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2202120212021

CT-1 INSTRUCTIONS

REV-1200 Booklet (SU) 06-22

FOR CALENDAR YEAR 2021 AND FISCAL YEARS BEGINNING IN 2021

PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING
ANY TAX REPORTS OR SCHEDULES.

HIGHLIGHTS deduction is reduced to 65 percent (Code Secs. 243(a)(1) and
1. IMPORTANT: The RCT-101, PA Corporate Net Income Tax (c)(1). There was no change made to the 100% dividends-received
Report must include a Revenue ID number. Failure to provide deduction for dividend income received from 80% or more owned
a Revenue ID number may result in a delay or inability to process and domestic corporations.
post your return and applying your tax payments. To obtain a Revenue 7. IMPORTANT: The Tax Cuts and Jobs Act of 2017 amended
ID all corporations must first register with the Pennsylvania Section 163(j) of the Internal Revenue Code (the “Code”). For
Department of State. When registering with the Department of State, Federal income tax purposes, Section 163(j) limits the deductibility of
you must include your Federal Employer Identification Number (FEIN). interest expense in the current tax year of certain U.S. taxpayers for
This information is then forwarded to the Pennsylvania Department of tax years beginning on or after January 1, 2018. Pennsylvania
Revenue, who will then issue a Revenue ID number. Failure to provide Corporation Tax Bulletin 2019-03 provides guidance on how the
the FEIN when registering with the Department of State will result in federal limitations imposed by the amended Section 163(j) are treated
a delay or inability to process your information for a Revenue ID. for Pennsylvania Corporate Net Income Tax (“CNIT”) purposes.
Information on how to register a corporation with the PA Department 8. The Pennsylvania Department of Revenue has set forth a new
of State can be found on their website at www.dos.pa.gov. rebuttable presumption of economic nexus for out-of-state
2. CAUTION: Qualified 168(k) property placed in service after corporations with $500,000 or more of gross receipts sourced to
Sept. 27, 2017, is subject to 100 percent add-back. See Pennsylvania. Corporation Tax Bulletin 2019-04 cites the U.S.
Corporation Tax Bulletin 2018-03. REV-799 is no longer required to Supreme Court’s South Dakota v. Wayfair Inc. decision as authority
be completed. Complete REV-1834, Schedules C-8 and C-9. supporting a presumption of nexus and provides that corporations
satisfying the minimum standards for nexus under the U.S.
3. Act 52 of 2013 requires the add-back of intangible expenses to income Constitution should file a state corporate net income tax report.
for interest, royalties, patents, trademarks, etc., between affiliated
entities in certain instances. Taxpayers reporting such add-backs must Taxpayers that meet the minimum constitutional nexus standards
include schedules REV-802 and REV-803 when filing the report. must begin filing corporate tax reports for periods starting on or after
January 1, 2020.
4. IMPORTANT: Failure to submit a properly completed and
signed tax report, which includes a copy of the federal form
and supporting schedules, may result in the delay of processing and Page 1 of RCT-101 contains a checkbox labeled Section 381/382/
the imposition of late filing penalties and/or estimated assessments. Merger NOLS/Alternate Apportionment. This box must be checked
5. Corporations participating in a consolidated federal tax filing must for any of the conditions listed below.
provide both consolidated and separate company income state-
Examples of reports include those filed by:
ments and balance sheets as well as all consolidation and elimina-
tion adjustments for the following: • Corporations having net operating loss (NOL) limitations under
IRC Section 381 and IRC Section 382;
• FF1120 Page 1, Statement of Income and Deductions
• Supporting Statement for Line 10 “Other Income” • Corporations claiming losses or Bonus Depreciation
• Supporting Statement for Line 26 “ Other Deductions” carry-forward from a merger;
• Schedule L Balance Sheet, beginning and end of year • UDITPA Section 18 taxpayers;
• FF123-A Cost of Goods Sold • Corporations requesting extra-statutory treatment beyond that
• Supporting Statement for Line 5 “Other Costs” for Cost of provided by law; and
Goods Sold • Corporations with two distinct activities like warehousing/
6. As amended by the Tax Cuts and Jobs Act, for tax years beginning trucking & distribution/trucking or persons/transportation &
after December 31, 2017, the 70-percent dividends-received deduc- property/transportation.
tion is reduced to 50 percent and the 80-percent dividends-received

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                                                                                    TABLE OF CONTENTS
                                                                                                                    Deductions from and Additions to Income  . . . . . . . . . . . . . . . . .14 
                    GENERAL INSTRUCTIONS
                                                                                                                    Apportionment and Allocation  . . . . . . . . . . . . . . . . . . . . . . . . . .15 
What Must be Included with the PA Corporate Net                                                                     Net Operating Loss Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .15 
       Income Tax Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 
                                                                                                                    Determination of Tax  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 
Assembly of the Completed PA Corporate Net Income Tax Report,  
       RCT-101 Package  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6                    SCHEDULE C-1: APPORTIONMENT  . . . . . . . . . . . . . . . . . . . .16 
Federal S Corporations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7             RCT-101 – PAGE 3 
Inactive Corporations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7                 SECTION C: CORPORATE STATUS CHANGES                              . . . . . . . . . . .16 
Copy of Federal Form 1120, 1120C, 1120F or 1120S   . . . . . . . . . . . .7                                         SECTION D: GENERAL INFORMATION QUESTIONNAIRE                                       . .17 
Confirmation of “Deposits on Account” for a Non-Filed Tax Year  . . . .7 
                                                                                                             RCT-101 – PAGE 4 
How to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 
                                                                                                                    SCHEDULE OF REAL PROPERTY IN PA  . . . . . . . . . . . . . . . .17 
Electronic Payment Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 
                                                                                                                    CORPORATE OFFICERS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 
Due Date of Report and Payment  . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 
Filing Requirements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8                 PREPARER’S INFORMATION               . . . . . . . . . . . . . . . . . . . . . . . . .17 
Out of Existence/Withdrawal  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8                                                                                                                        
                                                                                                                      SUPPLEMENTAL SCHEDULES
Bulk Sales  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 
Reinstatement  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8        REV-802 –Schedule C-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 
Recording Dollar Amounts  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9               REV-803 –Schedule C-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 
Filing Period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9    RCT-106 –Insert Sheet  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 
Extension of Time to File  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9            REV-798 –Schedule C-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 
Penalties Imposed for Failure to File Reports When Due  . . . . . . . . . .9                                 REV-798 –Schedule X  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 
Interest  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 RCT-103 –Net Operating Loss Schedule  . . . . . . . . . . . . . . . . . . . . .18 
Transfers/Refunds of Corporate Taxes  . . . . . . . . . . . . . . . . . . . . . . . .9                       REV-860 –Schedule C-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 
Assignment of Tax Credit (Overpayment)  . . . . . . . . . . . . . . . . . . . . . .9                         REV-860 –Schedule OA, Schedule OD  . . . . . . . . . . . . . . . . . . . . . .19 
Department Notices  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9           REV-860A –Qualified Manufacturing Innovation and  
Amended Reports  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10                    Reinvestment Deduction Worksheet  . . . . . . . . . . . . . . . . . . . . .19 
RCT-128C – Changes In Federal Taxable Income/                                                                REV-861 –Schedule DA  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 
       Reports of Change  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11            REV-934 –Schedule of Nonbusiness Income . . . . . . . . . . . . . . . . . .19 
                                                                                                             REV-986 –Claim of Exemption from CNIT  . . . . . . . . . . . . . . . . . . . .19 
                          LINE INSTRUCTIONS
                                                                                                             RCT-101D –De Minimis Activity  . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 
LINE BY LINE INSTRUCTIONS FOR RCT-101,                                                                       REV-1834 –Schedule C-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 
PA CORPORATE NET INCOME TAX REPORT                                                                           REV-1834 –Schedule C-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 
RCT-101 – PAGE 1                                                                                             REV-1175 –Schedule AR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 
IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12                                                                                                                
STEP A Tax Period   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12                   APPORTIONMENT, EXEMPTIONS  
                                                                                                                                 AND ALLOCATION
STEP B Check Special Filing Status  . . . . . . . . . . . . . . . . . . . . . . . . .12 
STEP C Name, Address, Federal EIN Business Activity Code,                                                    Apportionment of Taxable Income  . . . . . . . . . . . . . . . . . . . . . . . . . . .22 
       Revenue ID & Parent Corporation EIN  . . . . . . . . . . . . . . . . . . .13                          Sales Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 
STEP D Tax Summary  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13                Special Apportionment Fractions  . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 
STEP E Payment Due/Overpayment . . . . . . . . . . . . . . . . . . . . . . . . .13                                  Railroad, Truck, Bus or Airline Companies  . . . . . . . . . . . . . . . .22 
STEP F Transfer/Refund Methods . . . . . . . . . . . . . . . . . . . . . . . . . . .13                              Pipeline or Natural Gas Companies . . . . . . . . . . . . . . . . . . . . . .22 
       E-File Opt Out  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13                Water Transportation Companies Operating on High Seas . . . .22 
STEP G Signature  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13                   Water Transportation Companies Operating on Inland Waters  .23 
RCT-101 – PAGE 2                                                                                             Apportionment & Investments in Unincorporated Entities  . . . . . . . . .23 
       SECTION A: BONUS DEPRECIATION . . . . . . . . . . . . . . . . . . .14                                 Nonbusiness Income  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 
       Do not complete Section A for tax year 2018 and forward. 
                                                                                                                                                                                                                     
                                                                                                                                      TAX CREDITS
       SECTION B: PA CORPORATE NET INCOME TAX  . . . . . . . . .14 
       Taxable Built-in Gains  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14             Restricted Tax Credits  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

2      REV-1200                                                                                                                                                     www.revenue.pa.gov

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If you are including payment, please use the following address:
WHO MUST FILE
PA DEPARTMENT OF REVENUE
All business entities that have elected to file as a corporation with the IRS: PAYMENT ENCLOSED
Corporation• PO BOX 280427
•Business Trust HARRISBURG PA 17128-0427
•Limited Liability Company If you are requesting a transfer or refund of credit, please use the
•S Corporations that have Built-in Gains following address:
•Any other entity electing to file as a corporation under federal Check PA DEPARTMENT OF REVENUE
the Box rule TRANSFER/REFUND REQUESTED
PO BOX 280706
TAXPAYER SERVICES AND ASSISTANCE
HARRISBURG PA 17128-0706

CONTACT INFORMATION If you are neither including payment nor requesting a refund or transfer
Estimated Payments . . . . . . . . . . .1-888-PATAXES (1-888-728-2937) of credit, please use the following address. This includes reports when
payment was made electronically.
General Business Tax Questions . . . . . . . . . . . . . . . . . .717-787-1064
PA DEPARTMENT OF REVENUE
Transfer/Refund of Overpayments . . .RA-CORP_ACC_FAX@pa.gov
NO PAYMENT, NO TRANSFER/REFUND
Bureau of Registration and Taxpayer Management . . . . .717-787-3653
PO BOX 280708
HARRISBURG PA 17128-0708
FORMS ORDERING SERVICES
REV-857 – ESTIMATED TAX PAYMENTS
To obtain tax instructions, single copies of PA corporation tax forms,
PA DEPARTMENT OF REVENUE
coupons or brochures, use one of these services:
PO BOX 280422
INTERNET: www.revenue.pa.gov HARRISBURG PA 17128-0422
TOLL-FREE PHONE SERVICES: 1-888-PATAXES (1-888-728-2937) CT-V – FED/STATE PAYMENT VOUCHER
Touch-tone service is required for this automated 24-hour toll-free line. PA DEPARTMENT OF REVENUE
Call to order forms or check the status of a corporate tax account.
PO BOX 280427
AUTOMATED 24-HOUR FORMS ORDERING MESSAGE SERVICE: HARRISBURG PA 17128-0427
1-800-362-2050
Serves taxpayers without touch-tone phone service. REV-853 – ANNUAL EXTENSION
PA DEPARTMENT OF REVENUE
WRITTEN REQUESTS: PO BOX 280425
PA DEPARTMENT OF REVENUE HARRISBURG PA 17128-0425
TAX FORMS SERVICE UNIT
1854 BROOKWOOD ST REV-854 – EIN/FILING PERIOD/ADDRESS CHANGE
HARRISBURG PA 17104-2244 Fax or Email to:
Fax: 717-787-3708

ONLINE SERVICES Email: ra-btftregisfax@pa.gov
ONLINE CUSTOMER SERVICE CENTER REV-1605 – SCHEDULE CO-NAME OF CORPORATE OFFICERS
Find the answer to your question using the department’s Online Customer Fax or Email to:
Service Center at www.revenue.pa.gov. Fax: 717-787-3708
PENNSYLVANIA TAX UPDATE Email: ra-btftregisfax@pa.gov
Stay up-to-date on Department of Revenue news with the PA Tax Update,
REV-976 – ELECTION NOT TO BE TAXED AS A PENNSYLVANIA
a free, bi-monthly e-newsletter. Visit www.revenue.pa.gov to sign up for
S CORPORATION
a PA Tax Update e-alert.
Fax or Email to:
WHERE TO FILE Fax: 717-787-3708
Email: ra-btftregisfax@pa.gov

MAILING ADDRESSES PA-20S/PA-65 – PA S CORPORATION/ PARTNERSHIP
RCT-101 – PA CORPORATE NET INCOME TAX REPORT, INFORMATION RETURN
RCT-101-I – INACTIVE PA CORPORATE NET INCOME TAX PA DEPARTMENT OF REVENUE
REPORT, RCT-101D – DECLARATION OF DE MINIMIS ACTIVITY BUREAU OF INDIVIDUAL TAXES
AND RCT-128C – REPORTS OF CHANGE IN CORPORATE NET PO BOX 280509
INCOME TAX HARRISBURG PA 17128-0509

www.revenue.pa.gov REV-1200 3

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OVERNIGHT MAILING
PA DEPARTMENT OF REVENUE EMAIL ADDRESSES
BUREAU OF IMAGING AND DOCUMENT MANAGEMENT NOTICE OF ADJUSTMENT LETTER
1854 BROOKWOOD ST If you believe the adjustments are in error, please contact the department
HARRISBURG PA 17104-2244 via email at: ra-panoticeofadjustment@pa.gov
SPECIAL HANDLING
PA DEPARTMENT OF REVENUE
PO BOX 280704
HARRISBURG PA 17128-0704

