Section 45 IAC 17-2-5 - ExemptionsAuthority: IC 6-5.5-9-1
Affected: IC 6-5.5-2-7; IC 6-5.5-9-4; IC 27-1-18-2
Sec. 5.
(a) Generally, any taxpayer which is taxable under the FIT (IC 6-5.5) is exempt from the following:(1) Indiana's gross income tax (IC 6-2.1).(2) Adjusted gross income tax (IC 6-3).(3) Supplemental net income tax (IC 6-3-8).(4) Bank tax (IC 6-5-10).(5) Savings and loan tax (IC 6-5-11 ).(6) Production credit association tax (IC 6-5-12). However, in the case of a partnership with a corporate partner, transacting the business of a financial institution, only the income subject to FIT shall be exempt from the above listed taxes. (See 45 IAC 17-4-4 regarding the tax liability for corporate partners of a partnership which is doing the business of a financial institution.) NOTE: The exemptions provided for the taxes listed in subdivisions (1) through (3) do not apply to a taxpayer to the extent the taxpayer is acting in a fiduciary capacity.
(b) Four (4) types of corporations are exempt from the FIT as follows:(1) Insurance companies subject to tax under IC 27-1-18-2 or IC 6-2.1.(2) International banking facilities, as defined in Regulation D of the Board of Governors of the Federal Reserve System.(3) Subchapter S corporations, as defined in Section 1363 of the Internal Revenue Code.(4) Any corporation which is exempt from taxation under the Internal Revenue Code except for the corporation's unrelated business income.Department of State Revenue; 45 IAC 17-2-5; filed Jan 22, 1991, 4:55 p.m.: 14 IR 1212