PDF document

- 1 -

Enlarge image

2 202220222022

CT-1 INSTRUCTIONS

REV-1200 Booklet (SU) 09-22

FOR CALENDAR YEAR 2022 AND FISCAL YEARS BEGINNING IN 2022

PLEASE CAREFULLY REVIEW NEW FOR 2022 AND HIGHLIGHTS
BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES.

NEW FOR 2022 Tax Bulletin 2019-03 provides guidance on how the federal
1. The RCT-101, PA Corporate Net Income Tax Report; RCT-101I, limitations imposed by the amended Section 163(j) are treated for
Inactive PA Corporate Net Income Tax Report; and RCT-128C, Pennsylvania Corporate Net Income Tax (“CNIT”) purposes.
Report of Change in PA Corporate Net Income Tax Report have an 3. The Pennsylvania Department of Revenue has set forth a rebuttable
updated look for 2022 tax year. presumption of economic nexus for out-of-state corporations with
2. Taxpayers now have the option to have their refund directly $500,000 or more of gross receipts sourced to Pennsylvania.
deposited into a bank account. Corporation Tax Bulletin 2019-04 cites the U.S. Supreme Court’s
South Dakota v. Wayfair Inc. decision as authority for this position and
3. myPATH is the new online portal that has replaced many of the
provides that corporations satisfying the minimum standards for nexus
Department of Revenue’s online services. myPATH, which stands for
under the U.S. Constitution should file a state corporate net income
‘my Pennsylvania Tax Hub’, provides many self-service options such
tax report. Taxpayers that have sufficient gross receipts sourced to
as registering a new tax account, accurately and securely filing returns,
Pennsylvania to meet the rebuttable presumption should begin filing
making payments, managing your accounts and interacting with the
corporate tax reports for periods starting on or after January 1, 2020.
department.
4. Solicitation only corporations, as well as corporations with
Corporations can remit estimated, extension and tax due payments
through the department’s myPATH portal. Visit mypath.pa.gov for $500,000 or more in Pennsylvania sourced gross receipts, but
more information and to register an account. claiming exemption from the corporate net income tax, should com-
plete and file the RCT-101. Such entities should, as appropriate,
The RCT-101 cannot be filed electronically through myPATH. include the REV-986 and/or any statements necessary to properly
Corporations are encouraged to file electronically through the explain their position(s) that insufficient activity took place in
Modernized e-File (MeF) platform provided by the Internal Revenue Pennsylvania to establish constitutional nexus.
Service, also known as Fed/State e-File. A list of software developers
and products approved by the department to electronically prepare In order to commence the running of the applicable statute of limi-
and file the RCT-101, forms and schedules can be found on the tations the RCT-101 must contain:
department’s website at www.revenue.pa.gov. (i) the taxpayer's name, address and identifying number and the
HIGHLIGHTS required signature; and,
1. As amended by the Tax Cuts and Jobs Act, for tax years beginning (ii) sufficient required information to permit the department to
after December 31, 2017, the 70-percent dividends-received determine the taxpayer’s potential corporate net income tax
deduction is reduced to 50 percent and the 80-percent liability.
dividends-received deduction is reduced to 65 percent (Code Secs. Specifically, entities claiming exemption from the tax may enter
243(a)(1) and (c)(1). There was no change made to the 100% zeros on Page 2, Section C, a zero on Line 1A of Schedule C-1 and
dividends-received deduction for dividend income received from a “1” on Line 1B of Schedule C-1 of the RCT-101. However, such
80% or more owned domestic corporations. taxpayers should include statement(s) with the RCT-101 which pro-
2. The Tax Cuts and Jobs Act of 2017 amended Section 163(j) of the vide th e information necessary for the department to determine the
Internal Revenue Code (the “Code”). For Federal income tax taxpayer’s potential corporate net income tax liability. These enti-
purposes, Section 163(j) limits the deductibility of interest expense ties cannot complete and file the form RCT-101D as an alternative
in the current tax year of certain U.S. taxpayers for tax years to the RCT-101 unless the entity meets the particular de minimis
beginning on or after January 1, 2018. Pennsylvania Corporation activity limits outlined in Tax Bulletin 2004-01.

