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202320232023

CT-1 INSTRUCTIONS

REV-1200 Booklet (SU) 04-24

FOR CALENDAR YEAR 2023 AND FISCAL YEARS BEGINNING IN 2023

PLEASE CAREFULLY REVIEW NEW FOR 2023 AND HIGHLIGHTS
BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES.

NEW FOR 2023 purposes, Section 163(j) limits the deductibility of interest expense
1. The RCT-101, PA Corporate Net Income Tax Report; RCT-101I, in the current tax year of certain U.S. taxpayers for tax years
Inactive PA Corporate Net Income Tax Report; and RCT-128C, beginning on or after January 1, 2018. Pennsylvania Corporation
Report of Change in PA Corporate Net Income Tax Report have an Tax Bulletin 2019-03 provides guidance on how the federal
updated look for 2023 tax year. limitations imposed by the amended Section 163(j) are treated for
2. Taxpayers now have the option to have their refund directly Pennsylvania Corporate Net Income Tax (“CNIT”) purposes.
deposited into a bank account. 3. Taxpayers with $500,000 or more of gross receipts sourced to
3. myPATH is the new online portal that has replaced many of the Pennsylvania have a rebuttable presumption of nexus and should file
Department of Revenue’s online services. myPATH, which stands for a corporate tax report.
‘my Pennsylvania Tax Hub’, provides many self-service options such 4. Solicitation only corporations, as well as corporations with
as registering a new tax account, accurately and securely filing returns, $500,000 or more in Pennsylvania sourced gross receipts, but
making payments, managing your accounts, and interacting with the
claiming exemption from the corporate net income tax, should com-
department.
plete and file the RCT-101. Such entities should, as appropriate,
Corporations can remit estimated, extension, and tax due payments include the REV-986 and/or any statements necessary to properly
through the department’s myPATH portal. Visit mypath.pa.gov for explain their position(s) that insufficient activity took place in
more information and to register an account. Pennsylvania to establish constitutional nexus.
The RCT-101 cannot be filed electronically through myPATH. In order to commence the running of the applicable statute of limi-
Corporations are encouraged to file electronically through the tations the RCT-101 must contain:
Modernized e-File (MeF) platform provided by the Internal Revenue
Service, also known as Fed/State e-File. A list of software developers (i) the taxpayer's name, address, and identifying number and the
and products approved by the department to electronically prepare required signature; and,
and file the RCT-101, forms and schedules can be found on the (ii) sufficient required information to permit the department to
department’s website at revenue.pa.gov. determine the taxpayer’s potential corporate net income tax
HIGHLIGHTS liability.
1. As amended by the Tax Cuts and Jobs Act, for tax years beginning Specifically, entities claiming exemption from the tax may enter
after December 31, 2017, the 70 percent dividends-received zeros on Page 2, Section C, a zero on Line 1A of Schedule C-1 and
deduction is reduced to 50 percent and the 80 percent a “1” on Line 1B of Schedule C-1 of the RCT-101. However, such
dividends-received deduction is reduced to 65 percent (Code Secs. taxpayers should include statement(s) with the RCT-101 which pro-
243(a)(1) and (c)(1). There was no change made to the 100 percent vide th e information necessary for the department to determine the
dividends-received deduction for dividend income received from 80 taxpayer’s potential corporate net income tax liability. These enti-
percent or more owned domestic corporations. ties cannot complete and file the form RCT-101D as an alternative
2. The Tax Cuts and Jobs Act of 2017 amended Section 163(j) of the to the RCT-101 unless the entity meets the particular de minimis
Internal Revenue Code (the “Code”). For Federal income tax activity limits outlined in Tax Bulletin 2004-01.

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                                                        CORPORATE NET INCOME TAX

                                                                                  WEIGHTING OF FACTORS      NET LOSS PERCENTAGE
                        TAX PERIOD                      TAX RATE
                        BEGINNING                                                           SALES                 PERCENT OF INCOME
                            2022                        9.99%                               100                              40% 
                            2023                        8.99%                               100                              40% 
                            2024                        8.49%                               100                              40% 
                            2025                        7.99%                               100                              40% 
                            2026                        7.49%                               100                              40% 
                            2027                        6.99%                               100                              40% 
                            2028                        6.49%                               100                              40% 
                            2029                        5.99%                               100                              40% 
                            2030                        5.49%                               100                              40% 
                            2031                        4.99%                               100                              40% 

                                                        WHO MUST FILE

All business entities that have elected to file as a corporation with the IRS:         •S Corporations that have Built-in Gains 
     Corporation•                                                                      •Any other entity electing to file as a corporation under federal Check 
     •Business Trust                                                                    the Box rule
     •Limited Liability Company 

                                           TAXPAYER SERVICES AND ASSISTANCE

                                                                                  WRITTEN REQUESTS:  
               CONTACT INFORMATION                                                        PA DEPARTMENT OF REVENUE 
Estimated Payments   . . . . . . . . . . .1-888-PATAXES (1-888-728-2937)                  TAX FORMS SERVICE UNIT 
                                                                                          1854 BROOKWOOD ST 
General Business Tax Questions   . . . . . . . . . . . . . . . . . .717-787-1064 
                                                                                          HARRISBURG PA  17104-2244 
Transfer/Refund of Overpayments  . . . . . . .ra-corp_acc_fax@pa.gov 
                                                                                                                                                          
Bureau of Registration and                                                                               ONLINE SERVICES
Taxpayer Management  . . . . . . . . . . . . . . . . . .ra-btftregisfax@pa.gov 
                                                                                  CUSTOMER SERVICE CENTER 
                                                                                  Find the answer to your question using the department’s Online Customer 
              FORMS ORDERING SERVICES                                             Service Center at revenue.pa.gov. 

To obtain tax instructions, single copies of PA corporation tax forms,            PENNSYLVANIA TAX UPDATE 
coupons, or brochures, use one of these services:                                 Stay up-to-date on Department of Revenue news with the PA Tax Update, 
ONLINE: revenue.pa.gov                                                            a free, bi-monthly e-newsletter. Visitrevenue.pa.gov to sign up. 
TOLL-FREE PHONE SERVICES: 1-888-PATAXES (1-888-728-2937)                          MYPATH 
Touch-tone service is required for this automated 24-hour toll-free line.         Register a new tax account, accurately and securely file returns, make 
Call to order forms or check the status of a corporate tax account.               payments, manage your accounts, and interact with the department. Visit 
AUTOMATED 24-HOUR FORMS ORDERING MESSAGE SERVICE:                                 mypath.pa.gov for more information.
1-800-362-2050  
Serves taxpayers without touch-tone phone service. 

2     REV-1200                                                                                                                   www.revenue.pa.gov

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                                              TABLE OF CONTENTS

                                                                                                              RCT-101 – PAGE 2 
GENERAL INSTRUCTIONS
                                                                                                                     SECTION B: SCHEDULE C-1 APPORTIONMENT  . . . . . . . . .10 
What Must be Included with the PA                                                                                    SECTION C: PA CORPORATE NET INCOME TAX  . . . . . . . . .10 
Corporate Net Income Tax Report  . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 
                                                                                                                     Taxable Built-in Gains  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 
Assembly of the Completed PA Corporate Net  
Income Tax Report, RCT-101 Package  . . . . . . . . . . . . . . . . . . . . . . . .5                                 Deductions from and Additions to Income  . . . . . . . . . . . . . . . . .10 
Federal S Corporations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6                     Apportionment and Allocation  . . . . . . . . . . . . . . . . . . . . . . . . . .12 
Inactive Corporations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6                  Net Operating Loss Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .12 
Declaration of De Minimis PA Activity   . . . . . . . . . . . . . . . . . . . . . . . . .6                           Determination of Tax  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 
Confirmation of “Deposits on Account” for a Non-Filed Tax Year  . . . .6                                      RCT-101 – PAGE 3 
How to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6              SECTION D: TRANSFER/REFUND METHOD  . . . . . . . . . . . . .13 
Electronic Payment Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7                            SECTION E: BULK SALE  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 
Due Date of Report and Payment  . . . . . . . . . . . . . . . . . . . . . . . . . . . .7                             SECTION F: SCHEDULE OF REAL PROPERTY IN PA  . . . . .13 
Filing Requirements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7           RCT-101 – PAGE 4 
Out of Existence/Withdrawal  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7                        SECTION G: CORPORATE OFFICERS  . . . . . . . . . . . . . . . . . .13 
Filing Period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7            PREPARER’S INFORMATION  . . . . . . . . . . . . . . . . . . . . . . . . .13 

