Does the bank franchise tax return include apportionment?
The bank franchise tax on most banking organizations and trust companies is assessed on only 56% of net operating income before taxes, less applicable deductions. Several deductions are available for income attributable to subsidiaries or out-of-state or foreign branches that is otherwise subject to tax in Delaware or another state. Other deductions are available for foreign source income. Special provisions apply to out-of-state banks with branches in Delaware. Delaware law does not provide for an apportionment formula, such as one based on a sales factor, to determine the proportion of a taxpayer´s income that is subject to the bank franchise tax.
