PDF document

- 1 -

 Form 83-100-22-1-1-000(Rev.12/22) 
 
                                    CORPORATE 
                                   INCOME AND FRANCHISE TAX 
                                    INSTRUCTIONS 
 
                                     2022   

                                   INCOME AND FRANCHISE TAX BUREAU 
                                    PO BOX 1033 
                                    JACKSON, MISSISSIPPI 39215-1033 
 
                                    WWW.DOR.MS.GOV 
 
                                                                    December 2022

- 2 -

Enlarge image

                         TABLE OF CONTENTS 

   GENERAL INFORMATION AND INSTRUCTIONS                   3 

 NEW LEGISLATION                                          3 
 WHO MUST FILE                                            4 
 TIME AND PLACE FOR FILING                                4 
 ELECTRONIC FILING                                        4 
 TAXPAYER ACCESS POINT (TAP)                              5 
 WHO MUST SIGN                                            5 
 REQUIRED FORMS AND SCHEDULES                             5 
 TAX PAYMENTS                                             5 
 ESTIMATED TAX PAYMENTS                                   5 
 INTEREST AND PENALTY PROVISIONS                          5 
 ACCOUNTING METHODS                                       6 
 ACCOUNTING PERIOD                                        6 
 ROUND TO THE NEAREST DOLLAR                              6 
 RECORDKEEPING                                            6 
 TAX RATES                                                6 
 AMENDED RETURN                                           6 

 FRANCHISE TAX                                            7 

   INCOME TAX                                             8 

 INSTALLMENT SALES                                        8 
 INTANGIBLE AND INTEREST EXPENSES                         8 
 ARMS-LENGTH TRANSACTIONS                                 8 
 LONG TERM CAPITAL GAINS FROM SALES OF STOCK              8 
 EXTRATERRITORIAL INCOME                                  8 
 APPORTIONMENT/ALLOCATION                                 8 
 NET OPERATING LOSS (NOL) AND CAPITAL LOSS                9 
 COMBINED INCOME                                          9 
 PRODUCERS OF MINERAL OR NATURAL RESOURCE PRODUCTS        9 
 UNRELATED BUSINESS TAXABLE INCOME – EXEMPT ORGANIZATIONS 9 

   INCENTIVE CREDITS AND EXEMPTIONS                       10 

   SPECIFIC INSTRUCTIONS                                  14 

 FORM 83-105                                              15 
 FORM 83-122                                              16 
 FORM 83-150                                              18 
 FORM 83-155                                              18 
 FORM 83-305                                              18 
 FORM 83-310                                              19 

   INSURANCE COMPANIES                                    20 

   DISTRICT OFFICES                                       21 

 APPENDIX – COUNTY CODES                                  22 

   TAX CREDIT CODES                                                         23

- 3 -

Enlarge image

 GENERAL INFORMATION AND INSTRUCTIONS 
                                                                          at public airports to export or import cargo.     
 Important tips to help expedite processing of your return:                
                                                                          House Bill 1685 (2022 Legislative Session)  
 ✓ Use black ink when preparing the return.                               Created  the  “Pregnancy  Resource  Act”  that  authorizes  an 
                                                                          income tax credit, insurance premium tax credit and ad valorem 
 ✓ To indicate a loss (negative income), use brackets around              tax credit for voluntary cash contributions by certain taxpayers 
   the dollar amount.                                                     to eligible charitable organizations.  The credit is available to a 
                                                                          business  enterprise  engaged  in  commercial,  industrial  or 
 ✓ Attach a copy of the federal return behind the state return            professional  activities  and  operating  as  a  corporation,  limited 
   including  returns  filed  electronically.  Combined  filers  must     liability company, partnership or sole proprietorship.  The credit 
   attach  the  consolidated  Federal  Form  1120  (pages  1-5),          is limited to 50% of the income tax due.  Any unused portion of 
   Schedule M-3 and a complete Pro-Forma Federal Return.                  the credit may be carried forward for five (5) years.  This bill also 
                                                                          authorizes an income tax credit for an employer of $20 for each 
 ✓ Additional schedules and attachments should be stapled to              verified blood donation made by an employee as part of a blood 
   the return.                                                            drive.   
                                                                           
 Visit our website at www.dor.ms.gov to download forms by tax             House Bill 1691 (2022 Legislative Session)  
 year and tax type.                                                       Allows any partnership, S  corporation or similar pass-through 
                                                                          entity to elect to be taxed as an electing pass-through entity and 
 TAXPAYER ACCESS POINT (TAP)                                              pay the tax imposed at the entity level. 
                                                                           
                                                                          Senate Bill 2159 (2022 Legislative Session) 
 Remember, TAP is:                                                        Created  the  Mississippi  Flexible  Tax  Incentive  Act  (MFLEX).  
 • Easy to use                                                            The Mississippi Development Authority is authorized to award 
 • Convenient                                                             tax incentives to qualified economic development projects.     
 • Free                                                                    
                                                                          Senate Bill 2770 (2022 Legislative Session) 
 Go Paperless!                                                            Extended the repeal date for the income job tax credit for each 
 With TAP, you have the option to Go Paperless. This means that           full-time employee employed by enterprises that are primarily 
 you  can  pay  your  taxes  online  and  receive  certain                engaged  in  providing  inland  water  transportation  of  cargo  on 
 correspondence electronically.                                           lakes, rivers and intercoastal waterways. 
                                                                           
 TAP email lets you know that you have new correspondence to              Senate Bill 2773 (2022 Legislative Session) 
 view online. You then logon to TAP to read the letter or message         Extended the repeal date for the income tax credit for companies 
 and take appropriate action on your account. Only you or persons         that transfer or relocate its national or regional headquarters to 
 you authorize can see your correspondence.                               Mississippi.    However,  this  amendment  also  excludes  any 
                                                                          medical cannabis establishment from being eligible for the tax 
 When  making  payments  or  updating  profile  information,  you         credit. 
 should  always  log  directly  into  TAP  using  your  User  ID  and      
 password.  TAP  does  not  provide  links  containing  your              Senate Bill 2858 (2016 Legislative Session) - Miss. Code 
 transaction or personal information to any external website.             Ann. §27-7-5 and §27-7-18 
                                                                          Beginning with tax year 2018, the 3% tax rate on corporate 
 Remember, you can pay your bill online through TAP without               income tax will be phased out over a five-year period ending 
 registering  for  a  TAP account.  For more  information on  TAP,        with tax year 2022 as follows: 
 view the Electronic Filing Section of this booklet.                   
                                                                                               First $1,000 @ 0% and the next 
                                                                           Tax Year 2018 
                                                                                               $4,000 @ 3% 
   NEW LEGISLATION                                                                             First $2,000 @ 0% and the next 
                                                                           Tax Year 2019 
                                                                                               $3,000 @ 3% 
 House Bill 1108 (2022 Legislative Session)                                                    First $3,000 @ 0% and the next 
                                                                           Tax Year 2020 
 Authorized an income tax credit for new, reconstruction and                                   $2,000 @ 3% 
 replacement  expenditures  made  by  Class  II  and  Class  III                               First $4,000 @ 0% and the next 
 railroads.  Any credit claimed, but not used in any taxable               Tax Year 2021 
                                                                                               $1,000 @ 3% 
 year may be carried forward for five (5) consecutive years 
                                                                           Tax Year 2022       First $5,000 @ 0% 
 from the close of the taxable year in which the credit was 
 earned.  The total amount of credits that may be claimed by           
 all taxpayers shall not exceed $8,000,000 during a calendar             Senate Bill 2858 (2016 Legislative Session) - Miss. Code 
 year.    A  taxpayer  may  transfer  by  written  agreement  any        Ann. §27-13-1, §27-13-5, §27-13-7 and §27-13-67 
 unused tax credit to an eligible transferee at any time during          Beginning  with  tax  year  2018,  the  franchise  tax  will  be 
 the  year  in  which  the  credit  is  earned  and  five  (5)  years    completely phased out over a nine-year period ending with tax 
 following the year in which the credit is earned.                       year 2027 as follows: 
                                                                          
  House Bill 1162 (2022 Legislative Session) – Miss. Code 
  Ann. §27-7-22.7 & §27-7-22.9 
  Reenacted the income tax credit for taxpayers that use port 
  facilities for the export of cargo and that use airport facilities 

                                                                       3

- 4 -

Enlarge image

                                                                         •  Every exempt corporate organization as described in Miss. 
                  $2.50 per $1,000 of capital in excess of                  Code Ann. §27-7-27 or §27-7-29 and not otherwise exempt 
   Tax Year 2018                                                            from the income tax levy is required to make a corporate tax 
                  $100,000 
                  $2.25 per $1,000 of capital in excess of                  filing  if  they  have  Mississippi  unrelated  business  taxable 
 Tax Year 2019                                                              income. Refer to the “Unrelated Business Taxable Income 
                  $100,000 
                  $2.00 per $1,000 of capital in excess of                  of Exempt Organizations” section of this booklet for more 
 Tax Year 2020                                                              information. 
                  $100,000 
                                                                         
                  $1.75 per $1,000 of capital in excess of 
 Tax Year 2021                                                           •  Title  insurance  companies  and  class  A  burial  insurance 
                  $100,000 
                                                                            companies  should  use  Form  83-105.  Class  B  burial 
                  $1.50 per $1,000 of capital in excess of 
 Tax Year 2022                                                              companies,  writing  life,  accident  and  health,  fire  and 
                  $100,000 
                                                                            casualty  insurance  companies  should  use  Form  83-391. 
                  $1.25 per $1,000 of capital in excess of 
 Tax Year 2023                                                              Refer to the “Insurance Companies” section of this booklet 
                  $100,000                                                  for additional information regarding Form 83-391. 
                  $1.00 per $1,000 of capital in excess of 
 Tax Year 2024                                                            
                  $100,000 
                  $0.75 per $1,000 of capital in excess of 
 Tax Year 2025 
                  $100,000                                                                                                                       
                  $0.50 per $1,000 of capital in excess of 
 Tax Year 2026                                                           The  Mississippi combination  return  of  corporate  income  and 
                  $100,000 
                                                                         franchise tax must be filed on or before the 15th day of the 4th 
                  $0.25 per $1,000 of capital in excess of 
 Tax Year 2027                                                           month  following  the  close  of  the  accounting  year.  A  short 
                  $100,000 
                                                                         taxable year is considered a taxable year and must be filed       on 
 Tax Year 2028                                                           or befor eth e 15thday 
                  Franchise tax repealed effective January                                       of th  e 4th month following th eclos eof the 
                  1, 2028                                                short fiscal year. If the due date falls on a Saturday, Sunday or 
                                                                         legal  holiday,  the  return  is  due  the  next  business  day.  A 
 Tax Cuts and Jobs Act (TCJA)                                            business day is any day that is not a Saturday, Sunday, or legal 
 Mississippi will follow the federal TCJA changes listed below:          holiday. 
                                                                         
 •  Section 179 expensing amounts increased from $500,000                Extension of Time to File Return 
   to $1,000,000.                                                        Mississippi  will  follow  federal  return  filing  and  extended  due 
                                                                         dates.  Taxpayers  requesting an  extension of  time  to  file  the 
 •  The change in accounting method allowed for taxpayers with           return must remit the tax due with Form 83-180 on or before 
   average  gross  receipts  of  less  than  $25  million  for  the      the due date of the return. The authorized extension of time to 
   previous years to elect to use the cash method of accounting.         file  does  not  extend  the  time  for  payment  of  the  income  or 
   A copy of the federal Form 3115 is required to be attached            franchise  tax  due.  Interest  and  penalty  will  apply  on  any 
   to the Mississippi income tax return.                                 underpayment of tax. 
 
