Pennsylvania CT-1 PA Corporation Tax Booklet

CT-1 PA Corporation Tax Booklet
2024 PA Corporate Net Income Tax - CT-1 Instructions (REV-1200)
2024
CT-1 INSTRUCTIONS
REV-1200 Booklet (SU) 11-24

FOR CALENDAR YEAR 2024 AND FISCAL YEARS BEGINNING IN 2024
PLEASE CAREFULLY REVIEW NEW FOR 2024 AND HIGHLIGHTS
BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES.
NEW FOR 2024
1. Certain medical cannabis businesses can now deduct ordinary and
necessary business expenses for which no deduction was taken for
federal income tax purposes. See Instructions for Section C Line 2E
on Page 11 for additional information.

in the current tax year of certain U.S. taxpayers for tax years
beginning on or after January 1, 2018. Pennsylvania Corporation Tax
Bulletin 2019-03 provides guidance on how the federal limitations
imposed by the amended Section 163(j) are treated for Pennsylvania
Corporate Net Income Tax (“CNIT”) purposes.

2. myPATH is the online portal that has replaced many of the
Department of Revenue’s online services. myPATH provides many
self-service options such as registering a new tax account, accurately
and securely filing returns, making payments, managing your
accounts, and interacting with the department.

3. Taxpayers with $500,000 or more of gross receipts sourced to
Pennsylvania have a rebuttable presumption of nexus and should
file a corporate tax report.

Corporations can remit estimated, extension, and tax due payments
through myPATH. Visit mypath.pa.gov for more information and to
register an account.
The RCT-101 cannot be filed electronically through myPATH.
Corporations are encouraged to file electronically through the
Modernized e-File (MeF) platform provided by the Internal Revenue
Service, also known as Fed/State e-File. A list of software developers
and products approved by the department to electronically prepare
and file the RCT-101, forms, and schedules can be found on the
department’s website at revenue.pa.gov.
HIGHLIGHTS
1. As amended by the Tax Cuts and Jobs Act, for tax years beginning
after December 31, 2017, the 70 percent dividends-received
deduction is reduced to 50 percent and the 80 percent
dividends-received deduction is reduced to 65 percent (Code Secs.
243(a)(1) and (c)(1). There was no change made to the 100 percent
dividends-received deduction for dividend income received from 80
percent or more owned domestic corporations.
2. The Tax Cuts and Jobs Act of 2017 amended Section 163(j) of the
Internal Revenue Code (the “Code”). For Federal income tax
purposes, Section 163(j) limits the deductibility of interest expense

4. Solicitation only corporations, as well as corporations with $500,000
or more in Pennsylvania sourced gross receipts, but claiming
exemption from the corporate net income tax, should complete and
file the RCT-101. Such entities should, as appropriate, include the
REV-986 and/or any statements necessary to properly explain their
position(s) that insufficient activity took place in Pennsylvania to
establish constitutional nexus.
In order to commence the running of the applicable statute of
limitations the RCT-101 must contain:
( i ) the taxpayer's name, address, and identifying number and the
required signature; and,
( i i ) sufficient required information to permit the department to
determine the taxpayer’s potential corporate net income tax
liability.
Specifically, entities claiming exemption from the tax may enter zeros
on Page 2, Section C, a zero on Line 1A of Schedule C-1 and a “1”
on Line 1B of Schedule C-1 of the RCT-101. However, such
taxpayers should include statement(s) with the RCT-101 which
provide the information necessary for the department to determine
the taxpayer’s potential corporate net income tax liability. These
entities cannot complete and file the form RCT-101D as an
alternative to the RCT-101 unless the entity meets the particular de
minimis activity limits outlined in Tax Bulletin 2004-01.

CORPORATE NET INCOME TAX
TAX PERIOD
BEGINNING

TAX RATE

2022

WEIGHTING OF FACTORS NET LOSS PERCENTAGE
SALES

PERCENT OF INCOME

9.99%

100

40%

2023

8.99%

100

40%

2024

8.49%

100

40%

2025

7.99%

100

2026

7.49%

100

2027

6.99%

100

2028

6.49%

100

2029

5.99%

100

2030

5.49%

100

2031

4.99%

100

WHO MUST FILE
All business entities that have elected to file as a corporation with the IRS:
● Corporation
● Business Trust
● Limited Liability Company

● S Corporations that have Built-In Gains
● Any other entity electing to file as a corporation under federal Check
the Box rule

TAXPAYER SERVICES AND ASSISTANCE
CONTACT INFORMATION
SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND/OR
SPEAKING NEEDS
Dial 711 to use the Telecommunications Relay Service (TRS), a
text-based phone option.
Estimated Payments . . . . . . . . . . . . 1-888-PATAXES (1-888-728-2937)
General Business Tax Questions . . . . . . . . . . . . . . . . . . .717-787-1064
Transfer/Refund Overpayments . . . . . . . . . [email protected]
Bureau of Registration and
Taxpayer Management. . . . . . . . . . . . . . . . . . [email protected]
FORMS ORDERING SERVICES
To obtain tax instructions, single copies of PA corporation tax forms,
coupons, or brochures, use one of these services:
ONLINE: revenue.pa.gov
TOLL-FREE PHONE SERVICES: 1-888-PATAXES (1-888-728-2937)
Touch-tone service is required for this automated 24-hour toll-free line.
Call to order forms or check the status of a corporate tax account.

2

REV-1200

AUTOMATED 24-HOUR FORMS ORDERING MESSAGE SERVICE:
1-800-362-2050
Serves taxpayers without touch-tone phone service.
WRITTEN REQUESTS:
PA DEPARTMENT OF REVENUE
TAX FORMS SERVICE UNIT
1854 BROOKWOOD ST
HARRISBURG PA 17104-2244
ONLINE SERVICES
CUSTOMER SERVICE CENTER
Find the answer to your question using the department’s Online Customer
Service Center at revenue.pa.gov.
PENNSYLVANIA TAX UPDATE
Stay up-to-date on Department of Revenue news with the PA Tax Update,
a free, bi-monthly e-newsletter. Visit revenue.pa.gov to sign up.
MYPATH
Register a new tax account, accurately and securely file returns, make
payments, manage your accounts, and interact with the department. Visit
mypath.pa.gov for more information.

revenue.pa.gov

TABLE OF CONTENTS
GENERAL INSTRUCTIONS
What Must Be Included with the PA
Corporate Net Income Tax Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

RCT-101 – PAGE 2
SECTION B: SCHEDULE C-1 APPORTIONMENT. . . . . . . . . . . .10
SECTION C: PA CORPORATE NET INCOME TAX . . . . . . . . . .10

Assembly of the Completed PA Corporate Net
Income Tax Report, RCT-101 Package . . . . . . . . . . . . . . . . . . . . . . . . . 5

Taxable Built-in Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Federal S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Apportionment and Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Inactive Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Net Operating Loss Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Declaration of De Minimis PA Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Determination Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Confirmation of “Deposits on Account” for a Non-Filed Tax Year . . . . . . 6

