PDF document

- 1 -

Reset Form
Michigan Department of Treasury - City Tax Administration
5297 (04-22), Page 1 of 2
Check if this is an amended return.
Complete reason code on line 9.
2022 City of Detroit Corporate Income Tax Return
Issued under authority of Public Act 284 of 1964, as amended.
1. Return is for the city of City Code
Return is due April 15 or on or before the 15th day
of the fourth month after the close of the tax year. DETROIT 170
MM-DD-YYYY MM-DD-YYYY

2. Return is for calendar year 2022 or for tax year beginning: and ending:
3. Taxpayer Name (print or type) 4. Federal Employer Identification Number (FEIN)

5. Street Address

City State ZIP/Postal Code Country Code

6. NAICS Code 7. Number of locations in the city 8. Number of locations everywhere 9. Reason code if amending
included in return
10. Where Incorporated 11. Date Incorporated (MM-DD-YYYY) 12. If Discontinued, Effective Date (MM-DD-YYYY) 13. Discontinued Reason Code

14. Check if a consolidated return was filed with the IRS 15. Check if this is a consolidated return

INCOME APPORTIONMENT — For lines 16-18, if any amount is zero, enter zero.
16. For locations in city
a. Average net book value of real and tangible personal property located in city ......................................... 16a. 00
b. Gross annual rent paid for real property located in city multiplied by 8 ..................................................... 16b. 00
c. Add line 16a and line 16b .......................................................................................................................... 16c. 00
d. Total wages, salaries, commissions and other compensation of all employees located in city ................. 16d. 00
e. Gross receipts from sales made or services rendered in city .................................................................... 16e. 00
17. For locations everywhere
a. Average net book value of real and tangible personal property located everywhere ................................ 17a. 00
b. Gross annual rent paid for real property located everywhere multiplied by 8............................................ 17b. 00
c. Add line 17a and line 17b .......................................................................................................................... 17c. 00
d. Total wages, salaries, commissions and other compensation of all employees located everywhere ....... 17d. 00
e. Gross receipts from sales made or services rendered everywhere .......................................................... 17e. 00
18. Apportionment. If there are no locations outside the city in line 17, see instructions for completing line 18.
a. Real and tangible personal property. Divide line 16c by line 17c .............................................................. 18a. %
b. Wages, salaries, commissions and other compensation. Divide line 16d by line 17d ............................... 18b. %
c. Gross receipts from sales. Divide line 16e by line 17e .............................................................................. 18c. %
d. Add line 18a, line 18b, and line 18c........................................................................................................... 18d. %
e. Average apportionment. See instructions ............................................................................................... 18e. %

TAX COMPUTATION
19. Taxable income before net operating loss deduction and special deductions per federal 1120 or 1120S
as filed with IRS. Include the 1120 or 1120S with this return. (Subchapter S Corporations: Complete
Worksheet A in the instructions.) ...................................................................................................................... 19. 00

Additions to Business Income
20. Nondeductible portion of loss, from sale of property acquired prior to July 1, 1962 ......................................... 20. 00
21. All expenses (including interest) incurred in connection with income not subject to city income tax ................ 21. 00
22. City of Detroit income tax paid or accrued ....................................................................................................... 22. 00
23. Other required additions (see instructions) ...................................................................................................... 23. 00
Describe additions in line 23 ....
24. Total additions. Add lines 20 through 23 .......................................................................................................... 24. 00
25. Tax base after additions. Add line 19 and line 24 ............................................................................................. 25. 00

+ 0000 2022 401 01 27 5 Continue and sign on Page 2

- 2 -

2022 Form 5297, Page 2 of 2 
                                                                                                   Taxpayer FEIN 
Subtractions from Business Income 
26.   Interest from obligations of the United States, the states or subordinate units of government .........................  26.                                     00 
27.   Dividend received deduction ............................................................................................................................  27.    00 
28.   Foreign dividend gross up................................................................................................................................  28.   00 
29.   Foreign taxes paid or accrued deduction .........................................................................................................  29.           00 
30.   Nontaxable portion of gain from sales of property acquired prior to July 1, 1962 .............................................  30.                              00 
31.   Other allowable subtractions (include schedule; see instructions) ...................................................................  31.                       00 
      Describe subtractions in line 31  ... 
32.   Total deductions. Add lines 26 through 31  .......................................................................................................  32.          00 

