Who must pay the general corporation tax?
- Doing business;
- Employing capital;
- Owning or leasing property, in a corporate or organized capacity; or
- Maintaining an office.
Who is exempt from the general corporation tax?
The instructions to Forms NYC-3L and NYC-4S explain in detail what types of corporations are exempt from the General Corporation Tax:
- Dormant S corporations, which did not engage in any business activity or hold title to real property located in New York City
- S corporations subject to tax under the banking corporation tax
- S corporations subject to the utility tax, except vendors of utility services which are subject to the GCT
- S corporations organized to hold title to property as described in sections 501(c)(2) or (25) of the Internal Revenue Code
- Insurance Corporations
- Non-stock not-for-profit companies that are granted an exemption by the New York City Department of Finance
- Limited profit housing and housing development fund companies organized and operating under articles 2 and 11, respectively, of the Private Housing Finance Law
Effective for tax years beginning on or after January 1, 2015, the GCT only applies to Subchapter S Corporations and Qualified Subchapter S Subsidiaries under the U.S. Internal Revenue Code. These corporations will continue to file GCT tax returns in tax years beginning on or after January 1, 2015, if they are otherwise taxable under the GCT. The applicable forms have not changed. All other corporations are now subject to tax under the Business Corporation Tax and will file Business Corporation Tax returns instead of GCT returns. For more information regarding corporate tax reform please click the Business Corporation Tax page below.
NYC Department of Finance (DOF)
General Corporation Tax Unit
345 Adams Street, 10th Floor
Brooklyn, NY 11201
For further assistance, please call 311 and ask for: General Corporation Tax