Deductions from and Additions to Income. . . . . . . . . . . . . . . . . . . 10

RCT-101 – PAGE 3

How to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

SECTION D: TRANSFER/REFUND METHOD . . . . . . . . . . . . . .12

Electronic Payment Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

SECTION E: BULK SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Due Date of Report and Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

SECTION F: SCHEDULE OF REAL PROPERTY IN PA . . . . . . .13

Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

RCT-101 – PAGE 4

Out of Existence/Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

SECTION G: CORPORATE OFFICERS . . . . . . . . . . . . . . . . . . .13

Filing Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PREPARER’S INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . .13

Extension of Time to File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

APPORTIONMENT, EXEMPTIONS,
AND ALLOCATION

Assignment of Tax Credit (Overpayment) . . . . . . . . . . . . . . . . . . . . . . . . 8

Apportionment of Taxable Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Assignment of Restricted Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Sales Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Amended Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Special Apportionment Fractions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

RCT-128C – Changes In Federal Taxable
Income/Reports of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Railroad, Truck, Bus, or Airline Companies . . . . . . . . . . . . . . . . .14

Penalties Imposed for Failure to File Reports When Due . . . . . . . . . . 7

GENERAL INSTRUCTIONS
LINE BY LINE INSTRUCTIONS FOR RCT-101,
PA CORPORATE NET INCOME TAX REPORT
RCT-101 – PAGE 1

Pipeline or Natural Gas Companies . . . . . . . . . . . . . . . . . . . . . . . 14
Water Transportation Companies Operating on High Seas . . . . .14
Water Transportation Companies Operating on Inland Waters . . 14
Apportionment & Investments in Unincorporated Entities . . . . . . . . . 15
Nonbusiness Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

STEP A Tax Period Income/Reports of Change . . . . . . . . . . . . . . . 9

WHERE TO FILE

STEP B Name, Address, FEIN Business Activity
Code, & Parent Company FEIN . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Mailing Addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
STEP C Check Special Filing Status . . . . . . . . . . . . . . . . . . . . . . 9
SECTION A: GENERAL INFORMATION QUESTIONNAIRE . . .10

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3

WHAT MUST BE INCLUDED WITH THE PA CORPORATE NET INCOME TAX REPORT
When filing an RCT-101, PA Corporate Net Income Tax Report, all corporate taxpayers are required to include forms and schedules to support the
calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart lists the forms
and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive.
IF TAXPAYER
IS ORGANIZED AS

TAXPAYER FILES
WITH THE IRS

TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101

Corporation
Business Trust
Limited Liability Company or
S Corporations that have
Built-in-Gains
Any other entity electing to
file as a corporation under
federal Check the Box rules

Federal Form 1120,
Federal Form 1120C,
Federal Form 1120S,
(Taxpayer elected to
not be taxed as a
Pennsylvania
S Corporation)

1. Complete copy of federal income tax return, on separate company basis, with all supporting
schedules.
2. RCT-103 to support net operating loss carry-forward, if applicable.
3. REV-1834, Schedules C-8 and C-9 to support adjustments for bonus depreciation, if applicable.

Federal Form 1120F, or
Any other Corporate
Income Tax Return

4. REV-934, Schedule of Nonbusiness Income, if applicable.
5. Other supporting statements if necessary, with references to supporting statements on the
applicable form.
6. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable.
7. REV-860, Schedule C-5, OA and OD
8. RCT-106, Insert Sheet

*Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1.

In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these include:
IF THE CORPORATE TAXPAYER IS

TAXPAYER MUST ALSO PROVIDE

Apportioning income for the first time.

A copy of a tax return from another state.

Filing the final PA Corporate Net Income Tax Report.

A complete REV-861, Schedule DA, Disposition of Assets Schedule.

Claiming the Keystone Opportunity Zone or Strategic
Development Area Credit.

1. A completed RCT-101 KOZ, showing the calculation of the credit
2. A copy of the Keystone Opportunity Zone approved letter issued by the Department of Community
and Economic Development for the current year.

WHEN IS A FORM OR SCHEDULE REQUIRED?
FORM

USED FOR

REQUIRED WHEN CORPORATE TAXPAYER

RCT-106

Support of Sales Factor
Apportionment or Special
Apportionment

Has taxable activity in at least one other state and is apportioning income to the other state based on
sales. RCT-106 is also required by taxpayers who are required to utilize special apportionment methods
(revenue miles, etc.).

RCT-103

Support of Net Operating
Loss Deduction

Is deducting a net operating loss carry-forward in the calculation of corporate net income tax.

Schedule C-2
REV-798

Support of Dividend
Deduction

Is claiming a Dividend Received Deduction in the calculation of corporate net income tax.

Schedule C-8
REV-1834

Bonus Depreciation
Adjustment

Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation of corporate
net income tax for property purchased prior to Sept. 28, 2017.

Schedule C-9
REV-1834

Adjustment for Sale of
Sec. 168(k) Property

Is claiming a deduction to recover remaining federal bonus depreciation in the calculation of corporate
net income tax in the year the property is fully depreciated, sold or otherwise disposed.

Schedule C-5
REV-860

Schedule of Tax Expense

Is subject to corporate net income tax and reports taxes paid as an expense on the federal income
tax return.

Schedule OA
REV-860

Other Additions

Is reporting an "Other Addition" on RCT-101, Section C, Line 3D.

Schedule OD
REV-860

Other Deductions

Is reporting an "Other Deduction" on RCT-101, Section C, Line 2E.

4

REV-1200

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WHEN IS A FORM OR SCHEDULE REQUIRED? (CONTINUED)
FORM

USED FOR

REQUIRED WHEN CORPORATE TAXPAYER

Schedule DA
REV-861

Disposition of Assets

Indicate the desire to be removed from the active records of the Department of Revenue

Schedule X
REV-798

Parent and Subsidiary
Corporations and Related
Party Income Elections

Has more than 50 percent of its stock owned by another corporation, individual or other business entity
or owns more than 50 percent of another corporation. Also required when a corporation elects to exclude
income from a related entity.

REV-934

Schedule of Non-Business
Income

Is claiming non-business income.

REV-986

Schedule to Determine
Corporate Net Income Tax
Subjectivity

Activity does not exceed Solicitation Only - P.L. 86-272
Taxpayers answering “YES” to any of the questions on REV-986 are subject to corporate net income tax.

Schedule AR
REV-1175

Schedule to Provide Reason
for Filing an Amended Report
and Summary of Change in
Tax Liability for Amended
Report

Is amending a PA Corporate Net Income Tax Report

REV-802

Add-Back for Intangible
Expense or Related Interest
Expense

Is adding back intangible expense or related interest expense.

REV-803

Claiming a Credit for Tax
Paid by Affiliated Entities

Is claiming a credit for tax paid by affiliated entities.