Extension of Time to File  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7                                                                                                                     
Penalties Imposed for Failure to File Reports When Due  . . . . . . . . . .8                                  APPORTIONMENT, EXEMPTIONS,  
                                                                                                                               AND ALLOCATION
Interest  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 
                                                                                                              Apportionment of Taxable Income  . . . . . . . . . . . . . . . . . . . . . . . . . . .14 
Assignment of Tax Credit (Overpayment)  . . . . . . . . . . . . . . . . . . . . . .8 
                                                                                                              Sales Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 
Assignment of Restricted Tax Credits  . . . . . . . . . . . . . . . . . . . . . . . . .8 
                                                                                                              Special Apportionment Fractions  . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 
Amended Reports  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 
                                                                                                                     Railroad, Truck, Bus, or Airline Companies  . . . . . . . . . . . . . . . .14 
RCT-128C – Changes In Federal Taxable  
Income/Reports of Change  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9                         Pipeline or Natural Gas Companies . . . . . . . . . . . . . . . . . . . . . .14 
                                                                                                                     Water Transportation Companies Operating on High Seas . . . .14 
                                                                                                              
LINE INSTRUCTIONS                                                                                                    Water Transportation Companies Operating on Inland Waters  .15 
LINE BY LINE INSTRUCTIONS FOR RCT-101,                                                                        Apportionment & Investments in Unincorporated Entities  . . . . . . . . .15 
PA CORPORATE NET INCOME TAX REPORT                                                                            Nonbusiness Income  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 
RCT-101 – PAGE 1 
                                                                                                                                                                                                                      
       STEP A Tax Period   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9                              WHERE TO FILE
STEP B Name, Address, FEIN Business Activity                                                                  Mailing Addresses  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Code, Revenue ID & Parent Corporation FEIN  . . . . . . . . . . . . . .9 
       IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 
STEP C Check Special Filing Status  . . . . . . . . . . . . . . . . . . . . . .9 
       SECTION A: GENERAL INFORMATION QUESTIONNAIRE . .10 

www.revenue.pa.gov                                                                                                                                     REV-1200 3

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WHAT MUST BE INCLUDED WITH THE PA CORPORATE NET INCOME TAX REPORT
When filing an RCT-101, PA Corporate Net Income Tax Report, all corporate taxpayers are required to include forms and schedules to support the
calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart lists the forms
and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive.

IF TAXPAYER TAXPAYER FILES TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101
IS ORGANIZED AS WITH THE IRS
Corporation Federal Form 1120, 1. Complete copy of federal income tax return, on separate company basis, with all supporting
Business Trust Federal Form 1120C, schedules.
Limited Liability Company or Federal Form 1120S, 2. RCT-103 to support net operating loss carry-forward, if applicable.
S Corporations that have (Taxpayer elected to 3. REV-1834, Schedules C-8 and C-9 to support adjustments for bonus depreciation, if applicable.
Built-In-Gains not be taxed as a 4. REV-934, Schedule of Nonbusiness Income, if applicable.
Pennsylvania
Any other entity electing to S Corporation) 5. Other supporting statements if necessary, with references to supporting statements on the
file as a corporation under applicable form.
federal Check the Box rules Federal Form 1120F, or
Any other Corporate 6. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable.
Income Tax Return 7. REV-860, Schedule C-5, OA and OD
8. RCT-106, Insert Sheet
*Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1.

In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these include

IF THE CORPORATE TAXPAYER IS TAXPAYER MUST ALSO PROVIDE
Apportioning income for the first time. A copy of a tax return from another state.
Filing the final PA Corporate Net Income Tax Report. A complete REV-861, Schedule DA, Disposition of Assets Schedule.
1. A completed RCT-101 KOZ, showing the calculation of the credit.
Claiming the Keystone Opportunity Zone or Strategic
Development Area Credit. 2. A copy of the Keystone Opportunity Zone approval letter issued by the Department of
Community and Economic Development for the current year.

WHEN IS A FORM OR SCHEDULE REQUIRED?

FORM USED FOR REQUIRED WHEN CORPORATE TAXPAYER
Support of Sales Factor Has taxable activity in at least one other state and is apportioning income to the other state based on
RCT-106 Apportionment or Special sales. RCT-106 is also required by taxpayers who are required to utilize special apportionment methods
Apportionment (revenue miles, etc.).
RCT-103 Support of Net Operating Is deducting a net operating loss carry-forward in the calculation of corporate net income tax.
Loss Deduction
Schedule C-2 Support of Dividend Is claiming a Dividend Received Deduction in the calculation of corporate net income tax.
REV-798 Deduction
Schedule C-8 Bonus Depreciation Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation of corporate
REV-1834 Adjustment net income tax for property purchased prior to Sept. 28, 2017.
Schedule C-9 Adjustment for Sale of Is claiming a deduction to recover remaining federal bonus depreciation in the calculation of corporate
REV-1834 Sec. 168(k) Property net income tax in the year the property is fully depreciated, sold or otherwise disposed.
Schedule C-5 Schedule of Tax Expense Is subject to corporate net income tax and reports taxes paid as an expense on the federal income
REV-860 tax return.
Schedule OA Other Additions Is reporting an "Other Addition" on RCT-101, Section C, Line 3D.
REV-860
Schedule OD Other Deductions Is reporting an "Other Deduction" on RCT-101, Section C, Line 2D.
REV-860

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WHEN IS A FORM OR SCHEDULE REQUIRED? (CONTINUED)

FORM USED FOR REQUIRED WHEN CORPORATE TAXPAYER

Schedule DA Disposition of Assets Indicate the desire to be removed from the active records of the Department of Revenue
REV-861
Schedule X Parent and Subsidiary Has more than 50 percent of its stock owned by another corporation, individual or other business entity
REV-798 Corporations or owns more than 50 percent of another corporation.
REV-934 Schedule of Non-Business Is claiming non-business income.
Income
Schedule to Determine
REV-986 Corporate Net Income Tax Activity does not exceed Solicitation Only - P.L. 86-272
Subjectivity Taxpayers answering “YES” to any of the questions on REV-986 are subject to corporate net income tax.
Schedule to Provide Reason
Schedule AR for Filing an Amended Report
REV-1175 and Summary of Change in Is amending a PA Corporate Net Income Tax Report.
Tax Liability for Amended
Report
Add-Back for Intangible
REV-802 Expense or Related Interest Is adding back intangible expense or related interest expense.
Expense
REV-803 Claiming a Credit for Tax Is claiming a credit for tax paid by affiliated entities.
Paid by Affiliated Entities

ASSEMBLY OF THE COMPLETED
PA CORPORATE NET INCOME TAX REPORT RCT-101 PACKAGE
Assemble the completed PA Corporate Net Income Tax Report in the 5. All other documentation to support the RCT-101, PA Corporate Net
following order. Failure to submit a properly completed and signed report Income Tax Report
may result in the delay of processing and the imposition of late filing 6. Complete federal tax return and supporting schedules, as required:
penalties and/or estimated assessments.
• Federal Form 1120
1. RCT-101, PA Corporate Net Income Tax Report, Pages 1 through 4
• Federal Form 1120C
completed and assembled in order
• Federal Form 1120F
2. RCT-103, Net Operating Loss Schedule, if applicable
• Federal Form 1120S
3. Federal Form 7004, if applicable
7. A corporation filing a consolidated return to the federal government
4. Pennsylvania schedules and forms, as required and in the following must include the following:
order: • Schedules reflected on the federal Form 1120, 1120C, 1120F or
• REV-1175, Schedule AR - If filing an amended PA Corporate Net 1120S on a separate company basis, including a schedule of
Income Tax Report. taxes expensed.
• REV-798, Schedule C-2, Dividend Deduction
• REV-798, Schedule X
• REV-1834, Schedule C-8, Adjustment for Bonus Depreciation
• REV-1834, Schedule C-9, Adjusted for 168k property fully
depreciated sold or otherwise disposed
• REV-860, Schedules C-5, OA and OD
• RCT-106, Insert Sheet
• REV-934, Schedule of Nonbusiness Income

