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Part I and Part II of Schedule G. See the instructions for
Schedule A-GR Schedule G-2 for more information.
Computation of New Jersey Gross Receipts and
Minimum Tax Definitions
Subtract line 3 from line 2 on page 1. If the resulting tax liability Related member means a person that, with respect to the tax-
payer during all or any portion of the tax year is (1) a related
is less than $1,500, complete this schedule. Enter the greater
entity, (2) a component member as defined in subsection (b) of
of the computed tax liability or the amount on Schedule A-GR,
I.R.C. § 1563, (3) a person to or from whom there is attribution
line 7 on page 1, line 4.
of stock ownership in accordance with subsection (e) of I.R.C.
The minimum tax is assessed based on the New Jersey Gross § 1563, or (4) a person that, notwithstanding its form of organi-
Receipts as follows: zation, bears the same relationship to the taxpayer as a person
described in (1) through (3) of this definition.
New Jersey Gross Receipts Minimum Tax
Less than $100,000 $375 Related entity means (1) a stockholder who is an individual or a
$100,000 or more but less than $250,000 $562 member of the stockholder’s family enumerated in I.R.C. § 318,
$250,000 or more but less than $500,000 $750 if the stockholder and the members of the stockholder’s family
$500,000 or more but less than $1,000,000 $1,125 own, directly, indirectly, beneficially or constructively, in the ag-
$1,000,000 or more $1,500 gregate, at least 50% of the value of the taxpayer’s outstanding
If a taxpayer is filing a separate return and is a member of an stock; (2) a stockholder, or a stockholder’s partnership, limited
affiliated or controlled group (as per I.R.C. § 1504 or § 1563) liability company, estate, trust or corporation, if the stockholder
that has a total payroll of $5,000,000 or more for the tax year, and the stockholder’s partnerships, limited liability companies,
the minimum tax is $2,000 regardless of the amount of the tax- estates, trusts and corporations own directly, indirectly, bene-
payer’s New Jersey gross receipts. In such instances, Schedule ficially or constructively, in the aggregate, at least 50% of the
A-GR does not need to be completed. Tax years of less than value of the taxpayer’s outstanding stock; or (3) a corporation, or
12 months are subject to the higher minimum tax if the prorated a party related to the corporation in a manner that would require
total payroll exceeds $416,667 per month. Total payroll refers to an attribution of stock from the corporation to the party or from
the total payroll of the affiliated group rather than total New Jer- the party to the corporation under the attribution rules I.R.C.
sey payroll of a single corporation. Taxpayers that are members § 318, if the taxpayer owns, directly, indirectly, beneficially or
of an affiliated or controlled group must submit a schedule of constructively, at least 50% of the value of the corporation’s out-
payroll per member and a copy of the taxpayer’s federal affilia- standing stock. The attribution rules of I.R.C. § 318, shall apply
tions schedule, Form 851, with the return. for purposes of determining whether the ownership requirements
of this definition have been met.
The minimum tax cannot be prorated. In general, zero (0)
returns are not permitted. Intangible expenses and costs includes (1) expenses, losses,
and costs, for, related to, or in connection directly or indirectly
with the direct or indirect acquisition, use, maintenance or man-
agement, ownership, sale, exchange, or any other disposition
Schedule B of intangible property to the extent such amounts are allowed
Schedule B has been discontinued. The Division will use data as deductions or costs in determining taxable income before
from federal Form 1120-S, Schedule L. operating loss deduction and special deductions for the tax year
under the federal Internal Revenue Code of 1986, 26 U.S.C. s.1
et seq., (2) losses related to, or incurred in connection directly or
Schedule C indirectly with factoring transactions or discounting transactions,
Schedule C has been discontinued. The Division will use data (3) royalty, patent, technical and copyright fees, (4) licensing
from federal Form 1120-S, Schedules M-1, M-2, and M-3. fees, and (5) other similar expenses and costs.
Intangible Property means patents, patent applications, trade
Schedule F names, trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.
Corporate Officers – General Information and
Compensation Intangible Interest Expenses and Costs means amounts
All applicable information should be provided for each corporate directly or indirectly allowed as deductions under I.R.C. § 163
officer regardless of whether compensation was received. The for purposes of determining taxable income under the code to
data reported on Schedule F must match what is reported on the extent such expenses and costs are directly or indirectly for,
federal Form 1125-E. Include Form 1125-E with your return. related to, or in connection with the direct or indirect acquisition,
maintenance, management, ownership, sale, exchange, or dis-
position of intangible property.
Schedule G
Interest Part I – Interest
Interest paid, accrued, or incurred to related members that was
If the taxpayer is claiming an exception to the disallowance of
the expense reported in Part I or Part II of Schedule G, the tax- deducted in computing taxable net income on Schedule A, Part II,
payer must complete and include Schedule G-2. The schedule is line 5 must be reported on Schedule G, Part I. If the taxpayer is
available on the Division’s website. claiming an exception to the disallowance, complete and include
Schedule G-2, and include the appropriate amount on Sched-
Note: For tax years beginning on or after January 1, 2018, ule G, Part I, line 1b.
the treaty exceptions have been limited pursuant to P.L.
2018, c. 48. There are additional requirements to meet Do not include interest expenses and costs that were deducted
the treaty exceptions that are reported for the purposes of directly or indirectly for, related to, or in connection with the
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