|Effective for tax years beginning on or after January 1, 2015, the GCT only applies to corporations that are S corporations and qualified subchapter S subsidiaries under the U.S. Internal Revenue Code. These corporations will continue to file GCT tax returns in tax years beginning on or after January 1, 2015 if they are otherwise taxable under the GCT. The applicable forms have not changed. All other corporations are now subject to tax under Subchapter 3-A of Chapter 6 of Title 11 of the Administrative Code and will file Subchapter 3-A tax returns instead of GCT returns. For more information regarding corporate tax reform, click here.|
Who Has to Pay This Tax?
All domestic and foreign corporations in New York City that are:
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.
A business with a valid six-month extension may request up to two additional 3-month extensions by filing Form NYC-EXT.1. A separate form must be filed for each 3-month extension requested.
If the corporation can reasonably expect its tax to exceed $1,000 for the taxable year, it must file Form NYC-400 (Declaration of Estimated Tax) and pay the estimated tax. Estimated tax can also be paid in installments. A payment of 25% of the tax liability for the preceding year is required as the first installment of estimated tax for the current year.
Estimated tax must be either:
If a due date falls on a weekend or a legal holiday, the filing must be made by the next business day.
Under Section 1004 of the Business Corporation Law, as of October 1, 2009, Tax Clearance must be obtained from Department of Finance when dissolving corporations that have done business in and incurred tax liability to the City of New York. You must complete the Request For Dissolution and mail to Department of Finance. Department of Finance will send a Dissolution Consent to the address provided on the Request. The Dissolution Consent must be attached to Certificates of Dissolution that are filed with the New York State Secretary of State.
If you are not an officer of the corporation, and are filing a Request for Dissolution on behalf of a corporation, you will need to obtain and submit a signed and dated Power of Attorney with your request.
Title 11, Chapter 6 (Subchapter 2) Administrative Code Enabling Act: Chapter 772 of the Laws of 1966
Business Corporation Tax