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PENNSYLVANIA CORPORATE NET INCOME TAX REPORT
INSTRUCTIONS FOR FORM RCT-101
RCT-101, PA Corporate Net Income Tax Report. A copy of federal Form
GENERAL INSTRUCTIONS
1120 must be included and apportionment fractions must be reported.
FEDERAL S CORPORATIONS
CAUTION: Prior period forms are not acceptable. Do not use
The Capital Stock/Foreign Franchise tax has been phased out for tax
forms for other years when filing an RCT-101, PA Corporate Net
years beginning on or after Jan. 1, 2016. However, PA S Corporations
that have built-in-gains are required to file RCT-101. Income Tax Report, or an RCT-101-I, Inactive PA Corporate Net Income
Tax Report.
Any federal subchapter S corporation that does not desire to be a
Pennsylvania S corporation must file the REV-976, Election Not to be DECLARATION OF DE MINIMIS PA ACTIVITY
Taxed as a Pennsylvania S Corporation, on or before the due date or
IMPORTANT: The RCT -101D can now be filed electronically at
extended due date of the report for the first year in which the election is
mypath.pa.gov .
to be in effect. This election must be signed by all of the shareholders
and once made cannot be revoked for five years. The completed RCT-101D is only for use by non-Pennsylvania corporations. Solicitation
REV-976 must be submitted via fax or email to: only corporations, as well as corporations with more than $500,000 in
Fax: 717-787-3708 Pennsylvania sourced gross receipts, but claiming exemption from the
Email: ra-btftregisfax@pa.gov corporate net income tax, should complete and file the RCT-101. Such
To revoke an election not to be taxed as a PA S Corporation, the entities should, as appropriate, include the REV-986 and/or any
corporation must send a letter signed by shareholders holding more than statements necessary to properly explain their position(s) that insufficient
one-half of the shares of stock of the corporation on the day on which the activity took place in Pennsylvania to establish constitutional nexus. See
revocation is made. This letter must contain the name of the corporation, Page 5 for additional details.
FEIN, Revenue ID number, if applicable, and the effective date of the
revocation. If no effective date is provided, the revocation will be effective A non-Pennsylvania corporation whose Pennsylvania activities are not
for the first tax period for which the revocation was timely submitted. In protected by P.L. 86-272, but whose activities are considered de minimis
the case of a corporation with qualified subchapter S subsidiaries, the as outlined in Tax Bulletin 2004-01, is not required to file a complete
letter must also include the names, FEINs, and Revenue ID numbers, if RCT-101. Instead, such a corporation may file RCT-101D, affirming that
applicable, of all qualified subchapter S subsidiaries doing business in PA activity during that period is de minimis. In filing RCT-101D a
Pennsylvania. corporation is reminded of the following:
Qualified subchapter S subsidiaries may not be Pennsylvania S 1. RCT-101D is not a tax report. For this reason the statute of
corporations, or elect not to be Pennsylvania S corporations, separate limitations regarding the assessment of tax does not apply to
from the parent corporation. Federal subchapter S corporations doing RCT-101D.
business in Pennsylvania that do not make this election are required to 2. For a taxpayer to realize any tax benefits from a year the taxpayer
file the PA-20S/PA-65, and the shareholders of these corporations must filed RCT-101D, the taxpayer will be required to file a complete
report the income from these corporations on their PA personal income RCT-101 for each year, beginning with the year the benefit is
tax returns. generated through the year the benefit is to be used.
IMPORTANT: This election must be filed by all federal subchapter 3. In cases where the taxpayer files RCT-101D and later files RCT-101,
S corporations that do not want to be taxed as Pennsylvania S the taxpayer will be liable for all taxes due for these periods.
corporations, regardless of any prior actions taken by a corporation on Applicable interest will also be imposed from the original due date
this issue. of the report to the date the taxes are paid. The imposition of late
If a corporation has elected to be taxed as an S corporation for federal filing penalties will be based on the filing date of the RCT-101D. Tax
tax purposes, but has elected not to be taxed as a PA S corporation, it Bulletin 2004-1 is available on the PA Department of Revenue
must: (1) complete Section C of RCT-101, (2) include a copy of federal website at revenue.pa.gov.
Form 1120S with the PA Corporate Net Income Tax Report, and (3)
include a schedule reflecting adjustments to Line 21 of federal Form CONFIRMATION OF “DEPOSITS ON ACCOUNT” FOR A
1120S for the pass-through items on Schedule K, Shareholders’ Share NON-FILED TAX YEAR
of Income, Credits, Deductions, etc. These adjustments should produce
Prior to filing a PA Corporate Net Income Tax Report, taxpayers can
taxable income similar to that for a C corporation and must be reported
in Section C, Line 1 of the RCT-101. confirm the total amount of deposits on account by by logging into their
myPATH account at mypath.pa.gov.
INACTIVE CORPORATIONS
Inactive corporations must complete and file form RCT-101-I. Only HOW TO PAY
skeleton corporations - those performing no business activity and owning If the total taxes owed are less than $1,000, you may send a check made
no assets anywhere - may use the RCT-101-I. Corporations that have payable to the PA Dept. of Revenue, enclosed with the tax report, to the
business activity outside Pennsylvania must complete and file the address listed on Page 16.

6 REV-1200 www.revenue.pa.gov

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ELECTRONIC PAYMENT REQUIREMENT to liquidation, complete in detail a schedule reflecting the gain or
The PA Departments of Treasury and Revenue have implemented loss realized as a result of the sale.
programs that enable taxpayers to pay certain taxes electronically. All 2. Include with the corporate tax reports a REV-861, Schedule DA,
payments of $1,000 or more must be made electronically or by certified Disposition of Assets, which must reflect the date or dates of
or cashier’s check remitted in person or by express mail courier. divestiture of all assets. Where a distribution of assets is made
Electronic payments can be made through myPATH. Visit mypath.pa.gov directly by the corporation to its shareholders in return for their stock,
to register for an account. include with the “Distribution of Assets,” a copy of federal Form
1099-DIV.
Failure to make a payment by an approved method will result in the
imposition of a 3 percent penalty of the tax due, up to $500. For CAUTION: Failure to submit the “Distribution of Assets” could
information on electronic filing options, visit the Online Services Center delay the acceptance of the return as a final report resulting
at revenue.pa.gov. in continued corporate tax reporting requirements. Corporate
taxpayers reporting the disposition of PA real estate must provide
IMPORTANT: If paying by certified or cashier’s check, mail check evidence that the transfer of title has been filed with the Recorder of
and coupon to: Deeds of the respective county. This information must be provided
PA DEPARTMENT OF REVENUE in order to be removed from the active records of the Department of
PO BOX 280404 Revenue.
HARRISBURG PA 17128-0404 PA corporations that never transacted business or held title to assets, or
foreign corporations that never transacted business in Pennsylvania, are
DUE DATE OF REPORT AND PAYMENT required to file annual tax reports until they file final returns and qualify
The RCT-101, PA Corporate Net Income Tax Report, is due on or before for out-of-existence or withdrawn status. Such inactive corporations
the 15th day of the month following the due date of the return to the should mail the executed REV-238, Out-of-Existence/Withdrawal Affidavit
Federal Government for both calendar and fiscal year filers. Domestic directly to:
International Sales Companies (DISC) must file on or before the 15th day PA DEPARTMENT OF REVENUE
of the 10th month following the close of the fiscal year. If the due date BUREAU OF COMPLIANCE
falls on a Saturday, Sunday, or holiday, the report is due the next business OUT OF EXISTENCE/MERGER SECTION
day. PO BOX 280947
HARRISBURG PA 17128-0947
FILING REQUIREMENTS
First reports of domestic corporations must begin with the date of FILING PERIOD
incorporation. All domestic corporations are required to file annual reports Reports must be filed on the same filing basis as reported to the federal
even if no business activity was conducted during the taxable period. government. Where a change in filing period has occurred, the taxpayer
must provide the new month, day, and year by electronically filing
First reports of foreign corporations must begin with the beginning date REV-854 at mypath.pa.gov, via fax to 717-787-3708, or email to
of the fiscal period in which the Certificate of Authority was issued or the ra-btftregisfax@pa.gov. Indicate a permanent change in filing period on
date Pennsylvania activity began, whichever date is earlier. the RCT-101 (Page 1, Step C).
All corporations are required to file annual reports even if no business
activity was conducted within the commonwealth during the tax period. EXTENSION OF TIME TO FILE
A request for an extension of time to file must be submitted on or before
OUT-OF-EXISTENCE/WITHDRAWAL the due date of the PA Corporate Net Income Tax Report.
A PA corporation that has ceased doing business and completely or totally Taxpayers granted an extension to file the federal income tax return will
divested itself of ALL assets, or a foreign corporation that has ceased to automatically be granted an extension to file RCT-101, PA Corporate Net
do business in Pennsylvania and liquidated all PA assets may be relieved Income Tax Report. Corporate taxpayers granted a federal extension
of the responsibility of filing corporate tax reports by indicating Final must include a copy of the federal extension request with the report.
Report on Page 1, Step C of the RCT-101.
Corporations that do not request an extension to file the federal income
By completing this section of RCT-101, a corporate taxpayer wishing to tax return may still request a 60-day extension to file the PA Corporate
be removed from the active records of the PA Department of Revenue Net Income Tax Report. The extension must be filed on or before the due
will no longer be required to file the Out of Existence/Withdrawal Affidavit. date of the report. You can request an extension on mypath.pa.gov or
However, taxpayers desiring to dissolve or formally withdraw with the by sending the REV-853.
Department of State are still required to file a REV-181, Application for You may also use REV-853 to make an annual tax payment with the
Tax Clearance Certificate. extension request. If the taxes total more than $1,000, you must make
To qualify for out-of-existence or withdrawn status, the corporation must: the required payment by an electronic payment method. (Refer to
Electronic Payment Requirement.)
1. File all corporate tax reports and pay all taxes due the
commonwealth up to and including the date of cessation of activities All payments of $1,000 or more must be made electronically or by certified
and divestiture of assets. Where capital assets have been sold prior or cashier’s check remitted in person or by express mail courier.

