Pennsylvania PA Schedule H-Corp - Corporate Partner Apportioned Business Income (Loss)

PA Schedule H-Corp - Corporate Partner Apportioned Business Income (Loss)
2023 PA Schedule H-Corp - Corporate Partner Apportioned Business Income (Loss) (PA-20S/PA-65 H-Corp)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA SCHEDULE H-Corp
Corporate Partner Apportioned
Business Income (Loss)

PA-20S/PA-65 H-Corp (DR) 04-23 (FI)
PA Department of Revenue

2307410056

2023

OFFICIAL USE ONLY

START Name as shown on PA-20S/PA-65 Information Return

Date the taxable period ended

➜

FEIN

9 DIGIT - NO DASH

MM/DD/YYYY

Complete this schedule to apportion business income (loss) for partners who are business entities only. This schedule should be provided to partners who are business entities. If the
partnership derives business income from sources within and outside Pennsylvania or totally within Pennsylvania, complete this schedule. Any partner who is a corporation will use
its share of the information provided in the calculation of its own apportionment factor.

SALES FACTOR

Description

Inside PA

Inside and Outside PA

Sales (Net of Returns and Allowances) . . . . . . . . . . . . . . . . . . . . . . .
Interest, Rents, Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross Sales Price of Assets (Except securities) . . . . . . . . . . . . . . . . .
Other Sales (receipts only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Partner’s share of sales from partnerships . . . . . . . . . . . . . . . . . . . . .
Total Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(A)

PA Apportionment. For CNI Tax divide (A) by (B)

(B)

●

Special Apportionment to be completed only by railroad, truck, bus, and airline entities, pipeline or natural gas entities and water transportation entities.
(Refer to PA-20S/PA-65 Schedule H-Corp instructions) (A) Numerator
(A)
(B) Denominator

2307410056
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(B)

=

●

2307410056
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2023
Instructions for PA-20S/PA-65 Schedule H-Corp
PA-20S/PA-65 H-Corp IN (DR) 04-23

Corporate Partner Apportioned Business/Income (Loss)

GENERAL INFORMATION
PURPOSE OF SCHEDULE
The PA-20S/PA-65 Schedule H-Corp is for information
purposes only. Partnerships are required to complete this
schedule and provide a copy of the PA-20S/PA-65 Schedule
H-Corp to all partners who are partnerships, limited liability
companies (LLC), C corporations and S corporations who
are not PA S corporations. All amounts not in agreement with
information on federal Form 1065 must be reconciled.
IMPORTANT: Railroad, truck, bus, airline, pipeline,
natural gas or water transportation companies do not
use the single sales factor approach shown on PA-20S/
PA-65 Schedule H-Corp. Rather, they use a special apportionment at the bottom of the schedule.
For the corporate partner, the partnership uses PA-20S/
PA-65 Schedule H-Corp to calculate the apportionment
for Line 14 of the PA-20S/PA-65 Schedule CP if they are
required to file a PA-65 Corp for nonfiling C corporation(s).
For the partner who is a partnership, the PA-20S/PA-65
Schedule H-Corp ensures that if the partnership, as an
owner, has corporate partners, the corporate partners will
have the necessary documentation for apportionment to
calculate PA corporate net income tax.
The partnership may be subject to a $250 penalty per schedule if they fail to provide Schedule H-Corp to entity partners.
The PA-20S/PA-65 Schedule H-Corp sales factor for this
entity should be included with the other respective sales
factors at the corporate level to determine the applicable corporate net income tax associated with the distributive share
from the entity.
IMPORTANT: Do not use PA-20S/PA-65 Schedule
H-Corp to arrive at the calculations for non-corporate
owner’s income.

APPORTIONED BUSINESS INCOME (LOSS)
FOR CORPORATE PARTNERS ONLY
If the partnership derives business income from sources
within and outside Pennsylvania or totally within Pennsylvania, complete this form.
The entity calculates a decimal figure from a formula, which
consists of a single sales factor apportionment only.
NOTE: A partnership with no Pennsylvania activity is
still required to complete the PA-20S/PA-65 Schedule
H-Corp showing the total sales of the partnership.
When completing this form, enter the name, (FEIN) federal
employer identification number and date the taxable period
ended for the partnership.
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NON FILING CORPORATE PARTNER
If the partnership is required to withhold corporate net
income tax for nonfiling corporate partner(s), it must complete PA-20S/PA-65 Schedule CP. The apportionment figure
used to calculate the corporate net income tax withholding
should be the Pennsylvania apportionment figure derived
from PA-20S/PA-65 Schedule H-Corp prepared for the
corporate net income tax.

COMPLETING PA SCHEDULE H-CORP
BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.

CORPORATE NET INCOME
TAX APPORTIONMENT
When figuring the amounts to include in the sales
factor, determine the source of the sales using
Corporate Net Income Tax rules. (See REV-1200 CT-1
Instructions PA Corporate Net Income Tax and Information
Notice Corporation Taxes 2014-01.)

