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Department of Finance: Division of Revenue

FILING CORPORATE INCOME TAX

Delaware Corporations:

Who do NOT Conduct Business in Delaware are not required to file a Delaware Corporate Income Tax Return, regardless if incorporated under the laws of Delaware.

Who DO Conduct Business in Delaware:

Are required to file a Corporate Income Tax Return (regardless of the amount, if any, of gross or taxable income) using Delaware Corporate Income Tax Return Form 1100 or Delaware S-Corporation Reconciliation and Shareholders Return Form 1100S.

The Delaware Division of Revenue offers multiple options for filing your business taxes and/or paying your business taxes. Please keep the following in mind:

  1. Corporate Income Tax Rate:
    8.7% of federal taxable income allocated and apportioned to Delaware based on an equally weighted three-factor method of apportionment. The factors are property, wages and sales in Delaware as a ratio of property, wages and sales everywhere.

  2. Consolidated Corporate Income Tax Returns:
    Not Permitted. Each member of a consolidated group must file a separate return, reporting income and deductions as if a separate Federal Income Tax Return was filed.

  3. Estimated Tax Liability:
    To be prepaid by every corporation in four installments: 50% (due on or before the first day of the fourth month of the taxable year) 20% (due on or before the 15th day of the sixth month of the taxable year) 20% (due on or before the 15th day of the ninth month of the taxable year) 10% (due on or before the 15th day of the 12th month of the taxable year).

  4. Penalties:
    a. A penalty of 1% per month is imposed on the failure to pay, timely pay or underpay any estimated tax installments.

    b. Late Returns are subject to a penalty of 5% per month, up to a maximum of 50% of the tax due plus interest of 1% per month from the original due date until the tax is paid. In addition, an additional penalty of 1/2% per month, not to exceed 25%, is imposed for failure to pay (in whole or in part) the tax liability due on a timely filed return.

Last Updated: Wednesday, 21-Feb-2007 11:17:14 EST
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