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Pennsylvania Credit For Tax Paid By Affiliated Entities
Extracted from PDF file 2023-pennsylvania-form-rev-803.pdf, last modified February 2016Credit For Tax Paid By Affiliated Entities
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING FILL IN FORM USING ALL CAPS. DO NOT USE DASHES (-) OR SLASHES (/) IN ANY FIELD. ENTER DATES AS MMDDYYYY. USE WHOLE DOLLARS ONLY. REV-803 (SU) 09-22 (FI) 8030022105 SCHEDULE C-7 CREDIT FOR TAX PAID BY AFFILIATED ENTITIES START ➜ Corporation Name FEIN Revenue ID SECTION I Tax Year Beginning STATE INCOME TAX LIABILITY FOR AFFILIATED ENTITIES 1. Affiliated Entity Name FEIN a. Imposed State Tax 1a. b. State (or Jurisdiction) Income Tax Credits 1b. c. Adjusted Tax Jurisdiction Credit Code 1c. d. Total Intangible Expenses & Related Interest 1d. e. Total Income 1e. f. Liability Due 1f. 2. Affiliated Entity Name FEIN a. Imposed State Tax 2a. b. State (or Jurisdiction) Income Tax Credits 2b. c. Adjusted Tax Jurisdiction Credit Code 2c. d. Total Intangible Expenses & Related Interest 2d. e. Total Income 2e. f. Liability Due 2f. 3. Affiliated Entity Name FEIN a. Imposed State Tax 3a. b. State (or Jurisdiction) Income Tax Credits 3b. c. Adjusted Tax Jurisdiction Credit Code 3c. d. Total Intangible Expenses & Related Interest 3d. e. Total Income 3e. f. Liability Due 3f. 8030022105 8030022105 Reset Entire Form Tax Year Ending TOP OF PAGE PAGE 1 NEXT PAGE PRINT IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING FILL IN FORM USING ALL CAPS. DO NOT USE DASHES (-) OR SLASHES (/) IN ANY FIELD. ENTER DATES AS MMDDYYYY. USE WHOLE DOLLARS ONLY. 8030022205 REVENUE ID REV-803 (SU) 09-22 (F!) 4. Affiliated Entity Name FEIN a. Imposed State Tax 4a. b. State (or Jurisdiction) Income Tax Credits 4b. c. Adjusted Tax 4d. e. Total Income 4e. f. Liability Due 4f. 5. Affiliated Entity Name FEIN a. Imposed State Tax 5a. b. State (or Jurisdiction) Income Tax Credits 5b. c. Adjusted Tax Jurisdiction Credit Code 5c. d. Total Intangible Expenses & Related Interest 5d. e. Total Income 5e. f. Liability Due 5f. 6. Total Liability Due 6. CREDITS ALLOWED & LIMITATIONS 1. Total Liability Due from Section I. 1. 2. Enter Apportionment Factor Percentage from RCT-101, Schedule C-1. 2. 3. Multiply Line 1 by Line 2. 3. 4. Enter Amount from Schedule C-6, Line 11. 4. 5. Enter Apportionment Factor Percentage from RCT-101, Schedule C-1. 5. 6. Multiply Line 4 by Line 5. 6. 7. Enter PA Corporate Net Income Tax Rate. 7. 8. Multiply Line 6 by Line 7. 8. 9. Enter Smaller amount of Line 3 or Line 8. 9. 8030022205 8030022205 Reset Entire Form Credit Code 4c. d. Total Intangible Expenses & Related Interest SECTION II Jurisdiction PREVIOUS PAGE PAGE 2 NEXT PAGE PRINT Instructions for REV-803 Credit For Tax Paid By Affiliated Entities REV-803 IN (SU) 11-23 GENERAL INFORMATION COMPLETING PA SCHEDULE C-7 PURPOSE OF SCHEDULE CORPORATION NAME The purpose of this credit is to ensure there is no double taxation and discrimination against interstate commerce in the addition of intangible expense or cost and interest expense or cost. Enter the complete name of the corporation as shown on the RCT-101, PA Corporate Net Income Tax Report. For taxable years beginning after December 31, 2014, taxpayers that are required to add back intangible expenses or cost and related interest expense or cost deductions to their federal taxable income may claim a credit for a portion of the tax paid by the affiliated entity if: 1. the affiliated entity was subject to tax within the Commonwealth of Pennsylvania or another state, and 2. the tax base includes the intangible expense or cost and interest expense or cost that was paid, accrued, or incurred by the taxpayer. The portion of tax paid by the affiliated entity is computed by multiplying the apportionment factor of the taxpayer in Pennsylvania by the greater of: 1. the tax liability of the affiliated entity with respect to the portion of its income representing the intangible expense or cost, or the interest expense or cost, paid, accrued, or