ASSEMBLY OF THE COMPLETED
PA CORPORATE NET INCOME TAX REPORT RCT-101 PACKAGE
Assemble the completed PA Corporate Net Income Tax Report in the
following order. Failure to submit a properly completed and signed report
may result in the delay of processing and the imposition of late filing
penalties and/or estimated assessments.
1. RCT-101, PA Corporate Net Income Tax Report, Pages 1 through 4
completed and assembled in order
2. RCT-103, Net Operating Loss Schedule, if applicable
3. Federal Form 7004, if applicable
4. Pennsylvania schedules and forms, as required and in the following
order:
● REV-1175, Schedule AR - If filing an amended PA Corporate Net
Income Tax Report.
● REV-798, Schedule C-2, Dividend Deduction
● REV-798, Schedule X
● REV-1834, Schedule C-8, Adjustment for Bonus Depreciation
● REV-1834, Schedule C-9, Adjusted for 168k property fully
depreciated sold or otherwise disposed
● REV-860, Schedules C-5, OA and OD
● RCT-106, Insert Sheet
● REV-934, Schedule of Nonbusiness Income

revenue.pa.gov

5. All other documentation to support the RCT-101, PA Corporate Net
Income Tax Report
6. Complete federal tax return and supporting schedules, as required:
●
●
●
●

Federal Form 1120
Federal Form 1120C
Federal Form 1120F
Federal Form 1120S

7. A corporation filing a consolidated return to the federal government
must include the following:
● Schedules reflected on the federal Form 1120, 1120C, 1120F or
1120S on a separate company basis, including a schedule of
taxes expensed.

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5

PENNSYLVANIA CORPORATE NET INCOME TAX REPORT
INSTRUCTIONS FOR FORM RCT-101
GENERAL INSTRUCTIONS
FEDERAL S CORPORATIONS
The Capital Stock/Foreign Franchise tax has been phased out for tax
years beginning on or after Jan. 1, 2016. However, PA S Corporations
that have built-in-gains are required to file RCT-101.
Any federal subchapter S corporation that does not desire to be a
Pennsylvania S corporation must file the REV-976, Election Not to be
Taxed as a Pennsylvania S Corporation, on or before the due date or
extended due date of the report for the first year in which the election is
to be in effect. This election must be signed by all of the shareholders and
once made cannot be revoked for five years. The completed REV-976
must be submitted via fax or email to:
Fax: 717-787-3708
Email: [email protected]
To revoke an election not to be taxed as a PA S Corporation, the
corporation must send a letter signed by shareholders holding more than
one-half of the shares of stock of the corporation on the day on which the
revocation is made. This letter must contain the name of the corporation,
FEIN, and the effective date of the revocation. If no effective date is
provided, the revocation will be effective for the first tax period for which
the revocation was timely submitted. In the case of a corporation with
qualified subchapter S subsidiaries, the letter must also include the names
and FEINs of all qualified subchapter S subsidiaries doing business in
Pennsylvania.
Qualified subchapter S subsidiaries may not be Pennsylvania S
corporations, or elect not to be Pennsylvania S corporations, separate
from the parent corporation. Federal subchapter S corporations doing
business in Pennsylvania that do not make this election are required to
file the PA-20S/PA-65, and the shareholders of these corporations must
report the income from these corporations on their PA personal income
tax returns.
IMPORTANT: This election must be filed by all federal subchapter
S corporations that do not want to be taxed as Pennsylvania S
corporations, regardless of any prior actions taken by a corporation on
this issue.
If a corporation has elected to be taxed as an S corporation for federal
tax purposes, but has elected not to be taxed as a PA S corporation, it
must: (1) complete Section C of RCT-101, (2) include a copy of federal
Form 1120S with the PA Corporate Net Income Tax Report, and (3)
include a schedule reflecting adjustments to Line 21 of federal Form
1120S for the pass-through items on Schedule K, Shareholders’ Share
of Income, Credits, Deductions, etc. These adjustments should produce
taxable income similar to that for a C corporation and must be reported in
Section C, Line 1 of the RCT-101.
INACTIVE CORPORATIONS
Inactive corporations must complete and file form RCT-101-I. Only
skeleton corporations - those performing no business activity and owning
no assets anywhere - may use the RCT-101-I. Corporations that have
business activity outside Pennsylvania must complete and file the
RCT-101, PA Corporate Net Income Tax Report. A copy of federal Form
1120 must be included and apportionment fractions must be reported.
6

REV-1200

CAUTION: Prior period forms are not acceptable. Do not use
forms for other years when filing an RCT-101, PA Corporate Net
Income Tax Report, or an RCT-101-I, Inactive PA Corporate Net Income
Tax Report.
DECLARATION OF DE MINIMIS PA ACTIVITY
IMPORTANT: The RCT -101D can now be filed electronically at
mypath.pa.gov.
RCT-101D is only for use by non-Pennsylvania corporations. Solicitation
only corporations, as well as corporations with more than $500,000 in
Pennsylvania sourced gross receipts, but claiming exemption from the
corporate net income tax, should complete and file the RCT-101. Such
entities should, as appropriate, include the REV-986 and/or any statements
necessary to properly explain their position(s) that insufficient activity
took place in Pennsylvania to establish constitutional nexus. See Page 5
for additional details.
A non-Pennsylvania corporation whose Pennsylvania activities are not
protected by P.L. 86-272, but whose activities are considered de minimis
as outlined in Tax Bulletin 2004-01, is not required to file a complete
RCT-101. Instead, such a corporation may file RCT-101D, affirming that
PA activity during that period is de minimis. In filing RCT-101D a corporation
is reminded of the following:
1. RCT-101D is not a tax report. For this reason the statute of limitations
regarding the assessment of tax does not apply to RCT-101D.
2. For a taxpayer to realize any tax benefits from a year the taxpayer
filed RCT-101D, the taxpayer will be required to file a complete
RCT-101 for each year, beginning with the year the benefit is generated through the year the benefit is to be used.
3. In cases where the taxpayer files RCT-101D and later files RCT101, the taxpayer will be liable for all taxes due for these periods.
Applicable interest will also be imposed from the original due date
of the report to the date the taxes are paid. The imposition of late
filing penalties will be based on the filing date of the RCT-101D. Tax
Bulletin 2004-1 is available on the PA Department of Revenue
website at revenue.pa.gov.
CONFIRMATION OF “DEPOSITS ON ACCOUNT” FOR A
NON-FILED TAX YEAR
Prior to filing a PA Corporate Net Income Tax Report, taxpayers can
confirm the total amount of deposits on account by logging into their
myPATH account at mypath.pa.gov.
HOW TO PAY
If the total taxes owed are less than $1,000, you may send a check made
payable to the PA Dept. of Revenue, enclosed with the tax report, to the
address listed on Page 16.
ELECTRONIC PAYMENT REQUIREMENT
The PA Departments of Treasury and Revenue have implemented
programs that enable taxpayers to pay certain taxes electronically. All
payments of $1,000 or more must be made electronically or by certified
or cashier’s check remitted in person or by express mail courier. Electronic
payments can be made by visiting mypath.pa.gov and registering your
account.
revenue.pa.gov

