CA Governor’s Office of Business and Economic Development reminds businesses about upcoming August 21st deadline for applications for California Competes Tax Credit.
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.
Tax credit agreements are negotiated by Governor’s Office of Business and Economic Development (GO-Biz) and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
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If a foreign contractor/vendor (payee) claims that payments are made for income that is effectively connected with a US trade or business, you are required to obtain from him a Form W-8ECI, Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States, which effectively exempts him from tax withholding as he is to file his own US tax return. In this case, you are not responsible for withholding US tax from your payments to this foreign contractor/vendor. You need Form W-8ECI in order to…
Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, is requested from a foreign payee by a U.S. payer to:Establish the payee’s foreign status; Claim that such person is the beneficial owner of the income for which the form is being furnished, and; If applicable, claim a reduced rate of, or exemption from withholding under an income tax treaty. This form is used for the following types of payments:
Interest; Dividends; Rents; Royalties; Premiums; Annuities; Compensation for, or in expectation of, services performed (but not for independent personal services performed in the US – use Form 8233 instead); Other fixed or determinable annual or periodical gains (also referred to as FDAP). It is one of the most…
Never a dull moment with California tax rules. Only a little more than a year ago California adopted a rule allowing multi-state businesses to choose between a single sales and a three-factor apportionment method to determine their state tax liability. It actually made California a bit more business friendly for once, but not for long. Statewide Proposition 39 simplified the choice for businesses by making the single sales factor method mandatory effective January 1, 2013…
Good news for California taxpayers – for taxable years beginning on or after January 1, 2012, California has reinstated the Net Operating Loss (NOL) deduction and the NOL carryover deduction. There is no longer a limitation on the taxpayer’s taxable income for which NOL is available…
How often does your auditor or tax advisor throw out terms like “ DTA” or “DTL” expecting you to understand instantly what he or she is talking about? These are the terms that your professional advisor uses every day, but they are not as commonly known outside of the accounting world. So what are a DTA and a DTL and why do you need to know about them?…