Corporate Income Tax Highlights

2018 HIGHLIGHTS

 

Tax Rate Changes

The corporate income tax rate remains:

  • 4.9% for taxable years beginning from and after December 31, 2016

 
Apportionment Changes

  • All non-air carrier taxpayers may select an apportionment ratio where the sales factor is weighted at 100% and the property and payroll factors are not included in the calculation.
  • A multistate service provider may make a binding election to determine Arizona sales of services for purposes of the sales factor using a calculation based on 100% of the market sales. See Schedule MSP and the related instructions for more information including a definition of “multistate service provider”.

 
Inclusion of federal return with Arizona return

The department no longer requests that you include a copy of your federal return with your Arizona return.​

 

Electronic Funds Transfer

Corporations whose 2018 tax liability was $20,000 or more, or who expect a 2019 tax liability of $10,000 or more, must make tax payments by electronic funds transfer (EFT). Corporations required to make tax payments by EFT must complete the department’s EFT authorization agreement at least 30 days prior to their first transaction. Go to AZTaxes.gov to register. Click “Enroll to File and Pay Online.”

NOTE: Corporations required to make tax payments via EFT that fail to do so are subject to a penalty of 5% of the amount of the payment not made by EFT. See Arizona Revised Statutes (A.R.S.) § 42-1125(O). For additional information on electronic funds transfer, refer to A.R.S. § 42-1129 and the related Arizona Administrative Code rules (A.A.C. R15-10-301 through R15-10-307) for detailed information.

 

Corporations whose 2018 tax liability was less than $20,000, or who expect a 2019 tax liability of less than $10,000, may elect to participate in EFT.