Corporate Income Tax Highlights

2017 HIGHLIGHTS

Tax Rate Changes

The corporate income tax rate is reduced to:

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

 
Apportionment Changes

Legislative changes effective for tax year 2017:

• 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.​