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General Corporation Tax (GCT)

Effective for tax years beginning on or after January 1, 2015, the general corporation tax (GCT) only applies to subchapter S corporations and qualified subchapter S subsidiaries under the U.S. Internal Revenue Code. These corporations will continue to file GCT tax returns in tax years beginning on or after January 1, 2015, if they are otherwise taxable under the GCT. The applicable forms have not changed. All other corporations are now subject to tax under the business corporation tax and will file business corporation tax returns instead of GCT returns. For more information, see the Business Corporation Tax page.

Who must pay the general corporation tax?

All domestic and foreign S corporations and qualified S subsidiaries in New York City that are:

  • Doing business;
  • Employing capital;
  • Owning or leasing property, in a corporate or organized capacity; or
  • Maintaining an office.

Please note that New York City does not have an S corporation election and does not recognize a New York State S corporation election. In general, federal subchapter S corporations and qualified subchapter S subsidiaries are subject to the GCT.

If a corporation is not subject to the tax, but it has an officer, employee, agent or other representative within the five boroughs, it must nevertheless file Form NYC-245, Activities Report of Business and General Corporations.

Who is exempt from the general corporation tax?

The instructions to Forms NYC-3L and NYC-4S explain in detail which types of S corporations are exempt from the general corporation tax, including:

  • Dormant S corporations, which did not engage in any business activity or hold title to real property located in New York City
  • S corporations subject to tax under the banking corporation tax
  • S corporations subject to the utility tax, except vendors of utility services which are subject to the GCT
  • S corporations organized to hold title to property as described in sections 501(c)(2) or (25) of the Internal Revenue Code
  • Insurance corporations
  • Non-stock non-for-profit companies that are granted an exemption by the New York City Department of Finance
  • Limited-profit housing and housing development fund companies organized and operating under articles 2 and 11, respectively, of the Private Housing Finance Law

Forms and Reports

Forms

Tax Credits

Biotechnology Tax Credit
The biotechnology tax credit is not available for tax years beginning on or after January 1, 2019.

Frequently Asked Questions

Automatic Extension
Businesses that are subject to GCT may get an automatic six-month extension by filing Form  NYC-EXT.  This extension is given only if the extension form is filed before the original due date for the return and the tax was estimated correctly and paid. The application will be denied if the estimated amount of tax is not correct or if it is not paid before the original due date.

Additional Extensions
A business with a valid six-month extension may request up to two additional 3-month extensions by filing Form NYC-EXT.1. A separate form must be filed for each 3-month extension requested.

Estimated Tax
If the corporation can reasonably expect its tax to exceed $1,000 for the taxable year, it must file Form NYC-400 (Declaration of Estimated Tax) and pay the estimated tax. Estimated tax can also be paid in installments. A payment of 25% of the tax liability for the preceding year is required as the first installment of estimated tax for the current year.

Estimated tax must be either:

  1. Not less than 90% of the tax that is finally determined, or
  2. Not less than the tax for the previous taxable year.

Tax Rates

Filing Deadlines

  • Annual returns and tax payments must be postmarked by March 15 of the following year, if the corporation chooses an accounting period that is based on the calendar year.
  • A corporation that uses an accounting period other than the calendar year (e.g., a fiscal year) must file a return on the 15 day of the third month after the close of its fiscal year.

If a due date falls on a weekend or a legal holiday, the filing must be made by the next business day.

Dissolution Requirement
Under Section 1004 of the Business Corporation Law, as of October 1, 2009, Tax Clearance must be obtained from Department of Finance when dissolving corporations that have done business in and incurred tax liability to the City of New York.  You must complete the Request For Dissolution and mail to Department of Finance.  Department of Finance will send a Dissolution Consent to the address provided on the Request. The Dissolution Consent must be attached to Certificates of Dissolution that are filed with the New York State Secretary of State.

If you are not an officer of the corporation, and are filing a Request for Dissolution on behalf of a corporation, you will need to obtain and submit a signed and dated Power of Attorney with your request.

Legal Authority
Title 11, Chapter 6 (Subchapter 2) Administrative Code Enabling Act: Chapter 772 of the Laws of 1966

Additional Information

Business Corporation Tax