SALES FACTOR
LINES A AND B
SALES FACTOR
The numerator is the total gross receipts of the partnership
inside this state during the tax period, and the denominator
is the total gross receipts of the partnership everywhere during the taxable period. Gross receipts are net of returns and
allowances.
The corporate partner receiving the PA-20S/PA-65 Schedule
H-Corp will use these figures to calculate its own Corporate
Net Income tax apportionment. The corporate partner will
include its share of the partnership’s gross receipts inside
the state during the tax period in the numerator of its sales
factor. The corporate partner will include its share of the partnership’s gross receipts everywhere during the tax period in
the denominator of its sales factor. The corporate partner’s
share of the partnership’s gross receipts is equal to the partnership’s gross receipts as shown on the PA-20S/PA-65
Schedule H-Corp multiplied by the corporate partner’s ownership percentage (See REV-1200 CT-1 Instructions PA
Corporate Net Income Tax.)
Any other partner who is a business entity receiving the
PA-20S/PA-65 Schedule H-Corp will use these figures to
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include its share of the partnership’s gross receipts everywhere in the denominator of its sales factor and its share
of the partnership’s gross receipts attributable to PA in the
numerator of its sales factor. These figures will be reported
on the Partner’s Share of Sales from Partnerships.
Dividends and income from U.S. securities and receipts from
sales of securities (unless a securities dealer) must be
excluded from both the numerator and denominator of the
sales factor.

PENNSYLVANIA APPORTIONMENT
Divide Line A by Line B for the Sales Factor. Calculate to six
decimal places.

SPECIAL APPORTIONMENT
Only railroad, truck, bus and airline entities, pipeline or natural gas entities and water transportation entities complete
this line.
Enter as (A) the numerator, which is the total revenue miles
in Pennsylvania. Enter as (B) the denominator, which are the
total revenue miles everywhere. Divide and enter the result
to six decimal places.
● RAILROAD, TRUCK, BUS OR AIRLINE ENTITIES
All business income of railroad, truck, bus or airline entities
is apportioned to Pennsylvania by multiplying the income by
a fraction. The numerator of the fraction is the partnership’s
total revenue miles within Pennsylvania during the taxable
period. The denominator of the fraction is the total revenue
miles of the partnership everywhere during the taxable
period. A revenue mile is the average receipts derived from
the transportation by the partnership of persons or property
one mile.
Where revenue miles are derived from the transportation of
persons and property, the revenue mile fractions attributable
to each class of transportation are calculated separately. The
average of the two fractions, weighted in accordance with
the ratio of total receipts from each class of transportation
everywhere to total receipts from both such classes of transportation everywhere, is used to apportion business income
to Pennsylvania.
Example. Company A is in the business of transporting perExample
Transportation of Persons
Receipts for Transportation
PA Rev Miles $ 40,000 X of persons
$ 400,000 = .040000
Total Rev Miles $400,000

Total Receipts $1,000,000

Transportation of Property
Receipts for Transportation
PA Rev Miles $ 120,000 X of property
$ 600,000 = .120000
Total Rev Miles $600,000

Total Receipts $1,000,000

Company A’s apportionment for the current tax period is
0.040000 + 0.120000 or 0.160000.

sons and property. During the current tax period Company A
reported receipts of $1 million, $400,000 from transportation

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of persons and $600,000 from the transportation of property.
Company A’s Pennsylvania revenue miles for the transportation of persons is $40,000. The Pennsylvania revenue miles
from the transportation of property are $120,000.
The special apportionment fraction for Company A for the
current tax period is calculated as shown in the previous
column.
● PIPELINE OR NATURAL GAS ENTITIES
All business income of pipeline entities is apportioned to
Pennsylvania by multiplying the income by a fraction. The
numerator of the fraction is the revenue ton miles, revenue
barrel miles, or revenue cubic feet miles of the partnership
in Pennsylvania during the tax period. The denominator is
the revenue ton miles, revenue barrel miles, or revenue
cubic feet miles of the partnership everywhere during the tax
period. A revenue ton mile, revenue barrel mile, or revenue
cubic feet mile means, respectively, the receipts derived
from the transportation by the partnership of one ton of solid
property, one barrel of liquid property or one cubic foot of
gaseous property transported one mile. All business income
of natural gas entities subject to regulation by the Federal
Power Commission or by the Pennsylvania Public Utility
Commission is apportioned to Pennsylvania by multiplying
the income by a fraction. The numerator of the fraction is the
cubic foot capacity of the partnership’s pipelines in Pennsylvania. The denominator of the fraction is the cubic foot
capacity of the partnership’s pipelines everywhere, at the
end of the taxable period. Determine the cubic foot capacity
of a pipeline by multiplying the square of its radius (in feet)
by its length (in feet).
● WATER TRANSPORTATION ENTITIES OPERATING
ON HIGH SEAS
All business income of water transportation entities operating on high seas is apportioned to Pennsylvania by multiplying the business income by a fraction. The numerator of the
fraction is the number of port days spent inside Pennsylvania. The denominator of the fraction is the total number of
port days spent outside and inside Pennsylvania.
Port days does not include periods when ships are not in
use because of strikes, withheld from service for repair or
out of use because of seasonal reduction of services. Days
in port are calculated by dividing the aggregate number of
hours in all ports by 24.
● WATER TRANSPORTATION ENTITIES OPERATING
ON INLAND WATERS
All business income of water transportation entities operating on inland waters are apportioned to Pennsylvania by
multiplying the business income by a fraction.
The numerator of the fraction is the partnership’s total revenue miles within Pennsylvania during the taxable period.
The denominator of the fraction is the total revenue miles of
the partnership everywhere during the taxable period. In the
determination of revenue miles, one-half of the mileage
of all navigable waterways bordering Pennsylvania and
another state shall be considered Pennsylvania miles.
A revenue mile means the revenue receipts derived from
the transportation by the partnership of persons or property
one mile.

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