General Corporation Tax (GCT)

A tax imposed on domestic and foreign corporations that are engaged in business activities, employ capital, own or lease property, or maintain an office in New York City.

Frequently Asked Questions

How does a corporation obtain an automatic six-month extension?
Are additional extensions possible?
Are corporate general partners in a partnership subject to the GCT?
A corporation is a limited partner in a partnership that does business in the City. The corporation otherwise is not engaged in any business activity in the City. Is this corporation subject to the GCT?
How do I compute my corporation’s issuer’s allocation percentage?
How and where can I obtain the issuer’s allocation percentage?
What are the general requirements for filing on a combined basis?
What do I do if my corporation dissolves?

How does a corporation obtain an automatic six-month extension?
Entities that are subject to the New York City General Corporation Tax (GCT) may obtain an automatic six-month extension by filing Form NYC-6. The automatic extension is granted if:

• The extension form was filed within two and one-half months following the close of the taxable year and
• The tax was properly estimated and paid.

A properly estimated tax must be either 1) not less than 90% of the tax finally determined, or 2) not less than the tax for the preceding taxable year of 12 months.

Are additional extensions possible?
A corporation with a valid six-month automatic extension may request up to two additional three-month extensions by filing a separate Form NYC-6.1 for each additional three-month extension requested. The Department of Finance may grant additional three-month extensions if good cause exists. Corporations that cease to be subject to the General Corporation Tax may obtain a six-month extension before filing a final return on Form NYC-6F. This form must be filed on or before the 15th day after the date of cessation. The extension is valid if the tax is properly estimated and the application is accompanied by a remittance for the amount shown on Line #5 of the form.

Are corporate general partners in a partnership subject to the GCT?
If the partnership does business, employs capital, owns or leases property or maintains an office in New York City, then all of the corporate general partners are subject to the GCT.

A Corporation is a limited partner in a partnership that does business in the City. The corporation otherwise is not engaged in any business activity in the City. Is this corporation subject to the GCT?
Yes. A corporation is doing business in the City and is subject to the GCT if it owns a limited partnership interest in a partnership that is doing business, employing capital, owning or leasing property or maintaining an office in the City. However, if the corporation’s only contact with the City is the ownership of (1) a limited partnership interest in a publicly-traded partnership as defined in Section 7704 of the Internal Revenue Code (IRC) or (2) a limited partnership interest in a portfolio investment partnership as defined in Section 851(b)(2) of the IRC, it will not be considered doing business in the City unless:

• The corporation actively participates in the partnership’s business;
• The corporation effectively controls the partnership;
• Any general partner is effectively controlled by the corporation; or
• The corporation entered into the limited partnership arrangement for the principal purpose of avoiding or evading the payment of tax.

How do I compute my corporation’s issuer’s allocation percentage?
The issuer’s allocation percentage, used to compute subsidiary capital (Form NYC-3L, Schedule C) allocated to New York City and to compute investment capital (Form NYC-3L, Schedule D) allocated to New York City, is the percentage determined on the issuing corporation’s New York City return filed for the preceding year.

The issuer’s allocation percentage represents the amount of capital employed within New York City compared to the total amount of capital employed everywhere. Your corporation’s percentage is determined by adding together allocated New York City business, investment and subsidiary capital and dividing the sum by total capital.

How and where can I obtain the issuer's allocation percentage?
Every corporation using Form NYC-3L must compute an issuer's allocation percentage. If a report for the preceding year is not filed, or if it does not contain information needed for determination of the allocation percentage, then the allocation percentage to be used is, at the discretion of the Commissioner of Finance, either (1) the allocation percentage derived from the most recently filed report or reports of the issuer or obligor or (2) a percentage calculated by the Commissioner of Finance to indicate the issuer's or obligor's degree of economic presence in the city during the preceding year. There is a penalty for not including the information necessary for computing the issuer's allocation percentage.
View Allocation Percentage Reports

What are the general requirements for filing on a combined basis?
A. A group of corporations may be permitted or required (at the discretion of the Department of Finance) to file a combined report when the following requirements are met:

• Substantially all (80 percent or more) of the capital stock of each of the corporations that are to be included in the combined report is owned or controlled, either directly or indirectly, by the reporting corporation; or
• The reporting corporation is owned or controlled, either directly or indirectly, by other corporations that are to be included in the combined return; or
• Both the reporting corporation and the other corporations that are to be included in the combined return are owned or controlled either directly or indirectly, by the same interests.

B. The corporations are engaged in a unitary business; and
C. Reporting on a separate basis would distort the taxpayer’s New York City activities, business, income or capital. [Distortion is presumed to exist if there are substantial inter-corporate transactions among related corporations. Refer to 19 RCNY Sections 11-91(f) and 11-92(a).]

What do I do if my corporation dissolves?
The dissolution process is administered by the New York State Department of State.  For City tax purposes, a corporation that is dissolved no longer exists, and therefore is required to file a "final" General Corporation Tax return, checking the box on the form indicating such, for the year in which the dissolution occurs.

Related Links
 General Corporation Tax (GCT)