REMINDERS
The Capital Stock/Foreign Franchise tax has been phased out for tax or after Jan. 1, 2016. All reports for tax years beginning prior to Jan. 1,
years beginning on or after Jan. 1, 2016. This means that many business 2016 must be filed on the non-year-specific RCT-101-I. These forms can
types such as S corporations, LLC’s taxed as pass-through entities and be found on the department’s website at www.revenue.pa.gov.
business trusts that are not federally taxed as a C corporation will need
to file their final RCT-101 corporation tax report for the 2015 reporting Amended reports filed for tax years beginning on or after Jan. 1, 2016,
period. These reports must be marked as final reports. must be filed on the revised, year-specific, four page RCT-101. You must
check the Amended Report checkbox on Page 1, Step B, and include
Corporations not subject to the PA corporate net income tax for the years
REV-1175 with the report. Amended reports filed for tax years beginning
mentioned above include, single member LLC’s, Multi Member LLC’s
taxed as a partnership or S corporation, Business Trusts and PA S prior to Jan. 1, 2016, must be filed on the non-year-specific, six page
corporations (except PA S corporations that have Built-In-Gains). RCT-101. You must check the Amended Report checkbox on Page 1,
Step B, and include REV-1175 with the report.
Solicitation only corporations, as well as corporations with more than
$500,000 in Pennsylvania sourced gross receipts, but claiming exemption Act 52 of 2013 requires the add-back of intangible expenses to income
from the corporate net income tax, should complete and file the RCT-101. for interest, royalties, patents, trademarks, etc., between affiliated entities
Such entities should, as appropriate, include the REV-986 and/or any in certain circumstances.
statements necessary to properly explain their position(s) that insufficient
activity took place in Pennsylvania to establish constitutional nexus. Taxpayers claiming Add-Back on RCT-101, PA Corporate Net Income Tax
Report, must provide schedules REV-802 and REV-803 by submitting
In order to commence the running of the applicable statute of limitations them with RCT-101.
the RCT-101 must contain:
(i) the taxpayer's name, address and identifying number and the Completing the sales factor as 0/0, leaving the sales factor field blank or
required signature; and, typing “none” in this field will result in apportionment being changed to
(ii) sufficient required information to permit the department to determine 100 percent in Pennsylvania, automatically changing the reported tax
the taxpayer’s potential corporate net income tax liability. liabilities. A corporation with no sales both inside and outside
Pennsylvania should complete Schedule C-1 on Page 2 of RCT-101,
Specifically, entities claiming exemption from the tax may enter zeros on using “0” as the numerator and “1” as the denominator.
Page 2, Section B, a zero on Line 1A of Schedule C-1 and a “1” on Line
1B of Schedule C-1 of the RCT-101. However, such taxpayers should Failure to submit a properly completed and signed tax report may result
include statement(s) with the RCT-101 which provide the information in the delay of processing and the imposition of late filing penalties and/or
necessary for the department to determine the taxpayer’s potential estimated assessments.
corporate net income tax liability. These entities cannot complete and file
the form RCT-101D as an alternative to the RCT-101 unless the entity The penalty imposed for failure to file reports when due is a minimum of
meets the particular de minimis activity limits outlined in Tax Bulletin $500, regardless of the determined tax liability, plus an additional 1
2004-01. percent of any determined tax liability over $25,000.
Corporations subject to the PA corporate net income tax (including PA S Taxpayers filing a full year report and disclosing a bulk sale should not fill
corporations that have Built-In-Gains) must continue to file RCT-101, PA in the bulk sale checkbox on Page 3 of RCT-101, PA Corporate Net
Corporate Net Income Tax Report. Income Tax Report. Rather, you must complete REV-181, Application for
RCT-101 is a revised, year specific, four page form and includes a revised Tax Clearance Certificate and mail separately to the Bureau of
Page 1, eliminating CS-FF and LOANS from Step D. It also includes a Compliance. Do not send with RCT-101.
revised Page 2, Bonus Depreciation, Corporate Net Income Tax, and If a taxpayer is filing a short period, estimated tax return to fulfill its Bulk
Sales Factor Apportionment (Schedule C-1). Use only this year-specific,
Sale reporting requirement, you must fill in the bulk sale checkbox on
four page RCT-101 for filing all tax years beginning on or after Jan. 1,
2016. All reports for tax years beginning prior to Jan. 1, 2016 must be Page 3 of RCT-101. You must also complete REV-181, Application for
filed on the non-year-specific, six page RCT-101. These forms can be Tax Clearance Certificate and mail separately to the Bureau of
found on the department’s website at www.revenue.pa.gov. Compliance. You may also include a copy with the RCT-101. However,
if the report is for a full 12 month tax period, do not check the bulk sale
RCT-101-I, Inactive PA Corporate Net Income Tax Report, is a revised, box but you must still file the REV-181.
year-specific form. It includes a revised Page 1, eliminating CS-FF and
LOANS Tax. This form must be used for filing all tax years beginning on For further guidance, refer to Tax Bulletin 53D.

4 REV-1200 www.revenue.pa.gov

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WHAT MUST BE INCLUDED WITH THE PA CORPORATE NET INCOME TAX REPORT
When filing an RCT-101, PA Corporate Net Income Tax Report, all corporate taxpayers are required to include forms and schedules to support the
calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart lists the forms
and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive. Explanation of forms appears on Pages
16-19.

IF TAXPAYER TAXPAYER FILES TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101
IS ORGANIZED AS WITH THE IRS
Corporation Federal Form 1120, 1. Complete copy of federal income tax return, on separate company basis, with all supporting
Business Trust Federal Form 1120C, schedules. Corporations participating in a consolidated federal income tax filing must provide
Limited Liability Company or Federal Form 1120S, consolidating income statements and balance sheets to the department, including separate
company schedules and all consolidations and eliminations.
S Corporations that have (Taxpayer elected to
Built-In-Gains not be taxed as a 2. Completed federal Schedules L, M-1 & M-2 regardless of federal requirements.*
Pennsylvania 3. Consolidated balance sheet (Corporation owns more than 50 percent of another corporation).
Any other entity electing to S Corporation)
file as a corporation under See Page 18 of these instructions.
federal Check the Box rules Federal Form 1120F, or 4. RCT-103 to support net operating loss carry-forward, if applicable.
Any other Corporate
Income Tax Return 5. REV-1834, Schedules C-8 and C-9 to support adjustments for bonus depreciation, if applicable.
6. REV-934, Schedule of Nonbusiness Income, if applicable.
7. Other supporting statements if necessary, with references to supporting statements on the
applicable form.
8. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable.
9. REV-860, Schedule C-5, OA and OD
10. RCT-106, Insert Sheet
*Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1.

In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these are as follows.

IF THE CORPORATE TAXPAYER IS TAXPAYER MUST ALSO PROVIDE
Apportioning income for the first time. A copy of a tax return from another state.
Filing the final PA Corporate Net Income Tax Report. A complete REV-861, Schedule DA, Disposition of Assets Schedule.
Claiming the Keystone Opportunity Zone/Keystone 1. A completed RCT-101 KOZ, showing the calculation of the credit.
Opportunity Expansion Zone or Strategic Development 2. A copy of the Keystone Opportunity Zone approval letter issued by the Department of
Area Credit. Community and Economic Development for the current year.
Claiming an Employment Incentive Payment Credit. Schedule W – Certifications for New Employees.

WHEN IS A FORM OR SCHEDULE REQUIRED?

FORM USED FOR REQUIRED WHEN CORPORATE TAXPAYER
Support of Sales Factor Has taxable activity in at least one other state and is apportioning income to the other state based on
RCT-106 Apportionment or Special sales. RCT-106 is also required by taxpayers who are required to utilize special apportionment methods
Apportionment (revenue miles, etc.).
RCT-103 Support of Net Operating Is deducting a net operating loss carry-forward in the calculation of corporate net income tax.
Loss Deduction
Schedule C-2 Support of Dividend Is claiming a Dividend Received Deduction in the calculation of corporate net income tax.
REV-798 Deduction
Schedule C-8 Bonus Depreciation Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation of corporate
REV-1834 Adjustment net income tax for property purchased prior to Sept. 28, 2017.
Schedule C-9 Adjustment for Sale of Is claiming a deduction to recover remaining federal bonus depreciation in the calculation of corporate
REV-1834 Sec. 168(k) Property net income tax in the year the property is fully depreciated, sold or otherwise disposed.
Schedule C-5 Schedule of Tax Expense Is subject to corporate net income tax and reports taxes paid as an expense on the federal income
REV-860 tax return.
Schedule OA Other Additions Is reporting an "Other Addition" on RCT-101, Section B, Line 3E.
REV-860
Schedule OD Other Deductions Is reporting an "Other Deduction" on RCT-101, Section B, Line 2D.
REV-860

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                              WHEN IS A FORM OR SCHEDULE REQUIRED? (CONTINUED)

FORM                  USED FOR                     REQUIRED WHEN CORPORATE TAXPAYER

Schedule QMIRD        QMIRD Deduction              Claims a Qualified Manufacturing Innovation and Reinvestment Deduction
REV-860A
Schedule X            Parent and Subsidiary        Has more than 50 percent of its stock owned by another corporation, individual or other business entity  
REV-798               Corporations                 or owns more than 50 percent of another corporation.
REV-934               Schedule of Non-Business     Is claiming non-business income.
                      Income
                      Schedule to Determine 
REV-986               Corporate Net Income Tax     Activity does not exceed Solicitation Only  -  P.L. 86-272
                      Subjectivity
                      Schedule to Provide Reason 
Schedule AR           for Filing an Amended Report 
REV-1175              and Summary of Change in     Is amending a PA Corporate Net Income Tax Report.
                      Tax Liability for Amended 
                      Report 
                      Add-Back for Intangible 
REV-802               Expense or Related Interest  Is adding back intangible expense or related interest expense.
                      Expense
REV-803               Claiming a Credit for Tax    Is claiming a credit for tax paid by affiliated entities.
                      Paid by Affiliated Entities

                                                  ASSEMBLY OF THE COMPLETED  
                         PA CORPORATE NET INCOME TAX REPORT RCT-101 PACKAGE
Assemble the completed PA Corporate Net Income Tax Report in the                     •REV-1834, Schedule C-8, Adjustment for Bonus Depreciation  
following order. Failure to submit a properly completed and signed report            •REV-1834, Schedule  C-9,  Adjusted for 168k property fully   
may result in the delay of processing and the imposition of late filing                 depreciated sold or otherwise disposed 
penalties and/or estimated assessments.                                              •REV-860, Schedules C-5, OA and OD 
   1. RCT-101, PA Corporate Net Income Tax Report, Pages 1 through 4                 •REV-860A, QMIRD Worksheet 
      completed and assembled in order                                               •RCT-106, Insert Sheet 
   2. RCT-103, Net Operating Loss Schedule, if applicable                            •REV-934, Schedule of Nonbusiness Income 
   3. Federal Form 7004, if applicable                                        6. All other documentation to support the RCT-101, PA Corporate Net 
   4. Pennsylvania Extension Approval Letter, if applicable                        Income Tax Report 
   5. Pennsylvania schedules and forms, as required and in the following      7. Complete federal tax return and supporting schedules, as required: 
      order:                                                                         •Federal Form 1120 
          • REV-1175, Schedule AR - If filing an amended PA Corporate Net            •Federal Form 1120C 
             Income Tax Report.                                                      •Federal Form 1120F 
          • REV-798, Schedule C-2, Dividend Deduction                                •Federal Form 1120S 
          • REV-798, Schedule X                                               8. Consolidating schedules, when applicable

6     REV-1200                                                                                                           www.revenue.pa.gov