Failure to make a payment by an approved method will result in the imposition of a 3 percent penalty of the tax due, up to $500. For information
on electronic filing options, visit the Online Services Center at
revenue.pa.gov.
IMPORTANT: If paying by certified or cashier’s check, mail check
and coupon to:
PA DEPARTMENT OF REVENUE
PO BOX 280404
HARRISBURG PA 17128-0404
DUE DATE OF REPORT AND PAYMENT
The RCT-101, PA Corporate Net Income Tax Report, is due on or before
the 15th day of the month following the due date of the return to the
Federal Government for both calendar and fiscal year filers. Domestic
International Sales Companies (DISC) must file on or before the 15th day
of the 10th month following the close of the fiscal year. If the due date
falls on a Saturday, Sunday, or holiday, the report is due the next business
day.
FILING REQUIREMENTS
First reports of domestic corporations must begin with the date of
incorporation. All domestic corporations are required to file annual reports
even if no business activity was conducted during the taxable period.
First reports of foreign corporations must begin with the beginning date
of the fiscal period in which the Certificate of Authority was issued or the
date Pennsylvania activity began, whichever date is earlier.
All corporations are required to file annual reports even if no business
activity was conducted within the commonwealth during the tax period.
OUT-OF-EXISTENCE/WITHDRAWAL
A PA corporation that has ceased doing business and completely or totally
divested itself of ALL assets, or a foreign corporation that has ceased to
do business in Pennsylvania and liquidated all PA assets may be relieved
of the responsibility of filing corporate tax reports by indicating Final Report
on Page 1, Step C of the RCT-101.
By completing this section of RCT-101, a corporate taxpayer wishing to
be removed from the active records of the PA Department of Revenue
will no longer be required to file the Out of Existence/Withdrawal Affidavit.
However, taxpayers desiring to dissolve or formally withdraw with the
Department of State are still required to file a REV-181, Application for
Tax Clearance Certificate.
To qualify for out-of-existence or withdrawn status, the corporation must:
1. File all corporate tax reports and pay all taxes due the commonwealth
up to and including the date of cessation of activities and divestiture
of assets. Where capital assets have been sold prior to liquidation,
complete in detail a schedule reflecting the gain or loss realized as
a result of the sale.
2. Include with the corporate tax reports a REV-861, Schedule DA,
Disposition of Assets, which must reflect the date or dates of divestiture of all assets. Where a distribution of assets is made directly
by the corporation to its shareholders in return for their stock, include
with the “Distribution of Assets,” a copy of federal Form 1099-DIV.
CAUTION: Failure to submit the “Distribution of Assets” could
delay the acceptance of the return as a final report resulting
in continued corporate tax reporting requirements. Corporate
revenue.pa.gov

taxpayers reporting the disposition of PA real estate must provide
evidence that the transfer of title has been filed with the Recorder of
Deeds of the respective county. This information must be provided
in order to be removed from the active records of the Department of
Revenue.
PA corporations that never transacted business or held title to assets, or
foreign corporations that never transacted business in Pennsylvania, are
required to file annual tax reports until they file final returns and qualify
for out-of-existence or withdrawn status. Such inactive corporations should
mail the executed REV-238, Out-of-Existence/Withdrawal Affidavit directly
to:
PA DEPARTMENT OF REVENUE
BUREAU OF COMPLIANCE
OUT OF EXISTENCE/MERGER SECTION
PO BOX 280947
HARRISBURG PA 17128-0947
FILING PERIOD
Reports must be filed on the same filing basis as reported to the federal
government. Where a change in filing period has occurred, the taxpayer
must provide the new month, day, and year by electronically filing
REV-854 at mypath.pa.gov, via fax to 717-787-3708, or email to
[email protected]. Indicate a permanent change in filing period on
the RCT-101 (Page 1, Step C).
EXTENSION OF TIME TO FILE
A request for an extension of time to file must be submitted on or before
the due date of the PA Corporate Net Income Tax Report.
Taxpayers granted an extension to file the federal income tax return will
automatically be granted an extension to file RCT-101, PA Corporate Net
Income Tax Report. Corporate taxpayers granted a federal extension
must include a copy of the federal extension request with the report.
Corporations that do not request an extension to file the federal income
tax return may still request a 60-day extension to file the PA Corporate
Net Income Tax Report. The extension must be filed on or before the due
date of the report. You can request an extension on mypath.pa.gov or
by sending the REV-853.
You may also use REV-853 to make an annual tax payment with the extension request. If the taxes total more than $1,000, you must make the
required payment by an electronic payment method. (Refer to Electronic
Payment Requirement.)
All payments of $1,000 or more must be made electronically or by certified
or cashier’s check remitted in person or by express mail courier.
PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE
If a report is filed late, the taxpayer should wait until assessed by the
department to remit the penalty amount. Interest does not accrue on
penalties. Do not include penalty with tax amounts reported on form
RCT-101.
The penalty imposed for failure to file reports when due is now a minimum
of $500, regardless of the determined tax liability, plus an additional one
percent of any determined tax liability over $25,000.
REV-1200

7

INTEREST
Interest is charged on late payments received after the due date of a tax
report. Taxpayers should not precalculate interest or include interest with
the tax amount reported on the RCT-101 (Section C, Line 16). The
department will forecast interest on unpaid tax balances and provide a
notice to the taxpayer. Taxpayers may request a payoff of unpaid balances
(that includes interest on unpaid tax and collection agency fees, if
applicable) by emailing [email protected].

period is included as part of the affirmation statement on Page 4 of
RCT-101. Per Act 84 of 2016, the department will have one year from the
date the amended report is filed to notify the taxpayer if the changes are
accepted. If the taxpayer is not notified within one year, the report is
deemed accepted. If, after reviewing the amended report, the department
determines the tax liability reflected on the taxpayer’s PA corporate tax
account is incorrect, an adjustment may be made to the liability or the
department may reject the amended report.

ASSIGNMENT OF TAX CREDIT
Department regulation (61 Pa. Code 151.21-151.22) provides authorization
for taxpayers to assign a credit to another taxpayer. To accomplish the
assignment, the Department of Revenue requires both assignor and assignee to complete REV-774, Assignment of Tax Credit.

An amended report should only be filed if an original RCT-101, PA
Corporate Net Income Tax Report, was previously filed for the same tax
period. An amended report must contain documentation to support the
adjustment(s).

Only credits that meet the following conditions can be assigned:
● All taxes (corporate, sales/use, employer withholding, liquid fuels,
etc), interest, penalties, fees, and additions to tax owed by the
taxpayer (assignor) must be paid in full.
Email [email protected] if you have questions regarding
credit assignment or to request the REV-774 Assignment of Tax Credit
Form. The form can also be found at revenue.pa.gov.
Email REV-774 directly to [email protected].
ASSIGNMENT OF RESTRICTED TAX CREDITS
Certain restricted tax credits (credits originating from special credit
programs) may be sold or assigned.
For information regarding the sale or assignment of restricted tax
credits, please refer to Restricted Tax Credit Bulletin 2024-01 by visiting
revenue.pa.gov/taxcredits.
Tax questions regarding the sale or assignment of restricted tax credits
may be directed to the Department of Revenue at 717-772-3896 or
[email protected].
AMENDED REPORTS
Amended reports must be filed when requesting the Department of
Revenue to adjust the corporate net income taxes for a particular year.
Phone calls and/or letters submitted to the department are not acceptable
and will not be considered an amended report.
Amended reports filed for tax years beginning on or after Jan. 1, 2016,
must be filed on the revised, year-specific, four page RCT-101. Taxpayers
must complete all sections of the report; this includes those sections
originally filed and those sections being amended. The apportionment
must be completed with the factors as originally filed or being amended.
This must be numeric with a numerator and a denominator present. If no
activity anywhere, the numerator must be “0” and the denominator must
be “1”. The amended report check box under Step C, Page 1 of RCT-101
must be checked and REV-1175 must be included with the report.
The taxpayer has three (3) years after the due date of the original report
to file an amended report. If the original report was properly extended,
then the taxpayer has three (3) years after the extended due date to file
an amended report. When filing the amended report the taxpayer must
consent to an assessment period of three years from the filing of the
original report or one year from the filing of the amended report, whichever
expires last. If you fail to provide such consent the department might not
consider the amended report. This consent to extend the assessment
8

