N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-2.4

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1-2.4 - Foreign corporation - doing business

Tax Law, section 209(1)

(a) The term doing business is used in a comprehensive sense and includes all activities that occupy the time or labor of people for profit. Regardless of the nature of its activities, every corporation organized for profit and carrying out any of the purposes of its organization is deemed to be doing business for the purposes of the tax. In determining whether a corporation is doing business, it is immaterial whether its activities actually result in a profit or a loss.

(b) Whether a corporation is doing business in New York State is determined by the facts in each case. Consideration is given to such factors as:

(1) the nature, continuity, frequency, and regularity of the activities of the corporation in New York State;

(2) the purposes for which the corporation was organized;

(3) the location of its offices and other places of business;

(4) the employment in New York State of agents, officers and employees; and

(5) the location of the actual seat of management or control of the corporation.

(c) A corporation is doing business in New York State if:

(1) it issues credit cards to at least 1,000 customers with a mailing address in New York State as of the last day of its taxable year;

(2) it has merchant customer contracts that cover at least 1,000 locations in New York State to which it remits payments for credit card transactions during its taxable year;

(3) the sum of the number of customers and the number of locations in paragraphs (1) and (2) totals at least 1,000; or

(4) the corporation itself does not meet the thresholds in paragraphs (1), (2) or (3) of this subdivision but is part of a unitary group that meets the ownership test under section 210-C and Subpart 6-2 of this Subchapter, and:

(i) it issues credit cards to at least 10 customers with a mailing address in New York State as of the last day of its taxable year; or

(ii) it has merchant customer contracts that cover at least 10 locations in New York State to which it remits payments for credit card transactions during its taxable year; or

(iii) the sum of the number of customers and the number of locations in subparagraph (i) and (ii) totals at least 10, and

(iv) the members of the unitary group that meet the requirements of either (i), (ii) or (iii) of this paragraph together meet the requirements of paragraph (1), (2) or (3) of this subdivision, other than any member that is a corporation that cannot be included in a combined report under section 210-C(2)(c) and section 6-2.6 of this Subchapter.

(d)

(1) A foreign corporation doing business in New York State because it issues credit cards is deemed to be doing business for all of its taxable year or part of its taxable year from the date in such taxable year on which it issues its first credit card in New York State.

(2) A foreign corporation doing business in New York State because it issues credit cards in its first taxable year, if also doing business in the subsequent taxable year, is deemed to be doing business from the beginning of the subsequent taxable year.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-2.4

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023