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PENNSYLVANIA CORPORATE NET INCOME TAX REPORT
INSTRUCTIONS FOR FORM RCT-101
RCT-101, PA Corporate Net Income Tax Report. A copy of federal Form
GENERAL INSTRUCTIONS
1120 must be included and apportionment fractions must be reported.
FEDERAL S CORPORATIONS
CAUTION: Prior period forms are not acceptable. Do not use
The Capital Stock/Foreign Franchise tax has been phased out for tax forms for other years when filing an RCT-101, PA Corporate Net
years beginning on or after Jan. 1, 2016. However, PA S Corporations Income Tax Report, or an RCT-101-I, Inactive PA Corporate Net Income
that have built-in-gains are required to file RCT-101. Tax Report.
Any federal subchapter S corporation that does not desire to be a
Pennsylvania S corporation must file the REV-976, Election Not to be COPY OF FEDERAL FORM 1120, 1120C, 1120F OR 1120S
Taxed as a Pennsylvania S Corporation, on or before the due date or IMPORTANT: A copy of the federal income tax return - Form 1120,
extended due date of the report for the first year in which the election is 1120C, 1120F, 1120S, or other applicable federal form must be
to be in effect. This election must be signed by all of the shareholders included with the PA Corporate Net Income Tax Report. This is in addition
and once made cannot be revoked for five years. The completed to any requirement to supply a copy of the federal tax return with any
REV-976 must be submitted via fax or email to: other filing.
Fax: 717-787-3708 Pennsylvania does not allow consolidated filing of corporate tax reports.
Email: ra-btftregisfax@pa.gov A corporation filing a consolidated return to the federal government must
include the following:
To revoke an election not to be taxed as a PA S Corporation, the
corporation must send a letter signed by shareholders holding more than 1. Separate company income statement reflecting taxable income that
one-half of the shares of stock of the corporation on the day on which the would have been returned to and ascertained by the federal
revocation is made. This letter must contain the name of the corporation, government, if a separate return had been made to the federal
federal EIN, Revenue ID number and the effective date of the revocation. government.
If no effective date is provided, the revocation will be effective for the first 2. Separate company balance sheet reflecting financial position of the
tax period for which the revocation was timely submitted. In the case of taxpayer at the beginning and end of the taxable period, if separate
a corporation with qualified subchapter S subsidiaries, the letter must also return had been made to the federal government. A corporation with
include the names and Revenue ID numbers of all qualified subchapter subsidiaries also must include a consolidated balance sheet.
S subsidiaries doing business in Pennsylvania. 3. Schedules reflected on the federal Form 1120, 1120C, 1120F or
1120S on a separate company basis, including a schedule of taxes
Qualified subchapter S subsidiaries may not be Pennsylvania S expensed.
corporations, or elect not to be Pennsylvania S corporations, separate
4. Corporations participating in a consolidated federal income tax filing
from the parent corporation. Federal subchapter S corporations doing
must provide consolidating income statements and balance sheets
business in Pennsylvania that do not make this election are required to to the department, including separate company schedules and all
file both RCT-101 and PA-20S/PA-65, and the shareholders of these consolidations and eliminations.
corporations must report the income from these corporations on their PA
personal income tax returns. CAUTION: Failure to submit a properly completed and signed
report may result in the delay of processing and imposition of late
IMPORTANT: This election must be filed by all federal subchapter filing penalties and/or estimated assessments.
S corporations that do not want to be taxed as Pennsylvania S
corporations, regardless of any prior actions taken by a corporation on CONFIRMATION OF “DEPOSITS ON ACCOUNT” FOR A
this issue. NON-FILED TAX YEAR
If a corporation has elected to be taxed as an S corporation for federal Prior to filing a PA Corporate Net Income Tax Report, taxpayers can
tax purposes, but has elected not to be taxed as a PA S corporation, it confirm the total amount of deposits on account by calling
must: (1) complete Section B of RCT-101, (2) include a copy of federal 1-888-PATAXES (1-888-728-2937). You will be asked to enter your
Form 1120S with the PA Corporate Net Income Tax Report, and (3) Revenue ID number and a specific tax year. Once confirmed, the system
include a schedule reflecting adjustments to Line 21 of federal Form will provide:
1120S for the pass-through items on Schedule K, Shareholders’ Share 1. Total deposits by tax type for a specific tax year; or
of Income, Credits, Deductions, etc. These adjustments should produce 2. A detailed response for each cash deposit and credit by tax type for
taxable income similar to that for a C corporation and must be reported a specific tax year. (Note: “restricted credits” are not uniquely
in Section B, Line 1 of the RCT-101. identified by name of program) The system will provide details on
up to 20 transactions.
INACTIVE CORPORATIONS
Inactive corporations must complete and file form RCT-101-I. Only HOW TO PAY
skeleton corporations - those performing no business activity and owning If the total taxes owed are less than $1,000, you may send a check made
no assets anywhere - may use the RCT-101-I. Corporations that have payable to the PA Dept. of Revenue, enclosed with the tax report, to the
business activity outside Pennsylvania must complete and file the address listed on Page 3.

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ELECTRONIC PAYMENT REQUIREMENT                                                To qualify for out-of-existence or withdrawn status, the corporation must: 
The PA Departments of  Treasury and Revenue have implemented                     1. File all corporate tax reports and pay all taxes due the 
programs that enable taxpayers to pay certain taxes electronically. All           commonwealth up to and including the date of cessation of activities 
payments of $1,000 or more must be remitted electronically or by certified        and divestiture of assets. Where capital assets have been sold prior 
or cashier’s check remitted in person or by express mail courier. Failure         to liquidation, complete in detail a schedule reflecting the gain or 
to make a payment by an approved method will result in the imposition             loss realized as a result of the sale. 
of a 3 percent penalty of the tax due, up to $500. For information on            2. Include with the corporate tax reports a REV-861, Schedule DA, 
electronic filing options, visit the Online Services Center at                    Disposition of Assets, which must reflect the date or dates of 
www.revenue.pa.gov.                                                               divestiture of all assets. Where a distribution of assets is made 
                                                                                  directly by the corporation to its shareholders in return for their stock, 
       IMPORTANT: If paying by certified or cashier’s check, mail check           include with the “Distribution of Assets,” a copy of federal Form 
       and coupon to:                                                             1099-DIV.  
     PA DEPARTMENT OF REVENUE 
     1854 BROOKWOOD ST                                                                     CAUTION: Failure to submit the “Distribution of Assets” could 
     HARRISBURG PA  17104-0947                                                             delay the acceptance of the return as a final report resulting 
                                                                                  in continued corporate tax reporting requirements. Corporate 
                                                                                  taxpayers reporting the disposition of PA real estate must provide 
DUE DATE OF REPORT AND PAYMENT 
                                                                                  evidence that the transfer of title has been filed with the Recorder of 
The RCT-101, PA Corporate Net Income Tax Report, is due 30 days after             Deeds of the respective county. This information must be provided 
the federal due date for both calendar and fiscal year filers. Domestic           in order to be removed from the active records of the Department of 
International Sales Companies (DISC) must file on or before the 15th day          Revenue. 
of the 10th month following the close of the fiscal year. If the due date 
falls on a Saturday, Sunday or holiday, the report is due the next business   PA corporations that never transacted business or held title to assets, or 
day.                                                                          foreign corporations that never transacted business in Pennsylvania, are 
                                                                              required to file annual tax reports until they file final returns and qualify 
FILING REQUIREMENTS                                                           for out-of-existence or withdrawn status. Such inactive corporations 
                                                                              should mail the executed REV-238, Out-of-Existence/Withdrawal Affidavit 
First reports of domestic corporations must begin with the date of 
                                                                              directly to: 
incorporation. All domestic corporations are required to file annual reports 
even if no business activity was conducted during the taxable period.             PA DEPARTMENT OF REVENUE 
                                                                                  BUREAU OF COMPLIANCE 
First reports of foreign corporations must begin with the beginning date          PO BOX 280947 
of the fiscal period in which the Certificate of Authority was issued or the      HARRISBURG PA  17128-0947 
date Pennsylvania activity began, whichever date is earlier.  
                                                                              BULK SALES 
       IMPORTANT: All corporations are required to file annual reports 
       even if no business activity was conducted within the                  Taxpayers filing a full year report and disclosing a bulk sale, should not 
commonwealth during the tax period. PA Corporate Net Income Tax               fill in the bulk sale checkbox on Page 3 of the PA Corporate Net Income 
                                                                              Tax Report. Rather, you must complete REV-181, Application for Tax 
Reports are due 30 days after the original due date of the federal tax 
                                                                              Clearance Certificate and mail separately to the Bureau of Compliance. 
return. 
                                                                              Do not send with the PA Corporate Net Income Tax Report. 
OUT-OF-EXISTENCE/WITHDRAWAL                                                   If a taxpayer is filing a short period, estimated tax return to fulfill its Bulk 
A PA corporation that has ceased doing business and completely or totally     Sale reporting requirement, you must fill in the bulk sale checkbox on 
divested itself of ALL assets, or a foreign corporation that has ceased to    Page 3 of RCT-101. You must also complete REV-181, Application for 
do business in Pennsylvania and liquidated all PA assets may be relieved      Tax Clearance Certificate and mail separately to the Bureau of 
of the responsibility of filing corporate tax reports by indicating Final     Compliance. You may also include a copy with the RCT-101.  
Report in Section C: Corporate Status Change, found on Page 3 of              For further guidance, refer to Tax Bulletin 53D. 
RCT-101.  
       NOTE: Entities formed under the laws of the Commonwealth of            REINSTATEMENT 
       Pennsylvania must answer the questions under “PA Corporations”         A corporation considered out-of-existence through the acceptance of an 
in this section. Entities formed under the laws of another jurisdiction are   affidavit may reinstate with the PA Department of Revenue by confirming 
required to answer the questions under “Foreign Corporations”.                with the PA Department of State, that the corporation name is available 
                                                                              for use by calling 717-787-1057.  A corporation considered 
By completing this section of RCT-101, a corporate taxpayer wishing to        out-of-existence/withdrawn, must be reinstated on Department of 
be removed from the active records of the PA Department of Revenue            Revenue records before its corporate franchise can again be utilized. This 
will no longer be required to file the Out of Existence/Withdrawal Affidavit. can be effected by filing PA Corporate Net Income Tax Reports from the 
However, taxpayers desiring to dissolve or formally withdraw with the         date of out-of-existence status through the end of the last calendar or 
Department of State are still required to file a REV-181, Application for     fiscal period of no activity. Taxpayer’s filing RCT-101-I for this purpose 
Tax Clearance Certificate.                                                    must check the reinstatement box found in Step J: Corporate Status 

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Changes, and enter the beginning date of the first tax period in which notice to the taxpayer. Taxpayers may request a payoff of unpaid
business resumed (effective date). balances (that includes interest on unpaid tax and collection agency fees,
if applicable) by emailing RA-CORP_ACC_FAX@pa.gov.
RECORDING DOLLAR AMOUNTS
All RCT-101 forms and schedules must show money amounts in whole TRANSFERS/REFUNDS OF CORPORATE TAXES
dollars. Eliminate any amount less than $0.50 and increase any amount After completing Step D on Page 1 of the RCT-101 Annual Report, if an
that is $0.50 or more to the next highest dollar. overpayment exists taxpayers must instruct the department to either
transfer any available credit to the next tax year or consider any available
Negative amounts should be written as follows: -3,456.
credit for refund, or both, under Step F. The department will not issue
refunds in the amount of $1.00 or less.
FILING PERIOD
Reports must be filed on the same filing basis as reported to the federal If no option is selected, the department will automatically transfer any
government. Where a change in filing period has occurred, the taxpayer overpayment to the next tax year for estimated tax purposes after
must provide the new month, day and year by electronically filing offsetting current period liabilities and other unpaid liabilities within the
REV-854 using the Online Services Center at www.revenue.pa.gov or account. A tax period overpayment summary will be mailed to the
by submitting REV-854 via fax to 717-787-3708 or email to taxpayer confirming the disposition of the credit.
ra-btftregisfax@pa.gov. Indicate a permanent change in filing period on
the RCT-101 (Page 1, Step B). ASSIGNMENT OF TAX CREDIT (OVERPAYMENT)
Department regulation (61 Pa. Code 151.21-151.22) provides
EXTENSION OF TIME TO FILE authorization for taxpayers to assign a credit to another taxpayer. To
A request for an extension of time to file must be submitted on or before accomplish the assignment, the Department of Revenue requires both
the due date of the PA Corporate Net Income Tax Report. assignor and assignee to complete REV-774, Assignment of Tax Credit.
Taxpayers granted an extension to file the federal income tax return will Only credits that meet the following conditions can be assigned:
automatically be granted an extension to file RCT-101, PA Corporate Net •All taxes (corporate, sales/use, employer withholding, liquid fuels,
Income Tax Report. Corporate taxpayers granted a federal extension etc), interest, penalties, fees and additions to tax owed by the
must include a copy of the federal extension request with the report. taxpayer (assignor) must be paid in full.
Corporations that do not request an extension to file the federal income •Restricted credits (credits originating from special credit programs)
tax return may still request a 60-day extension to file the PA Corporate may be sold or assigned. These credits include the Research and
Net Income Tax Report. The extension must be filed on or before the due Development Tax Credit (R&D), Film Production Tax Credit (FPT),
date of the report. To apply for an annual extension, complete the Neighborhood Assistance Tax Credit (NAT), Resource Enhancement
REV-853, Annual Extension Request, electronically using the Online and Protection Tax Credit (REAP), Keystone Innovation Zone Tax
Services Center at www.revenue.pa.gov. After review by the PA Credit (KIZ), Keystone Special Development Zone Credit (KSDZ),
Department of Revenue, you will receive written notification as to whether Historic Preservation Tax Credit (HPTC), and Coal Refuse Energy
your extension was approved or denied. and Reclamation Tax Credit (CRER).
•For information regarding the sale or assignment of R&D, KIZ, NAT,
You may also use REV-853 to make an annual tax payment with the
FPT, HPTC and KSDZ credits, call the Department of Community
extension request. If the taxes total more than $1,000, you must make
and Economic Development at 717-787-7120 or visit
the required payment by an electronic payment method. (Refer to Page
www.dced.pa.gov.
8, Electronic Payment Requirement.)
•For information regarding the sale or assignment of REAP tax
All payments of $1,000 or more must be made electronically or by certified credits, call the State Conservation Commission at 717-705-4032 or
or cashier’s check remitted in person or by express mail courier. visit www.agriculture.pa.gov.
PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE Additional information regarding the sale or assignment of tax credits can
If a report is filed late, the taxpayer should wait until assessed by the be obtained from Corporation Tax Bulletin 2014-04 found on the
department to remit the penalty amount. Interest does not accrue on Department of Revenue website at www.revenue.pa.gov.
penalties. Do not include penalty with tax amounts reported on form Email RA-CORP_ACC_FAX@pa.gov if you have questions regarding
RCT-101. credit assignment or restricted credits limitations or to request the
The penalty imposed for failure to file reports when due is now a minimum REV-774 Assignment of Tax Credit Form. The form can also be found at
of $500, regardless of the determined tax liability, plus an additional one www.revenue.pa.gov.
percent of any determined tax liability over $25,000. Send REV-774 directly to RA-CORP_ACC_FAX@pa.gov.