- 2 -

Enlarge image

                                                        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 
                                                                                  ONLINE CUSTOMER SERVICE CENTER 
                                                                                  Find the answer to your question using the department’s Online Customer 
              FORMS ORDERING SERVICES                                             Service Center at www.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, 
INTERNET:     www.revenue.pa.gov                                                  a free, bi-monthly e-newsletter. Visitwww.revenue.pa.gov to sign up for 
TOLL-FREE PHONE SERVICES: 1-888-PATAXES (1-888-728-2937)                          a PA Tax Update e-alert. 
Touch-tone service is required for this automated 24-hour toll-free line.         MYPATH 
Call to order forms or check the status of a corporate tax account.               Register a new tax account, accurately and securely file returns, make 
AUTOMATED 24-HOUR FORMS ORDERING MESSAGE SERVICE:                                 payments, manage your accounts and interact with the department. Visit 
1-800-362-2050                                                                    mypath.pa.gov for more information.
Serves taxpayers without touch-tone phone service. 

2     REV-1200                                                                                                                   www.revenue.pa.gov

- 3 -

Enlarge image

                                            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, Federal EIN Business Activity                                                           Mailing Addresses  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Code, Revenue ID & Parent Corporation EIN  . . . . . . . . . . . . . . .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

- 4 -

Enlarge image

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 are as follows.

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

4 REV-1200 www.revenue.pa.gov

- 5 -

Enlarge image

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 6. 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 7. 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
8. A corporation filing a consolidated return to the federal government
4. Pennsylvania Extension Approval Letter, if applicable must include the following:
5. Pennsylvania schedules and forms, as required and in the following • Schedules reflected on the federal Form 1120, 1120C, 1120F or
order: 1120S on a separate company basis, including a schedule of
• REV-1175, Schedule AR - If filing an amended PA Corporate Net taxes expensed.
Income Tax Report.
• 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

www.revenue.pa.gov REV-1200 5

- 6 -

Enlarge image

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
Income Tax Report, or an RCT-101-I, Inactive PA Corporate Net Income
that have built-in-gains are required to file RCT-101.
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
entities should, as appropriate, include the REV-986 and/or any
To revoke an election not to be taxed as a PA S Corporation, the
statements necessary to properly explain their position(s) that insufficient
corporation must send a letter signed by shareholders holding more than
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.
federal EIN, Revenue ID number and the effective date of the revocation. A non-Pennsylvania corporation whose Pennsylvania activities are not
If no effective date is provided, the revocation will be effective for the first protected by P.L. 86-272, but whose activities are considered de minimis
tax period for which the revocation was timely submitted. In the case of as outlined in Tax Bulletin 2004-01, is not required to file a complete
a corporation with qualified subchapter S subsidiaries, the letter must also
RCT-101. Instead, such a corporation may file RCT-101D, affirming that
include the names and Revenue ID numbers of all qualified subchapter
PA activity during that period is de minimis. In filing RCT-101D a
S subsidiaries doing business in 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
report the income from these corporations on their PA personal income filed RCT-101D, the taxpayer will be required to file a complete
tax returns. RCT-101 for each year, beginning with the year the benefit is
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
this issue. Applicable interest will also be imposed from the original due date
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 www.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
taxable income similar to that for a C corporation and must be reported Prior to filing a PA Corporate Net Income Tax Report, taxpayers can
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

- 7 -

Enlarge image

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 www.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
DUE DATE OF REPORT AND PAYMENT foreign corporations that never transacted business in Pennsylvania, are
The RCT-101, PA Corporate Net Income Tax Report, is due on or before required to file annual tax reports until they file final returns and qualify
the 15th day of the month following the due date of the return to the for out-of-existence or withdrawn status. Such inactive corporations
Federal Government for both calendar and fiscal year filers. Domestic should mail the executed REV-238, Out-of-Existence/Withdrawal Affidavit
International Sales Companies (DISC) must file on or before the 15th day directly to:
of the 10th month following the close of the fiscal year. If the due date PA DEPARTMENT OF REVENUE
falls on a Saturday, Sunday or holiday, the report is due the next business BUREAU OF COMPLIANCE
day. PO BOX 280947
HARRISBURG PA 17128-0947
FILING REQUIREMENTS
FILING PERIOD
First reports of domestic corporations must begin with the date of
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. After review by the PA Department of Revenue,
Department of State are still required to file a REV-181, Application for you will receive written notification as to whether your extension was
Tax Clearance Certificate. approved or denied.
To qualify for out-of-existence or withdrawn status, the corporation must: You may also use REV-853 to make an annual tax payment with the
1. File all corporate tax reports and pay all taxes due the extension request. If the taxes total more than $1,000, you must make
commonwealth up to and including the date of cessation of activities the required payment by an electronic payment method. (Refer to
and divestiture of assets. Where capital assets have been sold prior Electronic Payment Requirement.)

