Income/Franchise:
Virginia: New Law Permits Certain Retail Company Affiliates to Use Single Sales Factor Apportionment
H.B. 1978 / S.B. 1346, signed by gov. 3/17/23. Effective July 1, 2023, and applicable for taxable years beginning on or after January 1, 2023, new law permits certain affiliated corporations that file on a consolidated basis in Virginia to elect to apportion the taxable income of all members of such affiliated group using a single sales factor – even if one or more members of such affiliated group would be required to use different apportionment factors under state law if separate returns were filed. This single sales factor election would be valid only with respect to taxable years in which 80% or more of the sales of such affiliated group after consolidation and eliminations is derived from activities of a “retail company.” Moreover, once made, this single sales factor apportionment election may not be changed without permission from the Virginia Department of Taxation. Please contact us with any questions or comments.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