INTEREST DEPARTMENT NOTICES
Interest is charged on late payments received after the due date of a tax IMPORTANT: Business taxpayers and practitioners have the
report. Taxpayers should not precalculate interest or include interest with ability to receive and view department issued correspondence
the tax amount reported on the RCT-101 (Step D, Column A). The electronically. Once you enroll for this feature, correspondence will be
department will forecast interest on unpaid tax balances and provide a delivered to you securely through the e-TIDES Document Center in PDF

www.revenue.pa.gov REV-1200 9

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format, eliminating the need for mailed correspondence. For information • Summary of Restricted Credits – This section includes a summary
on how to opt-in and receive electronic correspondences, visit of restricted tax credits available for future periods.
www.etides.state.pa.us . •Business taxpayers and tax practitioners have the ability to
electronically request and receive a more detailed version of the
TAX PROFESSIONALS E-SERVICES CENTER Statement of Account (e-SOA) in PDF format through the new
Tax professionals are encouraged to use the department’s Tax Document Center section in e-TIDES. The e-SOA can be requested
Professionals e-Services Center for easy access to client’s tax at any time and is made available in PDF format in the Document
information. Visit the department’s Online Customer Service Center at Center to print or download on the next business day. The online
www.revenue.pa.gov. delivery saves time and money and provides more up-to-date
information. You can access the e-SOA by visiting
Notice of Adjustment – This notice provides a copy of the changes if
www.revenue.pa.gov and selecting Online Services then select
the department made one or more adjustment that resulted in a
e-TIDES.
recalculation of tax. The accompanying worksheet details the amounts
The exact steps needed to access the new functionality in the
originally reported and the adjustments made by the department.
e-TIDES Document Center varies slightly based on your current
The notice also provides instructions for amending if taxpayers believe access. To learn more, visit the Get Assistance section in e-TIDES
they submitted incorrect data on the original report, and instructions of for step-by-step instructions on getting setup to electronically request
what taxpayers should do if they believe the department’s adjustments an e-SOA.
are in error.
Audit Assessment Notice – This notice is provided to taxpayers as
Assessment Notice – This notice is provided to taxpayers as official official notification of an unpaid or underpaid balance due the
notification of an unpaid or underpaid balance due the commonwealth. commonwealth as the result of a field audit. Balances include tax, interest,
Balances include tax, interest, penalty, other fees and forecasted interest. penalty, other fees and forecasted interest. The elements of the notice
The elements of the notice are unique to a specific tax type and tax are unique to a specific tax type and tax period. The date of the notice
period. The date of the notice establishes a lien with the commonwealth establishes a lien with the commonwealth and initiates the window to
and initiates the window to petition for reassessment. Taxpayers must file petition for reassessment. Taxpayers must file petitions for reassessment
petitions for reassessment on or before the due dates specified on on or before the due dates specified on notices. For additional information
notices. For additional information visit the Board of Appeals website at visit the Board of Appeals website at www.boardofappeals.state.pa.us.
www.boardofappeals.state.pa.us.
AMENDED REPORTS
Basis of Assessment – Attached to every Assessment Notice is a Basis
of Assessment, which explains the adjustments made by the department Amended reports must be filed when requesting the Department of
Revenue to adjust the corporate net income taxes for a particular year.
in the determination of the liability. This is in addition to other detailed
Phone calls and/or letters submitted to the department are not acceptable
worksheets that may have been prepared and provided to the taxpayer.
and will not be considered an amended report.
Estimated Assessment Notice – This notice identifies estimated
CAUTION: Amended reports filed for tax years beginning on or
liabilities that have been imposed for a specific tax type and tax period.
after Jan. 1, 2016, must be filed on the revised, year-specific, four
Estimated liabilities are imposed for failure to file a complete PA Corporate
page RCT-101. Taxpayers must complete all sections of the report; this
Net Income Tax Report. The assessment includes tax, interest and
includes those sections originally filed and those sections being amended.
penalties that represent a first lien upon the entity’s franchise and
The apportionment must be completed with the factors as originally filed
property, both real and personal. These liabilities are not subject to
or being amended. This must be numeric with a numerator and a
appeal. To resolve the estimate, taxpayers must file a complete PA
denominator present. If no activity anywhere, the numerator must be “0”
Corporate Net Income Tax Report. The Department of Revenue is
and the denominator must be “1”. The amended report check box under
required to remove estimated assessments 90 days following receipt of
Step B, Page 1 of RCT-101 must be checked and REV-1175 must be
a complete PA Corporate Net Income Tax Report.
included with the report.
Tax Period Overpayment Summary – This notice confirms the
CAUTION: Amended reports filed for tax years beginning prior to
disposition of a tax overpayment. Tax credits may develop from the filing
Jan. 1, 2016 must be filed on the non-year specific, six page
of tax reports, adjustments to a tax liability by the Department of Revenue
RCT-101. Taxpayers must complete all sections of the report; this
and the Department of the Auditor General, tax relief granted from various
includes those sections originally filed and those sections being amended.
levels of appeal or from account maintenance initiated by the department.
The apportionment must be completed with the factors as originally filed
Statement of Account – This notice provides a summary of a taxpayer’s or being amended. This must be numeric with a numerator and a
account. Three categories of information are contained on the notice: denominator present. If no activity anywhere, the numerator must be “0”
• Summary of Active (filed) tax periods – Tax periods displayed and the denominator must be “1”. The amended report check box under
include the three most recently filed periods and those with open, Step B, Page 1 of RCT-101 must be checked and REV-1175 must be
unpaid balances. included with the report.
• Summary of Non-filed tax periods (includes estimated tax and The taxpayer has three (3) years after the due date of the original report
estimated prepayments) – Tax periods displayed include the to file an amended report. If the original report was properly extended,
current non-filed tax period estimated prepayments and restricted then the taxpayer has three (3) years after the extended due date to file
credits. an amended report. When filing the amended report the taxpayer must

10 REV-1200 www.revenue.pa.gov

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consent to an assessment period of three years from the filing of the RCT-128C – CHANGES IN FEDERAL TAXABLE INCOME/REPORTS
original report or one year from the filing of the amended report, OF CHANGE
whichever expires last. If you fail to provide such consent the department Changes in federal taxable income must be reported to the department
might not consider the amended report. This consent to extend the within the statutory period to report the change. This includes changes in
assessment period is included as part of the affirmation statement at the federal taxable income resulting from the taxpayer filing an amended
bottom of Page 1 of RCT-101. Per Act 84 of 2016, the department will federal income tax return and changes initiated by the federal government
have one year from the date the amended report is filed to notify the due to an audit or examination of the federal return. For tax years
beginning prior to Jan. 1, 2013, changes in federal taxable income must
taxpayer if the changes are accepted. If the taxpayer is not notified within
be reported to the department within 30 days of the change. This has
one year, the report is deemed accepted. If, after reviewing the amended
been extended to six months for tax years beginning after Dec. 31, 2012.
report, the department determines the tax liability reflected on the
taxpayer’s PA corporate tax account is incorrect, an adjustment will be If a taxpayer files an amended federal income tax return for a period for
made to the liability. The department will then generate a credit for the which the department did or did not issue an Official Notice of Settlement,
the taxpayer must report the change on RCT-128C.
amount of any overpayment, strike all or part of any previous assessment
or issue an assessment for any additional tax liability. Changes to federal taxable income initiated by the federal government
as part of an audit or examination of the federal income tax return must
An amended report should only be filed if an original RCT-101, PA be reported on RCT-128C and must include the federal audit date or date
Corporate Net Income Tax Report, was previously filed for the same tax filed with the IRS, regardless of whether the PA corporate net income tax
period. An amended report must contain documentation to support the for that period was settled by the department.
adjustment(s).
CAUTION: If this date is not provided, interest plus a $5 a day
All amended tax reports must include REV-1175, Schedule AR, which penalty, will be imposed from the original due date.
includes a detailed explanation of the reason for filing the amended report
and a summary of the change to the tax liability. In completing the
PREVENTING RCT-101
Summary of Tax Change, enter the corporate net income tax; the tax
PROCESSING ERRORS
liability currently reflected on the taxpayer’s account; the amended tax
liability; and the amount of change in the tax. CAUTION: The business tax system enables a more robust and
analytical review of the RCT-101, PA Corporate Net Income Tax
When filing an amended RCT-101, the tax liability in Column A of Step D
Report data. To prevent a report from suspending, taxpayers are
should reflect the amended liability. Column B, Estimated Payments and
encouraged to provide a complete and accurate report that will process
Credits on Deposit, must reflect the payments and credits on the account smoothly, following the below tips.
at the time the amended report is filed. Column C, Restricted Credits, 1. The Revenue ID must be present for processing of the report, along
must report the restricted credits the taxpayer is entitled to based on the with all other applicable fields in Step C.
filing of the amended report. 2. NEVER input the word “none” in numeric fields.
Amended reports cannot be filed for the following: 3. Checkbox indicators – Pay close attention to all checkboxes within
1. To challenge PA statute or regulations. the report such as IRS Type (Page 1), Step B (Page 1), Sections C
and D (Page 3) and Schedule of Real Property (Page 4).
2. To challenge department policy or interpretation of statutes or
4. Taxpayer’s claiming Add-Back on Page 2 of RCT-101, Section B,
regulations.
Line 3E, must provide schedules REV-802 and REV-803 by
3. For the sole purpose of claiming the report is a final report. submitting them with RCT-101.
IMPORTANT: REV-238 or REV-181 must also be filed.
IMPORTANT: RCT-101 is a revised, year specific, four page form.
4. To change or correct taxpayer information electronically such as the Use only this year-specific, four page RCT-101 for filing all tax
years beginning on or after Jan. 1, 2016. All reports for tax years
Revenue ID or EIN. Use REV-854 found at www.revenue.pa.gov
beginning prior to Jan. 1, 2016 must be filed on the non-year specific, six
and select Online Services, then e-TIDES.
page RCT-101. These forms can be found on the department’s website
5. To change the end of the tax year. (A new original report must be at www.revenue.pa.gov.
filed including an explanation why the original tax year end was
incorrect). AMENDED REPORTS
Amended reports filed for tax years beginning on or after Jan. 1, 2016,
IMPORTANT: The filing of an amended PA Corporate Net Income
must be filed on the revised, year-specific, four page RCT-101. You must
Tax Report does not replace the filing of a petition, nor does it
check the amended report checkbox on Page 1, Step B, and include
extend a corporate taxpayer’s time to file an appeal. REV-1175 with the report.
The department is not obligated to revise tax due the commonwealth Amended reports filed for tax years beginning prior to Jan. 1, 2016, must
upon review of an amended report. Its failure to revise tax due the be filed on the non-year specific, six page RCT-101. You must check the
commonwealth is not an appealable action and will not change any amended report checkbox on Page 1, Step B, and include REV-1175 with
existing appeal rights of the taxpayer. the report.

www.revenue.pa.gov REV-1200 11

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CAUTION: Taxpayers must complete all sections of the amended of an appeal in a prior year cannot be filed electronically. In such cases,
report; this includes those sections originally filed and those the RCT-101, PA Corporate Net Income Tax Report and all required
sections being amended. The apportionment must be completed with the schedules, including the reason the report cannot be e-filed, must be
factors as originally filed or being amended. This must be numeric with a mailed to:
numerator and a denominator present. If no activity anywhere, the PA DEPARTMENT OF REVENUE
numerator must be “0” and denominator must be “1”. REV-1175 must be PO BOX 280704
included with the report. HARRISBURG PA 17128-0704

APPORTIONMENT
LINE INSTRUCTIONS
a) Completing the sales factor as 0/0, leaving the sales factor field
blank or typing “none” in this field will result in apportionment being LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE
changed to 100 percent in Pennsylvania, automatically changing the NET INCOME TAX REPORT
reported tax liabilities. Partnerships’ factors also must be provided
PAGE 1
per a corporation’s ownership percentage and not entered as zeros.
b) Eligible corporations claiming sales factor apportionment must Indicate the type of return filed with the IRS. If the activity is included in
complete RCT-106 and carry to RCT-101, Page 2, Section B, Line the federal tax return of another company, either as part of a consolidated
7 and Schedule C-1. group or as a disregarded entity, indicate the type of return filed by the
c) Amounts differing from information on federal Forms 1120, 1120C entity reporting the activity.
or 1120S must be reconciled.
d) If a corporation owns underlying partnerships, the partnerships’ sales STEP A

must be passed through to the corporate owner, in relation to the
ownership percentage. A corporation’s ownership interest in a TAX PERIOD (REQUIRED)
partnership or other unincorporated entity (hereinafter referred to as Taxpayers must enter the month, day and year for the tax period
a partnership) must be included in the apportionment fraction as a beginning and ending dates using the MMDDYYYY format.
direct interest of the corporation in the assets of the partnership.
STEP B
The portion of the partnership’s gross receipts, net of returns and
allowances, are included in the numerator and denominator of the CHECK SPECIAL FILING STATUS
corporation’s sales factor to the extent of the taxpayer’s interest in
Amended Report – Check box if the corporation is amending a PA
the partnerships for that period, as appropriate. Sales of tangible
Corporate Net Income Tax Report previously filed with the department.
personal property are considered in-state if the property is delivered
or shipped to a purchaser within Pennsylvania. This sales calculation CAUTION: Economic Nexus – Check box if the corporation is
should be reflected on the Partner’s Share of Sales from filing due to the new $500,000 rebuttable presumption of economic
Partnerships line on RCT-106. nexus. See Corporation Tax Bulletin 2019-04 for more information.
NOTE: For tax periods beginning on or after Jan. 1, 2013, all 52-53 Week Filer – Check box if the corporation is a 52-53 week filer.
business income must be apportioned to PA by multiplying income Address Change – Check box if the address reported in Step C is a
by the sales factor ONLY. change from prior tax periods. If changing the address after filing the
IMPORTANT: A corporation with no sales both inside and outside report, file REV-854 electronically using the Online Services Center at
Pennsylvania must complete RCT-106, using “0” as the numerator www.revenue.pa.gov.
and “1” as the denominator. Change Fed Group – Check box if the corporate taxpayer is filing a PA
Corporate Net Income Tax Report for less than a full year due to a change
BULK SALES in federal consolidated group. This must be indicated on the last report
a) Taxpayers filing a full year report and disclosing a bulk sale should prior to the change.
not fill in the bulk sale checkbox on Page 3 of the RCT-101, PA
Corporate Net Income Tax Report. Rather, you must complete First Report – Check box if this is the corporation’s first PA Corporate
REV-181, Application for Tax Clearance Certificate and mail Net Income Tax Report filing.
separately to the Bureau of Compliance. Do not send with RCT-101. KOZ/EIP/SDA Credit – Check box if the corporate taxpayer is claiming
b) If a taxpayer is filing a short period, estimated tax return to fulfill its the Keystone Opportunity Zone Credit, Employer Incentive Payment
Bulk Sale reporting requirement, you must fill in the bulk sale Credit or the Strategic Development Area Credit.
checkbox on Page 3 of RCT-101. You must also complete REV-181,
Add-Back – Act 52 of 2013 requires the add-back of intangible expenses
Application for Tax Clearance Certificate and mail separately to the
to income for interest, royalties, patents, trademarks, etc. between
Bureau of Compliance. You may also include a copy with the
affiliated entities in certain instances.
RCT-101.
File Period Change – Check box if the filing period (tax period ending)
For further guidance, refer to Tax Bulletin 53D.
is a permanent change. Be sure to file REV-854 electronically using the
Reports where the taxpayer is calculating a liability using a method other Online Services Center at www.revenue.pa.gov. This must be indicated
than the standard calculation, including any position granted as the result on the first report filed with the new tax year end.

