Every domestic or foreign corporation doing business in Delaware, not specifically exempt under Section 1902(b), Title 30, Delaware Code, is required to file a corporate income tax return (Form 1100 or Form 1100EZ) and pay a tax of 8.7% on its federal taxable income allocated and apportioned to Delaware.

Does Delaware have a corporate franchise tax?

All corporations incorporated in the State of Delaware are required to file an Annual Report and to pay a franchise tax. Exempt domestic corporations do not pay a tax but must file an Annual Report.

How much is the corporate tax in Delaware?

Corporate Income Tax Rate: 8.7% of federal taxable income allocated and apportioned to Delaware based on an equally weighted three-factor method of apportionment. The factors are property, wages and sales in Delaware as a ratio of property, wages and sales everywhere.

Why Delaware has no sales tax?

Delaware. In lieu of a sales tax, Delaware assesses a gross receipts tax on certain businesses. 12 The state has relatively high corporate income taxes and imposes additional taxation on specific distributors of goods and services, allowing the state to have a 0% property tax and sales tax.

How does a Delaware corporation pay income tax?

Every S-Corporation deriving income from sources within Delaware must make estimated payments of personal income tax on behalf of its non-resident shareholders. Payments are based on the non-residents’ share of the distributive income of the corporation.

When is the due date for filing a Delaware corporate tax return?

What is the due date for filing a Delaware corporate income tax return? A. Delaware corporate income tax returns are due in the case of a calendar year taxpayer, on or before April 15 of the following year.

Can a consolidated group file a tax return in Delaware?

The factors are property, wages and sales in Delaware as a ratio of property, wages and sales everywhere. Consolidated Corporate Income Tax Returns: Not Permitted. Each member of a consolidated group must file a separate return, reporting income and deductions as if a separate Federal Income Tax Return was filed.

How does a company do business in Delaware?

Any company that does business in Delaware has two or more requirements: 1. If you form a corporation in Delaware, you must pay an annual Franchise Tax for the privilege of incorporating in Delaware. This Franchise Tax is payable to the Delaware Division of Corporations. The fee is based on the number of authorized shares within the corporation.