![]() ![]() In addition, the credit is reduced by a fraction where the taxpayer's gross receipts exceed $19,000,000 up to the $20,000,000 disqualifying threshold. Subject to other disqualifying conditions set forth at MCL 206.671, the credit is available to a taxpayer with gross receipts that do not exceed $20,000,000 for the tax year. A taxpayer whose gross receipts exceed this amount must file a return and pay the tax.įinally, gross receipts are used to determine whether a taxpayer qualifies for a small business alternative credit under MCL 206.671. A taxpayer, other than an insurance company or a financial institution, whose apportioned or allocated gross receipts are less than $350,000 is not required to file a return or pay the tax imposed under the CIT. Second, gross receipts are used as a threshold to determine whether a taxpayer is required to file an annual CIT return and pay the tax. Therefore, the amount of a taxpayer's gross receipts, in conjunction with active solicitation of sales, is determinative of whether a taxpayer has nexus in Michigan. One of these is that a taxpayer has nexus with Michigan if the taxpayer actively solicits sales in Michigan and has gross receipts of $350,000 or more sourced to Michigan. There are three separate alternative nexus standards under the CIT. How are gross receipts used under the CIT?įirst, gross receipts are used to determine whether a taxpayer has nexus in Michigan. ![]()
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