Tax Services:

Corporate Taxation in Pennsylvania

Pennsylvania has one of the highest corporate tax burdens in the United States. The unusual combination of both an income tax and a net worth tax requires careful planning to minimize the overall tax burden for corporations in Pennsylvania. Sisterson has spent many years dealing with Pennsylvania tax law and the Department of Revenue and is prepared to meet the challenge.

Although Pennsylvania’s corporate income tax law is closely tied to the federal income tax law, issues and opportunities still remain involving income tax, capital stock/franchise tax and multi-state operations. These issues and opportunities include:

Income Tax

• Apportionment vs. allocation
• Business vs. non-business income
• Transactions with related corporations
• Net operating loss carry forward
• Nexus
• Interests in partnerships or limited liability companies

Capital Stock/Franchise Tax

• Single Factor Apportionment
• Three Factor Apportionment
• Manufacturing company exemption
• Holding company exemption
• Valuation under the fixed formula
• Interests in partnerships or limited liability companies