12 REV-1200 www.revenue.pa.gov

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S Corp Taxable Built-in Gains – PA S corporations and QSSS are Column B. Estimated Payments & Credits on Deposit. See
subject to PA corporate net income tax. Their taxable income is their net Confirmation of Deposits on Account, Page 7. Enter the total of estimated
recognized built-in gains as determined for federal income tax purposes payments and transferred credits applied to the current tax period.
pursuant to IRC Section 1374(d) (2). To report taxable built-in gains,
check the box and complete Line 1 of Section B. Column C. Restricted Credits. Enter the amount of restricted credit to
be applied to the current tax year. Restricted credits may include those
SECTION 381/382/MERGER NOLS/ALTERNATE APPORTIONMENT originating from special tax credit programs administered by various state
Mergers – Corporations having net operating loss (NOL) limitations under agencies. See Page 24.
IRC Section 381 and IRC Section 382 or claiming losses or Bonus
Depreciation from a merger. Provide the Merger documents including
STEP E
Company Name, EIN and Revenue ID of merged company. Provide a
schedule with NOL’S by tax periods and the balance of the Bonus PAYMENT DUE/OVERPAYMENT
Depreciation carry-forward from the merged company.
Determine the total payment due or overpayment by subtracting Column
Alternate Apportionment – If the taxpayer is requesting an alternate B and Column C from Column A. Negative amounts (identifying an
apportionment method, extra-statutory treatment, separate accounting or overpayment) should be written as -1,000. If a net total overpayment
unrelated asset treatment, check this box and provide a written, detailed develops, see instructions below for completing Step F.
explanation of the methodology being used as well as fully detailed
supporting schedules, worksheets and documentation to review the REMINDERS:
methodology being employed. •You must enter a value in the space provided, even if the amount is
zero. Overpayments must be entered as a negative amount.
STEP C
•See How To Pay instructions on Page 7 for payments due of less
NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE, than $1,000 and payments due of $1,000 or more.
REVENUE ID AND PARENT CORPORATION EIN
STEP F
Print or type the corporation name, complete address, 10-digit Revenue
ID and nine-digit Federal ID (EIN).
TRANSFER/REFUND METHODS
You must provide the Revenue ID number on Page 1 of RCT-101. Do not Transfer: Identify the amount to transfer from the current tax period
leave blank. If you do not know your Revenue ID number, please email overpayment to the next tax period for estimated tax purposes. Prior to
ra-rvbpcreation@pa.gov. any transfer, the department will offset current period liabilities and other
Failure to submit a properly completed report will result in the delay of unpaid liabilities within the account.
processing and the imposition of late filing penalties and/or estimated
Refund: Identify the amount to refund from the current tax period
assessments.
overpayment. Prior to any refund, the department will offset current period
Be sure to use only address information for Address Line 1 and Address liabilities and other unpaid liabilities within the account. The department
Line 2 on Page 1 of RCT-101 and all other tax forms. will not issue refunds in the amount of $1.00 or less.
IMPORTANT: Do not include individual’s names on these lines. NOTE : Taxpayers may divide an overpayment between both
options. If no option is selected, the department will automatically
Foreign corporations filing from outside the United States must use transfer any overpayment to the next tax year for estimated tax purposes
Province, Country Code and Foreign Postal Code address fields, if after offsetting current period liabilities and other unpaid liabilities within
applicable.
the account. A tax period overpayment summary will be mailed to the
The six-digit Business Activity Code entered here is the same Business taxpayer confirming the disposition of the credit.
Activity Code reported to the IRS on the federal income tax return.
E-File Opt Out – This box is used to indicate that the taxpayer has
Parent Corporation EIN – Taxpayers that are included in a consolidated instructed the preparer to not file the report electronically.
federal income tax return must provide the nine-digit EIN of the
corporation that files the consolidated federal income tax return. If you STEP G
are not included in a consolidated federal return, leave blank.
SIGNATURE
STEP D A corporate officer must sign the report. The signature may be original,
TAX SUMMARY stamped or electronic. Also provide telephone number, email address and
Column A. Tax Liability from Tax Report. Carry tax liability from Page title of the officer along with the date signed.
2, Section B, Line 15 to Page 1, Step D, Column A. If a corporate officer and an electronic return originator elect to use a
All RCT-101 forms and schedules must show money amounts in whole federal self-select PIN to electronically sign a corporation’s electronic tax
dollars. Eliminate any amount less than $0.50 and increase any amount report, they must complete form PA-8879-C. Do not mail the form to the
that is $0.50 or more to the next highest dollar. Do not carry a value less department; however, you are required to keep this form and attachments
than zero to Step D, Page 1, Column A. for three years.

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Pennsylvania allows a pass-through exemption from corporate net
PAGE 2
income for interest or dividend income received from a regulated
investment company to the extent such distribution or dividend is derived
SECTION A
from obligations free from state taxation. Such obligations include those
BONUS DEPRECIATION issued by the U.S. Government; the Commonwealth of Pennsylvania;
This section is no longer required to be completed when filing the any public authority, commission, board or other agency created by the
REV-1834. commonwealth; any political subdivision of the commonwealth; or any
public authority created by any such subdivision.
SECTION B To support any claim for a pass-through deduction for corporate net
income tax purposes, the taxpayer must submit evidence that the income
PA CORPORATE NET INCOME TAX
was received from a regulated investment company. A schedule must be
A copy of federal Form 1120 (federal income tax return) or other submitted indicating the percentage of income applicable to exempt
applicable form (proforma) on a separate company basis must obligations and the percentage of income applicable to nonexempt
accompany the RCT-101, PA Corporate Net Income Tax Report. obligations, including repurchase agreements, obligations of the Federal
Taxable Built-in Gains – PA S corporations and QSSS are subject to PA National Mortgage Association, (Fannie Mae), the Government National
corporate net income tax. Their taxable income is their net recognized Mortgage Association (Ginnie Mae) and any other obligations that were
built-in gains as determined for federal income tax purposes pursuant to not actually issued by the U.S. Government.
IRC Section 1374(d) (2). To report taxable built-in gains, check the box
All income claimed to be exempt must be reduced by any expenses
on Page 1 and complete Line 1 of Section B.
incurred in the production of such income and this information must be
included to support all entries on Line 2B.
DEDUCTIONS FROM AND ADDITIONS TO INCOME
LINE 1 LINE 2C
Income represents “taxable income as returned to and ascertained by This amount is the combination of additional depreciation deduction
the federal government before the net operating loss deduction and allowed under Act 89 of 2002 for IRC Section 168(k) property and the
special deductions.” (Line 28 of federal Form 1120.) additional Bonus Depreciation deduction allowed after Act 72 of 2018.
See instructions for completing REV-1834, Schedule C-8 on Page 20 for
additional details.
LINE 2A

Corporate dividends received. Dividends received from U.S. corporations LINE 2D
are deductible to the same extent as allowed to arrive at the federal
dividend deduction as indicated on federal Schedule C, Column C. An Other allowable deductions. As an example, certain charitable
additional deduction will be allowed for dividends received from foreign contributions may be deductible for a subsidiary corporation which has
corporations and reported on Lines 13 and 14 of the federal Schedule C, income on a separate company basis. Targeted jobs credit wages is
plus a deduction will be allowed for dividends received under Section 78 another deductible item. If issued prior to Feb. 4, 1994, net gains on the
(foreign dividend gross-up) of the Internal Revenue Code of 1986. sale of U.S. or PA securities are deductible. FICA tax obligation on
Taxpayers must complete REV-798, Schedule C-2, PA Dividend employee tips, if taken as a credit for federal purposes, are also
Deduction Schedule. Specific instructions for Schedule C-2 are shown deductible.
on Page 17 in these instructions.
The 50 percent of travel and entertainment expense that is disallowed on
the federal form is not permitted as a deduction for Pennsylvania
LINE 2B
purposes.
Interest on U.S. Securities. Interest on U.S. securities is deductible, but
All other deductions must be reported on REV-860, Schedule OD, Other
must be reduced by:
Deductions. Include an additional schedule if more space is needed.
•Any interest on indebtedness incurred to carry the securities;
•Any expenses incurred in the production of such interest income; Add Lines 2A, 2B, 2C and 2D and enter the result on Line 2, Total
Deductions.
•Any other expenses deducted on the federal income tax return that
would not have been allowed under Section 265 of the Internal
Revenue Code of 1986, if the interest were exempt from federal LINE 3A
income tax. Enter the total amount of taxes imposed on or measured by net income
and deducted on the attached copy of the federal tax return. All taxpayers
However, interest from repurchase agreements is not considered interest
from U.S. securities. Therefore, it is not deductible. reporting expenses for taxes on federal income tax returns must complete
REV-860, Schedule of Taxes, even if no taxes are imposed on or
To calculate the net U.S. interest deduction on Line (2B): measured by net income. If a state’s tax is based on the higher of a tax
•Provide a detailed schedule showing the calculation of net U.S. on net income or a tax on another item, such as gross receipts or net
interest deduction and include a listing of investments that generated worth value, the taxpayer is required to add back the entire amount of
the exempt interest income. the tax in periods where the liability is based on net income. If a state’s

14 REV-1200 www.revenue.pa.gov

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tax is a combination of a tax on net income and a tax on another item, Business income is income arising from transactions and activity in the
such as gross receipts or net worth, the income portion of the tax is added regular course of the taxpayer’s trade or business and includes income
back. from tangible and intangible property if the acquisition, management or
disposition of the property constitutes integral parts of the taxpayer’s
NOTE: The portion of Philadelphia business tax measured by net
regular trade or business operations. Business income includes all
income must be included.
income that is apportionable under the U.S. Constitution. Nonbusiness
income is all income other than business income. The REV-934,
LINE 3B
Schedule of Nonbusiness Income, must be completed by all taxpayers
Employment incentive payment credit adjustment. In calculating wages allocating nonbusiness income and apportioning business income.
as a cost for tax purposes, employment incentive payment credits shall
IMPORTANT: Refer to the “Apportionment, Exemptions and
be deducted, reducing the wages cost item by any employment incentive
Allocation” on Page 22 for more detail.
payment credit taken by the corporation. Include PA Schedule W with
RCT-101.
LINE 5
Enter the total amount of nonbusiness income or loss from REV-934,
LINE 3C
Column C Total. (Must be included with report.)
This amount is the bonus depreciation claimed by the corporate taxpayer
under IRC Section 168(k) in the calculation of federal taxable income.
See instructions for completing REV-1834, Schedule C-8 on Page 20 for LINE 6
additional details. Enter the amount of income or loss to be apportioned by adding the loss
or subtracting the income reflected on Line 5 to or from Line 4.
LINE 3D
Act 52 of 2013 requires the add-back of intangible expense to income for LINE 7
interest, royalties, patents, trademarks, etc., between affiliated entities in Enter the apportionment percentage from Schedule C-1.
certain instances. In order to report the add-back for tax years beginning
in 2016, taxpayers must complete REV-802, Schedule C-6, Add-Back for LINE 8
Intangible Expense or Related Interest Expense. The total amount of
Enter the income or loss apportioned to Pennsylvania by multiplying Line
additions from Schedule C-6, Line 11 should be carried to and included
6 by Line 7.
as a separate line item on RCT-101, Page 2, Section B, Line 3D. REV-802
can be found on the department’s website at www.revenue.pa.gov. LINE 9

IMPORTANT: REV-802, Schedule C-6, Add-back for Intangible
Enter the total amount of nonbusiness income or loss allocated to
Expenses or Cost and Related Interest, must be submitted with
Pennsylvania from REV-934, Column A Total. (Must be included with
RCT-101.
report.)
LINE 3E
LINE 10
The total of all additions from REV-860, Schedule OA, is carried to Add the income or deduct the loss reflected on Line 9 to or from Line 8.
RCT-101, Page 2, Section B, Line 3E. If the entire business is transacted in Pennsylvania, enter the amount
Add Lines 3A, 3B, 3C, 3D and 3E and enter the result on Line 3, Total from Line 4 on Line 10. If a loss exists, add to RCT-103, Line 21.
Additions.
NET OPERATING LOSS DEDUCTION
LINE 4
LINE 11
Line 1 minus Line 2 plus Line 3.
Net Operating Loss Deduction. Enter the total of Column C from
If all business is transacted in Pennsylvania, skip Lines 5 through 9. Enter RCT-103. Complete RCT-103 and include it with your RCT-101.
amount from Line 4 on Line 10.
CAUTION: See instructions for RCT-103, found on Page 18 for
important changes.
APPORTIONMENT AND ALLOCATION
A taxpayer must have income from business activities taxable by Short periods are considered to be one tax year for purposes of
Pennsylvania and at least one other state to allocate and apportion computing the carryforward.
income. For purposes of allocation and apportionment of income, a
taxpayer is taxable in another state if, in that state, the corporation is DETERMINATION OF TAX
subject to a net income tax, a franchise tax measured by net income, a
franchise tax for the privilege of doing business or a corporate stock tax LINE 12
or if that state has jurisdiction to subject the taxpayer to a net income tax PA Taxable Income or Net Loss. Line 12 must equal Line 10 minus Line
regardless of whether the state does or does not. 11.