www.revenue.pa.gov REV-1200 7

- 8 -

Enlarge image

All payments of $1,000 or more must be made electronically or by certified must be completed with the factors as originally filed or being amended.
or cashier’s check remitted in person or by express mail courier. This must be numeric with a numerator and a denominator present. If no
activity anywhere, the numerator must be “0” and the denominator must
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 www.revenue.pa.gov. should reflect the amended liability. Section C, Line 18, Estimated
Send 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
https://www.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
incorrect).
Amended reports filed for tax years beginning on or after Jan. 1, 2016,
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.

8 REV-1200 www.revenue.pa.gov

- 9 -

Enlarge image

The department is not obligated to revise tax due the commonwealth Be sure to use only address information for Address Line 1 and Address
upon review of an amended report. Its failure to revise tax due the Line 2 on Page 1 of RCT-101 and all other tax forms.
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
Changes in federal taxable income must be reported to the department Activity Code reported to the IRS on the federal income tax return.
within the statutory period to report the change. This includes changes in Parent Corporation EIN – 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 EIN 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
Address Change – Check box if the address reported in Step B is a
be reported to the department within 30 days of the change. This has
change from prior tax periods. If changing the address after filing the
been extended to six months for tax years beginning after Dec. 31, 2012.
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 Initial Report – Check box if this is the corporation’s first PA Corporate
filed with the IRS, regardless of whether the PA corporate net income tax Net Income Tax Report filing.
for that period was settled by the department.
Final Report – Check box if this is the corporation’s final PA Corporate
CAUTION: If this date is not provided, interest plus a $5 a day Net Income tax report. A complete REV-861, Schedule DA, Disposition
penalty, will be imposed from the original due date. of Assets schedule, must also be provided.
Amended Report – Check box if the corporation is amending a PA
LINE INSTRUCTIONS Corporate Net Income Tax Report previously filed with the department.

LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE File Period Change – Check box if the filing period (tax period ending)
NET INCOME TAX REPORT is a permanent change. This must be indicated on the first report filed
with the new tax year end.
PAGE 1 Change Fed Group – Check box if the corporate taxpayer is filing a PA
Indicate the type of return filed with the IRS. If the activity is included in Corporate Net Income Tax Report for less than a full year due to a change
the federal tax return of another company, either as part of a consolidated in federal consolidated group. This must be indicated on the last report
group or as a disregarded entity, indicate the type of return filed by the prior to the change and the and first report after the change.
entity reporting the activity. 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,
2006 corporations which have validly elected to be taxed for federal
TAX PERIOD (REQUIRED) purposes as S corporations are automatically treated as S corporations
Taxpayers must enter the month, day and year for the tax period for Pennsylvania purposes. However, a federal S corporation may elect
beginning and ending dates using the MMDDYYYY format. to be taxed as a C corporation for Pennsylvania purposes by filing a timely
election using form REV-976. See Page 6 for additional information.
STEP B KOZ/SDA Credit – Check box if the corporate taxpayer is claiming the
Keystone Opportunity Zone Credit or the Strategic Development Area
NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE,
Credit.
REVENUE ID AND PARENT CORPORATION EIN
Economic Nexus – Check box if the corporation is filing due to the new Royalty/Related Interest Add-Back – Act 52 of 2013 requires the
$500,000 rebuttable presumption of economic nexus. See Corporation add-back of intangible expenses to income for interest, royalties, patents,
Tax Bulletin 2019-04 for more information. trademarks, etc. between affiliated entities in certain instances.
Print or type the corporation name, complete address, 10-digit Revenue S Corp Taxable Built-in Gains – PA S corporations and QSSS are
ID and nine-digit Federal ID (EIN). subject to PA corporate net income tax. Their taxable income is their net
recognized built-in gains as determined for federal income tax purposes
Failure to submit a properly completed report will result in the delay of pursuant to IRC Section 1374(d) (2). To report taxable built-in gains,
processing and the imposition of late filing penalties and/or estimated check the box on Page 1, report the Taxable Bulit-in Gains on Line 1 of
assessments. Section C.