33.   Subtract line 32 from line 25. If negative, enter as a negative  .........................................................................  33.                  00 
34.   Multiply line 33 by percentage on line 18e .......................................................................................................  34.          00 
35.   Applicable portion of net operating loss carryover and/or capital loss carryover (see instructions) ..................  35.                                      00 
36.   Subtract line 35 from line 34  ............................................................................................................................  36. 00 
37.   Renaissance Zone Deduction from Form 5298, line 13 ...................................................................................  37.                      00 
38.   Total income subject to tax. Subtract line 37 from line 36  ................................................................................  38.                00 
39.   Total Tax Liability. Multiply line 38 by 2% (0.0200).........................................................................................  39.               00 

Payments, Credits and Tax Due 
40.   Overpayment credited from prior period return  ................................................................................................  40.             00 
41.   Estimated tax payments...................................................................................................................................  41.   00 
42.   Tax paid with request for extension ..................................................................................................................  42.      00 
43.   Payment and credit total. Add line 40, line 41 and line 42 ................................................................................  43.                 00 
If amending, complete line 44, line 45, and line 46; otherwise, skip to line 47 
44.   Payment made with the original return plus additional tax paid after original return was filed..........................  44.                                    00 
45.   Overpayment received on the original return  ...................................................................................................  45.            00 
46.   Add line 43 and line 44, and subtract line 45 from the sum  .............................................................................  46.                   00 

47.   Tax Due. Subtract line 43 (or line 46, if amending) from line 39. If less than zero, leave blank  .......................  47.                                   00 
48.   Underpaid estimate penalty and interest (see instructions)  .............................................................................  48.                   00 
49.   Annual return penalty (see instructions) ...........................................................................................................  49.        00 
50.   Annual return interest (see instructions)  ..........................................................................................................  50.       00 
51.   Payment Due. If line 47 is blank, go to line 52. Otherwise, add line 47, line 48, line 49, and line 50  ..............  51.                                      00 

Refund or Credit Forward 
52.   Overpayment. Subtract line 39, line 48, line 49, and line 50 from line 43 (or line 46, if amending). If less than 
      zero, leave blank (see instructions)  .................................................................................................................  52.     00 
53.   Credit Forward.  Amount on line 52 to be credited forward and used as an estimate for next tax year ...........  53.                                             00 
54.   Refund. Subtract line 53 from line 52 ..............................................................................................................  54.        00 

Taxpayer Certification.   I declare under penalty of perjury that the information in this Preparer Certification.   I declare under penalty of perjury that this 
return and attachments is true and complete to the best of my knowledge.                  return is based on all information of which I have any knowledge. 
      By checking this box, I authorize the Michigan Department of Treasury               Preparer’s PTIN, FEIN or SSN 
      to discuss my return with my preparer. 
Authorized Signature for Tax Matters                                                      Preparer’s Business Name (print or type) 

Authorized Signer’s Name (print or type)                          Date                    Preparer’s Business Address and Telephone Number (print or type) 

Title                                                Telephone Number 

ALL RETURNS, mail to: Michigan Department of Treasury, PO Box 30811, Lansing MI 48909 
WITH PAYMENT. Pay amount on line 51. Make check payable to “State of Michigan - Detroit.” Print taxpayer FEIN, the tax year and “Detroit Corporate Tax” 
on the front of the check. Do not staple the check to the return. 