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PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE be “1”. The amended report check box under Step C, Page 1 of RCT-101
If a report is filed late, the taxpayer should wait until assessed by the must be checked and REV-1175 must be included with the report.
department to remit the penalty amount. Interest does not accrue on The taxpayer has three (3) years after the due date of the original report
penalties. Do not include penalty with tax amounts reported on form to file an amended report. If the original report was properly extended,
RCT-101.
then the taxpayer has three (3) years after the extended due date to file
The penalty imposed for failure to file reports when due is now a minimum an amended report. When filing the amended report the taxpayer must
of $500, regardless of the determined tax liability, plus an additional one consent to an assessment period of three years from the filing of the
percent of any determined tax liability over $25,000. original report or one year from the filing of the amended report,
whichever expires last. If you fail to provide such consent the department
INTEREST might not consider the amended report. This consent to extend the
Interest is charged on late payments received after the due date of a tax assessment period is included as part of the affirmation statement on
report. Taxpayers should not precalculate interest or include interest with Page 4 of RCT-101. Per Act 84 of 2016, the department will have one
the tax amount reported on the RCT-101 (Section C, Line 16). The year from the date the amended report is filed to notify the taxpayer if the
department will forecast interest on unpaid tax balances and provide a changes are accepted. If the taxpayer is not notified within one year, the
notice to the taxpayer. Taxpayers may request a payoff of unpaid report is deemed accepted. If, after reviewing the amended report, the
balances (that includes interest on unpaid tax and collection agency fees, department determines the tax liability reflected on the taxpayer’s PA
if applicable) by emailing RA-CORP_ACC_FAX@pa.gov. corporate tax account is incorrect, an adjustment may be made to the
liability or the department may reject the amended report.
ASSIGNMENT OF TAX CREDIT
An amended report should only be filed if an original RCT-101, PA
Department regulation (61 Pa. Code 151.21-151.22) provides
Corporate Net Income Tax Report, was previously filed for the same tax
authorization for taxpayers to assign a credit to another taxpayer. To
period. An amended report must contain documentation to support the
accomplish the assignment, the Department of Revenue requires both
adjustment(s).
assignor and assignee to complete REV-774, Assignment of Tax Credit.
All amended tax reports must include REV-1175, Schedule AR, which
Only credits that meet the following conditions can be assigned:
includes a detailed explanation of the reason for filing the amended report
•All taxes (corporate, sales/use, employer withholding, liquid fuels,
and a summary of the change to the tax liability. In completing the
etc), interest, penalties, fees, and additions to tax owed by the
Summary of Tax Change, enter the corporate net income tax; the tax
taxpayer (assignor) must be paid in full.
liability currently reflected on the taxpayer’s account; the amended tax
Email RA-CORP_ACC_FAX@pa.gov if you have questions regarding liability; and the amount of change in the tax.
credit assignment or to request the REV-774 Assignment of Tax Credit
When filing an amended RCT-101, the tax liability in Section C, Line 16
Form. The form can also be found at revenue.pa.gov.
should reflect the amended liability. Section C, Line 18, Estimated
Email REV-774 directly to RA-CORP_ACC_FAX@pa.gov. Payments and Credits on Deposit, must reflect the payments and credits
on the account at the time the amended report is filed. Section C, Line
ASSIGNMENT OF RESTRICTED TAX CREDITS 19, Restricted Credits, must report the restricted credits the taxpayer is
Certain restricted tax credits (credits originating from special credit entitled to based on the filing of the amended report.
programs) may be sold or assigned.
Amended reports cannot be filed for the following:
For information regarding the sale or assignment of restricted tax 1. To challenge PA statute or regulations.
credits, please refer to Tax Bulletin 2012-02 by visiting
2. To challenge department policy or interpretation of statutes or
revenue.pa.gov/taxcredits.
regulations.
Tax questions regarding the sale or assignment of restricted tax credits 3. For the sole purpose of claiming the report is a final report.
may be directed to the Department of Revenue at 717-772-3896 or IMPORTANT: REV-238 or REV-181 must also be filed.
ra-rvtaxcredits@pa.gov.
4. To change or correct taxpayer information electronically such as
AMENDED REPORTS Revenue ID or FEIN, the taxpayer must file the REV-854
Amended reports must be filed when requesting the Department of electronically at mypath.pa.gov, via fax to 717-787-3708, or email
Revenue to adjust the corporate net income taxes for a particular year. to ra-btftregisfax@pa.gov.
Phone calls and/or letters submitted to the department are not acceptable 5. To change the end of the tax year. (A new original report must be
and will not be considered an amended report. filed including an explanation why the original tax year end was
Amended reports filed for tax years beginning on or after Jan. 1, 2016, incorrect).
must be filed on the revised, year-specific, four page RCT-101. Taxpayers IMPORTANT: The filing of an amended PA Corporate Net Income
must complete all sections of the report; this includes those sections
Tax Report does not replace the filing of a petition, nor does it
originally filed and those sections being amended. The apportionment
extend a corporate taxpayer’s time to file an appeal.
must be completed with the factors as originally filed or being amended.
This must be numeric with a numerator and a denominator present. If no The department is not obligated to revise tax due the commonwealth
activity anywhere, the numerator must be “0” and the denominator must upon review of an amended report. Its failure to revise tax due the

