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CITY OF PHILADELPHIA BUSINESS PRIVILEGE TAX REGULATIONS - page 56 / 59

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SECTION 410. APPORTIONMENT OF INCOME BY ALL PERSONS WHO ARE SUBJECT TO A TAX PURSUANT TO ARTICLES VII (BANK SHARES TAX), VIII (TITLE INSURANCE AND TRUST COMPANIES SHARES TAX), IX (INSURANCE PREMIUMS TAX) OR XV (MUTUAL THRIFT INSTITUTIONS TAX) OF THE TAX REFORM CODE OF 1971, AND PRIVATE BANKS.

  • (1)

    The net income after adjustments and allocation of persons described as being subject to a tax imposed pursuant to Articles VII, VIII, IX or XV of the Tax Reform Code of 1971, and of private banks, shall be apportioned to Philadelphia in accordance with a fraction of which the numerator shall be Philadelphia receipts as hereafter described, and of which the denominator shall be total receipts as hereafter described.

  • (2)

    Numerator. The numerator shall be receipts as defined and limited in the provisions dealing with "Tax on Receipts": Provided, however, that those receipts excluded from the definition of "Taxable Receipts" pursuant to Section 2 of the "First Class City Business Tax Reform Act" of 1984, and treated as an exclusion pursuant to subsections 302(6)(a) and 302(6)(b) of these Provisions, shall be included in the numerator.

  • (3)

    Denominator-Businesses Other Than Insurance Companies. The denominator of the fraction shall include the following receipts to the extent that they are included in taxable income (or loss) as properly returned to and ascertained by the Federal Government, but not including receipts, net income, gains or losses taken as an adjustment to net income (or loss) under subsections 404(2)(a), 404(2)(e)(i), and 404(2)(f), and not including receipts or the net income, gains or losses attributable thereto, which are included in the numerator of the fraction used in computing the adjustment under subsection 404(2)(e)(ii):

    • (a)

      All rents and royalties from real property and tangible personal property.

    • (b)

      All gains and losses from real property and tangible and intangible personal property sold, exchanged, transferred, paid at maturity or redeemed. If losses are sustained from real property and tangible and intangible personal property sold, exchanged, transferred, paid at maturity or redeemed, such losses may be offset against gains from similar transactions, but may not be deducted from other receipts.

    • (c)

      All dividends received.

    • (d)

      All interest received less the interest expense attributable to such interest received.

    • (e)

      All patent and copyright royalties.

    • (f)

      All other receipts.

  • (4)

    Denominator-Insurance Companies. The denominator of the fraction shall include the following receipts to the extent that they are included in taxable income (or loss) as properly returned to and ascertained by the Federal Government: All premiums received, all rents from real estate, and all other nonpremium business receipts, but not including return premiums, dividends paid or credited to policyholders if such dividends are in the nature of an adjustment of the premiums charged, and premiums received for reinsurance, not including receipts, net income, gains or losses taken as an adjustment to net income (or loss) under subsections 404(2)(a), 404(2)(e)(i) and 404(2)(f), and not including receipts or the net income, gains or losses attributable thereto, which are included in the numerator of the fraction used in computing the adjustment under

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(Rev. 08/01)

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