+ 0000 2022 401 02 27 4

- 3 -

Instructions for Form 5297

City of Detroit Corporate Income Tax return

The calculation is complicated by the fact that the deduction is
Filing Requirements
reduced in each of the last 4 years of the zones existence and
Every corporation “doing business” in the city, whether or not the fact that the reduction factors are based on a calendar year.
it has an office or place of business in the city, is required to file See the instructions for Schedule Form 5298 for additional
an annual City of Detroit Corporate Income Tax Return (Form information.
5297). Attach a copy of federal Form 1120, 1120S, or other
corporate return form along with Schedule K and all ancillary Tax Rate
schedules filed with the IRS to Form 5297.
The City of Detroit Corporate Income Tax rate for 2022 is
Every corporation with an annual corporate income tax 2.0%.
liability of more than $250 must make quarterly tax payments.
Filing Date
Corporations cannot elect to file and be taxed as partnerships.
A tax option corporation (S corporation, REIT, etc.) is treated Taxpayers on a calendar year are required to file by April 15,
as a corporation. 2023. Those on a fiscal year must file by the 15th day of the
fourth month following the end of the fiscal year. Returns
The City of Detroit Corporate Income Tax Ordinance shall be for the same calendar year, fiscal year or other
specifically exempts financial institutions and insurance accounting period as the taxpayer uses for federal income tax
companies from taxation. “Financial institutions” are defined purposes.
as state and national banks, trust companies, building and
loan associations, savings and loan associations, credit Completing City of Detroit Forms
unions, safety and collateral deposit companies, and any other
association, joint stock company or corporation at least 90% The information from paper City of Detroit Corporate
of whose assets consist of intangible personal property and at Income Tax returns is captured using an Intelligent Character
least 90% of whose gross income consists of dividends, interest Recognition process. If completing a paper return, avoid
or other charges resulting from the use of money or credit. unnecessary delays caused by manual processing by following
the guidelines below so the return is processed quickly and
All City of Detroit’s income tax forms are available on the accurately.
State of Michigan Web site, www.michigan.gov/citytax.
• Use black or blue ink. Do not use pencil, red ink, or felt tip
Amending pens. Do not highlight information.
If a taxpayer needs to correct a return filed previously, use a • Print using capital letters (UPPER CASE). Capital letters
new Form 5297 to file an amended return. Be sure to check are easier to recognize.
the amended return box at the top of page 1 of Form 5297 and • Print numbers like this: 0123456789. Do not put a
complete line 9 and lines 44 through 46. An amended income slash through the zero ( ) or seven ( 7).
tax form is required to be filed with any adjustments resulting
• Fill check boxes with an [X]. Do not use a check mark [a].
from an IRS audit.
• Leave lines/boxes blank if they do not apply or if
See line 9 instructions for additional information. the amount is zero, unless otherwise instructed. (See
instructions for lines 16, 17 and 18.)
Renaissance Zone Deduction
• Stay within the lines when entering information in boxes.
A qualified corporation located and “doing business” in
• Report losses and negative amounts with a negative
a Detroit Renaissance Zone may be eligible to claim the
sign in front of the number (do not use parentheses). For
Renaissance Zone Deduction. This deduction allows the
example, a loss in the amount of $22,459 should be reported
corporation to deduct the portion of its income earned in a
as -22,459.
Renaissance Zone from income subject to City of Detroit
income tax. A taxpayer is not qualified to claim the deduction • Percentages should be carried out four digits to the
if the corporation is delinquent for any Michigan or local right of the decimal point. Do not round percentages.
taxes. A City of Detroit income tax return must be filed to For example, 24.154266 percent becomes 24.1542 percent.
claim this deduction. City of Detroit Corporate Renaissance When converting a percentage to a decimal number, carry
Zone Schedule (Form 5298) is required to be attached to the numbers out six digits to the right of the decimal point. For
corporation return when claiming the Renaissance Zone example, 24.154266 percent becomes 0.241542.
deduction. • Report all amounts in whole dollars. Round down
amounts of 49 cents or less. Round up amounts of 50 cents
A taxpayer claiming the City of Detroit Corporate Renaissance
or more. If cents are entered on the form, they will be
Zone Schedule will file form 5298 to compute the deduction.
treated as whole dollar amounts.
City of Detroit Corporate Renaissance Zone Schedule, form 5298
is designed to handle all calculations relative to the deduction.