REV-1200

All amended tax reports must include REV-1175, Schedule AR, which
includes a detailed explanation of the reason for filing the amended report
and a summary of the change to the tax liability. In completing the
Summary of Tax Change, enter the corporate net income tax; the tax
liability currently reflected on the taxpayer’s account; the amended tax
liability; and the amount of change in the tax.
When filing an amended RCT-101, the tax liability in Section C, Line 16
should reflect the amended liability. Section C, Line 18, Estimated
Payments and Credits on Deposit, must reflect the payments and credits
on the account at the time the amended report is filed. Section C, Line
19, Restricted Credits, must report the restricted credits the taxpayer is
entitled to based on the filing of the amended report.
Amended reports cannot be filed for the following:
1. To challenge PA statute or regulations.
2. To challenge department policy or interpretation of statutes or
regulations.
3. For the sole purpose of claiming the report is a final report.
IMPORTANT: REV-238 or REV-181 must also be filed.
4. To change or correct taxpayer information electronically such as the
FEIN, the taxpayer must file the REV-854 electronically at
mypath.pa.gov, via fax to 717-787-3708, or email to
[email protected].
5. To change the end of the tax year. (A new original report must be
filed including an explanation why the original tax year end was
incorrect).
IMPORTANT: The filing of an amended PA Corporate Net Income
Tax Report does not replace the filing of a petition, nor does it
extend a corporate taxpayer’s time to file an appeal.
The department is not obligated to revise tax due the commonwealth
upon review of an amended report. Its failure to revise tax due the
commonwealth is not an appealable action and will not change any
existing appeal rights of the taxpayer.
RCT-128C – CHANGES IN FEDERAL TAXABLE INCOME/REPORTS
OF CHANGE
Changes in federal taxable income must be reported to the department
within the statutory period to report the change. This includes changes in
federal taxable income resulting from the taxpayer filing an amended
federal income tax return and changes initiated by the federal government
due to an audit or examination of the federal return. For tax years
beginning prior to Jan. 1, 2013, changes in federal taxable income must
revenue.pa.gov

be reported to the department within 30 days of the change. This has
been extended to six months for tax years beginning after Dec. 31, 2012.

report, file the REV-854 electronically at mypath.pa.gov, via fax to
717-787-3708, or email to [email protected].

If a taxpayer files an amended federal income tax return the taxpayer
must report the change on RCT-128C.

STEP C

Changes to federal taxable income initiated by the federal government
as part of an audit or examination of the federal income tax return must
be reported on RCT-128C and must include the federal audit date or date
filed with the IRS, regardless of whether the PA corporate net income tax
for that period was settled by the department.

CHECK SPECIAL FILING STATUS
Initial Report – Check box if this is the corporation’s first PA Corporate
Net Income Tax Report filing.

CAUTION: If this date is not provided, interest plus a $5 a day
penalty, will be imposed from the original due date.
LINE INSTRUCTIONS
LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE
NET INCOME TAX REPORT
PAGE 1
Indicate the type of return filed with the IRS. If the activity is included in
the federal tax return of another company, either as part of a consolidated
group or as a disregarded entity, indicate the type of return filed by the
entity reporting the activity.
STEP A
TAX PERIOD (REQUIRED)
Taxpayers must enter the month, day, and year for the tax period
beginning and ending dates using the MMDDYYYY format.
STEP B
NAME, ADDRESS, FEIN, BUSINESS ACTIVITY CODE, AND PARENT
CORPORATION FEIN
Economic Nexus – Check box if the corporation is filing due to the
$500,000 rebuttable presumption of economic nexus. See 72 P.S. section
7402 and Corporation Tax Bulletin 2019-04 for more information.
Print or type the corporation name, complete address, and nine-digit FEIN.
Failure to submit a properly completed report will result in the delay of
processing and the imposition of late filing penalties and/or estimated
assessments.
Be sure to use only address information for Address Line 1 and Address
Line 2 on Page 1 of RCT-101 and all other tax forms.
Foreign corporations filing from outside the United States must use
Province, Country Code, and Foreign Postal Code address fields, if
applicable.
The six-digit Business Activity Code entered here is the same Business
Activity Code reported to the IRS on the federal income tax return.
Parent Corporation FEIN – Taxpayers that are included in a consolidated
federal income tax return must provide the nine-digit FEIN of the
corporation that files the consolidated federal income tax return. If you
are not included in a consolidated federal return, leave blank.
Address Change – Check box if the address reported in Step B is a
change from prior tax periods. If changing the address after filing the
revenue.pa.gov

Final Report – Check box if this is the corporation’s final PA Corporate
Net Income tax report. A complete REV-861, Schedule DA, Disposition
of Assets schedule, must also be provided.
Amended Report – Check box if the corporation is amending a PA
Corporate Net Income Tax Report previously filed with the department.
File Period Change – Check box if the filing period (tax period ending)
is a permanent change. This must be indicated on the first report filed
with the new tax year end.
Change Fed Group – Check box if the corporate taxpayer is filing a PA
Corporate Net Income Tax Report for less than a full year due to a change
in federal consolidated group. This must be indicated on the last report
prior to the change and the and first report after the change.
52-53 Week Filer – Check box if the corporation is a 52-53 week filer.
S Corp filing as C Corp – For periods beginning on or after January 1,
2006 corporations which have validly elected to be taxed for federal
purposes as S corporations are automatically treated as S corporations
for Pennsylvania purposes. However, a federal S corporation may elect
to be taxed as a C corporation for Pennsylvania purposes by filing a timely
election using form REV-976. See Page 6 for additional information.
KOZ – Check box if the corporate taxpayer is claiming the Keystone
Opportunity Zone Credit.
Royalty/Related Interest Add-Back – Act 52 of 2013 requires the
add-back of intangible expenses to income for interest, royalties, patents,
trademarks, etc. between affiliated entities in certain instances.
S Corp Taxable Built-in Gains – PA S corporations and QSSS are
subject to PA corporate net income tax. Their taxable income is their net
recognized built-in gains as determined for federal income tax purposes
pursuant to IRC Section 1374(d) (2). To report taxable built-in gains,
check the box on Page 1, report the Taxable Built-in Gains on Line 1 of
Section C.
Section 381/382/Merger NOLs – Corporations having net operating loss
(NOL) limitations under IRC Section 381 and/or IRC Section 382 or
claiming losses or Bonus Depreciation from a merger. Provide the Merger
documents including Company Name and FEIN of merged company.
Provide a schedule with NOLs by tax periods and the balance of the
Bonus Depreciation carry-forward from the merged company.
Alternative Apportionment – If the taxpayer is requesting an alternate
apportionment method, extra-statutory treatment, separate accounting,
or unrelated asset treatment, check this box and provide a written, detailed
explanation of the methodology being used as well as fully detailed
supporting schedules, worksheets, and documentation to review the
methodology being employed.
REV-1200