www.revenue.pa.gov REV-1200 9

- 10 -

Enlarge image

Section 381/382/Merger NOLs – Corporations having net operating loss 
(NOL) limitations under IRC Section 381 and IRC Section 382 or claiming                                LINE 1C                                   
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, EIN and Revenue ID of merged                 and SECTION B, 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, detailed      IMPORTANT:     Only corporations required to use special 
explanation of the methodology being used as well as fully detailed            apportionment (such as railroad, truck, bus, airline, pipeline, 
supporting schedules, worksheets and documentation to review the               natural gas and water transportation companies) should complete Special 
methodology being employed.                                                    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 B, 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 (proforma) 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 dividends received from foreign 
Enter the total from RCT-106, Column B, Sales inside and outside               corporations and reported on Lines 13 and 14 of the federal Schedule C, 
Pennsylvania.                                                                  plus a deduction will be allowed for dividends received under Section 78 

10 REV-1200                                                                                                     www.revenue.pa.gov

- 11 -

Enlarge image

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

www.revenue.pa.gov REV-1200 11

- 12 -

Enlarge image

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 www.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.

12 REV-1200 www.revenue.pa.gov

- 13 -

Enlarge image

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. address 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.

www.revenue.pa.gov REV-1200 13

- 14 -

Enlarge image

APPORTIONMENT, EXEMPTIONS AND ALLOCATION
APPORTIONMENT OF TAXABLE INCOME Dividends and income from U.S. securities and receipts from sales of
Corporate taxpayers with activity in multiple states may be able to securities (unless a securities dealer) must be excluded from both the
apportion taxable income. In order to apportion income, a corporation numerator and denominator of the sales factor.
must be subject to tax in another state.
SPECIAL APPORTIONMENT FRACTIONS
For tax years beginning on or after Jan. 1, 2013, unless the taxpayer is RAILROAD, TRUCK, BUS, AIRLINE OR AIR FREIGHT
required to use a special apportionment method, the apportionment factor FORWARDING COMPANIES
used in the calculation of the PA taxable income will consist only of sales
attributable to PA divided by total sales of the taxpayer. All business income of railroad, truck, bus or airline companies shall be
apportioned to the Commonwealth of Pennsylvania by multiplying the
SALES FACTOR income by a fraction. The numerator is the taxpayer’s total revenue miles
The numerator is the total gross receipts of the taxpayer inside this state within the commonwealth during the taxable period. The denominator is
during the tax period, and the denominator is the total gross receipts of the total revenue miles of the taxpayer everywhere during the taxable
the taxpayer everywhere during the taxable period. Gross receipts are period. A revenue mile means the average receipts derived from the
net of returns and allowances. Sales of tangible personal property are transportation by the taxpayer of persons or property one mile. Where
inside this state if the property is delivered or shipped to a purchaser
revenue miles are derived from the transportation of both persons and
within this state. The partnership’s gross receipts shall be included in the
property, the revenue mile fractions attributable to each such class of
denominator of the taxpayer’s sales factor to the extent of the taxpayer’s
ownership interest in the partnership. The amount of such gross receipts transportation are calculated separately. The average of the two fractions,
attributable to Pennsylvania shall be included in the numerator of the weighted in accordance with the ratio of total receipts from each such
sales factor. These figures should be reflected on the Partner’s Share of class of transportation everywhere to total receipts from both such classes
Sales from Partnerships line of RCT-106. Amounts applicable to an of transportation everywhere, is used in apportioning business income to
ownership interest in an LLC or business trust that is a partnership or the commonwealth.
disregarded entity for federal income tax purposes must be included.
PIPELINE OR NATURAL GAS COMPANIES
CAUTION : This must be numeric with a numerator and a All business income of pipeline companies is apportioned to the
denominator present. If no activity anywhere, the numerator must commonwealth by multiplying the income by a fraction. The numerator is
be “0” and the denominator must be “1”. the revenue ton miles, revenue barrel miles or revenue cubic feet miles
Act 52 of 2013 established the following criteria for determining if receipts of the taxpayer inside the commonwealth during the tax period. The
from other than the sale of tangible personal property are sourced to PA: denominator is the revenue ton miles, revenue barrel miles or revenue
•Sales from the sale, lease, rental or other use of real property, if the cubic feet miles of the taxpayer everywhere during the tax period. A
real property is located in this state. If a single parcel of real property revenue ton mile, revenue barrel mile or revenue cubic feet mile means,
is located both inside and outside this state, the sale is in this state respectively, the receipts derived from the transportation by the taxpayer
based upon the percentage of original cost of the real property of one ton of solid property, one barrel of liquid property or one cubic foot
located in this state. of gaseous property transported one mile. All business income of natural
•Sales from the rental, lease or licensing of tangible personal gas companies subject to regulation by the Federal Power Commission
property, if the customer first obtained possession of the tangible or by the Pennsylvania Public Utility Commission is apportioned to the
personal property in this state. If the tangible personal property is Commonwealth of Pennsylvania by multiplying the income by a fraction.
subsequently taken out of this state, the taxpayer may use a The numerator is the cubic foot capacity of the taxpayer’s pipelines inside
reasonably determined estimate of usage in this state to determine the commonwealth. The denominator is the cubic foot capacity of the
the extent of sale in this state. taxpayer’s pipelines everywhere, at the end of the taxable period.
•Sales from the sale of service, if the service is delivered to a location Determine the cubic foot capacity of a pipeline by multiplying the square
in this state. If the service is delivered both to a location inside and of its radius by its length in feet.
outside this state, the sale is in this state based upon the percentage
of total value of the service delivered to a location in this state. WATER TRANSPORTATION COMPANIES
If the state or states of assignment cannot be determined for a OPERATING ON HIGH SEAS
customer who is an individual who is not a sole proprietor, a service All business income of water transportation companies operating on high
is deemed to be delivered at the customer's billing address. seas is apportioned to the Commonwealth of Pennsylvania by multiplying
the business income by a fraction. The numerator is the number of port
•If the state or states of assignment cannot be determined for a
customer who is a sole proprietor, a service is deemed to be days spent inside the commonwealth. The denominator is the total
delivered at the location from which the services were ordered in the number of port days spent inside and outside the commonwealth. Port
customer's regular course of operations. If the location from which days do not include periods when the ships are not in use because of
the services were ordered in the customer's regular course of strikes or withheld from service for repair or because of seasonal
operations cannot be determined, a service is deemed to be reduction of services. Days in port are calculated by dividing the
delivered at the customer's billing address. aggregate number of hours in all ports by 24.