- 4 -

Request for Extension means the period for which the return is made. Generally, a
taxpayer’s tax year is for the same period as is covered by its
If additional time is needed to file the City of Detroit annual federal income tax return.
income tax return, request a city extension by filing an
Application for Extension of Time to File City Corporate Line 4: Enter the taxpayer’s FEIN. Be sure to use the same
Income Tax Return (Form 5301). Treasury may extend the time account number on all forms. Also, the taxpayer’s FEIN from
for filing up to six months. When an extension is requested, the line 4 must be repeated at the top of page 2.
tentative tax must be paid. An extension of time to file is not Line 5: Enter the complete address, including the two-digit
an extension of time to pay. abbreviation for the country code.

Remittance A complete list of country codes is available online at
The payment due from line 51 must be paid when filing michigan.gov/citytax. Commonly used country codes
the return. Make check or money order payable to: State are listed below:
of Michigan — Detroit. Print taxpayer FEIN, tax year and United States US
“Detroit Corporate Tax” on the front of the check. Do not staple Canada CA
the check to the return.
Mexico MX
Mail all returns to:
NOTE: Any correspondence regarding the return filed and/or
Michigan Department of Treasury refund will be sent to the address provided on this form. The
PO Box 30811 taxpayer’s primary address in Treasury files, identified as the
Lansing MI 48909 legal address and used for all purposes other than refund and
correspondence on a specific corporate income tax return,
Effective Date of Tax
will not change unless the taxpayer files a Notice of Change or
The City of Detroit income tax became effective July 1, 1962. Discontinuance (Form 163) with Treasury.
Corporations are required to pay tax each year on that part of its
net income attributable to business activity conducted in Detroit, FOREIGN FILERS: Complete the address fields as follows:
commencing with its first year ending after July 1, 1962. Address: Enter the postal address for this taxpayer.
City: Enter the city name for this taxpayer. DO NOT
Accounting include the country name in this field.
The taxpayer may request, or the administrator may require, State: Enter the two-letter state or province abbreviation.
use of the separate accounting method. If such method is If there is no applicable two-letter abbreviation, leave this
requested, the administrator may require a detailed statement field blank.
to determine whether the net profits attributable to the City will ZIP/Postal Code: Enter the ZIP Code or Postal Code.
be apportioned with reasonable accuracy (Ordinance Section Country Code: Enter the two-letter country code.
19). Corporations must attach a letter from administrator
Line 6: Enter the entity’s six-digit North American Industry
approving the separate accounting method.
Classification System (NAICS) code as reported on the federal
Generally, a corporation that is unitary in nature (i.e., has return. For a complete list of six-digit NAICS codes, see the
central management, purchasing, warehousing, advertising, U.S. Census Bureau Web site at www.census.gov/eos/www/
etc.) cannot use separate accounting. Taxpayers allocating naics/, or enter the same NAICS code used when filing the
on any basis other than separate accounting shall include all entity’s federal Form 1120, Schedule K.
interest, dividends and other non-operating income to arrive at
Line 9: Using the table below, select the two-digit code that
the total income subject to the allocation percentage.
best represents the reason for amending the return.
Taxpayers using separate accounting shall include in income
subject to tax a proportionate share of dividends, interest and 01 Increasing tax liability.
other non-operating income of the total corporation. This type 02 Decreasing tax liability. (If amending due to
of income is apportioned to City of Detroit activity on the decreasing tax liability, include an explanation.)
same basis as general administrative and overhead costs are 03 Incorrect information/figures reported on original
apportioned. return.
04 Original return was missing information/
Line-by-Line Instructions
incomplete.
Lines not listed are explained on the form. 10 Other.
Line 2: If not a calendar-year taxpayer, enter the beginning and
If selecting “Other,” include an explanation.
ending dates (MM-DD-YYYY) that correspond to the taxable
period included in this return. Line 13: Enter the two-digit code that best represents the
reason for discontinuance from the table below.
Tax year means the calendar year, or the fiscal year ending
during the calendar year, on which the tax base of a taxpayer Business has closed.
01
is computed. If a return is made for a part of a year, tax year
02 Business was sold/merged with other entity.

