Multi-jurisdictional Tax

Question 1

What is the Uniform Division of Income for Tax Purposes Act (UDITPA)?

Answer 1

Uniform criteria for determining taxable income of multi-state corporations

Also known as the Multi-State Tax Compact

Question 2

What are the basic principles of UDITPA?

Answer 2

Designed to ensure a company is not taxed more than once on its income

Forces a corporation to segregate Business Income from Non-Business Income

Question 3

What is considered Business Income?

Answer 3

Part of the corporation’s regular course of business

Includes acquisition of tangible and intangible property if such activities are part of the regular trade or business