9

Claiming P.L. 86-272 Protection – Corporations which sell tangible
personal property and meet the activity limitations contained in P.L. 86-272
check this box. See additional instructions on Page 5. Also review Tax
Bulletins 2004-01 and 2019-03.
SECTION A
GENERAL INFORMATION QUESTIONNAIRE
Taxpayers are required to provide a brief description of business activities
in Pennsylvania. Multi-state corporations are required to provide a brief
description of business activities outside of PA and indicate all other states
where the taxpayer has business activity (use the two letter postal
abbreviations). If a taxpayer has no activity in Pennsylvania, indicate so
in this area.
Taxpayers should indicate in this section if they are incorporated under
the laws of the Commonwealth of Pennsylvania or under the laws of
another jurisdiction.
The taxpayer must report the name of any corporation, individual, or other
business entity which holds all or a majority of the stock of the taxpayer,
and the name(s) of any corporation in which the taxpayer owns all or a
majority of the stock. This is done by checking the applicable box(es) and
completing Schedule X.
If the federal government has changed the taxable income for any prior
year, the taxpayer must indicate this on RCT-101 to include the first and
last tax periods changed. The taxpayer must also file RCT-128C reporting
the changes in income for each tax year.
PAGE 2

LINE 2C
Divide Line 2A by Line 2B, calculate to six decimal places. Enter here and
Section C, Line 7.
CAUTION: Complete either Sales or Special Apportionment. Do
not combine the two methods.
For additional information on sales and special apportionment, see Page
14. Also see Corporation Tax Bulletin 2022-01.
SECTION C
PA CORPORATE NET INCOME TAX
A copy of federal Form 1120 (federal income tax return) or other applicable
form (pro forma) on a separate company basis must accompany the
RCT-101, PA Corporate Net Income Tax Report.
Taxable Built-in Gains – PA S corporations and QSSS are subject to PA
corporate net income tax. Their taxable income is their net recognized
built-in gains as determined for federal income tax purposes pursuant to
IRC Section 1374(d) (2). To report taxable built-in gains, check the box
on Page 1 and complete Line 1 of Section C.
DEDUCTIONS FROM AND ADDITIONS TO INCOME

LINE 1
Income represents “taxable income as returned to and ascertained by the
federal government before the net operating loss deduction and special
deductions.” (Line 28 of federal Form 1120.)

LINE 1A

LINE 2A

Enter the total from RCT-106, Column A, Sales inside Pennsylvania.

LINE 1B
Enter the total from RCT-106, Column B, Sales inside and outside
Pennsylvania.

LINE 1C
Divide Line 1A by Line 1B, calculate to six decimal places. Enter here and
SECTION C, Line 7.
CAUTION: Completing the Sales Factor as 0/0, leaving the sales
factor field blank or typing “none” in this field will result in
apportionment being changed to 100 percent in Pennsylvania,
automatically changing the reported tax liabilities.
IMPORTANT: Only corporations required to use special
apportionment (such as railroad, truck, bus, airline, pipeline, natural
gas, and water transportation companies) should complete Special
Apportionment.

LINE 2A
Enter PA revenue miles or other special factor. (Numerator)
REV-1200

Enter total revenue miles or other special factor. (Denominator)

SECTION B
SCHEDULE C-1

10

LINE 2B

Corporate dividends received. Dividends received from U.S. corporations
are deductible to the same extent as allowed to arrive at the federal
dividend deduction as indicated on federal Schedule C, Column C. An
additional deduction will be allowed for certain dividends received from
foreign corporations and reported on Lines 14, 16b, 16c, 17, 19, and 20
of the federal Schedule C, plus a deduction will be allowed for certain
dividends received under Section 78 (foreign dividend gross-up) of the
Internal Revenue Code of 1986. Taxpayers must complete REV-798,
Schedule C-2, PA Dividend Deduction Schedule.

LINE 2B
Interest on U.S. Securities. Interest on U.S. securities is deductible, but
must be reduced by:
● Any interest on indebtedness incurred to carry the securities;
● Any expenses incurred in the production of such interest income;
● Any other expenses deducted on the federal income tax return that
would not have been allowed under Section 265 of the Internal
Revenue Code of 1986, if the interest were exempt from federal
income tax.
However, interest from repurchase agreements is not considered interest
from U.S. securities. Therefore, it is not deductible.
revenue.pa.gov

To calculate the net U.S. interest deduction on Line (2B):
● Provide a detailed schedule showing the calculation of net U.S.
interest deduction and include a listing of investments that generated
the exempt interest income.
Pennsylvania allows a pass-through exemption from corporate net income
for interest or dividend income received from a regulated investment
company to the extent such distribution or dividend is derived from
obligations free from state taxation. Such obligations include those issued
by the U.S. Government; the Commonwealth of Pennsylvania; any public
authority, commission, board or other agency created by the
commonwealth; any political subdivision of the commonwealth; or any
public authority created by any such subdivision.
To support any claim for a pass-through deduction for corporate net
income tax purposes, the taxpayer must submit evidence that the income
was received from a regulated investment company. A schedule must be
submitted indicating the percentage of income applicable to exempt
obligations and the percentage of income applicable to nonexempt
obligations, including repurchase agreements, obligations of the Federal
National Mortgage Association (Fannie Mae), the Government National
Mortgage Association (Ginnie Mae) and any other obligations that were
not actually issued by the U.S. Government.
All income claimed to be exempt must be reduced by any expenses
incurred in the production of such income and this information must be
included to support all entries on Line 2B.

LINE 2C
This amount is the combination of additional depreciation deduction
allowed under Act 89 of 2002 for IRC Section 168(k) property and the
additional Bonus Depreciation deduction allowed after Act 72 of 2018.

LINE 2D
Enter the amount from Line 7 of REV-798 Schedule X, Part 2. This is the
amount of intangible income and/or interest income from an affiliated entity
that the taxpayer is electing to exclude from its corporate net income tax
calculation.

LINE 2E
Other allowable deductions. Examples include targeted jobs credit wages,
net gains on the sale of U.S. or PA securities (if issued prior to February
4, 1994), FICA tax obligations on employee tips (if taken as a credit for
federal purposes), and for tax periods commencing after December 31,
2023 ordinary and necessary business expenses of certain medical
cannabis businesses, as defined in 72 P.S. § 7401(3)1.(b.2), which were
not taken by the corporation on its federal form.
The 50 percent of travel and entertainment expense that is disallowed on
the federal form is not permitted as a deduction for Pennsylvania
purposes.
All other deductions must be reported on REV-860, Schedule OD, Other
Deductions. Include an additional schedule if more space is needed.
Add Lines 2A, 2B, 2C, 2D, and 2E and enter the result on Line 2, Total
Deductions.
revenue.pa.gov

LINE 3A
Enter the total amount of taxes imposed on or measured by net income
and deducted on the attached copy of the federal tax return. All taxpayers
reporting expenses for taxes on federal income tax returns must complete
REV-860, Schedule of Taxes, even if no taxes are imposed on or
measured by net income. If a state’s tax is based on the higher of a tax
on net income or a tax on another item, such as gross receipts or net
worth value, the taxpayer is required to add back the entire amount of the
tax in periods where the liability is based on net income. If a state’s tax is
a combination of a tax on net income and a tax on another item, such as
gross receipts or net worth, the income portion of the tax is added back.
NOTE: The portion of Philadelphia business income and receipts
tax measured by net income must be included.

