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Can you summarize MDCR 03.04.08.03?
Banks and Similar Institutions > Apportionment and Allocation.
Short Summary
This regulation, part of the Code of Maryland Regulations, applies to banking institutions whose business activity is taxable both within and outside the State of Maryland. The regulation provides guidelines for the allocation and apportionment of income for these institutions. All income that is included in the Maryland modified income is apportioned to the state using a fraction called the apportionment percentage. The apportionment percentage is determined by the taxpayer’s property factor, payroll factor, and receipts factor. The regulation specifies different apportionment formulas based on the taxable year, with varying numerators and denominators. For tax years beginning after December 31, 2021, a single receipts factor apportionment formula is used. The regulation also includes provisions for financial institution holding companies and allows for adjustments to the allocation and apportionment provisions if they do not fairly represent the taxpayer’s business activity in the state.
Whom does it apply to?
Banking institutions whose business activity is taxable both within and outside the State of Maryland
What does it govern?
Apportionment and Allocation
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maryland