N.J. Admin. Code § 18:7-1.6

Current through Register Vol. 56, No. 8, April 15, 2024

Section 18:7-1.6 - Subjectivity to tax; how created

(a) Every corporation not expressly exempted is deemed to be subject to tax under the Act and is required to file a return and pay a tax thereunder, provided it falls within any one of the following:

1. Existing under the laws of the State of New Jersey; or

2. If a foreign corporation:

i. Holding a general Certificate of Authority to do business in this State issued by the Division of Revenue and Enterprise Services;

ii. Holding a certificate, license, or other authorization issued by any other State department or agency, authorizing the company to engage in corporate activity within this State;

iii. Doing business in this State;

iv. Employing or owning capital in this State;

v. Employing or owning property in this State;

vi. Maintaining an office in this State;

vii. Deriving receipts from sources within this State; or

viii. Engaging in contacts within this State.

(b) A taxpayer's exercise of its franchise in this State is subject to taxation in this State if the taxpayer's business activity in this State is sufficient to give this State jurisdiction to impose the tax under the Constitution and statutes of the United States.

Example 1: An entity regularly providing asset management services as defined at N.J.A.C. 18:7-8.10(a)5 from a location outside New Jersey to customers within New Jersey is subject to tax in New Jersey.

Example 2: A New York corporation delivers furniture into New Jersey by its company-owned truck. The driver collects the payment from the New Jersey customer. The New York corporation is subject to the tax imposed by the Corporation Business Tax Act in New Jersey.

N.J. Admin. Code § 18:7-1.6

Amended by 49 N.J.R. 1694(a), effective 6/19/2017

Amended by 52 N.J.R. 1677(c), effective 9/8/2020