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Instructions for Completing 2022 Form 500T
Telecommunications Companies Minimum Tax
GENERAL INFORMATION INSTRUCTIONS
Corporation Electronic Filing Mandate Before filling out this form you must first complete Form 500,
Corporations are required to file their annual income tax returns Lines 1-9. If a telecommunications corporation is included in a
and make payments electronically. Telecommunications combined or consolidated corporation income tax return, see
companies must also include the Form 500T information 23 Virginia Administrative Code (VAC) 10-120-86(B)(1). Items
with the electronically-filed Virginia Corporation Income that are not specifically mentioned below are self-explanatory.
Tax Return, Form 500. Waivers will only be granted if the
Part I – Adjusted Corporate Income Tax Computation
Tax Commissioner finds that this requirement creates an
unreasonable burden on the corporation. All waiver requests Line 1. Enter the corporate income tax liability from Form 500,
must be submitted to the Tax Commissioner in writing. Mail Line 9.
waiver requests to: Virginia Department of Taxation, Line 2. For information on these credits refer to the Schedule
Waiver Requests, P.O. Box 27423, Richmond, VA 23261 500CR instructions.
or fax to (804) 367-3015. Visit the Department's website,
Line 3. Subtract the total amount of tax credits on Line 2
www.tax.virginia.gov, for information about filing and paying
from the corporate income tax liability on Line 1. The adjusted
electronically.
corporate income tax amount will be compared to the
Who is Required to File Form 500T minimum tax amount in Part II.
Every telecommunications company, as defined by statute and Part II – Minimum Tax Computation
certified by the State Corporation Commission, is required to
Line 5. The minimum tax rate is 0.5% of gross receipts. If filing
complete Form 500T. It must be enclosed with the company's
a consolidated or combined return, complete the Schedule
Form 500, which is due on the 15th day of the 4th month after
of Minimum Tax for Consolidated and Combined Filers on
the close of the taxable year.
Page 2, providing a breakdown of the minimum tax for each
Corporations, partnerships, and all other types of telecommu- corporation.
nications companies must complete Form 500. Noncorporate
Line 7. If Line 7 is the same as the corporate income tax
telecommunications companies must complete both Form 500
(Part I, Line 3), complete the balance of Form 500, beginning
and Form 502. A noncorporate telecommunications company
with Line 10, using the credits on Lines 2(A) through (I), (K),
must calculate an income tax liability as if it were a corporation
(M) through (CC), (DD)c, and (EE) through (HH) from Form
(using a pro forma Form 500 to determine a corporate income
500T, Page 1.
tax liability to compare to the minimum tax) and enclose Form
500T with its working papers to show calculations for the Vir- If Line 7 is the same as the minimum tax, enter this amount on
ginia corporation income tax. Form 500T, the working papers, Form 500, Line 11 and complete the balance of the Form 500
and Form 500 must all be filed with the return when it is due. beginning with Line 12. Line 10 of Form 500 will be blank.
Partnerships and all other noncorporate telecommunications Short taxable periods – Report the gross receipts for the
companies must write along the top margin of Form 500 calendar year that ended during the taxable period; or, if none,
“RETURN BY NONCORPORATE TELECOMMUNICATIONS use the gross receipts for the most recent calendar year which
COMPANY.” ended BEFORE the taxable period. Prorate the minimum tax
by multiplying the minimum tax by the number of months in
Noncorporate companies are required to submit a schedule
the short taxable year and divide by 12. Enter the result on
that lists the name, address, tax identification number, and
the appropriate line.
proportionate share of the telecommunications company’s
income and credit taxable to each entity, partner, or other Part III – Noncorporate Telecommunications Companies
person. A noncorporate telecommunications company must calculate
Where to Obtain Additional Information its minimum tax liability. Additionally, it must calculate an
income tax liability as if it were a corporation (a statement
If you have any questions concerning your status as a
must be enclosed showing how the corporate income tax was
telecommunications company or the amount of your gross
calculated). If the minimum tax is greater than the calculated
receipts, contact the Public Service Taxation Division of the
corporate income tax, the noncorporate telecommunications
State Corporation Commission at P.O. Box 1197, Richmond,
company must pay an amount equal to the difference (Line 10)
VA 23218 or at (804) 371-9480.
when filing this form.
When and Where to File Line 10. Check the Noncorporate Telecommunications Com-
Form 500 with Form 500T is due on the 15th day of the 4th pany box on Form 500, enter the amount from Line 10 of Form
month after the close of your taxable year. 500T, on Form 500, in the Noncorporate Telecommunications
Company section and on Line 11.
Va. Dept. of Taxation 2601013 Rev. 09/22
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