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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 1½% 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.

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