LINE 3B
This amount is the bonus depreciation claimed by the corporate taxpayer
under IRC Section 168(k) in the calculation of federal taxable income.

LINE 3C
Act 52 of 2013 requires the add-back of intangible expense to income for
interest, royalties, patents, trademarks, etc., between affiliated entities in
certain instances. In order to report the add-back for tax years beginning
in 2016, taxpayers must complete REV-802, Schedule C-6, Add-Back for
Intangible Expense or Related Interest Expense. The total amount of
additions from Schedule C-6, Line 11 should be carried to and included
as a separate line item on RCT-101, Page 2, Section C, Line 3D. REV-802
can be found on the department’s website at revenue.pa.gov.
IMPORTANT: REV-802, Schedule C-6, Add-back for Intangible
Expenses or Cost and Related Interest, must be submitted with
RCT-101.

LINE 3D
The total of all additions from REV-860, Schedule OA, is carried to
RCT-101, Page 2, Section C, Line 3E.
Add Lines 3A, 3B, 3C, and 3D and enter the result on Line 3, Total
Additions.

LINE 4
Line 1 minus Line 2 plus Line 3.
If all business is transacted in Pennsylvania, skip Lines 5 through 9. Enter
amount from Line 4 on Line 10.
APPORTIONMENT AND ALLOCATION
A taxpayer must have income from business activities taxable by
Pennsylvania and at least one other state to allocate and apportion
income. For purposes of allocation and apportionment of income, a
taxpayer is taxable in another state if, in that state, the corporation is
subject to a net income tax, a franchise tax measured by net income, a
franchise tax for the privilege of doing business or a corporate stock tax
or if that state has jurisdiction to subject the taxpayer to a net income tax
regardless of whether the state does or does not.
REV-1200

11

Business income is income arising from transactions and activity in the
regular course of the taxpayer’s trade or business and includes income
from tangible and intangible property if the acquisition, management or
disposition of the property constitutes integral parts of the taxpayer’s
regular trade or business operations. Business income includes all income
that is apportionable under the U.S. Constitution. Nonbusiness income is
all income other than business income. The REV-934, Schedule of
Nonbusiness Income, must be completed by all taxpayers allocating
nonbusiness income.
IMPORTANT: Refer to the “Apportionment, Exemptions, and
Allocation” on Page 14 for more detail.

LINE 13
For more information about this deduction or to claim this deduction,
businesses should contact the department at [email protected].

LINE 14
Calculate and enter the PA corporate net income tax by subtracting Line
13 from Line 12 and multiplying the difference by the current tax rate.

LINE 15

LINE 5

For taxpayers calculating a credit for tax paid by affiliated entities,
taxpayers must complete REV-803, Schedule C-7, Credit for Tax Paid by
Affiliated Entities.

Enter the total amount of nonbusiness income or loss from REV-934,
Column C Total. (Must be included with report.)

The credit is then carried to RCT-101, Page 2, Line 15. REV-803 can be
found on the department’s website at revenue.pa.gov.

LINE 6
Enter the amount of income or loss to be apportioned by adding the loss
or subtracting the income reflected on Line 5 to or from Line 4.

LINE 7
Enter the apportionment percentage from Schedule C-1.

LINE 8
Enter the income or loss apportioned to Pennsylvania by multiplying Line
6 by Line 7.

LINE 9
Enter the total amount of nonbusiness income or loss allocated to
Pennsylvania from REV-934, Column A Total. (Must be included with
report.)

LINE 10
Add the income or deduct the loss reflected on Line 9 to or from Line 8.
If the entire business is transacted in Pennsylvania, enter the amount from
Line 4 on Line 10. If a loss exists, add to RCT-103, Line 21.
NET OPERATING LOSS DEDUCTION

LINE 11

IMPORTANT: REV-803, Schedule C-7, Credit for Tax Paid by
Affiliated Entities, must be submitted with RCT-101.

LINE 16
Tax Liability (Line 14 minus Line 15).

LINE 17
Enter the amount of CNI tax withholding from PA Schedule CP, Line 16.

LINE 18
See Confirmation of Deposits on Account, Page 6. Enter the total of
estimated payments and transferred credits applied to the current tax
period.

LINE 19
Enter the amount of restricted credit to be applied to the current tax year.
Restricted credits may include those originating from special tax credit
programs administered by various state agencies.

LINE 20
Determine the total payment due or overpayment by subtracting Lines
17, 18, and 19 from Line 16. Negative amounts (identifying an
overpayment) should be written as -1,000. If a net total overpayment
develops, see instructions below for completing Section D.

Net Operating Loss Deduction. Enter the total of Column C from
RCT-103. Complete RCT-103 and include it with your RCT-101.

REMINDERS:
● You must enter a value in the space provided, even if the amount is
zero. Overpayments must be entered as a negative amount.

Short periods are considered to be one tax year for purposes of computing
the carryforward.

PAGE 3
SECTION D

DETERMINATION OF TAX

LINE 12
PA Taxable Income or Net Loss. Line 12 must equal Line 10 minus
Line 11.
12

REV-1200

TRANSFER/REFUND METHOD
After completing Section C on Page 2 of the RCT-101 Annual Report, if
an overpayment exists taxpayers must instruct the department to either
transfer any available credit to the next tax year or consider any available
revenue.pa.gov

credit for refund, or both, under Section D. The department will not issue
refunds in the amount of $1.00 or less.
Taxpayers may request direct deposit of the refund by completing the
Direct Deposit section of Page 3 of the RCT-101.
If no option is selected, the department will automatically transfer any
overpayment to the next tax year for estimated tax purposes after
offsetting current period liabilities and other unpaid liabilities of any tax
type on the account. A Credit Summary Notice will be mailed to the
taxpayer confirming the disposition of the credit.

SECTION F
SCHEDULE OF REAL PROPERTY IN PA
Taxpayers must report the location of any real property utilized in the
Commonwealth of Pennsylvania during the current tax period. Include an
indication if the property was rented or owned by the taxpayer and if the
property was located in a Keystone Opportunity Zone/Keystone
Opportunity Expansion Zone or Strategic Development Area.
PAGE 4

SECTION E

SECTION G

BULK SALE
Corporate taxpayers that ceased all business activity (domestic
corporations) or ceased business activity in Pennsylvania (foreign
corporations) and disposed of all assets or Pennsylvania assets must
indicate that the current year return is the final report by checking the box
on Page 1, Step C.