 •  The  deduction  for  entertainment,  amusement  and                  The return should be mailed to: 
   recreation expenses when directly related to a taxpayer’s             Department of Revenue 
   trade or business is eliminated. Mississippi will also follow         P.O. Box 23191 
   the  other  TCJA  provisions  related  to  food  and  beverage        Jackson, MS 39225-
   expenses,  transportation  fringe  benefits,  fines,  penalties       3191 
   and research and experimental expenditures. 
                                                                         Street Address: 
 •  IRC Section 1031 like-kind exchange of property will apply           500 Clinton Center Drive 
   to real property not held primarily for sale and Mississippi          Clinton, MS 39056 
   personal property per Miss. Code Ann. §27-7-9(f)(1)(A).               
 
 •  Contractors with average gross receipts less than $25 million         ELECTRONIC FILING 
   for  the previous  three  (3)  tax  years  are  exempt  from  the 
   requirement  to  use  the  percentage  of  completion  for            Pursuant to the authority granted to the Department of Revenue 
   contracts to be completed within two (2) years. Taxpayers             in Miss Code Ann Section 27-3-83 and Title 35, Part I, Chapter 
   will be allowed to use the completed contract method.                 4 of the Mississippi Administrative Procedures and Procedures 
                                                                         Code, the  Department  of  Revenue  will  mandate  all 
                                                                         Corporations, S corporations, and Partnerships with assets of 
  WHO MUST FILE                                                          $250,000 or more to file electronically for tax years beginning 
                                                                         on or after January 1, 2019 and all subsequent tax years. 
 •   Every corporation domesticated or qualified to do business          
     in Mississippi must file a return even if the corporation is        Failure to file returns electronically may subject taxpayers to a 
     inactive  or  not  otherwise  engaged  in  business.  Such          penalty of twenty-five dollars ($25.00) for the first instance of 
     corporation will remain subject to the filing requirements          noncompliance  and  five  hundred  dollars  ($500.00)  for  each 
     until it is officially dissolved or withdrawn through the Office    additional instance of noncompliance. 
     of the Mississippi Secretary of State.                              
                                                                         Please contact the Department of Revenue at 601-923-7700 if 
                                                                         you are unable to comply with this mandate. 
  •  Foreign corporations engaged in business in Mississippi or           
     having sources of income in this state although not qualified        
     to transact business in this state through the Office of the         
     Secretary of State are subject to the measure of the income         
     and franchise tax levy. 
                                                                      4

- 5 -

Enlarge image

                                                                       Examples of the basic backup schedules are details of other 
  TAXPAYER ACCESS POINT (TAP)                                          additions or other deductions as requested on the computation 
                                                                       of  net  income  schedule,  details  of  other  additions  or  other 
                                                                       deductions as requested on other statements made a part of the 
 TAP provides online access to your tax account information            return,  details  of  other  current  assets  and  other  assets,  and 
 24 hours a day, 7 days a week.  TAP is free and convenient!           details  of  other  current  liabilities  and  other  liabilities  on  the 
                                                                       balance sheet as are normally included with the federal return. 
 Users of TAP are able to: 
                                                                       
 • Make electronic payments of returns and assessments; 
 • view previously filed returns and amended returns;                  
 • make address changes and view tax correspondence;                   
 • view recent account activity, and;                                  
                                                                       The total tax due on the combination return must be paid in full 
 • register a new business or add accounts to the business;            no later than the 15th day of the 4th month after the end of the 
                                                                       tax year. 
 Third Party Access for Tax Practitioners                              
 Tax practitioners can have TAP access to account information          Payment Options: 
 for each of your clients - from one login. First, create your own 
 TAP account (only one per FEIN). Once you are registered in           •  Online  Payments:    To pay  online,  go  to  www.dor.ms.gov, 
 TAP, select "Add Access to Existing Account."                            click  on  Taxpayer  Access  Point  (TAP)  and  follow  the 
                                                                          instructions.  Without a MARS account or a TAP login, users 
 Your  client  (taxpayer)  must  provide  you  the  Letter  ID  and       are able to make estimate payments online. 
 Account ID in order for you to have access to their accounts.         
 All accounts you set up for third party access are found under        •  Check  or  Money  Order  Payments:        To  pay  by  check  or 
 the  "Other  Taxpayers'  Accounts"  tab  in  TAP.  For  more             money  order,  complete  the  payment  voucher  (Form  83- 
 information on TAP, visit our website at www.dor.ms.gov.                 300),  make  the  check  or  money  order  payable  to  the 
                                                                          Department of Revenue and mail both to P.O. Box 23192, 
 Users  cannot  file  Corporate  Income  and  Franchise  Tax              Jackson, MS 39225-3192. 
 Returns in TAP. However, tax preparers have the ability to file       
 the tax returns electronically through an authorized software 
 provider.  A  copy  of  the  complete  federal  return  must  be 
 submitted  electronically.  Please  visit  our  website  at 
 www.dor.ms.gov  for  additional  information  on  how  to  file       
 Mississippi returns on-line and how to access approved on-            Every corporate taxpayer with an annual income tax liability in 
 line software providers.                                              excess of $200 must make estimated tax payments. At least 
                                                                       90%  of  the  current  income  tax  liability  must  be  paid  by 
                                                                       submitting quarterly payments. The remaining of the balance 
                                                                       is  due  by  the  due  date  of  the  return.  The  due  dates  for 
                                                                       estimated tax payments are: 
                                                                       
 The return must be signed by the president, vice president or         •  15th day of the 4 monthth after year end; 
 other officer of the corporation. A receiver, trustee or assignee     •  15thday of the 6 monthth  after year end; 
                                                                       •  15 day of the 9 month after year end, and;
 must sign any return which he/she is required to file on behalf          th                th                        
                                                                       •  15 day of the 12 month after year end.
 of a corporation.                                                        th                th                       
 Anyone  who  prepares  the  return  but  does  not  charge  the       
 corporation  should  not  complete  the  paid  preparer  section.     The payment is due on the next business day if the date falls 
 Generally,  anyone  who  is  paid  to  prepare  the  return must      on a Saturday, Sunday or legal holiday. 
 legibly  sign  it  and  must  also  furnish  the  preparer  tax       
 identification number (PTIN) issued by the Internal Revenue           Penalties  may  apply  if  the  corporation  does  not  make  the 
 Service (IRS).                                                        required estimated tax payments by the due date. Use Form 
                                                                       83-305  to  determine  the  amount  of  interest  and  penalty  on 
                                                                       underestimate. See detailed instructions for the form under the 
                                                                       “Specific Instructions” for Form 83-305 section of this booklet. 
                                                                       
 To be a complete return,  the return should contain all the 
 requisite  general  information,  as  well  as  all  summary  tax     
 information and the basic back up schedules. Examples of the          •  Late Payment: Interest and penalty are charged on taxes 
 required  general  information  are  complete  name,  current            paid late even if an extension of time to file is granted. The 
 address,  FEIN,  officer  information  and  signature  and  other        interest  is  assessed  from  the  due  date  until  paid  and  is 
 information relating to the filing entity as requested on page 2         computed at 1/2 of 1% per month. 
 of Form 83-105.                                                       
 Examples  of  the  summary  tax  information  are  the  front            The penalty imposed for failure to pay the tax when due is 
 page of the return, the franchise tax schedule, the computation          1/2% per month not to exceed 25% in the aggregate. 
 of net income, the computation of the apportionment factor (if        
 applicable), the balance sheet, nonbusiness income schedule           •  Late or Non-Filer: Penalties are imposed for failure to file 
 (if  applicable),  the  direct  accounting  income  statement  (if       a return when due on the total amount of the tax deficiency 
 applicable),  schedules  showing  the  computation  of  any tax          or delinquency. The penalty is 5% per month not to exceed 
 credit taken (such as jobs credit) and schedules showing the             25% in the aggregate. The penalty shall not  be less than 
 computation of any major items on the return.                            $100 for income tax for failure to file a return. 
                                                                    5

- 6 -

Enlarge image

 • Incomplete  Returns:  A  corporation  that  does  not  file  a              employed in Mississippi in excess of $100,000. (Minimum tax of 
   complete  return  or  does  not  file  a  return  within  the               $25). 
   prescribed  time  may  be  subject  to  a  penalty  of  $25  per              
   required attachment or schedule up to a maximum of                          Income Tax: 0% on the first $5,000 of taxable income and 4% on 
   $500 per return.                                                            the next $5,000 of taxable income and 5% on all taxable income 
                                                                               in excess of $10,000. 
 The purpose of this penalty provision is to ensure that sufficient            
 information is disclosed on the return. If major schedules (such 
 as the balance sheet) are omitted or incomplete, or if schedules                AMENDED RETURN 
 are consistently omitted or incomplete, then the penalty will be 
 imposed. The more severe or consistent the omission, the more                 File an amended return to: 
 likely it is that the penalty will be imposed. Refer to the Required          
 “Forms  and  Schedules”  section  of  this  booklet  for  additional            •  make adjustments to tax; 
 information on what constitute a complete return.                               •  claim a refund due to an adjustment to tax; 
                                                                                 •  claim a net operating loss (NOL) carryback deduction; 
                                                                                 •  report federal adjustments (1120X), and; 
                                                                                 •  report IRS audit adjustments (RAR) 
                                                                               
 Direct or Separate Accounting Method: Producers of mineral                    When to File: A taxpayer may apply to the Department for 
 or natural resource products and construction contractors are                 revision of any return filed at any time within 3 years of the due 
 required  to  use  direct  accounting  in  computing  their  taxable          date; or, if an extension was granted, 3 years from the date the 
 income  to  this  state.  For  more  details,  see  Title  35,  Part  III,    return was filed. The 3-year period is not applicable to an IRS 
 Subpart 08, Chapter 06 of the Miss Administrative Code. Other                 audit;  however,  no  additional  assessment  or  refund  will  be 
 taxpayers  may  not  employ  a  direct  accounting  or  separate              made more than 3 years after the date the IRS disposes of the 
 accounting method unless they have obtained written authority                 tax liability in question. 
 from  the  Commissioner  to  do  so.  Refer  to  the  “Producers  of          
 Mineral or Natural Resource Products” section of this booklet for             Net Operating Loss (NOL): Form 83-155 must be filed with 
 additional information.                                                       an  amended  return  in  order  to  claim  a  net  operating  loss 
                                                                               deduction.  Form  83-155  is  used  to  make  an  irrevocable 
                                                                               election to carryback or carry forward the current year NOL. For 
                                                                               more information concerning net operating losses, see the “Net 
 
                                                                               Operating Loss (NOL) & Capital Loss” section of this booklet. 
                                                                               
 Returns should be filed on the basis of the 12-month accounting               Internal  Revenue  Service  Audit  (RAR):     To  document 
 period established by the corporation. A corporation on a fiscal              adjustments made as a result of an IRS audit, the Revenue 
 year basis must enter the beginning and ending dates of  the                  Agent Report should be attached to the Mississippi amended 
 taxable  year  in  the  appropriate  spaces  on  the  return.  No             return. 
 accounting period, other than calendar year, will be recognized,              
 unless  before  its  close  it  was  definitely  established  as  an          Amended  Federal: To  document  adjustments  made  as  a 
 accounting  period  by  the  taxpayer  and  the  books  of  such              result of an amended federal return, a copy of the amended 
 taxpayer were kept in accordance therewith.                                   federal  (Form  1120X)  should  be  attached  to  the  amended 
                                                                               Mississippi return. If a consolidated amended federal return 
                                                                               was  filed,  please  attach  an  amended  Pro-Forma  Federal 
                                                                               Return, as well as the amended consolidated federal return to 
                                                                               the amended state return. 
 All dollar amounts should be rounded to the nearest whole dollar              
 (no  pennies).  Round  down  to  the  next  lower  dollar  amounts            Any other documentation supporting the adjustments made 
 under $.50 and round up to the next higher    dollar amounts of               should also be included with the amended Mississippi return. 
 $.50  and  over.  For  example:  $2.15  becomes  $2.00;  $4.75                Attach a copy of the original filed return. Overpayments that 
 becomes $5.00; and $3.50 becomes $4.00.                                       are not refunded will be applied to the next period for which the 
                                                                               corporation makes a filing.   
                                                                               
 Taxpayers are required to maintain an accurate and complete 
 set  of  records  and  other  information  necessary  for  the 
 Department  to  determine  the correct amount  of  tax  due.  The 
 records and other information must be available for inspection 
 by  the  Department  upon  request  at  a  reasonable  time  and 
 location.  Refusal   or   delay   by   the   taxpayer  to p r o v i d e  
 documentation upon the Department’s request will result in an 
 assessment being made from any information available, which 
 shall be prima facie correct. 
 