incurred by the taxpayer; or 2. the aforementioned tax liability before it was offset by a credit given by Pennsylvania or that state, except credits made for prepayments of tax. The resultant credit for tax paid by the affiliated entity shall not exceed the taxpayer’s liability in this commonwealth attributable to the addition of intangible expense or cost and interest expense or cost to federal taxable income. (72 P.S. 7401(3) (1) (t)) WHEN TO FILE This schedule must be filed at the same time the corporation files its RCT-101, PA Corporate Net Income Tax Report. WHERE TO FILE This schedule must be submitted with RCT-101 and with REV-802, Schedule C-6, Add-back for Intangible Expenses or Costs and Related Interest Expense. REVENUE ID Enter the 10-digit Revenue ID number of the corporation as shown on RCT-101. The Revenue ID is a unique 10-digit number assigned by the Department of Revenue. FEIN Enter the 9-digit FEIN number of the corporation as shown on RCT-101. TAX YEAR BEGINNING AND TAX YEAR ENDING Enter the tax year beginning and tax year ending as shown on RCT-101. LINE INSTRUCTIONS SECTION I STATE INCOME TAX LIABILITY FOR AFFILIATED ENTITIES This section allows for the listing of up to five income tax returns that the Affiliated Entity (or Entities) filed in jurisdictions that are non-unitary and that include in their tax base the intangible and related interest expense that was paid by the taxpayer as shown on REV-802, Schedule C-6 Add-back for Intangible Expenses or Cost and Related Interest. If the taxpayer availed itself to any of the three statutory exceptions on Schedule C-6, they cannot claim the credit on this schedule. If the number of affiliated entities and number of returns goes over the five lines shown in Section I, the taxpayer should photocopy Section I, using a separate copy for each affiliated entity so that the income tax paid to the qualifying jurisdictions will be separately shown on Lines 1 - 5. AFFILIATED ENTITY NAME List the name of the affiliated entity for which the credit is computed. List entities in the same order as provided on Section I of the REV-802, Schedule C-6 Add-back for Intangible Expenses or Costs and Related Interest Expense. www.revenue.pa.gov PREVIOUS PAGE REV-803 NEXT PAGE PRINT 1 FEIN List the FEIN of the affiliated entity for which the credit is computed. JURISDICTION Include only those states where the affiliated entity was required to file on a non-unitary basis. Do not include states where unitary returns, partial unitary returns, or elective unitary returns were filed inclusive of the affiliated entity. Also, include only those states where the affiliated entity was subject to a corporate tax on net income. CREDIT CODE Use the following codes to describe the type of add-back credit: 01=Research; 02=Community Development; 03=Investment; 04=Economic Revitalization; 05=Jobs Creation; 06=Film Production; 07=Environmental Protection; 08=Other. LINE a For each affiliated entity, enter the amount of state income tax deducted for each non-unitary filing state, as computed and included in the total amount deducted for state income taxes reported under federal Form 1120, Line 17 – Taxes and Licenses, for that affiliated entity. This amount of corporate net income tax is only for the non-unitary filing state, not the total amount for all state income taxes paid on Line 17 for the affiliated return. Example: Affiliated entity has a total state income tax expense of $1,000,000 on Line 17 of its federal Form 1120. But of this $1,000,000, only $250,000 was for corporate net income tax incurred for three states that require the filing of non-unitary returns. The remainder of the $1,000,000 deducted on Line 17 was either for taxes based on net worth or capital stock, or was allocations from states that require the filing of combined returns (unitary filings). Only the corporate net income taxes incurred for these three states, individually listed will be included on Line a. LINE b Enter the amount for any state tax credits other than for the payment of tax that were included in the amount shown on Line a. LINE c Enter the amount of tax based on income and adjusted for credits by adding Line a and Line b. LINE d Enter the total amount of intangible expense or cost and related interest expense or cost that the taxpayer paid to the affiliated entity. The transaction must be included in the tax base of the affiliated entity for that state. 