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commonwealth is not an appealable action and will not change any               Foreign corporations filing from outside the United States must use 
existing appeal rights of the taxpayer.                                        Province, Country Code, and Foreign Postal Code address fields, if 
                                                                               applicable. 
RCT-128C – CHANGES IN FEDERAL TAXABLE INCOME/REPORTS 
OF CHANGE                                                                      The six-digit Business Activity Code entered here is the same Business 
                                                                               Activity Code reported to the IRS on the federal income tax return. 
Changes in federal taxable income must be reported to the department 
within the statutory period to report the change. This includes changes in     Parent Corporation FEIN –   Taxpayers that are included in a consolidated 
federal taxable income resulting from the taxpayer filing an amended           federal income tax return must provide the nine-digit  FEIN of the 
federal income tax return and changes initiated by the federal government      corporation that files the consolidated federal income tax return. If you 
due to an audit or examination of the federal return. For tax years            are not included in a consolidated federal return, leave blank. 
beginning prior to Jan. 1, 2013, changes in federal taxable income must 
be reported to the department within 30 days of the change. This has           Address Change –  Check box if the address reported in Step B is a 
been extended to six months for tax years beginning after Dec. 31, 2012.       change from prior tax periods. If changing the address after filing the 
                                                                               report, file the REV-854 electronically at mypath.pa.gov, via fax to 
If a taxpayer files an amended federal income tax return the taxpayer          717-787-3708, or email to ra-btftregisfax@pa.gov. 
must report the change on RCT-128C. 
                                                                                                             STEP C
Changes to federal taxable income initiated by the federal government                                                                                  
as part of an audit or examination of the federal income tax return must 
                                                                               CHECK SPECIAL FILING STATUS 
be reported on RCT-128C and must include the federal audit date or date 
filed with the IRS, regardless of whether the PA corporate net income tax      Initial Report –   Check box if this is the corporation’s first PA Corporate 
for that period was settled by the department.                                 Net Income Tax Report filing. 
     CAUTION: If this date is not provided, interest plus a $5 a day           Final Report –   Check box if this is the corporation’s final PA Corporate 
     penalty, will be imposed from the original due date.                      Net Income tax report. A complete REV-861, Schedule DA, Disposition 
                                                                               of Assets schedule, must also be provided. 

              LINE INSTRUCTIONS                                                Amended Report –  Check box if the corporation is amending a PA 
                                                                               Corporate Net Income Tax Report previously filed with the department. 
LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE 
NET INCOME TAX REPORT                                                          File Period Change –   Check box if the filing period (tax period ending) 
                                                                               is a permanent change. This must be indicated on the first report filed 
                               PAGE 1                                          with the new tax year end. 
                                                                 
Indicate the type of return filed with the IRS. If the activity is included in Change Fed Group – Check box if the corporate taxpayer is filing a PA 
the federal tax return of another company, either as part of a consolidated    Corporate Net Income Tax Report for less than a full year due to a change 
group or as a disregarded entity, indicate the type of return filed by the     in federal consolidated group. This must be indicated on the last report 
entity reporting the activity.                                                 prior to the change and the and first report after the change. 
                                                                               52-53 Week Filer – Check box if the corporation is a 52-53 week filer. 
                               STEP A
                                                                 
                                                                               S Corp filing as C Corp –   For periods beginning on or after January 1, 
TAX PERIOD (REQUIRED) 
                                                                               2006 corporations which have validly elected to be taxed for federal 
Taxpayers must enter the month,  day, and year for the tax period              purposes as S corporations are automatically treated as S corporations 
beginning and ending dates using the MMDDYYYY format.                          for Pennsylvania purposes. However, a federal S corporation may elect 
                                                                               to be taxed as a C corporation for Pennsylvania purposes by filing a timely 
                               STEP B                                          election using form REV-976. See Page 6 for additional information. 

NAME, ADDRESS, FEIN, BUSINESS ACTIVITY CODE, REVENUE                           KOZ/SDA Credit –   Check box if the corporate taxpayer is claiming the 
ID, AND PARENT CORPORATION FEIN                                                Keystone Opportunity Zone Credit or the Strategic Development Area 
Economic Nexus – Check box if the corporation is filing due to the             Credit. 
$500,000 rebuttable presumption of economic nexus. See 72 P.S. section 
7402 and Corporation Tax Bulletin 2019-04 for more information.                Royalty/Related Interest Add-Back – Act 52 of 2013 requires the 
                                                                               add-back of intangible expenses to income for interest, royalties, patents, 
Print or type the corporation name, complete address, 10-digit Revenue         trademarks, etc. between affiliated entities in certain instances. 
ID and nine-digit FEIN. 
                                                                               S Corp Taxable Built-in Gains –   PA S corporations and QSSS are 
Failure to submit a properly completed report will result in the delay of      subject to PA corporate net income tax. Their taxable income is their net 
processing and the imposition of late filing penalties and/or estimated        recognized built-in gains as determined for federal income tax purposes 
assessments. 
                                                                               pursuant to IRC Section 1374(d) (2). To report taxable built-in gains, 
Be sure to use only address information for Address Line 1 and Address         check the box on Page 1, report the Taxable Bulit-in Gains on Line 1 of 
Line 2 on Page 1 of RCT-101 and all other tax forms.                           Section C. 

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Section 381/382/Merger NOLs – Corporations having net operating loss 
(NOL) limitations under IRC Section 381 and/or IRC Section 382 or                                      LINE 1C                                   
claiming losses or Bonus Depreciation from a merger. Provide the Merger        Divide Line 1A by Line 1B, calculate to six decimal places. Enter here 
documents including Company Name, FEIN, and Revenue ID of merged               and SECTION C, Line 7.  
company. Provide a schedule with NOL’S by tax periods and the balance          CAUTION: Completing the Sales Factor as 0/0, leaving the sales 
of the Bonus Depreciation carry-forward from the merged company.               factor field blank or typing “none” in this field will result in 
                                                                               apportionment being changed to 100 percent in Pennsylvania, 
Alternative Apportionment – If the taxpayer is requesting an alternate 
                                                                               automatically changing the reported tax liabilities. 
apportionment method, extra-statutory treatment, separate accounting, 
or unrelated asset treatment, check this box and provide a written,            IMPORTANT: Only corporations required to use special 
detailed explanation of the methodology being used as well as fully            apportionment (such as railroad, truck, bus, airline, pipeline, 
detailed supporting schedules, worksheets, and documentation to review         natural  gas, and water transportation companies) should complete 
the methodology being employed.                                                Special Apportionment. 

Claiming P.L. 86-272 Protection – Corporations which sell tangible                                     LINE 2A
                                                                                                                                                 
personal property and meet the activity limitations contained in P.L. 
                                                                               Enter PA revenue miles or other special factor. (Numerator) 
86-272 check this box. See additional instructions on Page 4. Also review 
Tax Bulletins 2004-01 and 2019-03.                                                                     LINE 2B
                                                                                                                                                 
                                                                               Enter total revenue miles or other special factor. (Denominator) 
                        SECTION A
                                                                    
GENERAL INFORMATION QUESTIONNAIRE                                                                      LINE 2C                                   
Taxpayers are required to provide a brief description of business activities   Divide Line 2A by Line 2B, calculate to six decimal places. Enter here 
in Pennsylvania. Multi-state corporations are required to provide a brief      and Section C, Line 7.  
description of business activities outside of PA and indicate all other states CAUTION: Complete either Sales or Special Apportionment. Do 
where the taxpayer has business activity (use the two letter postal            not combine the two methods. 
abbreviations). If taxpayer has no activity in Pennsylvania, indicate so in 
                                                                               For additional information on sales and special apportionment, see Page 
this area.  
                                                                               14. Also see Corporation Tax Bulletin 2022-01.  
Taxpayers should indicate in this section if they are incorporated under 
the laws of the Commonwealth of Pennsylvania or under the laws of 
                                                                                                       SECTION C
another jurisdiction.                                                                                                                            
                                                                               PA CORPORATE NET INCOME TAX 
The taxpayer must report the name of any corporation, individual, or other 
                                                                               A copy of federal Form 1120 (federal income tax return) or other 
business entity which holds all or a majority of the stock of the taxpayer, 
                                                                               applicable form (pro forma) on a separate company basis must 
and the name(s) of any corporation in which the taxpayer owns all or a 
                                                                               accompany the RCT-101, PA Corporate Net Income Tax Report. 
majority of the stock. This is done by checking the applicable box(es) and 
completing Schedule X.                                                         Taxable Built-in Gains – PA S corporations and QSSS are subject to PA 
                                                                               corporate net income tax. Their taxable income is their net recognized 
If the federal government has changed the taxable income for any prior         built-in gains as determined for federal income tax purposes pursuant to 
year, the taxpayer must indicate this on RCT-101 to include the first and      IRC Section 1374(d) (2). To report taxable built-in gains, check the box 
last tax periods changed. The taxpayer must also file RCT-128C reporting       on Page 1 and complete Line 1 of Section C. 
the changes in income for each tax year. 
                                                                               DEDUCTIONS FROM AND ADDITIONS TO INCOME 

                        PAGE 2                                                                         LINE 1                                    
                                                                               Income represents “taxable income as returned to and ascertained by 
                        SECTION B                                              the federal government before the net operating loss deduction and 
SCHEDULE C-1                                                                   special deductions.” (Line 28 of federal Form 1120.) 