 Franchise Tax: $1.50 per $1,000 of capital, or fractional part 
 thereof, of capital surplus, undivided profits and true reserves 
                                                                            6

- 7 -

Enlarge image

 FRANCHISE TAX 
 
 The franchise tax is measured by the value of capital used,              Multistate Taxpayers: Lines 9 through 12 of Form 83-110 
 invested or employed in the exercise of any power, privilege             must  be  completed  by  multistate  corporations  doing 
 or  right  enjoyed  by  the  corporation  within  Mississippi.  The      business both within and without Mississippi.  Total capital of 
 mode  of  measurement  is  the  amount  of  capital  of  the             a multistate corporation is apportioned to Mississippi in the 
 corporation employed or so situated as to be privileged to be            ratio  that  real  and  tangible  personal  property  owned  in 
 employed in this state. In determining the amount of capital,            Mississippi and gross receipts from business carried on in 
 the net book value as regularly employed in conducting the               Mississippi  bears  to  the  total  real  and  tangible  personal 
 affairs of the corporation should be accepted as prima facie             property  owned  by  the  corporation  and  gross  receipts 
 correct as to the true capital of the corporation, except where          wherever located and from wherever received. 
 the Commissioner determines that the book value does not                 
 properly  reflect  capital  employed  in  this  state  and  in  that     The amount of capital apportioned to Mississippi is computed 
 situation the Commissioner's determination of capital should             online  13  of  Form  83-110.  The  section  of  Form  83-110 
 be prima facie correct.                                                  concerning  the  assessed  values  of  all  real  and  personal 
                                                                          property  in  Mississippi  must  be  completed  by  all 
 Form 83-110 must be completed by all corporations to indicate            corporations. Miss.  Code  Ann.  §  27-13-9  and  §  27-13-13, 
 the amount of capital of the corporation. All reserves that do           provide  that  the  amount  of  the  determined  capital  in 
 not  represent  definitely  known  and  fixed  liabilities  must  be     Mississippi  should  in  no  case  be  less  than  the  assessed 
 considered as elements of capital of the corporation. Amounts            value of the Mississippi property of the corporation for the 
 designated  for  payment  of  dividends  may  not  be  excluded          year preceding the year in which the return is due. 
 unless  such  amounts  have  been  definitely  and  irrevocably          
 placed to the credit of the stockholder, subject to withdrawal           Taxable capital is calculated on lines 15 through 18 of Form 
 on  demand.  Sums  representing  debts,  notes,  bonds,                  83-110. The amount of taxable capital shown on line 18 should 
 mortgages due and payable, depreciation reserves, bad debt               be entered on line 1, Form  83-105. 
 reserves, or reserves representing valuation accounts may be             
 excluded (unless between affiliated       companies or                   For  tax years ending  on  or after  December  31,  2001, the 
 shareholders).                                                           property  and  receipts  of  flow-through  entities  must  be 
                                                                          included in a multistate corporate partner’s computation of 
 Holding Corporation:    A holding corporation, as defined in             the  apportionment  ratio  applied  to  the  capital  base.  The 
 Miss. Ann. Code § 27-13-1(i), is (1) any corporation owning at           assessed value of property of flow-through entities must be 
 least eighty percent (80%) of the value of capital stock and at          included in a multistate corporate partner's assessed value 
 least eighty percent (80%) of the combined voting power of all           of property when determining the alternate capital base. 
 classes of capital stock of another corporation and (2) deriving 
 at  least  ninety-five percent (95%) of its gross receipts from 
 dividends,  interest,  royalties,  rents,  services  provided  to 
 members of an affiliated group (as defined in Section 27-7- 
 37(2)(d)) to the extent of the cost of providing such services. 
 
 Per  Miss.  Ann.  Code  §27-13-1(i),  in  the  case  of  a  holding 
 corporation,  the  value  of  the  capital  used,  invested  or 
 employed in this state shall exclude that portion of the book 
 value  of  the  holding  corporation’s  investment  in  stock  or 
 securities of its subsidiary corporation using the ratio between 
 (1) the holding corporation’s investment in stock or securities 
 of its subsidiary corporation and (2) the holding corporation’s 
 total assets. Such ratio shall then be applied to the total capital 
 stock,  surplus,  undivided  profits  and  true  reserves  of  the 
 holding  corporation  in  order  to  arrive  at  the  amount  of  the 
 exclusion. The holding company exclusion is computed on line 
 7  of  Form  83-110  and  a  schedule  of  computation  must  be 
 attached to the return for the exclusion. 

                                                                       7

- 8 -

Enlarge image

INCOME TAX

Generally, all domestic and foreign corporations having
income from sources within Mississippi must complete Form ARMS- LENGTH TRANSACTIONS
83-122, which makes adjustments for additions to and
The state definition of "arms-length" is not tied to that of the
deductions from federal ordinary income due to differences in
federal definition. See Miss. Code Ann. § 27-7-9(j)(6). The
federal and Mississippi laws, to arrive at net income (loss) for
Commissioner can adjust a transaction when income has
state purposes.
been shifted between related parties and/or taxes have been
avoided in this state.
INSTALLMENT SALES

Mississippi does not follow federal rules concerning installment
sales. Gains from the sale of casual property will be
recognized in the year of the sale. However, the tax on the gain
may be deferred. Deferred taxes are generally paid as the
proceeds from the sale are received. However, the following Gains from the sale of certain stocks in domestic entities are
will result in acceleration of payments: not recognized as a part of income. However, the gain must
be reduced by losses from the sale of certain stocks in
• Transfer, disposition, sale or disposal of the note in any domestic entities if the losses were incurred in the year of the
manner will result in deferred tax payments becoming gain or within the two years preceding or subsequent to the
immediately due and payable. gain. See Miss. Code Ann. § 27-7-9(f)(10).

• Liquidation, dissolution, withdrawal from this state and
certain merger transactions will result in deferred tax
payments becoming immediately due and payable.
Mississippi has not adopted federal provisions related to
• Failure to comply with the necessary filing requirements. Extraterritorial Income Exclusion. The amount related to this
exclusion of income on the federal return must be added
Taxpayers who elect the installment method for federal income back to the Mississippi income tax return prior to the
tax purposes should include as a part of their return both a apportionment of income. The proper placement for this
Federal Form 6252 and a schedule of any differences between Mississippi adjustment to federal income is on Form 83-122,
the federal and Mississippi amounts. line 7 titled "Other Additions Required by Law". A copy of
Federal Form 8873 should be attached to the Mississippi
return when this adjustment is being made for federal
purposes.

In addition, a FSC (Foreign Sales Corporation) that is
Taxpayers are required to add back the following to its organized under the laws of a U.S. territory is treated as a
computation of net income: domestic corporation and, thus, dividends received from it
are considered apportionable business income.
• Intangible expenses and costs and interest expenses and
costs in relation to or in connection with the direct or indirect
maintenance or management, ownership, sale, exchange
or other disposition of intangible property.

• Royalty, patent, technical and copyright fees, licensing fees Total Assignment of Income: If the business activity in
and other similar expenses. respect to any trade or business of the corporation occurs
within this state, and if by reason of such business activity the
• Expenses and costs associated directly or indirectly with corporation is not taxable in another state, the total net income
factoring transactions or discounting transactions. (loss) of the corporation is assigned to Mississippi.

Intangible property includes patents, patent applications, trade Apportionment of Business Income: If the business
names, trademarks, service marks and similar types of activity in respect to any trade or business of a taxpayer
intangible assets. occurs both within and without this state, and if by reason of
such business activity the taxpayer is taxable in another
Limitations: The adjustment will not apply to such portion of state, the portion of the net income (loss) arising from such
intangible expenses, interest expenses and costs which are trade or business which is derived from sources within this
not with a related member; or the related member is not state, should be determined by apportionment in accordance
primarily engaged in the acquisition, use, maintenance, with the formulas prescribed by Title 35, Part III, Subpart 08,
management, ownership, sale, exchange, or other disposition Chapter 06 of the Miss. Admin. Code unless prescribed
of intangible property; and the transaction(s) were done for a otherwise. In such case, the taxpayer must complete Form
valid business purpose. 83-125. Multistate contractors use Form 83- 124.

- 9 -

Enlarge image

 Allocation  of  Nonbusiness  Income: Non-business  income               Mississippi law does NOT authorize combined reporting for 
 (loss) shall be allocated by multistate corporations within and         franchise tax; therefore, separate returns are required of all 
 without this state in accordance with the provisions of Title 35,       corporations chartered to do business in Mississippi or which 
 Part III, Subpart 08, Chapter 06 of the Miss. Admin. Code. Form         are  in  fact  doing  business  in  Mississippi  except  for  the 
 83-150 should be used only if the corporation has activities in         Reporting  Corporation.  The  Reporting  Corporation  in  a 
 another state and has income, losses, expenses, or deductions           combined  filing  must  file  a  return  that  includes  its  own 
 which  are  to  be  allocated  ("non-business")  rather  than           franchise tax and the combined income of the group. 
 apportioned.  For  a  definition  of  what  constitutes  "non-          
 business" income, losses, expenses, and deductions and rules            Payments: Taxpayer  must  issue  separate  checks  for 
 for allocating these items, See Miss. Code Ann. §27-7-23.               franchise tax due from all entities included in combined return. 
                                                                         Payments  will  not  be  transferred  to  another  entity  in  the 
                                                                         combined  group  unless  specified  on  the  Application  for 
                                                                         Automatic Extension, Form 83-180. 
                                                                         
