§ 44-11-2 - Imposition of tax.
SECTION 44-11-2
§ 44-11-2 Imposition of tax. – (a) Each corporation shall annually pay to the state a tax equal to ninepercent (9%) of net income, as defined in § 44-11-11, qualified in §44-11-12, and apportioned to this state as provided in §§ 44-11-13– 44-11-15, for the taxable year.
(b) A corporation shall pay the amount of any tax as computedin accordance with subsection (a) of this section after deducting from "netincome," as used in this section, fifty percent (50%) of the excess of capitalgains over capital losses realized during the taxable year, if for the taxableyear:
(1) The corporation is engaged in buying, selling, dealingin, or holding securities on its own behalf and not as a broker, underwriter,or distributor;
(2) Its gross receipts derived from these activities duringthe taxable year amounted to at least ninety percent (90%) of its total grossreceipts derived from all of its activities during the year. "Gross receipts"means all receipts, whether in the form of money, credits, or other valuableconsideration, received during the taxable year in connection with the conductof the taxpayer's activities.
(c) A corporation shall not pay the amount of the taxcomputed on the basis of its net income under subsection (a) of this section,but shall annually pay to the state a tax equal to ten cents ($.10) for eachone hundred dollars ($100) of gross income for the taxable year or a tax of onehundred dollars ($100), whichever tax shall be the greater, if for the taxableyear the corporation is either a "personal holding company" registered underthe federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq.,"regulated investment company", or a "real estate investment trust" as definedin the federal income tax law applicable to the taxable year. "Gross income"means gross income as defined in the federal income tax law applicable to thetaxable year, plus:
(1) Any interest not included in the federal gross income;minus
(2) Interest on obligations of the United States or itspossessions, and other interest exempt from taxation by this state; and minus
(3) Fifty percent (50%) of the excess of capital gains overcapital losses realized during the taxable year.
(d) A small business corporation having an election in effectunder subchapter S, 26 U.S.C. § 1361 et seq., shall not be subject to theRhode Island income tax on corporations, except that the corporation shall besubject to the provisions of subsection (a), to the extent of the income thatis subjected to federal tax under subchapter S.
(2) The shareholders of the corporation who are residents ofRhode Island shall include in their income their proportionate share of thecorporation's federal taxable income.
(3) [Deleted by P.L. 2004, ch. 595. art. 29, §1.]
(4) [Deleted by P.L. 2004, ch. 595, art. 29, §1.]
(e) Minimum tax. The tax imposed upon any corporation underthis section shall not be less than five hundred dollars ($500).