14 REV-1200 www.revenue.pa.gov

- 15 -

Enlarge image

WATER TRANSPORTATION COMPANIES                                                   2. Net rents and royalties from tangible personal property are allocable 
OPERATING ON INLAND WATERS                                                    to this state to the extent the property is used in this state. The extent 
All business income of water transportation companies operating on            of utilization of tangible personal property in a state is determined 
inland waters is apportioned to the Commonwealth of Pennsylvania by           by multiplying the rents and royalties by a fraction, the numerator of 
multiplying the business income by a fraction. The numerator is the           which is the number of days of physical location of the property in 
taxpayer’s total revenue miles inside the commonwealth during the             the state during the rental or royalty period in the taxable year and 
taxable period. The denominator is the total revenue miles of the taxpayer    the denominator of which is the number of days of physical location 
everywhere during the taxable period. In the determination of revenue         of the property everywhere during all rental or royalty periods in the 
miles, one-half of the mileage of all navigable waterways bordering           taxable year. If the physical location of the property during the rental 
between the commonwealth and another state shall be considered                or royalty period is unknown or unascertainable by the taxpayer, 
commonwealth miles. A revenue mile means the revenue receipts derived         tangible personal property is utilized in the state in which the property 
from the transportation by the taxpayer of persons or property one mile.      was located at the time the rental or royalty payer obtained 
                                                                              possession. 
IMPORTANT: Corporations with two distinct activities like 
warehousing/trucking and distribution/trucking or personal                           Net rents and royalties from tangible personal property are also 
transportation and property transportation must check the Alternative         allocated to this state if the commercial domicile of the taxpayer is 
Apportionment checkbox on Page 1, Step C for timely processing. For           in PA and the taxpayer is not organized or subject to tax in the state 
further information such companies should refer to Corporation Tax            where the property is utilized. “Commercial domicile” means the 
Bulletin 2022-01.                                                             principal place from which the trade or business of the taxpayer is 
                                                                              directed or managed 
APPORTIONMENT AND INVESTMENTS IN  
UNINCORPORATED ENTITIES                                                          3. Interest is allocable to this state if the taxpayer’s commercial domicile 
A corporate taxpayer’s investment in an unincorporated entity is              is in this state. 
considered a direct ownership in the corporation’s share of the assets of        4. Patents and copyright royalties are allocable to this state if and to 
the unincorporated entity rather than an intangible interest. When            the extent that the patent or copyright is utilized by the payer in this 
determining the sales factor, the numerator and the denominator of the        state, or if and to the extent that the patent or copyright is utilized by 
factor must include the sales of the corporate taxpayer plus the corporate    the payer in a state in which the taxpayer is not taxable and the 
taxpayer’s share of the sales of the unincorporated entity. In situations     taxpayer’s commercial domicile is in this state. A patent is utilized in 
where the corporate taxpayer has an investment in a business not subject      a state to the extent that it is employed in production, fabrication, 
to the corporate net income tax (i.e. an LLC that files federal Form 1065     manufacturing or other processing in the state or to the extent that 
with the IRS), the apportionment factor used in the calculation of the PA     a patented product is produced in the state. If the basis of receipts 
corporate net income tax will include only the sales of the LLC.              from patent royalties does not permit allocation to states or if the 
A corporate taxpayer with an investment in a LLC or business trust that       accounting procedures do not reflect states of utilization, the patent 
files a federal partnership return or is disregarded for federal income tax   is utilized in the state in which the taxpayer’s commercial domicile 
purposes, would include the activity of the investee LLC or business trust    is located. A copyright is utilized in a state to the extent that printing 
in the single sales factor apportionment used in the calculation of the       or other publication originates in the state. If the ba sis of receipts 
corporate net income tax.                                                     from copyright royalties does not permit allocation to states or if the 
                                                                              accounting procedures do not reflect states of utilization, the 
NONBUSINESS INCOME                                                            copyright is utilized in the state in which the taxpayer’s commercial 
TRC § 401(3)2.(a)(1)(A) defines business income as income arising from        domicile is located.  
transactions and activity in the regular course of the taxpayer's trade or 
                                                                              IMPORTANT:  T axpayers claiming nonbusiness income must 
business and includes income from tangible and intangible property if 
                                                                              include REV-934, Schedule of Nonbusiness Income, when filing 
either the acquisition, the management or the disposition of the property 
                                                                              RCT-101. 
is an integral part of the taxpayer's regular trade or business operations. 
The term includes all income apportionable under the U.S Constitution.        IMPORTANT: Nonbusiness income of railroad, truck, bus or airline 
Nonbusiness income means all income other than business income.               companies; pipeline or natural gas companies; and water 
                                                                              transportation companies operating on high seas or inland waters also is 
Rents and royalties from real or tangible personal property, gains, interest, 
                                                                              allocated as noted above. 
patent or copyright royalties, to the extent that they constitute 
nonbusiness income, are allocated as reflected below: 
   1. Net rents and royalties from real property located in this state are 
allocable to this state. 