 Net  Operating  Loss: For  any  taxable  year  ending  after 
 December  31,  2001,  the  period  for  net  operating  loss 
 carrybacks and net  operating loss carryovers is two periods 
 back and twenty periods forward. This is NOT in accordance              
 with federal carryback and carryover provisions that provide for        Taxpayers engaged in the trade or business of producing oil, 
 a five-year carryback period.                                           gas, other liquid hydrocarbons, sulfur, coal, sand, gravel and 
                                                                         other  mineral  or  natural  resource  products,  except  timber, 
 A short taxable year counts as a taxable year. A taxpayer may           should determine Mississippi net business income from such 
 elect to forgo the carryback on Form 83-155. Once this election         activity on a direct or separate accounting basis. 
 is made, it cannot be changed.                                          
                                                                         The Mississippi gross business income from the production of 
 Form  83-155  must  be  completed  and  attached  or  an  NOL           mineral or natural resources shall include: (a) sales of natural 
 deduction  will  not  be  allowed.  Taxpayers  must  indicate  the      or mineral resources produced in Mississippi and sold in this 
 income year the NOL was applied (Column C of Form 83-155).              state; (b) the market value, at the time of transfer, of all natural 
                                                                         or mineral resources produced in this state and transferred by 
 Capital  Loss: Capital  losses  may  be  deducted  only  to  the        the taxpayer to another state for sale, refining, processing or 
 extent of capital gains.  Capital losses may not be used to offset      manufacturing,  provided  that  if  the  natural  or  mineral 
 the gains of another member in a combined group filing. Any             resources are sold by means of an "arms-length" transaction 
 unused capital losses are carried back three years and forward          prior  to  refining,  processing  or  manufacturing,  the  market 
 five years. The definition of capital loss carryover, capital loss      value prescribed herein shall not exceed the selling price; and 
 carryback, short-term capital loss, long-term capital loss, and         (c) the market value at the time of transfer, of all natural or 
 similar terms are the same as for federal income tax purposes.          mineral resources produced by the taxpayer in Mississippi and 
 Form 83-155 must be completed and attached, or the capital              transferred to a refinery, processing plant  or  manufacturing 
 loss deduction will not be allowed.                                     facility of the taxpayer in Mississippi. 
                                                                         
                                                                         A  natural  resource  product  shall  be  deemed  to  be  sold  in 
                                                                         Mississippi if it is located in this state at the time title thereto 
                                                                         passes to the purchaser. In the absence of specific proof of 
 The tax returns of all members in a combined group should be            value  of  natural  resources  at  the  time  of  transfer  from  the 
 mailed  at  the  same  time.  Do  not  staple  all  of  the  returns    state, the value of natural resources at the time of production 
 together.  Each return should be fastened separately.                   should  be  determined  in  accordance  with  the  methods 
                                                                         prescribed  for the determination  of  "gross income  from  the 
 Each member of an affiliated group of corporations eligible for         property"  for  purposes  of  percentage  depletion  for  federal 
 and electing to file in a combined income tax return must file its      income tax purposes. 
                                                                         
 own Mississippi corporate income tax return (Form 83-105) and 
 each corporation must complete and attach to their respective 
 return  all  applicable  schedules  including  the  schedule  for 
 computation  of  net  income  (loss),  Form  83-122.  Mississippi 
 income tax due on the combined net income of the affiliated             
 group  must  be  determined  and  reported  by  the  Reporting          For tax years beginning on or after January 1, 2002, every 
 Corporation. In addition to the regular income tax return, the          exempt organization, as described in Miss. Code Ann. § 27-7- 
 designated Reporting Corporation must complete and attach to            27  or  §  27-7-29  and  not  exempt  from  the  income  tax  levy 
 its return Form 83-310. Other included members of the group             (federal & state agencies, etc.), is required to file an income 
 should enter "zero" on Form 83-105, page 1, line 5 and must             tax return with this state if the organization: 
 indicate  the  name  and  FEIN  number  of  the  Reporting              
 Corporation.                                                            1.  Earns or receives unrelated business taxable income as 
                                                                             determined under IRC Section 512 or is an ESOP with an 
 In case of delinquency or failure on the part of the Reporting              interest in an "S" corporation, and 
 Corporation  to  report  and  pay  the  income  tax  due,  each         
 included member of the affiliated group is severally liable for         2.  Is a resident of this state, doing business in this state, or 
 the tax on a combined return and for any determined deficiency              receiving income from sources within this state. 
 thereon. Combined reporting is authorized only with respect to 
 the income tax levy. 

                                                                      9

- 10 -

Enlarge image

Exempt corporate organizations file Form 83-105 and any day of the fourth month following the close of the tax year.

necessary supplemental schedules. These organizations are
not subject to the franchise tax levy and should leave lines 1 While the filing deadline is also the 15th day of the fourth month
through 4 blank. following the close of the tax year, an automatic filing
extension is granted. If a taxpayer files an extension for
Exempt trust organizations, including employee and federal tax purposes, the Mississippi filing deadline will be
extended through the date of the federal extension as well.
retirement trust, file Form 81-110 and any necessary
supplemental schedules.
Employee Stock Ownership Plans that receive Mississippi
In computing taxable income, enter on line 1 of Form 83-122 income as a shareholder in an "S" corporation must include
(line 1, page 2 of Form 81-110 for trust organizations) the such income as a part of Mississippi taxable income. The
amount of unrelated business taxable income before any net source of the income is determined by the "S" corporation's
operating loss and specific deduction as reported on Federal activities and is reported on Form 84-132 to the ESOP
Form 990-T. A complete and signed copy of Federal Form 990- shareholder.
T must be attached to the Mississippi schedules as a part of the
return. Make any necessary adjustments for income/expenses Trust organizations must make all required tax payments by
otherwise included/excluded under the income tax laws of this the 15th day of the fourth month following the close of the tax
state such as income from sources without this state, add- back year. Generally, if a filing extension is granted for federal tax
of nondeductible income taxes, etc. purposes, it will be granted for state purposes as well. A copy
of the federally approved extension must be attached with the
Corporate organizations with unrelated business taxable return filing.
income are subject to the same estimated payment
requirements as other corporate taxpayers. Corporate
organizations must make all required tax payments by the 15th

INCENTIVE CREDITS AND EXEMPTIONS
the Jobs Tax Credit is limited to 50% of the income tax liability
Incentive credits may be used to offset all or part of the attributable to the income derived from operations in this state
corporate income and/or franchise tax liability. For any of these for that year. Any credit claimed but not used in a taxable year
credits to be allowed, schedules must be attached showing the may be carried forward for 5 years.
computations. Form 83-401 should be completed and attached
as a part of the return. If more than three income tax credits are Effective January 1, 2005, the calculation of the credit was
claimed, attach a supplemental schedule and enter the total on changed to a percentage of payroll for new full-time jobs:
line 3 of Form 83-401.
Average Minimum Percentage
The following is a brief description of the major credits allowed County Ranking Increase of Jobs of Payroll
under state statutes: Tier One
20 or More 2.5%
(Developed)
Premium Retaliatory Tax Credit (02) Tier Two
An income tax credit is available to insurance companies that (Moderately 15 or More 5%
paid additional retaliatory premium taxes to other states. The Developed)
credit can offset 100% of income tax due. No carryover is Tier Three
allowed for this credit. (Less Developed) 10 or More 10%

Finance Company Privilege Credit (03)
The number of jobs must be created within 1 year and is
An income tax credit is provided to finance companies that paid measured at the end of the fiscal year. They cannot be
privilege taxes. The credit can offset 100% of income tax due. accumulated over several years. The credit is available for
No carryover is allowed for this credit. each net new full-time job created as long as the minimum
number has been achieved and maintained. The credit is for
Jobs Tax Credit (05) full-time positions only and is based on the current year gross
A credit is allowed for increasing employment levels in certain payroll. The credit allowed shall be adjusted in the event of
types of business. The business must be primarily engaged in payroll fluctuations during the additional five (5) years of the
manufacturing, processing, warehousing, distribution, credit. You cannot combine part-time jobs to add up to a full-
wholesaling, or research and development; or designated by time job. The credit is based on filled positions and the
rule and regulation by the Mississippi Development Authority as employees must be employed in this state and subject to
air transportation and maintenance facilities, final destination or Mississippi Withholding Tax. Form 83-450 must be completed
resort hotels having a minimum of 150 guest rooms, recreational and attached to the return. Please attach to this form, a
facilities that impact tourism, movie industry studios, schedule listing the new full-time jobs created (titles/pins, date
telecommunications enterprises, data or information processing created and payroll amount for the year).
enterprises or computer software development enterprises or
any technology intensive facility or enterprises. A job tax credit is authorized for each full-time employee
employed in a new cut and sew job by enterprises that own or
The amount of the credit is based on the number of new jobs operate an upholstered household furniture manufacturing
created and the county where the jobs are created. The credit facility. The repeal date on this provision is extended to January
is good for a period of 5 years. This credit may be used in 1, 2026.
combination with any of the other credits. However, the total of
10

- 11 -

Enlarge image

A jobs tax credit is authorized for each full-time employee of taxable income. These expenses are net of any reimbursement.
business primarily engaged in providing inland water
transportation of cargo on lakes, rivers and intracoastal The Child/Dependent Care Tax Credit may be used in
waterways. This credit is effective from and after January 1, combination with any other credit. The credit is equal to 50% of
2019. the qualified day care expenses. It is not refundable. It can be
used to offset 100% of the income tax liability. Any excess

credit amount can be carried forward for up to 5 years from the
National or Regional Headquarters Tax Credit (06)
original year in which the excess credit could not be used.
(Repealed effective July 1, 2022)
An income tax credit is available for a 5-year period for each
position assigned to the national or regional headquarters of Reforestation Tax Credit (RTC) (10)
a business created in or transferred to Mississippi. The credit This credit, based on the costs incurred for certain approved
is $500 for each new full-time employee, $1,000 for each new reforestation practices, is an amount equal to the lesser of 50%
full- time employee whose salary is 125% of the average of the actual cost of approved practices or 50% of the average
annual state wage, or $2,000 for each new full-time employee cost of approved practices as established by the Mississippi
whose salary is 200% of the average state wage. A minimum Forestry Commission. In any taxable year, the maximum
number of 20 new headquarters jobs must be created to amount of RTC shall not exceed the lesser of $10,000 or the
receive the credit. A taxpayer claiming a refund on this amount of income tax imposed upon the eligible owner for the
credit must file a separate return; it cannot be included taxable year reduced by the sum of all other credits allowable
in a combined return. to the eligible owner. The lifetime maximum reforestation tax
credit that an eligible owner may utilize is $10,000 in the
Research and Development Skills Credit (07) aggregate.
This credit provides an incentive to locate full-time positions
requiring research and development skills in the state. These Effective January 1, 2007, the lifetime maximum RTC that an
positions have to be engaged in a research and development eligible owner may utilize is $75,000.00. Any unused portion of
activity.Qualification of jobs for this credit would require at a the RTC may be carried forward to succeeding years.
minimum, a Bachelor’s degree in a scientific or technical field Reforested acreage on which the eligible owner receives any
of study from an accredited 4 year college or university, state or federal cost share assistance funds to defray the cost of
employment in the employee’s area of expertise and an approved reforestation practice is not eligible for the RTC.
compensation at a professional level with 2 years of related The RTC is not available to private corporations which
job experience. Examples are chemist and engineers. manufacture products or provide public utility services of any
type or any subsidiary of such corporations.