2 LINE e Enter the total income received by affiliated entity as reported on Line 1C and Lines 4 through 10 on its proforma federal Form 1120 that was taxable as income for that state. To the extent any of these items of income are offset by an additional deduction to Line 28 in determining taxable income for that state, those items are not taxable income. LINE f Compute the tax liability that the affiliated entity incurred for each state that was attributable to the intangible expenses and related interest expense or cost paid by the taxpayer to the affiliated entity, using the formula: c * (d/e) = f. Divide Line d by Line e, then multiply the quotient by Line c. LINE 6 Enter the total liability due by adding Lines 1f – 5f. SECTION II CREDITS ALLOWED & LIMITATIONS COMPUTING THE CREDITS ALLOWED LINE 1 Enter the total liability due from Part I, Line 6. LINE 2 Enter the apportionment proportion used for the corporate net income tax from RCT-101, Schedule C-1, Line 1C or Line 2C, whichever is applicable. LINE 3 Multiply Line 1 by Line 2. COMPUTING THE LIMITATIONS TO THE CREDIT LINE 4 Enter the total add-back for the intangible expenses and related interest expense or cost from Schedule C-6, Section I, Line 11. LINE 5 Enter the apportionment proportion used for the corporate net income tax from RCT-101, Schedule C-1, Line 1C or Line 2C, whichever is applicable. LINE 6 Multiply Line 4 by Line 5. REV-803 www.revenue.pa.gov PREVIOUS PAGE NEXT PAGE PRINT LINE 7 Enter the PA corporate net income tax rate. LINE 8 LINE 9 Enter the smaller of Line 3 or Line 8. Carry the amount to RCT-101, Section C, Line 15. Multiply Line 6 by Line 7. www.revenue.pa.gov PREVIOUS PAGE REV-803 RETURN TO PAGE 1 PRINT 3
Schedule C-7 - Credit for Tax Paid by Affiliated Entities (REV-803)
More about the Pennsylvania Form REV-803 Corporate Income Tax Tax Credit TY 2023
We last updated the Credit For Tax Paid By Affiliated Entities in February 2024, so this is the latest version of Form REV-803, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form REV-803 directly from TaxFormFinder. You can print other Pennsylvania tax forms here.
Other Pennsylvania Corporate Income Tax Forms:
TaxFormFinder has an additional 174 Pennsylvania income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form PA-41 | PA Fiduciary Income Tax Return |
| Form PA-40 ES (P/S/F) | PA-40 ES Partnership, PA S Corporation and Fiduciary - Declaration of Estimated Withholding Tax |
| Form RCT-127A | Public Utility Realty Tax Report |
| Form PA-20S-PA-65 | S Corporation/Partnership Information Return (PA-20S/PA-65) |
| Form RCT-900 | Public Utility Realty Report By Local Taxing Authorities |
View all 175 Pennsylvania Income Tax Forms
Form Sources:
Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form REV-803 from the Department of Revenue in February 2024.
Form REV-803 is a Pennsylvania Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Pennsylvania Form REV-803
We have a total of nine past-year versions of Form REV-803 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2023 Form REV-803
Schedule C-7 - Credit for Tax Paid by Affiliated Entities (REV-803)
2022 Form REV-803
Schedule C-7 - Credit for Tax Paid by Affiliated Entries (REV-803)
2021 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
2020 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
2019 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
2017 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
2016 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
2015 Form REV-803
Schedule C-7 Credit For Tax Paid By Affiliated Entities (REV-803)
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