CORPORATE OFFICERS
Taxpayers annual affirmation of all corporate officers’ information must be
included on the RCT-101. When information is provided on RCT-101,
REV-1605 is not required. However, to report a change in corporate
officers during the tax year, REV-1605 should be filed electronically at
mypath.pa.gov. REV-1605 may also be submitted via fax to
717-787-3708, or email to [email protected].

Taxpayers who held any assets during the year must complete REV-861,
Schedule DA, Disposition of Assets.
If a taxpayer sells 51 percent or more of any class of asset during the tax
period, the taxpayer must check the box and provide the purchaser’s
name and address. This includes any stock of goods, wares, merchandise
of any kind, fixtures, machinery, equipment, buildings or real estate.
CAUTION: A taxpayer who sells 51 percent or more of any class
of asset is required to obtain a Bulk Sale Certificate by filing
RCT-101, PA Corporate Net Income Tax Report, up to the date of the sale
and completing REV-181, Application for Tax Clearance Certificate.
Mail completed REV-181 separately to the Bureau of Compliance. DO
NOT send with the PA Corporate Net Income Tax Report.
For further guidance, refer to Tax Bulletin 53D.

revenue.pa.gov

When completing the affirmation of corporate officer section, LLCs,
business trusts, and other unincorporated entities required to file RCT-101
must enter the names and Social Security numbers of individuals who are
responsible for the tax and/or business matters of the entity (i.e. Tax Matter
Partner, Managing Partner, Trustee). Social Security numbers must
contain all nine digits.
A corporate officer must sign the report. The signature may be original,
stamped, or electronic. Also provide telephone number, email, and title of
the officer along with the date signed.
Paid preparers must sign and date all tax returns. The preparer’s
name, complete address, federal PTIN, and the date prepared must be
typed or printed in the appropriate boxes.

REV-1200

13

APPORTIONMENT, EXEMPTIONS, AND ALLOCATION
APPORTIONMENT OF TAXABLE INCOME
Corporate taxpayers with activity in multiple states may be able to
apportion taxable income. In order to apportion income, a corporation
must be subject to tax in another state.
For tax years beginning on or after Jan. 1, 2013, unless the taxpayer is
required to use a special apportionment method, the apportionment factor
used in the calculation of the PA taxable income will consist only of sales
attributable to PA divided by total sales of the taxpayer.
SALES FACTOR
The numerator is the total gross receipts of the taxpayer inside this state
during the tax period, and the denominator is the total gross receipts of
the taxpayer everywhere during the taxable period. Gross receipts are
net of returns and allowances. Sales of tangible personal property are
inside this state if the property is delivered or shipped to a purchaser within
this state.
A corporation which owns an interest in a partnership shall include the
partnership’s gross receipts in the corporation’s sales factor denominator
to the extent of the corporation’s ownership interest in the partnership.
Similarly, the corporation's share of the partnership's gross receipts
sourced to Pennsylvania shall be included in the numerator of the
corporation's sales factor.
These figures should be reflected on the Partner’s Share of Sales from
Partnerships line of RCT-106. Amounts applicable to an ownership interest
in an LLC or business trust that is a partnership or disregarded entity for
federal income tax purposes must be included.
CAUTION: This must be numeric with a numerator and a
denominator present. If no activity anywhere, the numerator must
be “0” and the denominator must be “1”.
Act 52 of 2013 and Act 53 of 2022 have established criteria for determining
if receipts from other than the sale of tangible property are sourced in PA.
For additional information refer to 72 P.S. section 7401, Information Notice
2014-01, and Corporation Tax Bulletin 2024-01.
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.
SPECIAL APPORTIONMENT FRACTIONS
RAILROAD, TRUCK, BUS, AIRLINE, OR AIR FREIGHT
FORWARDING COMPANIES
All business income of railroad, truck, bus, or airline companies shall be
apportioned to the Commonwealth of Pennsylvania by multiplying the
income by a fraction. The numerator is the taxpayer’s total revenue miles
within the commonwealth during the taxable period. The denominator is
the total revenue miles of the taxpayer everywhere during the taxable
period. A revenue mile means the average receipts derived from the
transportation by the taxpayer of persons or property one mile. Where
revenue miles are derived from the transportation of both persons and
property, the revenue mile fractions attributable to each such class of
transportation are calculated separately. The average of the two fractions,
weighted in accordance with the ratio of total receipts from each such
class of transportation everywhere to total receipts from both such classes
14

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of transportation everywhere, is used in apportioning business income to
the commonwealth.
PIPELINE OR NATURAL GAS COMPANIES
All business income of pipeline companies is apportioned to the
commonwealth by multiplying the income by a fraction. The numerator is
the revenue ton miles, revenue barrel miles, or revenue cubic feet miles
of the taxpayer inside the commonwealth during the tax period. The
denominator is the revenue ton miles, revenue barrel miles, or revenue
cubic feet miles of the taxpayer 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 taxpayer
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 companies subject to regulation by the Federal Power Commission
or by the Pennsylvania Public Utility Commission is apportioned to the
Commonwealth of Pennsylvania by multiplying the income by a fraction.
The numerator is the cubic foot capacity of the taxpayer’s pipelines inside
the commonwealth. The denominator is the cubic foot capacity of the
taxpayer’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 by its length in feet.
WATER TRANSPORTATION COMPANIES
OPERATING ON HIGH SEAS
All business income of water transportation companies operating on high
seas is apportioned to the Commonwealth of Pennsylvania by multiplying
the business income by a fraction. The numerator is the number of port
days spent inside the commonwealth. The denominator is the total
number of port days spent inside and outside the commonwealth. Port
days do not include periods when the ships are not in use because of
strikes or withheld from service for repair or 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 COMPANIES
OPERATING ON INLAND WATERS
All business income of water transportation companies operating on inland
waters is apportioned to the Commonwealth of Pennsylvania by
multiplying the business income by a fraction. The numerator is the
taxpayer’s total revenue miles inside the commonwealth during the
taxable period. The denominator is the total revenue miles of the taxpayer
everywhere during the taxable period. In the determination of revenue
miles, one-half of the mileage of all navigable waterways bordering
between the commonwealth and another state shall be considered
commonwealth miles. A revenue mile means the revenue receipts derived
from the transportation by the taxpayer of persons or property one mile.
IMPORTANT: Corporations with two distinct activities like
warehousing/trucking and distribution/trucking or personal
transportation and property transportation must check the Alternative
Apportionment checkbox on Page 1, Step C for timely processing. For
further information such companies should refer to Corporation Tax
Bulletin 2022-01.
revenue.pa.gov

APPORTIONMENT AND INVESTMENTS
IN UNINCORPORATED ENTITIES
A corporate taxpayer’s investment in an unincorporated entity is
considered a direct ownership in the corporation’s share of the assets of
the unincorporated entity rather than an intangible interest. When
determining the sales factor, the numerator and the denominator of the
factor must include the sales of the corporate taxpayer plus the corporate
taxpayer’s share of the sales of the unincorporated entity.
A corporate taxpayer with an investment in a LLC or business trust that
files a federal partnership return or is disregarded for federal income tax
purposes would include the activity of the invested LLC or bus