A credit of $1,000 for each full-time position requiring research
and/or development skills is available for a 5-year period. There is Gambling License Fee Credit (11)
no minimum number of positions that must be created to An income tax credit provided to the licensee that paid a license
qualify for this credit. The credit is for full-time positions only. fee which is based on gross revenues of the licensee. The credit
Part-time jobs cannot be combined to add up to a full-time job. can offset 100% of income tax due. No carryover is allowed for this
The credit is based on filled positions and the employees must credit.
be employed in this state and subject to Mississippi
Withholding Tax. The credit for employees employed for less Mississippi Business Finance Corporation Revenue Bond
than 12 months will be allowed based on a pro-rated portion Service Credit (13)
in the first and last years. The amount of the credit is pro- rated Only debt service paid on revenue bonds issued by the
based on the number of months the employee is employed in Mississippi Business Finance Corporation to finance economic
this state divided by 12. development projects to induce the location of manufacturing
facilities within this state can be taken as a credit. This credit
The total of the Research and Development Skills Credit is can be used against the taxes due from the income generated
limited to 50% of the income tax liability attributable to the by or arising out of the economic development project. Effective
income derived from operations in this state for that year. Any January 1, 2014, Senate Bill 2376 amends Miss. Code Ann.
excess credit amount can be carried forward for up to 5 years §57-10-401 to revise the term “Economic Development Project”
from the original year in which the excess credit could not be to include the economic development project of a related
used. approved company that is merged into or consolidated with
another approved company where the approved companies
Employer Child/Dependent Care Credit (08) are engaged in a vertically integrated manufacturing or
The Child/Dependent Care Tax Credit is an incentive to any warehouse operation. The bill also amends Miss. Code Section
business providing dependent day care (both children and Ann. §57-10-449 to extend the repeal date until October 1,
adult) for its employees during the employee's working hours 2017, the authority for the Mississippi Business Finance
or assisting community-provided day care. The expenses must Corporation to issue bonds to finance economic development
be incurred in the operation of a program certified by the projects. For more information on the benefits of this program
Mississippi Department of Health. The net cost of any contract contact: Mississippi Development Authority, P.O. Box 849,
executed by the employer for a third party to provide dependent Jackson, MS 39205-0849.
care is a qualified expense. If the employer elects to provide
dependent care directly, then the qualified expenses are
expenses for staff, learning and recreational materials and
equipment, and cost associated with the construction and
maintenance of a facility. Additional eligible expenses include
costs assumed by the employer which increases the quality,
availability and affordability of dependent care in the
community used by employees during the employee's work
hours. For facilities and equipment, the eligible expense is the
amount of depreciation expense allowable in computing
11

- 12 -

Enlarge image

Ad Valorem Inventory Tax Credit (14) of broadband technologies. The credit applies to both income
This is an income tax credit for manufacturers, distributors and and franchise taxes. The credit is a percentage of the cost of the
wholesale or retail merchants for a certain amount of ad investments incurred after June 30, 2003 and before July 1,
valorem taxes paid on commodities, goods, wares and 2013. The percentage applied is 5%, 10%, and 15% for Tier 1,
merchandise held for resale. The ad valorem credit may be Tier 2, and Tier 3 counties respectively. For more details on
claimed for each location where such commodities, products, eligibility, computation of the credit, qualifying expenditures,
goods, wares and merchandise are found and upon which the limitations, carryovers, as well as any necessary forms or work
ad valorem taxes have been paid. The tax credit for each sheets, please contact the Corporate Tax Division at (601) 923-
location on which ad valorem taxes have been paid should 7700. Enterprises qualifying for this credit are able to receive
not exceed the lesser of $15,000 or the amount of income certain sales tax exemptions as well. For more information,
taxes attributable to such location. Previously, the credit may please contact the Sales Tax Bureau at (601) 923-7015.
be claimed only in the year in which the ad valorem taxes are
paid; however, Senate Bill 2934 amended Miss. Code Ann. House Bill 1729 amended Miss. Code Ann. §57-87-5 to extend
§27-7-22.5 increasing the income tax credit for ad valorem until July 1, 2025, the franchise tax credit authorized for
taxes paid on certain inventory and authorizes any unused telecommunications enterprises for the cost of equipment used in
tax credit claimed to be carried forward for five (5) consecutive the deployment of broadband technologies and to extend until
years effective July 1, 2012. July 1, 2025 the ad valorem tax exemption for equipment used in
the deployment of broadband technologies by
Effective January 1, 2014, House Bill 787 amends Miss. Code telecommunications enterprises.
Ann. §27-7-22.5 to provide an income tax credit for ad valorem
taxes paid on rental equipment. Rental equipment is defined Manufacturing Investment Tax Credit (23)
as any rental equipment or other rental items which are held for A manufacturing enterprise who falls within the definition of the
short-term rental to the public under rental agreements that are term “manufacturer” in Miss. Code Ann. § 27-65-11 and has
not subject to privilege taxes. The bill also provides for the operated in the state for at least 2 years is allowed a
amount of credit to increase each year until the 2016 taxable manufacturing investment tax credit for income tax equal to 5% of
year in which the amount of the credit will be limited to the the eligible investments made by the manufacturing enterprise.
lesser of the amount of ad valorem taxes paid or the amount "Eligible investment" means an investment of at least
of income taxes due for each location. Any ad valorem taxes $1,000,000.00 in buildings and/or equipment for the
paid by a taxpayer that is applied toward the tax credit may manufacturing enterprise.
not be used as a deduction by the taxpayer for state income
tax purposes. The maximum credit that may be claimed by a taxpayer on any
project shall be limited to $1,000,000. The Manufacturing
A copy of the tax receipt from the county that shows the Investment Tax Credit should not exceed 50% of the taxpayer's
inventory valuation and a schedule showing the state income tax liability in any 1 tax year net of all other credits.
calculation of the ad valorem tax paid based on the Any Manufacturing Investment Tax Credit claimed but not used
valuation must be attached to the return. may be carried forward for 5 years from the close of the tax year
in which the eligible investment was made. For more details on
Export Port Charges Credit (15) eligibility, computation of the credit, qualifying expenditures,
An income tax credit is authorized for taxpayers that utilize the limitations, carryovers, as well as any necessary forms or work
port facilities at state, county, or municipal ports. The income sheets, please contact the Corporate Tax Division at (601) 923-
tax credit is equal to the total export cargo charges paid by 7700.
the taxpayer for: (a) receiving in the port; (b) handling to a
vessel; and (c) wharfage. The credit provided should not Historic Structure Rehabilitation Credit (26)
exceed 50% of the amount of tax imposed upon the taxpayer An income tax credit is allowed for certain costs and expenses in
for the taxable year reduced by the sum of all other credits. rehabilitating eligible property certified as a historic structure or
Any unused portion of the credit may be carried forward for structure in a certified historic district. The taxpayer may elect to
the succeeding 5 years. receive a 75% rebate on the total amount of excess historic
rehabilitation credit in lieu of a ten-year carryforward.
Import Port Charges Credit (17)
An income tax credit is authorized for taxpayers that utilize the New Markets Credit (28)
port facilities at state, county, or municipal ports for the import The New Markets Credit allows a credit for income, insurance
of cargo. To be eligible, a taxpayer must locate its United premium, or premium retaliatory taxes to investors in eligible
States headquarters in Mississippi on or after January 1, 2005 equity securities issued by a Qualified Community Development
employ at least 5 permanent full-time employees who actually Entity that has entered into an allocation agreement with the
work at such headquarters and have a minimum capital Community Development Financial Institutions Fund of the U.S.
investment of $5,000,000 in Mississippi. The income tax credit Treasury Department (CDFI) with respect to federal income tax
is equal to the charges paid by the taxpayer for: (a) receiving credits authorized by the Federal NMTC Law, which includes the
in the port; (b) handling to a vessel; and (c) wharfage. The State of Mississippi in the service area outlined in such
credit provided shall not exceed 50% of the amount of tax agreement. This Qualified Community Development Entity is
imposed upon the taxpayer for the taxable year reduced by commonly referred to as a “CDE”.
the sum of all other credits. Any unused portion of the credit
may be carried forward for the succeeding 5 years. The
maximum cumulative credit that may be claimed ranges The CDE must use 85% or more of the proceeds of the issuance
between $1,000,000 and $4,000,000 depending on the of the equity security to make investments that are Mississippi
number of permanent full-time employees of the taxpayer. Qualified Low-Income Community Investments (MQLICIs), and
those investments must be maintained for a minimum of 7 years.
Broadband Technology Credit (BTC) (19) A MQLICI is an investment in Mississippi in a business that meets
A tax credit is provided for telecommunications enterprises the requirements of a Qualified Active Low-Income Community
making investments in equipment used in the deployment Business (QALICB) or an investment in Mississippi approved as

- 13 -

Enlarge image

a Qualified Low Income Community Investment under the Endowment Fund Charitable Credit (37)
Federal New Markets Tax Credit law. A security meeting these Provides an income tax credit for donations made to endowed
requirements is commonly referred to as a “QEI”. MDA will funds held by community foundations. The tax credit shall be 25%
review the QEI to determine if it qualifies for the Mississippi New of the qualified contribution made to the endowed fund with the
Markets Credit. If the QEI does qualify, MDA will issue a minimum amount being $1,000 and the maximum amount being
certification of credits allowed. The total Mississippi New $200,000. If the amount of allowable credit exceeds the amount of
Markets Credit for all Mississippi taxpayers is capped at tax due, the excess may be carried forward for five (5) years. This
$15,000,000 per year. credit can be utilized by both individual and corporate taxpayers
and is effective from and after January 1, 2019.

Wildlife Land Use Credit (30)
Pregnancy Resource Charitable Contribution Credit (39)
Effective January 1, 2010, a state income tax credit is allowed A credit is available for voluntary cash contributions by certain
that provides a $5.50 per acre tax credit for certain taxpayers taxpayers to eligible charitable organizations, which is defined as
that allow land to be used as a natural area preserve, wildlife an organization that is exempt from federal income taxation under
refuge, wildlife management area or public outdoor recreation Section 501(c)(3) of the Internal Revenue Code and is a pregnancy
area. Land must first be approved to be suitable for the uses resource center or crisis pregnancy center eligible to receive
listed above by the Mississippi Commission on Wildlife, funding disbursed by the Choose Life Advisory Committee. The
Fisheries and Parks. Any unused credit amount may be carried credit is available to a business enterprise engaged in commercial,
forward for five (5) years from the close of the taxable year in industrial, or professional activities and operating as a corporation,
which the land was approved for such a use. limited liability company, partnership, or sole proprietorship. The
credit is limited to 50% of the income tax due. Any unused portion
Headquarters Relocation Credit (32) of the credit may be carried forward for five (5) years. This credit is
Effective January 1, 2014, an income tax credit is authorized in lieu of the charitable contribution deduction.
under House Bill 785 for any company that transfers or relocates
its national or regional headquarters to Mississippi. The amount Railroad Infrastructure Tax Credit (40)
of the credit is equal to the actual relocation costs paid by the A credit is available for certain new, reconstruction and replacement
company in the taxable year. expenditures made by Class II and Class III railroads. The credit is
limited to the income tax due. Any unused portion of the credit may
Relocation costs shall include those non-depreciable expenses be carried forward for five (5) years. The total amount of credits that
that are necessary to relocate headquarters’ employees to the may be claimed by all taxpayers shall not exceed $8,000,000 during
national or regional headquarters, including, but not limited to, a calendar year. A taxpayer may transfer by written agreement any
costs such as travel expenses for employees and members of unused tax credit to an eligible transferee at any time during the
their households to and from Mississippi in search of homes and year in which the credit is earned and five (5) years follow the year
moving expenses to relocate furnishings, household goods and in which the credit is earned.
personal property of the employees and members of their
households. Blood Donation (41)
A credit is available for an employer of $20 for each verified blood
The company must create twenty (20) jobs to qualify and the donation made by an employee as part of a blood drive. The credit
credit shall be applied to the taxable year in which the relocation is limited to the income tax due. No carry forward is allowed for any
costs are paid. The credit is limited to $1,000,000 cap each unused portion.
fiscal year.
Bank Share Credit (50)
Veteran Employee Credit (33) The Bank Share Credit is a franchise tax credit that equals the
This is an income credit for taxpayers that employ persons who
are honorably discharged veterans who served on active duty amount of all ad valorem taxes paid by banks on personal property
on the Armed Forces of the United States on or after September and on the assessed value of its intangibles to any county, district
11, 2001, and who have been unemployed for six consecutive or municipality. The credit can offset 100% of franchise tax due. No
months immediately prior to being employed by such taxpayers. carryover is allowed for this credit.
Likewise, this bill authorizes any tax credit claimed but not used
in any taxable year to be carried forward for five (5) consecutive General Restrictions on Incentive Credits
years and the aggregate amount of tax credits that may be The only credits whose usage is dependent on another credit are
awarded shall not exceed $1,000,000. This bill is effective the Export Port Charges Credit, Import Port Charges Credit and the
January 1, 2016. Reforestation Tax Credit (RTC). The RTC should be used last.

