The Corporate Business Tax (CBT) rate in New Jersey is 9% on the adjusted total net income or on the portion assignable to the state. If a taxpayer is part of a consolidated return, but files a separate return in New Jersey, then the federal Schedule M-3 must be based on a separate entity. However, dividends that have been previously taxed by New Jersey are not included in Schedule P, but must be reported in Schedule PT. Inactive companies must complete Page 1, the General Annual Questionnaire and Annexes A (Parts I, II and III), A-2, A-3, A-4 and A-GR of the CBT-100.In addition to the personal corporate income tax, many states also charge an additional company tax.
A corporate officer must sign and certify that the corporation did not conduct any business, had no income, receipts or expenses, and that it did not own any assets for the entire period covered by the tax return. If the due date falls on a weekend or a legal holiday, then the return and payment are due on the next business day.The final month of the accounting period for federal returns and New Jersey returns must coincide; however, the tax reporting year for federal and state returns may differ. Water's-Edge group returns, which is the default filing method for combined groups, include only entities that have significant business operations within the state. In addition, taxpayers must check their type of ownership (general or limited), their tax accounting method used to reflect their participation in the business of association in this statement (flow through method or separate accounting) and whether or not they have a nexus in New Jersey.Foreign corporations that are partners in a New Jersey corporation are considered taxable in the state and must file a return.
New Jersey imposes one of the highest corporate tax rates in the country at 11.5%, according to a new report released Tuesday by the Tax Foundation. If a taxpayer's business involves buying and selling real estate or buying and selling securities for commercial purposes, gross proceeds from such sales should be included in the numerator and denominator of the income fraction. Total payroll refers to the total payroll of the affiliated group rather than just one corporation.Each statement must be signed by an official of the corporation who is authorized to attest to its veracity.
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