58.1-418 - Financial corporations; apportionment. - Virginia Statutes

§ 58.1-418. Financial corporations; apportionment.

A. The Virginia taxable income of a financial corporation, as defined herein,excluding income allocable under § 58.1-407, shall be apportioned within andwithout this Commonwealth in the ratio that the business within thisCommonwealth is to the total business of the corporation. Business withinthis Commonwealth shall be based on cost of performance in the Commonwealthover cost of performance everywhere.

B. "Financial corporation" means any corporation not exempted from theimposition of tax under the provisions of § 58.1-401, which derives more thanseventy percent of its gross income from the classes of income enumerated insubdivisions 1 through 4 below, without reference to the state wherein suchincome is earned, including but not limited to small loan companies, salesfinance companies, brokerage companies and investment companies:

1. Fees, commissions, other compensation for financial services rendered;

2. Gross profits from trading in stocks, bonds, or other securities;

3. Interest; and

4. Dividends received to the extent included in Virginia taxable income.

C. In computing the amounts referred to in subdivisions 1 through 4 ofsubsection B of this section, any amount received by a member of anaffiliated group, determined under § 1504(a) of the Internal Revenue Code butwithout reference to whether any such corporation is an includablecorporation under § 1504(b) of the Internal Revenue Code, from another memberof such group shall be included only to the extent such amount exceedsexpenses of the recipient directly related thereto.

(Code 1950, § 58-151.050:1; 1976, c. 436; 1979, c. 32; 1981, c. 402; 1984, c.675.)