Business Contributions to Eligible Charitable The total of the Jobs Tax Credit, the Headquarters Credit and the
Organizations (36) R & D Skills Credit cannot exceed 50% of the total income tax due.
Effective from and after January 1, 2019, the Children’s Promise The other credits are not limited in such a manner and their usage
Act authorized an income tax credit for business enterprises will be independent of one another. When one credit is limited to
that donate cash to eligible charitable organizations. The credit 50% of the income tax due and another one is also limited to 50%,
is limited to fifty percent (50%) of the total tax liability and may when combined they may offset 100% of the income tax due.
be carried forward for five (5) years.
It will be up to the taxpayer to list which credits are to be used on
House Bill 1729 amended Miss. Code Ann. §27-7-22.41 to the tax return. Please keep in mind that a number of the credits do
increase the aggregate amount of credits that may be awarded not have carryforward provisions. When a deduction on the
during a calendar year for voluntary cash contributions by Mississippi tax return also gives rise to a tax credit, the amount of
business enterprises to eligible charitable organizations and to that credit which is being used on the current return must be added
revise certain provisions relating to the allocation of such credits. back to Mississippi income (loss) after any apportionment of
income.

- 14 -

Enlarge image

 The adding back of the credit to taxable income will increase                
 the tax liability, which may increase the amount of credit that             A business that relocates from a county in Mississippi to a GAP 
 may be taken. When this is the case, continue to increase the               area  is  not  eligible  for  the  exemption.  When  filing  the  state 
 amount of credit being used and add back to income until there              income and franchise tax return claiming the exemption, attach 
 is a difference of $1,000 or less between the two. Therefore, the           a schedule showing the calculation of how the exemption was 
 credit added back may be, at most, $1,000 less than the credit              calculated, a copy of the certification from the MDA and the 
 being used.                                                                 completed  application,  and  the  income  and  Franchise  Tax 
                                                                             Credit Summary (Form 83-401) showing all credits taken. 
 Some credits are based on a percentage of an expense, and in              
 this case only the credit used should be added back.  Those                 The GAP Area Exemption is authorized under Miss. Code Ann. 
                                                                             § 27-7-21, § 27-13-5 and § 57-80-1 through § 57-80-11. For 
 credits  which  are  affected  are:  Finance  Company  Privilege,           more information on the GAP Areas, please contact: 
 Child/Dependent  Care,  Skills  Training,  Gaming,  Rural                 
 Economic  Development  (RED),  Export  Port  Charges,  Import                Mississippi Development Authority 
 Port Charges, Reforestation, and Ad Valorem tax credits.                     Financial Resources Division – GAP Program 
                                                                              P.O. Box 849 
 The  credits  allowed  should  not  be  used  by  any  business              Jackson, MS 39205 
 enterprise  or  corporation  other  than  the  business  enterprise 
 actually qualifying for the credit.  As a general rule, all credits 
 generated  by  the  S  corporation  or  partnership  are  passed 
 through  to  the  shareholders  based  on  their  respective 
 ownership percentages. In the event that a composite return is 
 filed on behalf of some or all of the nonresident shareholders, 
 or in the event that a liability for taxes arises due to the failure 
 to  secure  an  agreement  from  a  resident  shareholder  or  a 
 nonresident shareholder fails to file a return and to make timely 
 payment  of  taxes  due,  any  credit  which  would  otherwise  be 
 passed through to the shareholder(s) involved may be utilized 
 against the tax liability. 
 
 Growth and Prosperity (GAP) Areas Tax Exemption 
 The Growth and Prosperity (GAP) Areas Tax Exemption was 
 created to encourage businesses to locate facilities and hire 
 individuals  in  areas  that  have  a  certain  percentage  of  the 
 population  below  the  federal  poverty  level  or  have  an 
 unemployment  rate  that  is  200%  of  the  state’s  average 
 unemployment rate. 
  
 The  income  and  franchise  tax  exemption  is  available  for  a 
 period  of  10  years  for  certain  businesses  locating  in  a 
 designated  GAP area.  The  eligible businesses include ones 
 that  manufacture,  process,  assemble,  store,  warehouse, 
 service,  distribute,  sell  any  products  or  goods  including 
 products of agriculture, research and development, and others 
 as determined by MDA which will create at least 10 jobs. 
  
 Businesses  that  cannot  claim  the  exemption  are  retail 
 establishments, gaming businesses or casinos and electrical 
 generation facilities.  An eligible business that constructs a new 
 facility  or  expands  an  existing  facility  located  in  one  of  the 
 designated GAP areas can apply to MDA to be exempted from 
 state and local taxes for a period of 10 years or until December 
 31, 2022, whichever occurs first. 
  
                                                                          14

- 15 -

Enlarge image

SPECIFIC INSTRUCTIONS

TAXPAYER INFORMATION
Please provide all information requested. Enter the county earlier calendar year bears to the total number of
code corresponding to your principal business location (see months in the fiscal year; and (d) Applying to the tax
Appendix for a list of the codes). computed under pa rag ra ph (b) the ratio which the
number of months falling within the later calendar year
FRANCHISE TAX bears to the total number of months within the fiscal
Line 1: Enter the amount of taxable capital from Form 83-110, year; and (e) Adding to the tax determined under
line 18. paragraph (c) the tax determined under paragraph (d)
the sum of which shall be the amount of tax due for the
Line 2: Enter the amount of franchise tax due. For tax year fiscal year.
2022, the franchise tax rate is $1.50 per $1,000 of
capital in excess of $100,000 (minimum tax of Line 7: Enter the total amount of taxes paid on your behalf by
$25). electing pass-through entities, from MS Schedule K-1
Form 84-132, Part V. The K-1(s) you received must
Line 3: Enter the total amount of credit claimed from Form be attached to the return.
83- 401, line 1.
Line 8: Enter the total amount of credit claimed from Form 83-
Line 4: Enter the net franchise tax due (line 2 minus line 3). 401, line 3. For limitations, see the “General Restrictions
If line 3 equal or exceeds the amount shown on line on Incentive Credits” section of this booklet.
2, enter a zero.
Line 9: Enter the net income tax due (line 6 minus line 7 and line
INCOME TAX 8). If line 8 equals or exceeds the amount shown on line
If filing a combined return, enter the name and Federal 6, enter a zero.
Employer Identification Number (FEIN) of the reporting
corporation.
PAYMENTS AND TAX DUE
Each corporation included in the combined return must file its
own separate return (except for the reporting corporation) on Line 10: Enter the total franchise and income tax due (add line 4
which it computes and remits its franchise tax, and also plus line 9).
computes its Mississippi taxable income. The taxable income
(loss) computed by each corporation is then combined on the Line 11: Enter the amount of overpayment from the previous filed
reporting corporation’s return (Form 83-310). The reporting return. The overpayment from the prior year should be
corporation must file a return that includes its own franchise the amount shown on the previous return as an
tax and the combined income tax. overpayment to be credited to the next year.

Line 5: If a corporation is not included in a combined return, Line 12: Enter the total amount of estimated tax payments and
enter the amount of Mississippi net taxable payment with extension. This amount should equal the
income from line 30 of Form 83-122. If a total of quarterly estimated income tax payments and the
combined return is filed, enter zero, except the amount paid with the request for an automatic extension of
reporting corporation, which enters the time to file.
combined group's Mississippi net taxable income
from Form 83-310, line 5, column C. If the total in Line 13: Enter the total amount of previous payments made for the
column C is negative, enter zero. tax year (line 11 plus line 12).

Line 6: Enter the amount of income tax due. The rates of Line 14: Enter the net total franchise and income tax due. This is the
tax are: 0% on the first $5,000, 4% on the next amount of total tax due less previous payments (line 10
$5,000 of taxable income; and 5% on taxable minus line 13).
income in excess of $10,000.
Line 15: If the current Mississippi income tax liability (line 9) is
In the case of taxpayers having a fiscal year $200 or less, then estimated income tax payments were
beginning in a calendar year with a rate in effect not required for this year. If the current year Mississippi
that is different than the rate in effect for the next income tax liability exceeds $200, Form 83-305 should
calendar year and ending in the next calendar year, be completed and attached to the return. Enter on this
the tax due for that taxable year shall be determined line the amount shown on Form 83-305, line 19.
by: (a) Computing for the full fiscal year the amount
of tax that would be due under the rates in effect for Line 16: Enter the amount of interest due on late payment of tax.
the calendar year in which the fiscal year begins; An extension of time only extends the time for filing a
and (b) Computing for the full fiscal year the return, not payment of the tax. If the income and franchise
amount of tax that would be due under the rates in tax is not paid by the original due date of the return, then
effect for the calendar year in which the fiscal year interest is due at the rate ½ of 1% per month.
ends; and (c) Applying to the tax computed under
paragraph (a) the ratio which the number of months Line 17: Enter the amount of penalty due on late payment of tax.
falling within the An extension of time only extends the time for filing a

