33 corporations
The entire net income base equals federal taxable income with certain modifications for items of income and deduction that New York State treats differently. The tax rate for entire net income for life insurance corporations is 7.1% (.071).
The business and investment capital base is the average fair market value of all the corporation's assets minus its average current liabilities minus subsidiary capital. The tax rate for business and investment capital is 0.16% (.0016).
The alternative tax base is computed using the entire net income plus the total salaries and compensation paid to the officers and stockholders. For additional information on how to compute the alternative tax, see the instructions for Form CT-33.
The metropolitan transportation business tax (MTA surcharge) applies if your corporation does an insurance business, employs capital, owns or leases property, or maintains an office in the Metropolitan Commuter Transportation District (MCTD). The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
Subsidiary capital is all investments in the capital stock of subsidiary corporations plus all indebtedness from subsidiary corporations (other than accounts receivable acquired in the ordinary course of a trade or business for services rendered, or for sales of property held primarily for sale to customers).
Premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, including premiums deposits, assessments, policy fees, membership fees, any separate costs assessed upon policy holders, and every other compensation for such contract.
Estimated tax is the amount of estimated franchise tax for the current tax year minus the amount of estimated allowable tax credits for the current tax year. A corporation doing business in the Metropolitan Commuter Transportation District that owes estimated franchise tax must also pay an estimated MTA surcharge.