- 5 -

03 Business no longer operates in the City of Detroit. Subchapter S Corporations: Complete Worksheet A below.

10 Other. WORKSHEET A
If selecting “Other,” include an explanation with this return. 1. Ordinary income (loss) from
trade or business (per federal
NOTE: Completing this line will discontinue a City Corporate 1120S) ........................................ 00
Income Tax only. To discontinue any Michigan tax, file a 2. Income (loss) per Schedule K,
Notice of Change or Discontinuance (Form 163) or go to federal 1120S, lines 2 through
Michigan Treasury Online. 10................................................ 00
3. Total income (loss). Add line 1
Income Apportionment and line 2 .................................... 00
SPECIAL INSTRUCTIONS for lines 16, 17 and 18: If 4. Deductions per Schedule K,
the amount to report on any of these lines is zero, enter the federal 1120S ............................. 00
numeric zero (0). DO NOT write “none.”
5. Taxable income before net
Line 16a: Enter the average net book value of real and tangible operating loss deduction and
personal property located in the city limits of Detroit. The special deductions. Subtract line
4 from line 3, and carry to Form
average net book value of real and tangible personal property 5297, line 19 ............................... 00
may be determined by adding the net book values at the
beginning of the year and the net book values at the end of the Lines 20 through 32: Enter all amounts as a positive
year and dividing the sum by two. number.
Nondeductible portion of loss is determined by either
Line 16b: Enter the gross annual rent multiplied for by 8 rented Line 20:
(1) computing the difference between the total gain or loss for
real property located in the city limits of Detroit. Gross annual
the property as reported for federal income tax purposes and
rent refers to real property only, rented or leased during the
the City of Detroit taxable portion of the loss computed by
taxable period, and should include the actual sums of money or
substituting the fair market value of the property on July 1,
other consideration paid, directly or indirectly, by the taxpayer
for the use or possession of such property. 1962, (the June 30, 1962, closing price for traded securities)
for the basis in determining gain or loss; or (2) by multiplying
Line 16d: Enter the total compensation paid to all employees the loss for the entire holding period, as computed for federal
during the year for work or services performed within the City income tax purposes, by a fraction, the numerator being the
of Detroit. number of months the property was held prior to July 1, 1962
and denominator being the total number of months the property
Line 16e: Enter the amount of total gross revenue derived from
was held.
sales made or services rendered in the City of Detroit during
the year. Capital losses from U.S. Government obligations included in
Enter the average net book value of real and tangible income reported on line 19 are not deductible. Remove these
Line 17a:

personal property owned by the business regardless of location. losses by including them in the amount reported on line 20.
See the instructions for line 16a to determine average net book Line 21: Enter all expenses (including interest expense)
value. incurred in connection with income not subject to city income
Line 17b: Enter the gross annual rent multiplied by 8 for all tax.
rented real property regardless of location. See the instructions Line 22: Enter Detroit city income tax paid or accrued during
for line 16b for more information on gross annual rent. the tax year and deducted to arrive at federal taxable income.
Line 17d: Enter the total compensation paid to all employees Line 23: Enter the losses from entities filing as partnerships
during the year. included in taxable income reported on line 19 or other items to
Line 17e: Enter the amount of total gross revenue derived from be added back.
all sales made or services rendered during the year. Line 26: Enter the amount of interest income from obligations
Line 18e: If a factor does not exist, divide the sum of the of the United States, the states or subordinate units of
percentages by the number of factors actually used. In government of the state that is included in taxable income
determining the business apportionment percentage, a factor reported on page 1, line 19.
shall be excluded from the computation only when such factor Line 27: If you reported dividend income, enter on this line
does not exist anywhere insofar as the taxpayer’s business the amount of the dividend-received deduction allowed by the
operation is concerned and thus lines 17c, 17d, or 17e are $0. federal Internal Revenue Code for dividends received.
Line 19: Enter profit (or loss) from your Federal Corporation Line 28: Taxpayers may deduct income, war profits and excess
Income Tax Return. Attach a copy of the Federal Form 1120 profits taxes imposed by foreign countries or possessions of
or 1120S, Schedule K and all ancillary schedules filed with the the United States, allocable to income included in taxable net
IRS to support line 19. If zero enter zero. If negative, enter as a income, any part of which would be allowable as a deduction
negative. in determining federal taxable income under the applicable
provisions of the federal Internal Revenue Code. If a foreign

