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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
12/27/2024

23VAC10-120-326. Consolidated return; mixed apportionment factors.

A. Three factor required. If a consolidated Virginia return will include corporations that are required to use different apportionment factors, the return shall use a three factor apportionment formula that includes the property, payroll, and sales of all affiliates.

B. Computation. The consolidated property, payroll, and sales factors of the group shall be computed as follows:

1. With respect to a corporation that is required to use a single apportionment factor under §§ 58.1-417, 58.1-418, 58.1-419 or 58.1-420 (single factor affiliate), the group shall:

a. Include in the consolidated property, payroll, and sales factor denominators amounts with respect to the single factor affiliate determined following the normal rules for each factor;

b. Include in the consolidated property factor numerator an amount constructed by multiplying the amount includible in the property factor denominator determined in subdivision a above by the percentage derived from the appropriate factor prescribed for the single factor affiliate;

c. Include in the consolidated payroll factor numerator an amount constructed by multiplying the amount includible in the payroll factor denominator determined in subdivision a above by the percentage derived from the appropriate factor prescribed for the single factor affiliate; and

d. Include in the consolidated sales factor numerator an amount constructed by multiplying the amount includible in the sales factor denominator determined in subdivision a above by the percentage derived from the appropriate factor prescribed for the single factor affiliate.

2. With respect to all affiliates other than single factor affiliates, the group shall determine the property, payroll, and sales to be included in the consolidated numerators and denominators following the normal rules appropriate to each factor.

Statutory Authority

§§ 58.1-203 and 58.1-442 of the Code of Virginia.

Historical Notes

Derived from VR630-3-442 § 7, eff. January 1, 1985; amended, eff. March 10, 1993.

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