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27-Jul-2020 18:20

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Federally, S-Corporations are treated as partnerships and S-Corporation shareholders report their proportionate share of the corporation’s earnings.

Certain small corporations are exempt from corporate income tax.

The Alaska percentage or “apportionment factor” is an average of three factors inside and outside the state: property, payroll and sales.

When a corporation is part of a group of corporations that operates as a unit to conduct a business, the taxpayer must apportion to Alaska a percentage of the combined incomes of all of the corporations in the “unitary” or “combined” group. Oil and gas companies combine on a worldwide basis.

For unitary groups that are not oil and gas companies, Alaska adopts “water’s edge combination.” The combined group generally includes only those corporations with significant U. Also, oil companies use a “modified” apportionment formula of property, sales and extraction.

The extraction factor is the production of oil and gas in Alaska divided by production everywhere.

For a corporation doing business only in Alaska, its taxable income is federal taxable income with certain Alaska modifications.

A corporation that does business both inside and outside Alaska apportions a percentage of the corporation’s total income to Alaska using a formula.

Manufacturers and distributors file monthly reports. Third-party vendors were brought under statutory control, which allows permittees to contract with them directly to sell pull-tabs and the department was authorized to issue Multiple-Beneficiary Permits (MBP).The Legislature made a change relating to games of chance and contests of skill to allow the department to issue permits for bull moose derbies.