- 6 -

tax credit, rather than a foreign tax deduction, was claimed Line 52: If the amount of the tax overpayment, less any penalty
on your federal return form 1120, Schedule C, line 15 enter and interest due on line 48, 49 and 50 is less than zero, enter
the portion of the foreign tax credit which was grossed up and the difference (as a positive number) on line 51. If the amount is
included in your City of Detroit return as dividends received. greater than zero, enter on this line.
Line 29: Enter the “foreign taxes paid or accrued” portion NOTE: If an overpayment exists, a taxpayer may elect a
of the foreign tax credit claimed on the federal return, not in refund of all or a portion of the amount and/or designate all or
excess of the federal limitations. The balance of your foreign a portion of the overpayment to be used as an estimate for the
tax credit is not deductible. next tax year. Complete lines 53 and 54 as applicable.

Line 30: Enter the nontaxable portion of a gain from the sale
or exchange of property acquired prior to July 1, 1962. The
portion of the gain occurring prior to the inception of the
Ordinance, July 1, 1962, is not taxable. See the instructions for
line 20 on options for determining the portion of the gain that
occurred prior to July 1, 1962.

Capital gains from U.S. Government obligations included in
income reported on Federal Form 1120, page 1, line 8, are
not taxable. Remove these gains by including them in the
amount reported on line 30.
Line 31: Enter income from other sources including schedules
(i.e. entities filing as partnerships, Federal Form 1065, Schedule
K).
Include on this line, any income from partnerships that has
been claimed and paid on the City of Detroit Income Tax
Partnership Return, Form 5458. Include proof of payment or
other supporting documentation”
Line 35: Net operating loss carried forward are to be reported
on this line. There is no provision for carrying back losses to
prior two years. Carryover losses are to be allocated to Detroit
at the percentage of business conducted in Detroit in the year in
which the loss was sustained. If all business was not conducted
in Detroit in the year in which the loss was sustained, use
the business allocation percentage formula to arrive at the
deductible portion of the loss. Attach a schedule showing your
computation for the amount reported on this line.
Line 37: Enter total on line 8, Form 5298, for the Renaissance
Zone Deduction.
Line 48: If Line 39 is greater than $250 and the sum of lines
40 and 41 is less than 70% of line 39, complete Form 5324 and
enter any penalty and interest due.
Line 49: Penalty accrues monthly at 1 percent of the tax
due and unpaid, and increases by an additional 1 percent per
month, or fraction thereof until the tax is paid (e.g., penalty on
a $500 tax due will be $30 if the tax is unpaid for six months).
The maximum penalty is 25%.
Line 50: If applicable, the interest rate is 1 percent above the
adjusted prime rate and is adjusted on January 1 and July 1 of
each year. Interest is charged from the original due date of the
return to the date the balance of the tax is paid.
NOTE: The interest rate is adjusted by Treasury on January 1
and July 1 of each year to 1 percent above the adjusted prime rate,
and is posted as a Revenue Administrative Bulletin (RAB). For
updated interest rates, go online to michigan.gov/taxes and
select “Reports and Legal” in the banner near the top of the
page. The applicable RAB is titled “Interest Rate.”

PDF file checksum: 2637929645

(Plugin #1/9.12/13.0)