                        LINE 1A                                                                        LINE 2A                                   
Enter the total from RCT-106, Column A, Sales inside Pennsylvania.             Corporate dividends received. Dividends received from U.S. corporations 
                                                                               are deductible to the same extent as allowed to arrive at the federal 
                        LINE 1B                                                dividend deduction as indicated on federal Schedule C, Column C. An 
                                                                               additional deduction will be allowed for certain dividends received from 
Enter the total from RCT-106, Column B, Sales inside and outside               foreign corporations and reported on Lines 14, 16b, 16c, 17, 19, and 20 
Pennsylvania.                                                                  of the federal Schedule C, plus a deduction will be allowed for certain 

10 REV-1200                                                                                                     www.revenue.pa.gov

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dividends received under Section 78 (foreign dividend gross-up) of the The 50 percent of travel and entertainment expense that is disallowed on
Internal Revenue Code of 1986. Taxpayers must complete REV-798, the federal form is not permitted as a deduction for Pennsylvania
Schedule C-2, PA Dividend Deduction Schedule. purposes.

LINE 2B All other deductions must be reported on REV-860, Schedule OD, Other
Deductions. Include an additional schedule if more space is needed.
Interest on U.S. Securities. Interest on U.S. securities is deductible, but
must be reduced by: Add Lines 2A, 2B, 2C, and 2D and enter the result on Line 2, Total
Deductions.
•Any interest on indebtedness incurred to carry the securities;
•Any expenses incurred in the production of such interest income;
•Any other expenses deducted on the federal income tax return that LINE 3A
would not have been allowed under Section 265 of the Internal Enter the total amount of taxes imposed on or measured by net income
Revenue Code of 1986, if the interest were exempt from federal and deducted on the attached copy of the federal tax return. All taxpayers
income tax. reporting expenses for taxes on federal income tax returns must complete
REV-860, Schedule of Taxes, even if no taxes are imposed on or
However, interest from repurchase agreements is not considered interest
measured by net income. If a state’s tax is based on the higher of a tax
from U.S. securities. Therefore, it is not deductible.
on net income or a tax on another item, such as gross receipts or net
To calculate the net U.S. interest deduction on Line (2B): worth value, the taxpayer is required to add back the entire amount of
•Provide a detailed schedule showing the calculation of net U.S. the tax in periods where the liability is based on net income. If a state’s
interest deduction and include a listing of investments that generated tax is a combination of a tax on net income and a tax on another item,
the exempt interest income. such as gross receipts or net worth, the income portion of the tax is added
Pennsylvania allows a pass-through exemption from corporate net back.
income for interest or dividend income received from a regulated NOTE: The portion of Philadelphia business income and receipts
investment company to the extent such distribution or dividend is derived tax measured by net income must be included.
from obligations free from state taxation. Such obligations include those
issued by the U.S. Government; the Commonwealth of Pennsylvania; LINE 3B
any public authority, commission, board or other agency created by the
commonwealth; any political subdivision of the commonwealth; or any This amount is the bonus depreciation claimed by the corporate taxpayer
public authority created by any such subdivision. under IRC Section 168(k) in the calculation of federal taxable income.
To support any claim for a pass-through deduction for corporate net
income tax purposes, the taxpayer must submit evidence that the income LINE 3C
was received from a regulated investment company. A schedule must be Act 52 of 2013 requires the add-back of intangible expense to income for
submitted indicating the percentage of income applicable to exempt interest, royalties, patents, trademarks, etc., between affiliated entities in
obligations and the percentage of income applicable to nonexempt certain instances. In order to report the add-back for tax years beginning
obligations, including repurchase agreements, obligations of the Federal in 2016, taxpayers must complete REV-802, Schedule C-6, Add-Back for
National Mortgage Association (Fannie Mae), the Government National Intangible Expense or Related Interest Expense. The total amount of
Mortgage Association (Ginnie Mae) and any other obligations that were additions from Schedule C-6, Line 11 should be carried to and included
not actually issued by the U.S. Government. as a separate line item on RCT-101, Page 2, Section C, Line 3D. REV-802
All income claimed to be exempt must be reduced by any expenses can be found on the department’s website at revenue.pa.gov.
incurred in the production of such income and this information must be
IMPORTANT: REV-802, Schedule C-6, Add-back for Intangible
included to support all entries on Line 2B.
Expenses or Cost and Related Interest, must be submitted with
RCT-101.
LINE 2C
This amount is the combination of additional depreciation deduction LINE 3D

allowed under Act 89 of 2002 for IRC Section 168(k) property and the
additional Bonus Depreciation deduction allowed after Act 72 of 2018. The total of all additions from REV-860, Schedule OA, is carried to
RCT-101, Page 2, Section C, Line 3E.
LINE 2D Add Lines 3A, 3B, 3C, and 3D and enter the result on Line 3, Total
Other allowable deductions. As an example, certain charitable Additions.
contributions may be deductible for a subsidiary corporation which has
income on a separate company basis. Targeted jobs credit wages is LINE 4
another deductible item. If issued prior to Feb. 4, 1994, net gains on the
Line 1 minus Line 2 plus Line 3.
sale of U.S. or PA securities are deductible. FICA tax obligation on
employee tips, if taken as a credit for federal purposes, are also If all business is transacted in Pennsylvania, skip Lines 5 through 9. Enter
deductible. amount from Line 4 on Line 10.

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APPORTIONMENT AND ALLOCATION DETERMINATION OF TAX
A taxpayer must have income from business activities taxable by
Pennsylvania and at least one other state to allocate and apportion LINE 12
income. For purposes of allocation and apportionment of income, a PA Taxable Income or Net Loss. Line 12 must equal Line 10 minus
taxpayer is taxable in another state if, in that state, the corporation is Line 11.
subject to a net income tax, a franchise tax measured by net income, a
franchise tax for the privilege of doing business or a corporate stock tax
or if that state has jurisdiction to subject the taxpayer to a net income tax LINE 13
regardless of whether the state does or does not. For more information about this deduction or to claim this deduction,
Business income is income arising from transactions and activity in the businesses should contact the department at ra-rvtaxcredits@pa.gov .
regular course of the taxpayer’s trade or business and includes income
from tangible and intangible property if the acquisition, management or LINE 14
disposition of the property constitutes integral parts of the taxpayer’s
regular trade or business operations. Business income includes all Calculate and enter the PA corporate net income tax by subtracting Line
income that is apportionable under the U.S. Constitution. Nonbusiness 13 from Line 12 and multiplying the difference by the current tax rate.
income is all income other than business income. The REV-934,
Schedule of Nonbusiness Income, must be completed by all taxpayers LINE 15
allocating nonbusiness income.
For taxpayers calculating a credit for tax paid by affiliated entities,
IMPORTANT: Refer to the “Apportionment, Exemptions, and taxpayers must complete REV-803, Schedule C-7, Credit for Tax Paid by
Allocation” on Page 14 for more detail. Affiliated Entities.
The credit is then carried to RCT-101, Page 2, Line 15. REV-803 can be
LINE 5
found on the department’s website at revenue.pa.gov.
Enter the total amount of nonbusiness income or loss from REV-934,
Column C Total. (Must be included with report.) IMPORTANT: REV-803, Schedule C-7, Credit for Tax Paid by
Affiliated Entities, must be submitted with RCT-101.
LINE 6
Enter the amount of income or loss to be apportioned by adding the loss LINE 16
or subtracting the income reflected on Line 5 to or from Line 4. Tax Liability (Line 14 minus Line 15).
LINE 7
Enter the apportionment percentage from Schedule C-1. LINE 17
Enter the amount of CNI tax withholding from PA Schedule CP, Line 16.
LINE 8
Enter the income or loss apportioned to Pennsylvania by multiplying Line LINE 18
6 by Line 7. See Confirmation of Deposits on Account, Page 6. Enter the total of
estimated payments and transferred credits applied to the current tax
LINE 9
period.
Enter the total amount of nonbusiness income or loss allocated to
Pennsylvania from REV-934, Column A Total. (Must be included with LINE 19

report.)
Enter the amount of restricted credit to be applied to the current tax year.
LINE 10 Restricted credits may include those originating from special tax credit
programs administered by various state agencies.
Add the income or deduct the loss reflected on Line 9 to or from Line 8.
If the entire business is transacted in Pennsylvania, enter the amount
from Line 4 on Line 10. If a loss exists, add to RCT-103, Line 21. LINE 20
Determine the total payment due or overpayment by subtracting Lines
NET OPERATING LOSS DEDUCTION
17, 18, and 19 from Line 16. Negative amounts (identifying an
overpayment) should be written as -1,000. If a net total overpayment
LINE 11
develops, see instructions below for completing Section D.
Net Operating Loss Deduction. Enter the total of Column C from
RCT-103. Complete RCT-103 and include it with your RCT-101. REMINDERS:
Short periods are considered to be one tax year for purposes of •You must enter a value in the space provided, even if the amount is
computing the carryforward. zero. Overpayments must be entered as a negative amount.