www.revenue.pa.gov                                                                                      REV-1200 15

- 16 -

Enlarge image

                                              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 you are requesting a transfer of credit or refund of overpayment, please 
use the following address:                                                  REV-976 – ELECTION NOT TO BE TAXED AS A PENNSYLVANIA  
       PA DEPARTMENT OF REVENUE                                             S CORPORATION 
       TRANSFER/REFUND REQUESTED                                            Fax or Email to: 
       PO BOX 280706                                                               Fax: 717-787-3708 
       HARRISBURG PA  17128-0706                                                   Email: ra-btftregisfax@pa.gov 
If you are neither including payment nor requesting a transfer of credit or PA-20S/PA-65 – PA S CORPORATION/ PARTNERSHIP 
refund of overpayment, please use the following address. This includes      INFORMATION RETURN 
reports when payment was made electronically.                                      PA DEPARTMENT OF REVENUE 
       PA DEPARTMENT OF REVENUE                                                    PO BOX 280509 
       NO PAYMENT, NO TRANSFER/REFUND                                              HARRISBURG PA  17128-0509 
       PO BOX 280708                                                        OVERNIGHT MAILING 
       HARRISBURG PA  17128-0708                                                   PA DEPARTMENT OF REVENUE 
REV-857 – ESTIMATED TAX PAYMENTS                                                   1854 BROOKWOOD ST 
       PA DEPARTMENT OF REVENUE                                                    HARRISBURG PA  17104-2244 
       PO BOX 280422                                                        SPECIAL HANDLING 
       HARRISBURG PA  17128-0422                                                   PA DEPARTMENT OF REVENUE 
CT-V – FED/STATE PAYMENT VOUCHER                                                   PO BOX 280704 
       PA DEPARTMENT OF REVENUE                                                    HARRISBURG PA  17128-0704
       PO BOX 280427 
       HARRISBURG PA  17128-0427 

16     REV-1200                                                                                                  www.revenue.pa.gov

PDF file checksum: 3124725033

(Plugin #1/9.12/13.0)