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For additional information on sales and special apportionment, see
LINE 13
Page 22.
Calculate and enter the PA corporate net income tax by multiplying the
See Page 24 for examples of the correct completion of this section.
amount reflected on Line 12 by the current rate of 9.99 percent (0.0999).
All taxes due should be shown in whole dollar amounts.
PAGE 3

LINE 14
SECTION C

For taxpayers calculating a credit for tax paid by affiliated entities,
taxpayers must complete REV-803, Schedule C-7, Credit for Tax Paid by CORPORATE STATUS CHANGES
Affiliated Entities. Corporate taxpayers that ceased all business activity (domestic
corporations) or ceased business activity in Pennsylvania (foreign
The credit is then carried to RCT-101, Page 2, Line 14. REV-803 can be corporations) and disposed of all assets or Pennsylvania assets may be
found on the department’s website at www.revenue.pa.gov.
removed from the active records of the department by doing the following:
IMPORTANT: REV-803, Schedule C-7, Credit for Tax Paid by 1. Indicate in this section that the current year report is the final report
Affiliated Entities, must be submitted with RCT-101. by checking the box to the right of “Final Report”.

LINE 15 2. Entities formed under the laws of the Commonwealth of
Pennsylvania must answer the questions under “PA Corporations”
Tax Due (Line 13 minus Line 14.) in this section. If a PA corporation ever transacted business
anywhere, the date business activity ceased must be provided. If a
SCHEDULE C-1 PA corporation ever held assets anywhere, it must provide the date
of final disposition of the assets.
APPORTIONMENT
3. Entities formed under the laws of another jurisdiction are required
SALES FACTOR
to answer the questions under “Foreign Corporations”. If a foreign
corporation ever transacted business in Pennsylvania, the date
LINE 1A
Pennsylvania activity ceased must be provided. If a foreign
Enter the total from RCT-106, Column A, Sales inside Pennsylvania.
corporation ever held assets in the commonwealth, it must disclose
the date all PA assets were disposed of or moved outside of
LINE 1B
Pennsylvania.
Enter the total from RCT-106, Column B, Sales inside and outside
Taxpayers who held any assets during the year must complete REV-861,
Pennsylvania.
Schedule DA, Disposition of Assets.
LINE 1C If a taxpayer sells 51 percent or more of any class of asset during the tax
period, the taxpayer must check the box and provide the purchaser’s
Divide Line 1A by Line 1B, calculate to six decimal places. Enter here
name and address. This includes any stock of goods, wares,
and SECTION B, Line 7.
merchandise of any kind, fixtures, machinery, equipment, buildings or real
IMPORTANT: Only corporations required to use special estate.
apportionment (such as railroad, truck, bus, airline, pipeline,
CAUTION: A taxpayer who sells 51 percent or more of any class
natural gas and water transportation companies) should complete Special
of asset is required to obtain a Bulk Sale Certificate by completing
Apportionment.
a REV-181, Application for Tax Clearance Certificate and filing RCT-101,
SPECIAL APPORTIONMENT PA Corporate Net Income Tax Report, up to the date of the sale. Include
schedule if additional space is needed.
LINE 2A
Taxpayers filing a full year report and disclosing a bulk sale, should not
Enter PA revenue miles or other special factor. (Numerator)
fill in the bulk sale checkbox on Page 3 of the PA Corporate Net Income
Tax Report. Rather, you must complete REV-181, Application for Tax
LINE 2B
Clearance Certificate and mail separately to the Bureau of Compliance.
Enter total revenue miles or other special factor. (Denominator) DO NOT send with the PA Corporate Net Income Tax Report.
If a taxpayer is filing a short period, estimated tax return to fulfill its Bulk
LINE 2C
Sale reporting requirement, you must fill in the bulk sale checkbox on
Divide Line 2A by Line 2B, calculate to six decimal places. Enter here Page 3 of RCT-101. You must also complete REV-181, Application for
and Section B, Line 7. Tax Clearance Certificate and mail separately to the Bureau of
Compliance. You may also include a copy with the RCT-101.
CAUTION: Complete either Sales or Special Apportionment. Do
not combine the two methods. For further guidance, refer to Tax Bulletin 53D.

16 REV-1200 www.revenue.pa.gov

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                        SECTION D                                                                         PAGE 4
                                                                                                                                           
GENERAL INFORMATION QUESTIONNAIRE                                               SCHEDULE OF REAL PROPERTY IN PA 
Taxpayers are required to provide a brief description of business               Taxpayers must report the location of any real property utilized in the 
activities in Pennsylvania. Multistate corporations are required to provide     Commonwealth of Pennsylvania during the current tax period. Include an 
                                                                                indication if the property was rented or owned by the taxpayer and if the 
a brief description of business activities outside of PA and indicate all 
                                                                                property was located in a Keystone Opportunity Zone/Keystone 
other states where the taxpayer has business activity (use the two letter       Opportunity Expansion Zone or Strategic Development Area. 
postal abbreviations). If taxpayer has no activity in Pennsylvania, indicate 
                                                                                CORPORATE OFFICERS 
so in this area. 
                                                                                IMPORTANT:         Taxpayers annual affirmation of all corporate 
Taxpayers should indicate in this section if they are incorporated under        officer’s information must be included on the RCT-101. When 
the laws of the Commonwealth of Pennsylvania or under the laws of               information is provided on RCT-101, REV-1605 is not required. However, 
another jurisdiction.                                                           to report a change in corporate officers during the tax year, REV-1605 
                                                                                should be filed electronically at www.etides.state.pa.us. REV-1605 
The taxpayer must report the name of any corporation, individual or other       may also be submitted via fax to 717-787-3708 or email to 
business entity which holds all or a majority of the stock of the taxpayer,     ra-btftregisfax@pa.gov. 
and the name(s) of any corporation in which the taxpayer owns all or a 
                                                                                When completing the affirmation of corporate officer section, LLCs, 
majority of the stock. This is done by checking the applicable box(es) and      business trusts and other unincorporated entities required to file RCT-101 
completing Schedule X.                                                          must enter the names and Social Security numbers of individuals who 
                                                                                are responsible for the tax and/or business matters of the entity (i.e. Tax 
If the federal government has changed the taxable income for any prior 
                                                                                Matter Partner, Managing Partner, Trustee). 
year, the taxpayer must indicate this on RCT-101 to include the first and 
last tax periods changed. The taxpayer must also file RCT-128C reporting        IMPORTANT: Social Security numbers must contain all nine digits. 
the changes in income for each tax year. 
                                                                                Paid preparers must sign and date all tax returns. The preparer’s 
Indicate the method of accounting used for federal income tax reporting         name, complete address, telephone number, email address, federal PTIN 
and financial accounting purposes.                                              and the date prepared must be typed or printed in the appropriate boxes.

                                          SUPPLEMENTAL SCHEDULES
                                                                                SALES FACTOR 
                        REV-802
                                                                                Amount for interest, rents and royalties from RCT-106 should be added 
SCHEDULE C-6                                                                    and reflected on the appropriate line of Schedule C-1. 
Act 52 of 2013 requires the add-back of intangible expenses to income           Gross sales price of assets sold, excluding securities (not gains or losses) 
for interest, royalties, patents, trademarks, etc., between affiliated entities should be reflected on the appropriate line. All remaining income items 
in certain instances. In order to report the add-back for tax years             should appear on the “Other Income” line. Do not list non-receipts such 
beginning in 2016, taxpayers must complete REV-802, Schedule C-6,               as discounts or receipts from sales of securities, unless you are a 
                                                                                securities dealer. 
Add-back for Intangible Expenses or Cost and Related Interest. The form 
is located on the department’s website at www.revenue.pa.gov.                   IMPORTANT: Only corporations required to use special 
                                                                                apportionment (such as railroad, truck, bus, airline, pipeline, 
                        REV-803                                                 natural gas and water transportation companies – refer to instructions) 
                                                                                should complete Special Apportionment section. 
SCHEDULE C-7 
                                                                                                          REV-798
For taxpayers calculating a credit for tax paid by affiliated entities,                                                                    
taxpayers must complete REV-803, Schedule C-7, Credit for Tax Paid by           SCHEDULE C-2 – PA DIVIDEND DEDUCTION 
Affiliated Entities. The form is located on the department’s website at         This schedule must be completed by all taxpayers claiming a Corporate 
www.revenue.pa.gov.                                                             Dividend Deduction on RCT-101, Page 2, Section B, Line 2A. If federal 
                                                                                Schedule C, Line 17 includes any GILTI income, you must attach federal 
                        RCT-106                                                 Forms 5471 and 8992. 
                                                               
INSERT SHEET – APPORTIONMENT SCHEDULE FOR                                                                 LINE 1                           
PA CORPORATE NET INCOME TAX 
                                                                                Enter from federal Schedule C, Line 24, total deductions. S corporations 
For tax years beginning on or after Jan. 1, 2013, income is apportioned         must submit a schedule reflecting this information if subject to PA 
by a sales factor only.                                                         corporate net income tax. 

www.revenue.pa.gov                                                                                                             REV-1200   17

- 18 -

                       LINE 2                                                                           LINE 1                                          
Enter federal Schedule C, Line 18 Foreign Dividend Gross-Up (Section         Enter the taxable income from RCT-101, Section B, Line 10. 
78 total Column A). 
                                                                                                        LINE 2                                          
                       LINE 3
                                                                             Enter total net operating loss carryforward to current period from 
Pennsylvania's corporate net income tax base is computed without regard      RCT-103, Part B, Column C. 
to special deductions. 
                                                                                                        LINE 3                                          
                       LINE 4                                                Multiply Line 1 by 40 percent (0.40). 
Enter dividends from less than 20 percent owned foreign corporations 
listed on Lines 14, 16b, 16c and 17 of federal Schedule C times 50                                      LINE 4                                         . 
percent.                                                                     This is your net operating loss deduction for the current period. 

                       LINE 5                                                                           PART B
                                                                                                                                                        
Enter dividends from 20 percent or more owned foreign corporations           Complete this schedule to calculate the amount of net loss carryforward 
listed on Lines 14, 16b, 16c and 17 of federal Schedule C times 65           available to be deducted in the current period and the net loss 
percent.                                                                     carryforward to the next period. Enter all dates and amounts from periods 
                                                                             with returns filed. If no net loss carryforward is available, enter ‘‘0”. If short 
                       LINE 6                                                periods exist in calendar year or fiscal year, enter the month, day and 
Enter dividends listed on Lines 14, 16b, 16c and 17 of federal Schedule      year of the beginning and end of all short periods and the net loss 
C from foreign corporations that meet the 80 percent voting and value        carryforward for all short periods in the appropriate row of the table. Do 
test of IRC Section 1504(a)(2) and otherwise would qualify for 100 percent   not combine amounts. 
deduction under IRC Section 243(a)(3), if they were from a domestic 
corporation.                                                                                      COLUMN A                                              
                                                                             Beginning with the first line, enter the month, day and year (MMDDYYYY) 
                       LINE 7                                                corresponding to the beginning date of each tax period. Start with tax 
Enter the total PA dividend deduction by adding Lines 1 through 6. Enter     periods beginning in 1998 or with the entity’s very first tax period, 
the result on RCT-101, Page 2, Section B, Line 2A.                           whichever is more recent. Do not include the current tax period. 

SCHEDULE X – OTHER COMPANIES OF WHICH THIS COMPANY                                                COLUMN B
                                                                                                                                                        
OWNS ALL OR A MAJORITY OF THE STOCK 
                                                                             Enter the month, day and year (MMDDYYYY) corresponding to the 
Corporate taxpayers who answer yes to Question 2 on Page 3, Section 
                                                                             ending date of the tax period indicated in Column A. 
D of RCT-101 are required to report the name, EIN and Revenue ID, if 
applicable, of all corporate entities of which the corporate taxpayer owns 
more than 50 percent of the stock. In addition, taxpayers who own more                            COLUMN C                                              
than 50 percent of the stock of other corporate entities are required to     Enter the net loss carryforward corresponding to each tax period end from 
submit a consolidated balance sheet. Taxpayers who answer “Yes” to           Column E of the RCT-103, Net Operating Loss Schedule, for the prior 
Question 1 on Page 3, Section D of RCT-101 must report the name, EIN         year. 
or SSN and Revenue ID Number, if applicable, of any corporation, 
individual or other business entity that owns all or a majority of the stock                      COLUMN D                                              
of the taxpayer.                                                             Enter the amount to be used as a net loss deduction to offset income in 
                                                                             the current tax period. The total amount of net loss carryforwards should 
                       RCT-103                                               not exceed the amount reported on Part A, Line 4. 

