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Michigan Department of Treasury - City Tax Administration
5297 (04-20), Page 1 of 2
Check if this is an amended return.
Complete reason code on line 9.
2020 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 2020 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 2020 401 01 27 9 Continue and sign on Page 2

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2020 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 2020 401 02 27 8

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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 See the instructions for Schedule Form 5298 for additional
file an annual City of Detroit Corporation Income Tax Return information.
(Form 5297). Attach a copy of federal Form 1120, 1120S, or
other corporate return form along with Schedule K and all Tax Rate
ancillary schedules filed with the IRS to Form 5297.
The City of Detroit Corporate Income Tax rate for 2020 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. 2021. 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.

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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
FOREIGN FILERS: Complete the address fields as follows:
net income attributable to business activity conducted in Detroit,
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
01 Increasing tax liability.
subject to tax a proportionate share of dividends, interest and
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
01 Business has closed.
is computed. If a return is made for a part of a year, tax year
02 Business was sold/merged with other entity.

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                                                                                                                      Subchapter S Corporations: Complete Worksheet A below.     
03          Business no longer operates in the City of Detroit.
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 
                                                                                                                      1962,  (the  June  30,  1962,  closing  price  for  traded  securities) 
for the use or possession of such property.     
                                                                                                                      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 
 17b:  Enter the gross annual rent multiplied by 8 for all                                                            tax.                     
Line 
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 

                                                                                                                                                                                          5

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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.”

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