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PAGE 3 SECTION F

SECTION D SCHEDULE OF REAL PROPERTY IN PA
Taxpayers must report the location of any real property utilized in the
TRANSFER/REFUND METHOD Commonwealth of Pennsylvania during the current tax period. Include an
After completing Section C on Page 2 of the RCT-101 Annual Report, if indication if the property was rented or owned by the taxpayer and if the
an overpayment exists taxpayers must instruct the department to either property was located in a Keystone Opportunity Zone/Keystone
transfer any available credit to the next tax year or consider any available Opportunity Expansion Zone or Strategic Development Area.
credit for refund, or both, under Section D. The department will not issue
refunds in the amount of $1.00 or less.
PAGE 4
Taxpayers may request direct deposit of the refund by completing the
SECTION G
Direct Deposit section of Page 3 of the RCT-101.
If no option is selected, the department will automatically transfer any CORPORATE OFFICERS
overpayment to the next tax year for estimated tax purposes after Taxpayers annual affirmation of all corporate officer’s information must
offsetting current period liabilities and other unpaid liabilities of any tax be included on the RCT-101. When information is provided on RCT-101,
type on the account. A Credit Summary Notice will be mailed to the REV-1605 is not required. However, to report a change in corporate
taxpayer confirming the disposition of the credit. officers during the tax year, REV-1605 should be filed electronically at
mypath.pa.gov. REV-1605 may also be submitted via fax to
SECTION E 717-787-3708, or email to ra-btftregisfax@pa.gov.

When completing the affirmation of corporate officer section, LLCs,
BULK SALE
business trusts, and other unincorporated entities required to file RCT-101
Corporate taxpayers that ceased all business activity (domestic must enter the names and Social Security numbers of individuals who
corporations) or ceased business activity in Pennsylvania (foreign are responsible for the tax and/or business matters of the entity (i.e. Tax
corporations) and disposed of all assets or Pennsylvania assets must Matter Partner, Managing Partner, Trustee). Social Security numbers
indicate that the current year return is the final report by checking the box must contain all nine digits.
on Page 1, Step C.
A corporate officer must sign the report. The signature may be
Taxpayers who held any assets during the year must complete REV-861, original, stamped, or electronic. Also provide telephone number, email,
Schedule DA, Disposition of Assets. and title of the officer along with the date signed.
If a taxpayer sells 51 percent or more of any class of asset during the tax
period, the taxpayer must check the box and provide the purchaser’s Paid preparers must sign and date all tax returns. The preparer’s
name and address. This includes any stock of goods, wares, name, complete address, federal PTIN, and the date prepared must be
merchandise of any kind, fixtures, machinery, equipment, buildings or real typed or printed in the appropriate boxes.
estate.
CAUTION: A taxpayer who sells 51 percent or more of any class
of asset is required to obtain a Bulk Sale Certificate by filing
RCT-101, PA Corporate Net Income Tax Report, up to the date of the sale
and completing REV-181, Application for Tax Clearance Certificate.
Mail completed REV-181 separately to the Bureau of Compliance. DO
NOT send with the PA Corporate Net Income Tax Report.
For further guidance, refer to Tax Bulletin 53D.

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APPORTIONMENT, EXEMPTIONS AND ALLOCATION
APPORTIONMENT OF TAXABLE INCOME of transportation everywhere, is used in apportioning business income to
Corporate taxpayers with activity in multiple states may be able to the commonwealth.
apportion taxable income. In order to apportion income, a corporation
PIPELINE OR NATURAL GAS COMPANIES
must be subject to tax in another state.
All business income of pipeline companies is apportioned to the
For tax years beginning on or after Jan. 1, 2013, unless the taxpayer is commonwealth by multiplying the income by a fraction. The numerator is
required to use a special apportionment method, the apportionment factor the revenue ton miles, revenue barrel miles, or revenue cubic feet miles
used in the calculation of the PA taxable income will consist only of sales of the taxpayer inside the commonwealth during the tax period. The
attributable to PA divided by total sales of the taxpayer. denominator is the revenue ton miles, revenue barrel miles, or revenue
SALES FACTOR cubic feet miles of the taxpayer everywhere during the tax period. A
The numerator is the total gross receipts of the taxpayer inside this state revenue ton mile, revenue barrel mile, or revenue cubic feet mile means,
during the tax period, and the denominator is the total gross receipts of respectively, the receipts derived from the transportation by the taxpayer
the taxpayer everywhere during the taxable period. Gross receipts are of one ton of solid property, one barrel of liquid property, or one cubic foot
net of returns and allowances. Sales of tangible personal property are of gaseous property transported one mile. All business income of natural
inside this state if the property is delivered or shipped to a purchaser gas companies subject to regulation by the Federal Power Commission
within this state. or by the Pennsylvania Public Utility Commission is apportioned to the
Commonwealth of Pennsylvania by multiplying the income by a fraction.
A corporation which owns an interest in a partnership shall include the
The numerator is the cubic foot capacity of the taxpayer’s pipelines inside
partnership’s gross receipts in the corporation’s sales factor denominator
to the extent of the corporation’s ownership interest in the partnership. the commonwealth. The denominator is the cubic foot capacity of the
Similarly, the corporation's share of the partnership's gross receipts taxpayer’s pipelines everywhere, at the end of the taxable period.
sourced to Pennsylvania shall be included in the numerator of the Determine the cubic foot capacity of a pipeline by multiplying the square
corporation's sales factor. of its radius by its length in feet.
These figures should be reflected on the Partner’s Share of Sales from WATER TRANSPORTATION COMPANIES
Partnerships line of RCT-106. Amounts applicable to an ownership OPERATING ON HIGH SEAS
interest in an LLC or business trust that is a partnership or disregarded All business income of water transportation companies operating on high
entity for federal income tax purposes must be included. seas is apportioned to the Commonwealth of Pennsylvania by multiplying
CAUTION : This must be numeric with a numerator and a the business income by a fraction. The numerator is the number of port
denominator present. If no activity anywhere, the numerator must days spent inside the commonwealth. The denominator is the total
be “0” and the denominator must be “1”. number of port days spent inside and outside the commonwealth. Port
days do not include periods when the ships are not in use because of
Act 52 of 2013 and Act 53 of 2022 have established criteria for strikes or withheld from service for repair or because of seasonal
determining if receipts from other than the sale of tangible property are reduction of services. Days in port are calculated by dividing the
sourced in PA. For additional information refer to 72 P.S. section 7401, aggregate number of hours in all ports by 24.
Information Notice 2014-01, and Corporation Tax Bulletin 2024-01.
WATER TRANSPORTATION COMPANIES
Dividends and income from U.S. securities and receipts from sales of
OPERATING ON INLAND WATERS
securities (unless a securities dealer) must be excluded from both the
numerator and denominator of the sales factor. All business income of water transportation companies operating on
inland waters is apportioned to the Commonwealth of Pennsylvania by
SPECIAL APPORTIONMENT FRACTIONS multiplying the business income by a fraction. The numerator is the
RAILROAD, TRUCK, BUS, AIRLINE OR AIR FREIGHT taxpayer’s total revenue miles inside the commonwealth during the
FORWARDING COMPANIES taxable period. The denominator is the total revenue miles of the taxpayer
All business income of railroad, truck, bus, or airline companies shall be everywhere during the taxable period. In the determination of revenue
apportioned to the Commonwealth of Pennsylvania by multiplying the miles, one-half of the mileage of all navigable waterways bordering
income by a fraction. The numerator is the taxpayer’s total revenue miles between the commonwealth and another state shall be considered
within the commonwealth during the taxable period. The denominator is commonwealth miles. A revenue mile means the revenue receipts derived
the total revenue miles of the taxpayer everywhere during the taxable from the transportation by the taxpayer of persons or property one mile.
period. A revenue mile means the average receipts derived from the
transportation by the taxpayer of persons or property one mile. Where IMPORTANT: Corporations with two distinct activities like
revenue miles are derived from the transportation of both persons and warehousing/trucking and distribution/trucking or personal
property, the revenue mile fractions attributable to each such class of transportation and property transportation must check the Alternative
transportation are calculated separately. The average of the two fractions, Apportionment checkbox on Page 1, Step C for timely processing. For
weighted in accordance with the ratio of total receipts from each such further information such companies should refer to Corporation Tax
class of transportation everywhere to total receipts from both such classes Bulletin 2022-01.