NET OPERATING LOSS SCHEDULE 
REMINDER:    Net Operating Losses (NOLs) removes the $5 million cap                               COLUMN E                                              
on NOL deductions and increases the percentage of taxable income             Subtract Column D from Column C and enter the difference in this 
from 35% to 40% for tax year 2019 and thereafter.                            Column.  
                                                                             Net operating losses generated in tax periods beginning after Dec. 31, 
                       PART A                                                1997, may be carried forward 20 periods. Short years are considered to 
CALCULATION OF NET OPERATING LOSS LIMITATION                                 be one tax period for purposes of calculating the carryforward. 
To support the net operating loss carryforward allowed for the current tax   Lines 1 thru 20 are used for the allowable, 20 carry-forward periods. Line 
period, taxpayers are required to complete Part A of RCT-103 as follows:     21 is used for the current period only if there is a loss in that period. 

18 REV-1200                                                                                                        www.revenue.pa.gov

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CAUTION:    Line 21 should only be completed for Columns A, B 
                                                                                              REV-860A
and E.                                                                                                                                         
                                                                           QUALIFIED MANUFACTURING INNOVATION AND REINVESTMENT 
MERGED LOSSES 
                                                                           DEDUCTION WORKSHEET 
If losses claimed in Column C reflect losses from a merger in the prior 
                                                                           Businesses utilizing this deduction would be required to complete 
year, provide the name and EIN of each entity and date of merger on a      REV-860A, Qualified Manufacturing Innovation and Reinvestment 
separate supporting schedule. Failure to provide this information may      Deduction worksheet. For more information about this deduction or to 
result in denial of losses due to a merger.                                claim this deduction, businesses should contact the department at 
As noted on the cover page of the CT-1 instructions, you must check the    717-772-3896. 
Section 381/382/Merger NOLS/Alternate Apportionment checkbox. 
                                                                                              REV-861
                                                                                                                                               
SECTION 381/382 LOSS LIMITATIONS 
                                                                           SCHEDULE DA – DISPOSITION OF ASSETS SCHEDULE  
The PA Department of Revenue follows the federal government regarding 
                                                                           This schedule replaces Page 2 of the Out-of-Existence/Withdrawal 
Section 381/382 Loss Limitations. If the entity is subject to these 
                                                                           Affidavit and must be completed and submitted by all corporate taxpayers 
limitations, include a detailed schedule explaining the merger changes or 
                                                                           who have indicated they desire to be removed from the active records of 
change in ownership, as well as specific support for the actual limited    the Department of Revenue.  
loss figure claimed in your tax calculation (Section 382, change in 
ownership). You must check the Section 381/382/Merger NOLS/Alternate       The Description of Assets column should give a brief description of the 
Apportionment checkbox.                                                    assets sold, assigned or distributed in the final year of the corporate 
                                                                           taxpayer's existence. Similar assets may be included on one line with a 
                                                                           general description (i.e. automobiles) rather than listing each individual 
                        REV-860
                                                                           asset separately. 
SCHEDULE C-5 – SCHEDULE OF TAXES                                           The Cost of Assets As Reported on Balance Sheets column should report 
Section 401(3)1.(o) of the Tax Reform Code of 1971 requires taxpayers      the cost of the assets prior to depreciation, as would have been reported 
to add-back taxes imposed on or measured by net income, expensed on        on the balance sheet immediately prior to the sale or distribution of the 
the federal income tax return, in calculating PA corporate taxable income. assets. 
Schedule of  Taxes includes the most common taxes expensed by              If the gain on the disposition of an asset is not reported on Schedule D or 
corporate taxpayers on the federal income tax return. This schedule must   federal Form 4797, the taxpayer must provide an explanation why the 
be completed and submitted by all corporate taxpayers who are subject      gain is not reported in the calculation of federal taxable income. 
to PA corporate net income tax, and the total must equal the total tax 
                                                                                              REV-934
expense reported on the federal income tax return.                                                                                             
If a state’s tax is based on the higher of a tax on net income or a tax on SCHEDULE OF NONBUSINESS INCOME 
another item, such as gross receipts or net worth value, the entire amount Taxpayers reporting nonbusiness income must include REV-934 when 
of the tax is entered on the line labeled “Income Taxes – Other States” in filing RCT-101. 
years where the liability is based on net income. Otherwise the entire 
amount of the tax is included on the line labeled “Other Taxes–Not Based                      REV-986
                                                                                                                                               
on Income”. 
                                                                           SCHEDULE TO DETERMINE CORPORATE NET INCOME TAX 
If a state’s tax is a combination of a tax on net income and a tax on      FILING REQUIREMENT 
another item, such as gross receipts or net worth, the income portion of   Taxpayers answering “YES” to any of the questions on REV-986 are 
the tax is entered on line labeled “Income Taxes–Other States”. The        subject to corporate net income tax. 
remainder of tax is included on the line labeled “Other Taxes–Not Based 
on Income”.                                                                                   RCT-101D
                                                                                                                                               
Please refer to Corporation Tax Bulletin 2008-05 for a list of taxes       DECLARATION OF DE MINIMIS PA ACTIVITY 
imposed on or measured by net income. Tax bulletins are available at       IMPORTANT: RCT-101D is only for use by non-Pennsylvania 
www.revenue.pa.gov.                                                        corporations. Solicitation only corporations, as well as corporations 
IMPORTANT: Not all corporations will have expensed every tax               with more than $500,000 in Pennsylvania sourced gross receipts, but 
listed on this schedule.                                                   claiming exemption from the corporate net income tax, should complete 
                                                                           and file the RCT-101. Such entities should, as appropriate, include the 
SCHEDULE OA AND SCHEDULE OD – OTHER ADDITIONS AND                          REV-986 and/or any statements necessary to properly explain their 
OTHER DEDUCTIONS                                                           position(s) that insufficient activity took place in Pennsylvania to establish 
All taxpayers reporting other additions on RCT-101, Section B, Line 3E,    constitutional nexus. See Page 4 for additional details. 
and other deductions on RCT-101, Section B, Line 2D, are required to       A non-Pennsylvania corporation whose Pennsylvania activities are not 
complete Schedule OA and/or Schedule OD on REV-860, and include it         protected by P.L. 86-272, but whose activities are considered de minimis 
with the RCT-101.                                                          as outlined in Tax Bulletin 2004-01, is not required to file a complete 

www.revenue.pa.gov                                                                                               REV-1200                     19

- 20 -

RCT-101. Instead, such a corporation may file RCT-101D, affirming that 381/382/Merger NOLS/Alternate Apportionment checkbox on Page 1 of
PA activity during that period is de minimis. In filing RCT-101D a the RCT-101, Step B.
corporation is reminded of the following:
1. RCT-101D is not a tax report. For this reason the statute of LINE 2
limitations regarding the assessment of tax does not apply to Amount of Federal Bonus Depreciation claimed in this year – This amount
RCT-101D. is reported on the federal Form 4562 and must be broken out for qualified
2. For a taxpayer to realize any tax benefits from a year the taxpayer property placed in service prior to, and on or after Sept. 28, 2017.
filed RCT-101D, the taxpayer will be required to file a complete
RCT-101 for each year, beginning with the year the benefit is LINE 2A
generated through the year the benefit is to be used.
Property placed in service prior to Sept. 28, 2017 – Include Bonus
In cases where the taxpayer files RCT-101D and later files RCT-101, Depreciation claimed in the current tax year on property placed in service
the taxpayer will be liable for all taxes due for these periods. prior to Sept. 28, 2017.
Applicable interest will also be imposed from the original due date
of the report to the date the taxes are paid. The imposition of late LINE 2B
filing penalties will be based on the filing date of the RCT-101D. Tax
Bulletin 2004-1 is available on the PA Department of Revenue Property placed in service on or after Sept. 28, 2017 – Include Bonus
website at www.revenue.pa.gov. Depreciation claimed on property placed in service on or after Sept. 28,
2017.
REV-1834

SCHEDULE C-8 – ADJUSTMENT FOR BONUS DEPRECATION AND LINE 3
SCHEDULE C-9 – ADJUSTMENT FOR DEDUCTION FOR Current Year Bonus Depreciation Addition – Total of Line 2A plus 2B.
PROPERTY WHICH IS FULLY DEPRECIATED, SOLD OR Carry to Line 3C, Page 2, of RCT-101.
OTHERWISE DISPOSED
In the calculation of corporate net income tax, a taxpayer is required to LINE 4
add back federal bonus depreciation on qualified property claimed under
Additional PA Bonus Depreciation Deduction – This represents recovery
Section 168(k) of the IRC. The department provided additional guidance
in Corporation Tax Bulletin 2018-03 issued July 6, 2018, regarding the of the previously disallowed bonus depreciation over the life of the
add back provisions for qualified property placed in service prior to Sept. qualified property.
28, 2017 and qualified property placed in service on or after Sept. 28,
2017. This bulletin supersedes CT Bulletin 2017-02. A taxpayer must use LINE 4A
REV-1834, Schedule C-8 and Schedule C-9 to determine and report its Property placed in service prior to Sept. 28, 2017 – The additional
bonus depreciation adjustment separately for qualified property placed
deduction is determined by multiplying the excess of current year federal
in service during both periods. This schedule must be completed for each
depreciation reported on the federal Form 4562 for all qualified property
year. REV-1834, Schedule C-8 replaces REV-799, Schedule C-3.
placed in service prior to Sept. 28, 2017, for which bonus depreciation
SCHEDULE C-8 – ADJUSTMENT FOR BONUS DEPRECATION was claimed under IRC Section 168(k), less current year bonus
depreciation deducted on qualified property placed in service prior to
LINE 1
Sept. 28, 2017, times 3/7. In effect, the taxpayer is entitled to an additional
Unused Bonus Depreciation balance from Prior Year – This is the balance deduction of 3/7 of the MACRS depreciation deduction on this property.
from Column I of the last REV-799 filed (in the tax year 2016) or Line 9
carry-forward from the prior year Schedule C-8. LINE 4B

Property placed in service on or after Sept. 28, 2017 – Calculate
LINE 1A
depreciation pursuant to Sections 167 and 168 of the IRC, without regard
Bonus Depreciation Balance from Acquired Corporation Where Acquiring
to Section 168(k) bonus depreciation. See Corporation Tax Bulletin
Corporation Obtains a Carryover Basis in Qualified Property – With
2018-03 and Act 72 of 2018.
respect to corporate transactions where an acquiring corporation obtains
a carryover basis in qualified property, e.g., a tax-free merger under IRC
Section 368(a), liquidation under IRC Section 332, or a corporate LINE 5
formation under IRC Section 351, the acquiring corporation would PA Bonus Depreciation Deduction – Total of Line 4A plus 4B. Carry to
continue to deduct any unrecovered bonus depreciation as if the acquired Line 2C, Page 2, of the RCT-101.
or contributing corporation still owned the qualified property. The acquiring
corporation must provide the date of the transaction, type of transaction LINE 6
(368(a), 332, 351, 381 or 382), Revenue ID and FEIN of the acquired or
contributing corporation and supporting documentation including Articles Deduction for Property Which is Fully Depreciated, Sold or Otherwise
of Merger or Liquidation. Taxpayer also must check the Section Disposed. Include on Line 6A and 6B.

20 REV-1200 www.revenue.pa.gov

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                    LINE 6A                                                                              LINE 1B                      
Property placed in service prior to Sept. 28, 2017 – Total from Line 2,      Total PA Deduction previously claimed on the property – Include additional 
Schedule C-9. For qualified property placed in service prior to Sept. 28,    deductions of previously added back bonus depreciation taken on 
2017, a taxpayer is entitled to deduct any added backed bonus                qualified property either disposed of, or fully depreciated for federal 
depreciation not previously deducted in the earlier of the tax year the      income tax purposes during the taxable year.  
qualified property is sold or otherwise disposed of, or fully depreciated 
for federal income tax purposes.                                                                         LINE 2                       
                                                                             Recovery of Unrecovered Bonus Depreciation – Line 1A minus Line 1B. 
                    LINE 6B
                                                                             Carry to Line 6A of Schedule C-8. 
Property placed in service on or after Sept. 28, 2017 – Total from Line 4, 
Schedule C-9. For qualified property placed in service on or after Sept.                                 LINE 3                       
28, 2017, a taxpayer is permitted to deduct any remaining unrecovered 
                                                                             Property Placed in Service on or after Sept. 28, 2017 – For qualified 
168k “bonus depreciation” previously added back and not previously 
                                                                             property placed in service on or after Sept. 28, 2017 that has been sold, 
deducted in the tax year the qualified property is sold or otherwise 
                                                                             disposed of or fully depreciated for federal income tax purposes; a 
disposed. 
                                                                             taxpayer is entitled to deduct any bonus depreciation on that qualified 
                                                                             property added back to federal taxable income in a prior taxable year to 
                    LINE 7
                                                                             arrive at Pennsylvania taxable income that has not been deducted in a 
Disposition of Property Which is Fully Depreciated, Sold or Otherwise        subsequent taxable year. The deduction should be taken in the tax year 
Disposed – Total of Line 6A plus 6B.                                         that the qualified property is sold or otherwise disposed of, or fully 
                                                                             depreciated for federal income tax purposes.   
                    LINE 8                    
Total PA Bonus Depreciation Deduction – Total of Line 5 plus 7. Carry to                                 LINE 3A                      
Line 2C, Page 2, of the RCT-101.                                             Bonus Depreciation previously added back on the property – Include 
                                                                             bonus depreciation previously added back in determining Pennsylvania 
                    LINE 9                                                   taxable income on qualified property either disposed of during the taxable.   
Remaining Unused Bonus Depreciation Balance Carry-Forward – Line 1 
plus Line 1A plus Line 3 minus Line 8.                                                                   LINE 3B                      
                                                                             Total PA deduction previously claimed on the property (MACRS) – Include 
SCHEDULE C-9 – ADJUSTMENT FOR DEDUCTION FOR 
                                                                             the aggregate prior-year and current year depreciation deductions on sold 
PROPERTY WHICH IS FULLY DEPRECIATED, SOLD OR 
                                                                             or disposed of qualified property that has been previously taken for 
OTHERWISE DISPOSED  
                                                                             corporate net income tax purposes.  
This schedule must be completed for each year. REV-1834, Schedule  
C-9 replaces REV-799, Schedule C-4.                                                                      LINE 4
                                                                                                                                      
