Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
1/27/2023

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.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.