- 16 -

Enlarge image

return, not the payment of tax. The penalty imposed for
failure to pay the tax when due is 1/2% per month, not Line 4: Enter the amount of depletion claimed on Form 1120 in
to exceed 25% in the aggregate. excess of the cost basis of the asset on which the
depletion is claimed.
Line 18: Enter the amount of penalty due for failure to file a
return by the due date of the return. The penalty for Line 5: Enter the amount of any capital loss carryover claimed
failure to file a return is 5% per month not to exceed in computing federal taxable income. Capital loss
25% in the aggregate. The penalty imposed for carryovers, just as net operating losses, must be
failure to file is based on the additional amount of tax computed separately for Mississippi tax purposes.
due. Such failure to file penalty shall not be less than
$100 for income tax. Line 6: Enter the amount of special depreciation allowance
claimed for federal tax purposes. Federal Form 4562
Line 19: Enter the balance of tax due (if line 9 is larger than must be completed twice and attached immediately after
line 13). This is the amount of total tax due less Form 83-122.
previous payments plus interest and penalties (add
line 14 through line 18). The first submission reflects the deductions taken for federal
income tax purposes. The second submission should be labeled
Line 20: Enter the amount of overpayment, if any (if line 13 “Mississippi” at the top of the form and will compute the
is larger than line 10 plus line 15, subtract line 10 apportionable and/or allocable depreciation deduction without
and line 15 from line 13). taking into account any special depreciation allowance (generally
line 14 of Federal Form 4562).
Line 21: Enter the portion of line 20 that you wish to carry
forward and credit against your next year’s tax liability. Any difference between the two submissions resulting from the
This credit will be considered for estimated income special depreciation allowance is reported as an increase on this
tax purposes as a first quarter payment. line. Any additional depreciation expense for purposes of this
state due to the basis adjustment not being made is reported on
Line 22: Enter the portion of line 20 that you wish to be line 13 of this form.
refunded. The total of line 21 and line 22 should
equal line 20. Line 7: Enter any other additions required by law. Other additions
include but are not limited to 1) charitable contribution
carryovers, 2) unrecognized installment sale gains, and 3)
add back of intangible expenses and costs and interest
expenses and costs incurred with certain related
members. Mississippi allows a 20% deduction for
charitable contributions computed without regard to the
Taxpayers must make certain adjustments to federal taxable deduction for the charitable contributions but does not
income in arriving at Mississippi net income. This schedule allow a carryover of any unused contributions deduction.
highlights some of the differences but is not an all-inclusive
list. The Mississippi Administrative Code and Regulations are For more information on treatment of installment sales, as well as
available on our website at www.dor.ms.gov. the years effected, see Miss. Code Ann. § 27-7-9. Intangible
expenses and costs and interest expenses and costs incurred with
Multistate construction contractors and producers of mineral certain related members must be added back to income. For
or natural resource products are required to use direct additional details, see Miss. Code Ann. §27-7-17(2).
accounting and file Form 83-124. In this situation, lines 1
through 22 of this form are not completed unless the taxpayer Line 9: Exempt interest received on direct U.S. Government
also has income apportionable to this state from another line obligations (see Title 35, Part III, Subpart 02, Chapter 04
of business. of the Miss. Admin. Code on what constitutes a direct
obligation) is not taxable to Mississippi. Enter the
For a certain major medical or pharmaceutical supplier of a amount of such interest reported as income on Form
Mississippi distribution facility, the apportionment percentage 1120, net of expenses.
shall be computed by adding together a payroll factor which
shall be counted twice, property factor which is counted twice Line 10: Enter the amount of wage expense that was not
and sales factor which is counted once, then divide the sum deducted on Form 1120 because a federal tax credit
by five. was taken in lieu of an expense.

Lines 17, 18, 19 of this form do not apply to taxpayers doing Line 11: Enter the income/loss from a partnership or other flow-
business only in Mississippi. through entity. Flow-through entity income is allocated
based on the source as determined in the hands of the
Line 1: Enter the amount of taxable income (loss) (before net flow-through entity rather than the owner.
operating loss and special deductions) per federal
Form 1120. Line 12: Multistate construction contractors and producers of
mineral or natural resource products must use direct
Line 2: Enter the amount of state, local and foreign accounting (Form 83-124) to report the income from
government income taxes claimed as a deduction on these lines of business. Enter the income (net of
Form 1120. expenses) from these lines of business as reported on
federal Form 1120.
Line 3: Enter the amount of interest on obligations of states
and political subdivisions thereof (other than For further information concerning accounting methods
Mississippi) received by the corporation, net of for contractors and mineral producers see Title 35, Part
expenses. III, Subpart 08, and Chapter 06 of the Miss. Admin.
16

- 17 -

Enlarge image

           Code for details.  If this is your only line of business 
           in Mississippi, skip lines 1 through 22 and start with 
           line 23. 
 
 Line 13:  When a special depreciation allowance is taken for 
           federal tax purposes, the depreciable base must be 
           reduced by the amount of the allowance. Enter the 
           additional depreciation expense for purposes of this 
           state due to the basis adjustment not being made for 
           state purposes. Attach supporting computations for 
           any amounts claimed. 
 
 Line 14:    Enter any other deductions authorized by law. For 
           each  adjustment,  provide  an  explanation  of  the 
           basis for exclusion and a schedule showing how the 
           amount is computed. In particular, gain from the sale 
           of  an interest in certain types of domestic entities 
           may not be recognized for state purposes. If this is 
           applicable,  provide  a  schedule  showing  the 
           computation of the non-recognized gain. For more 
           details on what qualifies for this exclusion, see Miss. 
           Code Ann. § 27- 7-9(f)(10). 
 
 Line  17: Enter  the  amount  of  non-business  income  (loss) 
           shown  on  the  Non-business  Income  Worksheet, 
           Form 83-150, column E, line  2. 
 
 Line  21: Enter  the  amount  of  non-business  income  (loss) 
           allocated to this state shown on the Non-business 
           Income Worksheet, Form 83-150, column F, line 2. 
 
 Line  22: Enter  the  amount  of  Mississippi  sourced  income 
           (loss)  received  from  flow-through  entities  (attach 
           Mississippi K-1s). 
 
 Line 23:  Enter the amount reported on Form 83-124, page 2, 
           line 31 and/or page 3, line 46. 
 
 Line 24:  Enter the amount of actual tax credit claimed on this 
           return from the tax credits with code numbers 2, 3 
           and 5 through 35 and 50. For further instructions see 
           the  “General  Restrictions  on  the  Incentive  Credit” 
           section of this booklet. 
 
 Line 25:  Enter the appropriate amount of separate company 
           Mississippi  capital  loss  carryover.  The  carryover 
           deduction  may  not  exceed  the  amount  of  current 
           year Mississippi capital gains. Attach a completed 
           Form  83-155  and  a  schedule  showing  how  the 
           amount  of  allowable  capital  loss  was  computed. 
           Also attach Federal Form 4797, Sale of Business 
           Property for capital loss. 
 
 Line 26:  Enter other adjustments required by law including 
           any adjustments resulting from installment sales. 
           Attach a schedule of computations. 
 
 Line 28:  Deduct any available separate company Mississippi 
           net  operating  loss  carryover  or  carryback  to  the 
           extent of income. Attach a completed Form 83-155. 
           If  the  corporation  has  any  unused  net  operating 
           loss carryover or carryback, it may be able to offset 
           the  loss against income of  other members  of  its 
           combined group subject to limitations. Mississippi 
           does not conform to federal net operating loss rules.  
  
                                                                    17

- 18 -

Enlarge image

PART II: CAPITAL LOSS

If a corporation has a net capital loss for any taxable year, the
This schedule is to be completed only if the corporation has amount of capital loss deduction is allowed in the current year
activities in another state and has income, losses, expenses, only to the extent of the capital gain. A net capital loss is carried
or deductions which are to be allocated ("non-business") back 3 years and forward 5 years.
rather than apportioned.
Column A: Enter the year end the capital loss was generated.
On lines 1a through 1i, enter any non-business income or
losses, including gains (losses) from the disposition of non- Column B: Enter the amount of the capital loss (this amount
business assets. Enter any expenses associated with such should be entered as a positive number).
income (loss) including indirect expenses (such as interest
expense pro-rated to "non-business" assets). Column C: Enter the year end in which the capital loss
deduction is taken. A capital loss deduction can be
Enter in Column A each item of non-business income or loss carried back 3 years and carried forward 5 years.
allocated to any state, including Mississippi, and the related
expenses in Column C. Column D: Enter the amount of capital loss deduction actually
used to offset the capital gain. The capital loss is
Enter in Column B items allocated to Mississippi, and the allowed only to the extent of the capital gain.
related expenses in Column D.
Column E: Enter the remaining of unused capital loss, if any
Enter the net of Columns A and C in Column E, and the net (column B minus column D and enter the result as
of Columns B and D in Column F. a positive number).

Line 1: Enter the total amount available from column B.

Line 2: Enter the amount of capital loss deduction currently
PART I: NET OPERATING LOSS used. Enter the amount on Form 83-122, line 25, also.

Generally, when a corporation’s Mississippi sourced items of
deduction exceed its Mississippi gross income, a NOL is Line 3: Enter the amount of capital loss deduction currently
generated. A NOL is to be carried by the corporation to each used. Enter this amount on Form 83-122, line 25 also.
of the two (2) taxable years preceding the year of the NOL,
starting with the earliest, and then to each of the twenty (20) Line 4: Subtract line 2 from line 1 to compute the capital loss
tax years following the year of the NOL, until the NOL is available for carryforward.
exhausted or the carry forward period expires. An exception
is when, on the original return filing, the corporation elects to
forgo the carryback. In this case the NOL generated is carried
forward for twenty (20) years.

Column A: Enter the year end the net operating loss was Every corporate taxpayer with an annual income tax liability in
generated. excess of two hundred dollars ($200) must make estimated tax
payments. These estimated tax payments must not be less than
Column B: Enter the amount of the net operating loss (this ninety percent (90%) of the annual income tax liability. Any
taxpayer who fails to file an estimated tax return and pay the tax
amount should be entered as a positive number).
within the time prescribed or underestimates the required
Column C: Enter the year end in which the net operating loss amount shall be liable for penalty of ten percent (10%) plus
deduction is taken. A net operating loss interest at 1/2 of 1% per month on underpayment of tax from the
deduction can be carried back 2 years or carried payment due date until paid or the next payment due date,
forward 20 years. whichever is earlier.

Line 1: Enter the amount of current year income tax due from
Column D: Enter the amount of net operating loss deduction Form 83-105, line 9 (C Corporations or Form 84- 105,
actually used to offset income. line 9 (Composite S Corporations or electing pass-
through entities).
Column E: Enter the remaining of unused net operating loss,
if any (column B minus column D and enter the Line 2: Multiply line 1 by 90% for S Corporation (not applicable
result as a positive number). if using the prior year income tax liability).
Composite partnerships must follow the Individual
Line 1: Enter the total amount available from column B. Income Tax rules.

Line 2: Enter the amount of net operating loss deduction Line 3: Enter the amount of prior year income tax due.
currently used. Enter this amount on Form 83-122,
line 28 or Form 83-391, page 2, line 16. Line 4: Enter the lesser of line 2 or line 3 (except large
corporations).
Line 3: Subtract line 2 from line 1 to compute the net
operating loss available for carryforward. Line 5: Enter the amount of required estimated payment per
quarter by dividing line 4 by four.

- 19 -

Enlarge image

Line 6: Enter the appropriate months of the S Corporation’s and on Form 83-105, page 1, line 15.
or electing pass-through entity’s tax year in column
(a) through column (d).

Line 7: Enter the amount from Part 1, line 5 in each column.
The cumulative total should not be less than 90% of
the income tax due for the year (S Corporations or An "affiliated group" of corporations may elect to file on a
electing pass-through entities). combined basis for purposes of the income tax provided that
the requirements of Title 35, Part III, Subpart 08, Chapter 07 are
Line 8: Enter the actual amount of estimated tax paid each met. The term combined is used to indicate an election where
quarter. the separately computed net income/loss of a group of affiliated
corporations is summed in order to determine the net income
Line 9: Enter in column (a) any overpayment from the subject to tax.
previous year. Enter any excess from the previous
quarter(s), line 9, in column (b) through column (d). The reporting corporation of a combined income group will file
Form 83-310, Summary of Net Income of Corporations, as a
Line 10: Total line 8 plus line 9 minus line 7 and enter the part of its combination return filing (in addition to the
amount in column (a). If the result is negative computation of the reporting corporation's separate company
(overpayment), enter zero and carry the income/loss). The combined net income/loss computed on
overpayment amount (as a positive amount) in the Form 83-310 will be entered on line 5 of Form 83-105.
next quarter(s), line 9, column (b) through column
(d). Column A: Enter the name and FEIN of the Reporting
Corporation on line 1 and the name and FEIN of
Line 11: Multiply line10 by 10%. If negative, enter zero. the Subsidiary Corporation(s) on line 2.