                                                                             Recovery of Unrecovered Bonus Depreciation – Line 3A minus 3B. Carry 
                    LINE 1                    
                                                                             to Line 6B of Schedule C-8. 
Property Placed in Service Prior to Sept. 28, 2017 – For qualified property 
placed in service prior to Sept. 28, 2017 that has been sold, disposed of                                REV-1175
or fully depreciated for federal income tax purposes; a taxpayer is entitled                                                          
to deduct any bonus depreciation on that qualified property added back       AMENDED REPORTS – SCHEDULE AR 
to arrive at Pennsylvania taxable income that has not been deducted in       All amended RCT-101s must include REV-1175, Schedule AR, which 
a subsequent taxable year. The deduction should be taken in the earlier      includes a detailed explanation of the reason for filing the amended report 
of the tax year that the qualified property is sold or otherwise disposed    and a summary of the change to the tax liability. In completing the 
of, or fully depreciated for federal income tax purposes.                    Summary of Tax Change, enter the PA corporate net income tax; the tax 
                    LINE 1A                                                  liability currently reflected on the taxpayer’s account; the amended tax 
                                                                             liability; and the amount of change in the tax.
Bonus Depreciation previously added back on the property – Include 
bonus depreciation previously added back in determining Pennsylvania 
taxable income on qualified property either sold or otherwise disposed 
of, or fully depreciated for federal income tax purposes during the taxable 
year.  

www.revenue.pa.gov                                                                                                          REV-1200 21

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APPORTIONMENT, EXEMPTIONS AND ALLOCATION
APPORTIONMENT OF TAXABLE INCOME Dividends and income from U.S. securities and receipts from sales of
Corporate taxpayers with activity in multiple states may be able to securities (unless a securities dealer) must be excluded from both the
apportion taxable income. In order to apportion income, a corporation numerator and denominator of the sales factor.
must be subject to tax in another state.
SPECIAL APPORTIONMENT FRACTIONS
For tax years beginning on or after Jan. 1, 2013, unless the taxpayer is RAILROAD, TRUCK, BUS, AIRLINE OR AIR FREIGHT
required to use a special apportionment method, the apportionment factor FORWARDING COMPANIES
used in the calculation of the PA taxable income will consist only of sales
attributable to PA divided by total sales of the taxpayer. All business income of railroad, truck, bus or airline companies shall be
apportioned to the Commonwealth of Pennsylvania by multiplying the
SALES FACTOR income by a fraction. The numerator is the taxpayer’s total revenue miles
The numerator is the total gross receipts of the taxpayer inside this state within the commonwealth during the taxable period. The denominator is
during the tax period, and the denominator is the total gross receipts of the total revenue miles of the taxpayer everywhere during the taxable
the taxpayer everywhere during the taxable period. Gross receipts are period. A revenue mile means the average receipts derived from the
net of returns and allowances. Sales of tangible personal property are transportation by the taxpayer of persons or property one mile. Where
inside this state if the property is delivered or shipped to a purchaser
revenue miles are derived from the transportation of both persons and
within this state. The partnership’s gross receipts shall be included in the
property, the revenue mile fractions attributable to each such class of
denominator of the taxpayer’s sales factor to the extent of the taxpayer’s
ownership interest in the partnership. The amount of such gross receipts transportation are calculated separately. The average of the two fractions,
attributable to Pennsylvania shall be included in the numerator of the weighted in accordance with the ratio of total receipts from each such
sales factor. These figures should be reflected on the Partner’s Share of class of transportation everywhere to total receipts from both such classes
Sales from Partnerships line of RCT-106. Amounts applicable to an of transportation everywhere, is used in apportioning business income to
ownership interest in an LLC or business trust that is a partnership or the commonwealth.
disregarded entity for federal income tax purposes must be included.
PIPELINE OR NATURAL GAS COMPANIES
CAUTION : This must be numeric with a numerator and a All business income of pipeline companies is apportioned to the
denominator present. If no activity anywhere, the numerator must commonwealth by multiplying the income by a fraction. The numerator is
be “0” and the denominator must be “1”. the revenue ton miles, revenue barrel miles or revenue cubic feet miles
Act 52 of 2013 established the following criteria for determining if receipts of the taxpayer inside the commonwealth during the tax period. The
from other than the sale of tangible personal property are sourced to PA: denominator is the revenue ton miles, revenue barrel miles or revenue
•Sales from the sale, lease, rental or other use of real property, if the cubic feet miles of the taxpayer everywhere during the tax period. A
real property is located in this state. If a single parcel of real property revenue ton mile, revenue barrel mile or revenue cubic feet mile means,
is located both inside and outside this state, the sale is in this state respectively, the receipts derived from the transportation by the taxpayer
based upon the percentage of original cost of the real property of one ton of solid property, one barrel of liquid property or one cubic foot
located in this state. of gaseous property transported one mile. All business income of natural
•Sales from the rental, lease or licensing of tangible personal gas companies subject to regulation by the Federal Power Commission
property, if the customer first obtained possession of the tangible or by the Pennsylvania Public Utility Commission is apportioned to the
personal property in this state. If the tangible personal property is Commonwealth of Pennsylvania by multiplying the income by a fraction.
subsequently taken out of this state, the taxpayer may use a The numerator is the cubic foot capacity of the taxpayer’s pipelines inside
reasonably determined estimate of usage in this state to determine the commonwealth. The denominator is the cubic foot capacity of the
the extent of sale in this state. taxpayer’s pipelines everywhere, at the end of the taxable period.
•Sales from the sale of service, if the service is delivered to a location Determine the cubic foot capacity of a pipeline by multiplying the square
in this state. If the service is delivered both to a location inside and of its radius by its length in feet.
outside this state, the sale is in this state based upon the percentage
of total value of the service delivered to a location in this state. WATER TRANSPORTATION COMPANIES
If the state or states of assignment cannot be determined for a OPERATING ON HIGH SEAS
customer who is an individual who is not a sole proprietor, a service All business income of water transportation companies operating on high
is deemed to be delivered at the customer's billing address. seas is apportioned to the Commonwealth of Pennsylvania by multiplying
the business income by a fraction. The numerator is the number of port
•If the state or states of assignment cannot be determined for a
customer who is a sole proprietor, a service is deemed to be days spent inside the commonwealth. The denominator is the total
delivered at the location from which the services were ordered in the number of port days spent inside and outside the commonwealth. Port
customer's regular course of operations. If the location from which days do not include periods when the ships are not in use because of
the services were ordered in the customer's regular course of strikes or withheld from service for repair or because of seasonal
operations cannot be determined, a service is deemed to be reduction of services. Days in port are calculated by dividing the
delivered at the customer's billing address. aggregate number of hours in all ports by 24.

22 REV-1200 www.revenue.pa.gov

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WATER TRANSPORTATION COMPANIES                                                   2. Net rents and royalties from tangible personal property are allocable 
OPERATING ON INLAND WATERS                                                    to this state to the extent the property is used in this state. The extent 
All business income of water transportation companies operating on            of utilization of tangible personal property in a state is determined 
inland waters is apportioned to the Commonwealth of Pennsylvania by           by multiplying the rents and royalties by a fraction, the numerator of 
multiplying the business income by a fraction. The numerator is the           which is the number of days of physical location of the property in 
taxpayer’s total revenue miles inside the commonwealth during the             the state during the rental or royalty period in the taxable year and 
taxable period. The denominator is the total revenue miles of the taxpayer    the denominator of which is the number of days of physical location 
everywhere during the taxable period. In the determination of revenue         of the property everywhere during all rental or royalty periods in the 
miles, one-half of the mileage of all navigable waterways bordering           taxable year. If the physical location of the property during the rental 
between the commonwealth and another state shall be considered                or royalty period is unknown or unascertainable by the taxpayer, 
commonwealth miles. A revenue mile means the revenue receipts derived         tangible personal property is utilized in the state in which the property 
from the transportation by the taxpayer of persons or property one mile.      was located at the time the rental or royalty payer obtained 
                                                                              possession. 
IMPORTANT: Corporations with two distinct activities like 
warehousing/trucking and distribution/trucking or personal                           Net rents and royalties from tangible personal property are also 
transportation and property transportation  must check the Section            allocated to this state if the commercial domicile of the taxpayer is 
381/382/Merger NOLS/Alternate Apportionment checkbox for timely               in PA and the taxpayer is not organized or subject to tax in the state 
processing.                                                                   where the property is utilized. “Commercial domicile” means the 
                                                                              principal place from which the trade or business of the taxpayer is 
APPORTIONMENT AND INVESTMENTS IN                                              directed or managed 
UNINCORPORATED ENTITIES 
A corporate taxpayer’s investment in an unincorporated entity is                 3. Interest is allocable to this state if the taxpayer’s commercial domicile 
considered a direct ownership in the corporation’s share of the assets of     is in this state. 
the unincorporated entity rather than an intangible interest. When               4. Patents and copyright royalties are allocable to this state if and to 
determining the sales factor, the numerator and the denominator of the        the extent that the patent or copyright is utilized by the payer in this 
factor must include the sales of the corporate taxpayer plus the corporate    state, or if and to the extent that the patent or copyright is utilized by 
taxpayer’s share of the sales of the unincorporated entity. In situations     the payer in a state in which the taxpayer is not taxable and the 
where the corporate taxpayer has an investment in a business not subject      taxpayer’s commercial domicile is in this state. A patent is utilized in 
to the corporate net income tax (i.e. an LLC that files federal Form 1065     a state to the extent that it is employed in production, fabrication, 
with the IRS), the apportionment factor used in the calculation of the PA     manufacturing or other processing in the state or to the extent that 
corporate net income tax will include only the sales of the LLC.              a patented product is produced in the state. If the basis of receipts 
A corporate taxpayer with an investment in a LLC or business trust that       from patent royalties does not permit allocation to states or if the 
files a federal partnership return or is disregarded for federal income tax   accounting procedures do not reflect states of utilization, the patent 
purposes, would include the activity of the investee LLC or business trust    is utilized in the state in which the taxpayer’s commercial domicile 
in the single sales factor apportionment used in the calculation of the       is located. A copyright is utilized in a state to the extent that printing 
corporate net income tax.                                                     or other publication originates in the state. If the ba sis of receipts 
                                                                              from copyright royalties does not permit allocation to states or if the 
NONBUSINESS INCOME                                                            accounting procedures do not reflect states of utilization, the 
TRC § 401(3)2.(a)(1)(A) defines business income as income arising from        copyright is utilized in the state in which the taxpayer’s commercial 
transactions and activity in the regular course of the taxpayer's trade or    domicile is located.  
business and includes income from tangible and intangible property if 
                                                                              IMPORTANT:  T axpayers claiming nonbusiness income must 
either the acquisition, the management or the disposition of the property 
                                                                              include REV-934, Schedule of Nonbusiness Income, when filing 
is an integral part of the taxpayer's regular trade or business operations. 
                                                                              RCT-101. 
The term includes all income apportionable under the U.S Constitution. 
Nonbusiness income means all income other than business income.               IMPORTANT: Nonbusiness income of railroad, truck, bus or airline 
                                                                              companies; pipeline or natural gas companies; and water 
Rents and royalties from real or tangible personal property, gains, interest, 
                                                                              transportation companies operating on high seas or inland waters also is 
patent or copyright royalties, to the extent that they constitute 
                                                                              allocated as noted above. 
nonbusiness income, are allocated as reflected below: 
   1. Net rents and royalties from real property located in this state are 
allocable to this state. 

www.revenue.pa.gov                                                                                      REV-1200 23

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TAX CREDITS
RESTRICTED TAX CREDITS •Historic Preservation Tax Credit
Depending on the type of business, employers may be eligible for tax •Community Based Services Tax Credit
credits offered by the state.
•Neighborhood Assistance Program Tax Credit
For more information on the following tax credits, visit the Department of •Keystone Opportunity Zone (KOZ) Credit
Revenue’s website at www.revenue.pa.gov:
•Keystone Innovation Zone Credit
•Research and Development Tax Credit . . ra-rvpacorprd@pa.gov
•Film Production Tax Credit
•Employment Incentive Payment Credit . . . . . . . . .1-800-345-2555
•Educational Improvement/Opportunity Scholarship Tax Credit
•Organ and Bone Marrow Donor Tax Credit . . . . . . . .717-772-3896
•Jobs Creation Tax Credit
•Mobile Telecommunications Broadband
Investment Tax Credit . . . . . . . . . . . . . . . . . . . . . . . .717-772-3896 •Keystone Special Development Zone Credit
•Coal Refuse Energy and Reclamation Tax Credit . . .717-772-3896 •Research and Development Tax Credit (Sale or assign only)
For more information and sale/assign procedures on the following tax For more information on the following tax credit, visit the Department of
credits, visit the Department of Community & Economic Development’s Agriculture’s website at www.agriculture.pa.gov:
website at www.dced.pa.gov: •Resource Enhancement and Protection Tax Credit

2021 Corporate Net Income Tax

WEIGHTING OF FACTORS NET LOSS PERCENTAGE
TAX PERIOD TAX RATE
BEGINNING SALES PERCENT OF INCOME

2020 9.99% 100 40%

2021 9.99% 100 40%

Correct Method to Reflect No Sales Anywhere

SCHEDULE C-1: Apportionment Schedule For Corporate Net Income Tax (Include Form RCT-106.)

Sales Factor Special Apportionment
Sales - PA 1A 0 1C 00.0000000 Numerator 2A
Sales - Total 1B 1 Denominator 2B

Apportionment 2C
Proportion

24 REV-1200 www.revenue.pa.gov

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