Business Corporation Tax

For tax years beginning on or after January 1, 2015, a new corporate tax applies to corporations and banks, other than federal S-corporations, that do business in New York City. Starting in 2022, corporations that derive receipts of $1 million or more are also subject to tax. The new tax is being referred to as the Business Corporation Tax.

Economic Nexus Standard Effective for 2022

For tax years beginning on or after January 1, 2022, the Administrative Code now provides that corporations deriving receipts of $1 million or more from New York City sources will be subject to the Business Corporation Tax. A corporation with less than $1 million, but at least $10,000 of receipts from New York City sources, will also be subject to the Business Corporation Tax if the corporation is part of a unitary group that, in the aggregate, derives receipts from New York City sources of $1 million or more. These threshold amounts may be adjusted annually to reflect changes in the Consumer Price Index.

Additionally, the existing economic nexus provisions for credit card issuers have been amended and expanded for 2022. Please see Finance Memorandum 22-3 and Administrative Code Section 11-653(1) for more on these changes.