New York City does not recognize Federal or New York State "S Corporation" elections. S Corporations are subject to this tax. A taxable association or publicly traded partnership is treated as a corporation for the purpose of this tax.
If a corporation is not subject to the tax, but it has an officer, employee, agent, or other representative within the five boroughs, it must nevertheless file Form NYC-245, the Activities Report for Corporations.
Who is Exempt from the Tax?
The instructions to Forms NYC-3L and NYC-4S explain in detail what types of corporations are exempt from the General Corporation Tax:
- Dormant corporations, which did not engage in any business activity or held title to real property located in New York City;
- Corporations subject to the New York City Banking Corporation Tax or Utility Tax, except vendors of utility services which are subject to the General Corporation Tax;
- Corporations organized to hold title to property as described in Sections 501(c)(2) or (25) of the Internal Revenue Code;
- Insurance Corporations;
- Nonstock not-for-profit companies that are granted an exemption by the New York City Department of Finance; and
- Limited profit housing and housing development fund companies organized and operating under articles 2 and 11, respectively, of the Private Housing Finance Law.