N.J. Admin. Code § 18:7-17.5

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:7-17.5 - Calculation of tax

(a) The tax to be paid shall be the total of:

1. The share of entire net income of the partnership for the privilege period of all nonresident noncorporate partners multiplied by an allocation factor determined pursuant to N.J.S.A. 54:10A-6 and using the partnership's allocation fractions multiplied by the tax rate of .0637; plus

2. The share of entire net income of the partnership for the privilege period of all nonresident corporate partners multiplied by an allocation factor determined pursuant to N.J.S.A. 54:10A-6 and using the partnership's allocation fractions multiplied by the tax rate of .09.

3. As used in this subsection, the term "entire net income" as applied to partnerships means distributive share of partnership income for Federal purposes plus tax exempt interest income as shown on the Form Federal K-1.

(b) A partnership shall not claim credit or take into account estimated tax payments made by nonresident partners in determining how much tax to pay on behalf of any corporate partner.

(c) A partnership must have a regular place of business as defined under N.J.A.C. 18:7-7.2 outside the State of New Jersey in order to allocate a portion of its income outside New Jersey. For purposes of this subchapter, each regular place of business of a partnership that is unitary with a corporate partner who is filing a return in this State is to be treated as a regular place of business of the corporate partner. See N.J.A.C. 18:7-17.8(d).

N.J. Admin. Code § 18:7-17.5

Amended by 49 N.J.R. 1694(a), effective 6/19/2017