14 REV-1200 www.revenue.pa.gov

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APPORTIONMENT AND INVESTMENTS IN                                              tangible personal property is utilized in the state in which the property 
UNINCORPORATED ENTITIES                                                       was located at the time the rental or royalty payer obtained 
A corporate taxpayer’s investment in an unincorporated entity is              possession. 
considered a direct ownership in the corporation’s share of the assets of 
                                                                                     Net rents and royalties from tangible personal property are also 
the unincorporated entity rather than an intangible interest. When 
                                                                              allocated to this state if the commercial domicile of the taxpayer is 
determining the sales factor, the numerator and the denominator of the 
                                                                              in PA and the taxpayer is not organized or subject to tax in the state 
factor must include the sales of the corporate taxpayer plus the corporate 
                                                                              where the property is utilized. “Commercial domicile” means the 
taxpayer’s share of the sales of the unincorporated entity. 
                                                                              principal place from which the trade or business of the taxpayer is 
A corporate taxpayer with an investment in a LLC or business trust that       directed or managed 
files a federal partnership return or is disregarded for federal income tax 
purposes would include the activity of the investee LLC or business trust        3. Interest is allocable to this state if the taxpayer’s commercial domicile 
in the single sales factor apportionment used in the calculation of the       is in this state. 
corporate net income tax.                                                        4. Patents and copyright royalties are allocable to this state if and to 
NONBUSINESS INCOME                                                            the extent that the patent or copyright is utilized by the payer in this 
TRC § 401(3)2.(a)(1)(A) defines business income as income arising from        state, or if and to the extent that the patent or copyright is utilized by 
transactions and activity in the regular course of the taxpayer's trade or    the payer in a state in which the taxpayer is not taxable and the 
business and includes income from tangible and intangible property if         taxpayer’s commercial domicile is in this state. A patent is utilized in 
either the acquisition, the management, or the disposition of the property    a state to the extent that it is employed in production, fabrication, 
is an integral part of the taxpayer's regular trade or business operations.   manufacturing, or other processing in the state or to the extent that 
The term includes all income apportionable under the U.S Constitution.        a patented product is produced in the state. If the basis of receipts 
Nonbusiness income means all income other than business income.               from patent royalties does not permit allocation to states or if the 
                                                                              accounting procedures do not reflect states of utilization, the patent 
Rents and royalties from real or tangible personal property, gains, interest, 
                                                                              is utilized in the state in which the taxpayer’s commercial domicile 
patent, or copyright royalties, to the extent that they constitute 
                                                                              is located. A copyright is utilized in a state to the extent that printing 
nonbusiness income, are allocated as reflected below: 
                                                                              or other publication originates in the state. If the ba sis of receipts 
   1. Net rents and royalties from real property located in this state are    from copyright royalties does not permit allocation to states or if the 
allocable to this state.                                                      accounting procedures do not reflect states of utilization, the 
   2. Net rents and royalties from tangible personal property are allocable   copyright is utilized in the state in which the taxpayer’s commercial 
to this state to the extent the property is used in this state. The extent    domicile is located.  
of utilization of tangible personal property in a state is determined         IMPORTANT:  T axpayers claiming nonbusiness income must 
by multiplying the rents and royalties by a fraction, the numerator of        include REV-934, Schedule of Nonbusiness Income, when filing 
which is the number of days of physical location of the property in           RCT-101. 
the state during the rental or royalty period in the taxable year, and 
the denominator of which is the number of days of physical location           IMPORTANT: Nonbusiness income of railroad, truck,  bus, or 
of the property everywhere during all rental or royalty periods in the        airline companies; pipeline or natural gas companies; and water 
taxable year. If the physical location of the property during the rental      transportation companies operating on high seas or inland waters also is 
or royalty period is unknown or unascertainable by the taxpayer,              allocated as noted above. 

www.revenue.pa.gov                                                                                      REV-1200 15

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                                              WHERE TO FILE

                                                                            REV-853 – ANNUAL EXTENSION 
            MAILING ADDRESSES                                                      PA DEPARTMENT OF REVENUE 
RCT-101 – PA CORPORATE NET INCOME TAX REPORT,                                      PO BOX 280425 
RCT-101-I – INACTIVE PA CORPORATE NET INCOME TAX                                   HARRISBURG PA  17128-0425 
REPORT, RCT-101D – DECLARATION OF DE MINIMIS ACTIVITY                       REV-854 – FEIN/FILING PERIOD/ADDRESS CHANGE 
AND RCT-128C – REPORTS OF CHANGE IN CORPORATE NET                           Fax or Email to: 
INCOME TAX  
                                                                                   Fax: 717-787-3708 
If you are including payment, please use the following address:                    Email: ra-btftregisfax@pa.gov 
       PA DEPARTMENT OF REVENUE 
       PAYMENT ENCLOSED                                                     REV-1605 – SCHEDULE CO-NAME OF CORPORATE OFFICERS 
       PO BOX 280427                                                        Fax or Email to: 
       HARRISBURG PA  17128-0427                                                   Fax: 717-787-3708 
                                                                                   Email: ra-btftregisfax@pa.gov 
If paying by certified or cashier’s check, please mail check and coupon to: 
       PA DEPARTMENT OF REVENUE                                             REV-976 – ELECTION NOT TO BE TAXED AS A PENNSYLVANIA  
       PO BOX 280404                                                        S CORPORATION 
       HARRISBURG PA  17128-0404                                            Fax or Email to: 
                                                                                   Fax: 717-787-3708 
If you are requesting a transfer of credit or refund of overpayment, please        Email: ra-btftregisfax@pa.gov 
use the following address: 
       PA DEPARTMENT OF REVENUE                                             PA-20S/PA-65 – PA S CORPORATION/ PARTNERSHIP 
       TRANSFER/REFUND REQUESTED                                            INFORMATION RETURN 
       PO BOX 280706                                                               PA DEPARTMENT OF REVENUE 
       HARRISBURG PA  17128-0706                                                   PO BOX 280509 
                                                                                   HARRISBURG PA  17128-0509 
If you are neither including payment nor requesting a transfer of credit or 
refund of overpayment, please use the following address. This includes      OVERNIGHT MAILING 
reports when payment was made electronically.                                      PA DEPARTMENT OF REVENUE 
                                                                                   1854 BROOKWOOD ST 
       PA DEPARTMENT OF REVENUE 
                                                                                   HARRISBURG PA  17104-2244 
       NO PAYMENT, NO TRANSFER/REFUND 
       PO BOX 280708                                                        SPECIAL HANDLING 
       HARRISBURG PA  17128-0708                                                   PA DEPARTMENT OF REVENUE 
                                                                                   PO BOX 280704 
REV-857 – ESTIMATED TAX PAYMENTS 
                                                                                   HARRISBURG PA  17128-0704
       PA DEPARTMENT OF REVENUE 
       PO BOX 280422 
       HARRISBURG PA  17128-0422 
CT-V – FED/STATE PAYMENT VOUCHER 
       PA DEPARTMENT OF REVENUE 
       PO BOX 280427 
       HARRISBURG PA  17128-0427 

16     REV-1200                                                                                                  www.revenue.pa.gov

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