Line 12: Enter the cumulative amount from line 7. Column B: Enter the credit code and the amount of credit
claimed (the codes are in the Appendix of this
Line 13: Enter the cumulative amount of estimated taxes booklet). Tax credits can only be claimed by the
paid plus any overpayment from the prior year (line corporation earning the credit and may not be used
8 plus line 9). to offset the income tax liability of another member
of the group.
Line 14: Subtract line 12 from line 13. If the result is negative,
enter zero. Column C: Enter the amount of income (loss) from Form 83-
122, line 30.
Line 15: Enter the interest rate in column (a) through column
(d). Compute interest at the rate of ½ of 1% per Line 3: Enter the total of credit amounts from column B, lines
month on or after 01/01/19 from the payment due 1 and 2 and the total of net taxable income (loss) from
date until paid or until the next payment due date, column C.
whichever is earlier.
Line 4: If applicable, enter the total of column B and column
Line 16: Multiply line 14 by line 15. C from any supplemental pages from Form 83-310.

Line 17: Enter the amount of penalty from line 11, column Line 5: Enter the sum of line 3 and line 4 on this line. Enter
(a) through column (d). the sum from column B on Form 83-105, page 1, line
7 or Form 83-391, line 4, page 1. Enter the total from
Line 18: Enter the amount of interest from line 16, column column C on Form 83-105, page 1, line 5 or Form
(a) through column (d). 83- 391, page 1, line 1. If the total in column C is
negative, enter zero on Form 83-105, page 1, line 5
Line 19: Enter the total amount of underestimated interest or Form 83-391, page 1, line 1.
and penalty due (line 17 plus line 18) on this line

- 20 -

Enlarge image

  INSURANCE COMPANIES                                                          applicable to life companies and fire and casualty companies 
                                                                               and is to be used in apportioning non-allocable expenses on 
  Form 83-391 is designed for foreign and domestic companies,                  page 4. Life companies writing accident and health insurance 
  including  class  B  burial  companies,  writing  life,  accident  and       must  separately  apportion  non-allocable  accident  and  health 
  health, fire and casualty insurance. Title insurance companies               expenses on a supplementary page 4 by using the accident and 
  and class A burial insurance companies should use the regular                health ratio shown on line 2. 
  corporation Form 83-105.                                                   
                                                                               All companies reporting investment income to Mississippi must 
  The  income  tax  law  permits  foreign  non-life  insurance                 separately apportion non-allocable investment expenses on a 
  companies  to  determine  their  Mississippi  net  income  from              supplementary page 4 by using the investment ratio shown on 
  underwriting  by  apportioning  their  company-wide  net                     line 4. 
  underwriting income. See Title 35, Part III, Subpart 10, Chapter           
  03 of the Miss Administrative Code.                                          Page 3 – DEDUCTIONS 
                                                                             
  Companies using this method should disregard pages 2, 3 and                  Life Companies: The descriptive language on line 12 follows 
  4  of  the  return  in  computing  Mississippi  income  from                 the language of the statute. The words  “reserve funds” have 
  underwriting and prepare a separate schedule. However, such                  been  construed  by  the  Commissioner  as  being  synonymous 
  companies reporting investment income to this state may use                  with the word “reserves.” 
  said pages in making this computation, if convenient.                         
                                                                               The increase in reserves must be reduced by the increase in net 
  The  following  instructions  are  applicable  to  companies                 deferred and uncollected premiums if the latter increase has not 
  determining their Mississippi income by the direct  accounting               been included  in  premium income. The increase  in  reserves 
  method and should be used in conjunction with the regulations.               must  be  reduced  by  any  additions  in  excess  of  the  amount 
                                                                               required by the insurance laws and may be increased by excess 
  INSURANCE COMPANIES – COMBINED FILINGS                                       reserves  released  on  terminations  if  said  excess  was  not 
                                                                               deducted from income when established. 
  Insurance companies may file a combined return if the affiliated           
  companies  in  the  combined  group  are  filing  Form  83-391.              All Companies: Losses and contract benefits on reinsurance 
  However,  insurance  companies  or  corporations  that  file  Form           assumed are deductible only if the premium income thereon has 
  83-105 cannot be included in the combined return. Attach the                 been reported. Losses and contract benefits must be reduced 
  Summary  of  Net  Income  Schedule,  Form  83-310,  if  filing  a            by  recoveries  on  reinsurance  ceded  if  said  reinsurance  has 
  combined return.  Page 2 – COMPUTATION OF NET INCOME                         been deducted from income. State and federal income taxes are 
                                                                               not  deductible  under  the  statute.    Payroll  taxes  should  be 
  All Companies: See Title 35, Part III, Subpart 10, Chapter 03 for            allocated on line 15 if the corresponding salaries are allocated. 
  what constitutes taxable Mississippi reinsurance assumed  and                 
  deductible Mississippi   reinsurance        ceded; Mississippi               Accident and Health Companies – Disregard lines 7 through 
  investment  and  other  income;  and  for  the  computation  of              11. Do not show on line 12 any increase in unearned premiums 
  Mississippi unearned premiums when same are not accounted                    reflected on page 2. 
  for specifically.                                                          
                                                                               Fire and Casualty Companies – Disregard lines 7 through 12. 
  Life Insurance Companies: All lines are applicable except lines               
 2, 6, and 10 will apply only to life companies writing accident and           Pages 2 and 3 – COMPANY- WIDE COLUMNS 
 health insurance. Direct premiums less return premiums on page                 
 2, line 1 should reflect Mississippi values.                                  Entries in these columns should be made on a net basis that is, 
                                                                               giving full effect to reinsurance assumed and ceded. Company-
 Accident and Health Insurance Companies: Disregard lines 1,                   wide allocable expenses should be entered on page  3  even 
 4, and 5. Report unearned premiums on lines 6 and 10 unless                   though  a  corresponding  entry  is  not  made  in  the  Mississippi 
 the increase is shown on page 3, line 12.                                     column. Such entries should be made in order that the same may 
                                                                               be compared with entries in column B on page 4. 
  Fire and Casualty Insurance Companies: Disregard lines 2, 4,                  
  and 5.                                                                       PAGE 4 – DEDUCTIONS APPORTIONED 
                                                                             
  Page 3 – EXPENSE APPORTIONMENT RATIOS                                        A separate schedule must be completed for each department for 
                                                                               which a part of the income is reported to this state.   A   life 
  These  ratios  are  to  be  used  in  apportioning  non-allocable            company reporting no accident and health or investment income 
  expenses. The ratio shown on line 1 is to be used only by fire and           to this state may not deduct accident and health or investment 
  casualty  companies  in  apportioning  non-allocable  loss                   expense  from  Mississippi  income  but  should work  only from 
  adjustment expenses entered on page 4, line 20. Line 2 is                    column (1), page 9 of the Annual Statement.  Fire and casualty 
                                                                               companies reporting no investment  income to the state  should 
                                                                               work only from column (2), page 10 of the Annual Statement, 
                                                                               since loss adjustment expenses are provided for on page 3 of this 
                                                                               return. Expense items which are allocable in their entirety, such 
                                                                               as premium taxes, should not be entered on page 4 but should 
                                                                               appear only on page 3. 

                                                                         20 19

- 21 -

Enlarge image

  DISTRICT OFFICES 
                                      
 Gulf Coast District Service Office        Meridian District Service Office 
 1141 Bayview Ave., Ste. 400               P.O. Box 5794, Meridian, MS  39302 
 Biloxi, MS 39530-1601                     900A Hwy. 19 South Meridian, MS 39301 
 Ph: (228) 436-0554                        Ph: (601) 483-2273 
 Fax: (228) 436-0964                       Fax: (601) 693 2473 
                                      
 Hattiesburg District Service Office       Hernando District Service Office 
 P.O. Box 1709                             2631 McIngvale Road, Ste. 116 
 Hattiesburg, MS  39403-1709 17            Hernando, MS 38632 
 JM Tatum Industrial Dr, Ste. 2            Ph: (662) 449-5150 
 Hattiesburg, MS 39401                     Fax: (662) 449-5163 
 Ph: (601) 545-1261 
 Fax: (601) 584-4051 
 
 Jackson District Service Office 
 P.O. Box 1033 
 Jackson, MS 39215-1033 500 
 Clinton Center Drive Clinton, 
 MS39056 
 Ph: (601) 923-7300 
 Fax: (601) 923-7318 

                                     20 21

- 22 -

Enlarge image

 APPENDIX 

 COUNTY CODES 

 COUNTY       CODE COUNTY          CODE   COUNTY        CODE 
 Adams        01   Itawamba        29     Pike          57 
 Alcorn       02   Jackson         30     Pontotoc      58 
 Amite        03   Jasper          31     Prentiss      59 
 Attala       04   Jefferson       32     Quitman       60 
 Benton       05   Jefferson-Davis 33     Rankin        61 
 Bolivar      06   Jones           34     Scott         62 
 Calhoun      07   Kemper          35     Sharkey       63 
 Carroll      08   Lafayette       36     Simpson       64 
 Chickasaw    09   Lamar           37     Smith         65 
 Choctaw      10   Lauderdale      38     Stone         66 
 Claiborne    11   Lawrence        39     Sunflower     67 
 Clarke       12   Leake           40     Tallahatchie  68 
 Clay         13   Lee             41     Tate          69 
 Coahoma      14   Leflore         42     Tippah        70 
 Copiah       15   Lincoln         43     Tishomingo    71 
 Covington    16   Lowndes         44     Tunica        72 
 Desoto       17   Madison         45     Union         73 
 Forrest      18   Marion          46     Walthall      74 
 Franklin     19   Marshall        47     Warren        75 
 George       20   Monroe          48     Washington    76 
 Greene       21   Montgomery      49     Wayne         77 
 Grenada      22   Neshoba         50     Webster       78 
 Hancock      23   Newton          51     Wilkinson     79 
 Harrison     24   Noxubee         52     Winston       80 
 Hinds        25   Oktibbeha       53     Yalobusha     81 
 Holmes       26   Panola          54     Yazoo         82 
 Humphreys    27   Pearl River     55     Out-of-State  83 
 Issaquena    28   Perry           56                   
 
                                   22 21

- 23 -

Enlarge image

 TAX CREDIT CODES 
 
 CODE CREDIT                                    CODE CREDIT 
 02*  Premium Retaliatory                       24   Alternative Energy Jobs 
 03*  Finance Company Privilege                 25   Child Adoption 
 05   Jobs Tax                                  26   Historic Structure Rehabilitation (Attach Statement) 
 06   National or Regional Headquarters         27*  Long Term Care 
 07   Research and Development Skills           28   New Markets 
 08   Employer Child / Dependent Care           29   Biomass Energy Investment 
 09   Basic Skills Training (repealed 07/01/16) 30   Wildlife Land Use 
 10   Reforestation                             31   Prekindergarten Credit 
 11*  Gambling License Fee                      32   Headquarters Relocation Credit 
 12*  Financial Institution Jobs                34   Qualifying Charitable Contribution Credit Approved by DOR 
 13   Mississippi Revenue Bond Service          35   Foster Care Charitable Credit 
 14   Ad Valorem Inventory                      36   Business Contributions to Eligible Charitable Organizations 
 15   Export Port Charges                       37   Endowment Fund Charitable Credit 
 16   Insurance Guaranty                         38  Inland Water Transportation 
 17   Import Credit                             39   Pregnancy Resource Charitable Contribution Credit 
 18   Land Donation                             40   Railroad Infrastructure Tax Credit 
 19   Broadband Technology                      41*  Blood Donation 
 21   Brownfield Credit                         50*  Bank Share 
 22   Airport Cargo Charges                           
 23   Manufacturing Investment Tax Credit             

 *Carryover not available 
 
                                                     23 22

PDF file checksum: 3423979970

(Plugin #1/9.12/13.0)