How is the net worth tax determined for an initial or final return?
• The Initial Net Worth tax return is due the 15th day of the third month after incorporation or qualification. The net worth reported on this return is as of the date of incorporation or qualification. No income tax information is reported on the Initial Net Worth return. The net worth tax paid on this return covers the period beginning with the date of incorporation or qualification and ending with the end of the first income tax year. If this period is less than 6 months, only the tax as shown in the net worth tax table is due. The second return that is required to be filed is used to report income tax for the period beginning with the date of incorporation or qualification and ending with the corporation’s chosen year end and to report net worth tax for the next full year. This return is due on the 15th day of the third month after the end of the income tax year. A full year’s net worth tax is always due with this first income tax return. The following example illustrates this.
