Note: An extension payment must include any applicable Professional Corporation (PC) fees and/or installment payments. See the online application for more information.
- Interest – The interest rate assessed on outstanding tax balances is Prime Rate plus 3%. For information on how it is calculated or to find the rate, visit www.nj.gov/treasury/taxation/interest.shtml.
- Insufficiency Penalty – If the amount paid with the Tentative Return, Form CBT-200-T, is less than 90% of the tax liability computed on Form CBT-100S, or in the case of a taxpayer whose preceding return covered a full 12-month period, is less than the amount of the tax computed at the rates applicable to the current accounting year but on the basis of the facts shown and the law applicable to the preceding accounting year, the taxpayer may be liable for a penalty of 5% per month or fraction thereof not to exceed 25% of the amount of underpayment from the original due date to the date of actual payment.
The return must be completed using the same method of accounting, cash, accrual or other, that was employed in the taxpayer’s federal income tax return.
If space is insufficient, include riders in the same form as the original printed sheets. The riders must be numbered and clearly list the schedule(s) and line(s) of each corresponding rider item.
- For taxpayers with total entire net income that is not subject to federal income taxation or such portion thereof as may be allocable to New Jersey, there shall be no rate of tax imposed. See instruction 11(d) for minimum tax requirements.
- The tax rate is 9.00% (.09) of entire net income that is subject to federal income taxation or such portion thereof as may be allocable to New Jersey. For taxpayers with total entire net income (Schedule A, Part II, line 5) plus nonoperational income with New Jersey Nexus, (Schedule O, Part III, line 31), greater than $50,000 and less than or equal to $100,000, the applicable tax rate for entire net income that is subject to federal corporate taxation is 7.50% (.075). Tax periods of less than 12 months qualify for this reduced rate if the prorated amount of entire net income (Schedule A, Part II, line 5) plus nonoperational income with New Jersey Nexus (Schedule O, Part III, line 31) does not exceed $8,333 per month. For taxpayers with total entire net income (Schedule A, Part II, line 5 plus nonoperational income with New Jersey Nexus (Schedule O, Part III, Line 31) of $50,000 or less, the tax rate for entire net income that is subject to federal corporate taxation is 6.5% (.065). Tax periods of less than 12 months qualify for the 6.5% rate if the prorated amount of entire net income (Schedule A, Part II, line 5) plus nonoperational income with New Jersey Nexus (Schedule O, Part III, line 31) does not exceed $4,166 per month.
- The tax rate on net pro rata share of S corporation income allocated to New Jersey for nonconsenting shareholders is 10.75% (.1075).
NOTE:The S corporation is not permitted to make payments on behalf of consenting shareholders. Any payments made on behalf of consenting shareholders will be disallowed by the Division. The S corporation will be required to file a refund claim for any payments made on behalf of consenting shareholders. - MINIMUM TAX: The minimum tax is assessed based on the New Jersey Gross Receipts (Schedule A-GR) as follows:
| New Jersey Gross Receipts | Minimum Tax |
|---|---|
| Less than $100,000 | $375 |
| $100,000 or more but less than $250,000 | $562 |
| $250,000 or more but less than $500,000 | $750 |
| $500,000 or more but less than $1,000,000 | $1,125 |
| $1,000,000 or more | $1,500 |
- Every corporation that has elected and qualifies pursuant to Section 1361 of the Internal Revenue Code and has qualified and been accepted as a New Jersey S corporation is required to file a CBT-100S.
- Foreign corporations that meet the filing requirements and whose income is immune from tax pursuant to Public Law 86-272, 15 U.S.C. § 381 et seq., must complete Schedule N, Nexus – Immune Activity Declaration, and all schedules from the CBT-100S. In addition, taxpayers must include a copy of the Nexus Questionnaire. Remit the minimum tax with the CBT-100S. Refer to instruction 30.
- Any corporation that is treated as a Qualified Subchapter S Subsidiary for federal purposes is eligible to be a New Jersey Qualified Subchapter S Subsidiary. Every corporation that has qualified and has been accepted as a New Jersey Qualified Subchapter S Subsidiary is required to file a New Jersey Corporation Business Tax return remitting only the minimum tax liability. New Jersey may recognize a Qualified Subchapter S Subsidiary (QSSS) as a New Jersey QSSS under the following conditions:
- Both the QSSS and parent Subchapter S must be registered to do business in New Jersey
- The QSSS and the parent submit a copy of the federal Form 8869 and complete the New Jersey Form CBT-2553. Form CBT-2553 must be signed by a corporate officer in which the corporate parent shareholder consents to taxation by New Jersey.
- Both the QSSS and parent corporation are recognized as such federally.
In the event that the election request is approved, the QSSS making the election is obligated to file a CBT-100S minimum return annually. The Corporation Business Tax return of the New Jersey QSSS will reflect “zero” income and the minimum tax based on the minimum tax scale below, unless the aggregate payroll of the group exceeds $5 million which requires a minimum tax of $2,000 for all entities of the controlled group. Total payroll refers to the total payroll of the controlled group rather than total New Jersey payroll of a single corporation. A New Jersey QSSS is required to file annually a CBT-100S minimum tax return, which will only include page 1, the Annual General Questionnaire, and when applicable Schedule PC.
The parent is now obligated to report all assets, liabilities, income, and expenses of the QSSS on consolidated basis on its CBT-100S, CBT-100, or BFC-1 return.
Failure to meet the above conditions will result in the QSSS being taxed as a C Corporation on a separate entity basis. Refer to the table in instruction 11(d) for the minimum tax rate schedule.
Each return must be signed by an officer of the corporation who is authorized to attest to the truth of the statements contained therein. The fact that an individual’s name is signed on the return shall be prima facie evidence that such individual is authorized to sign the return on behalf of the corporation. Tax preparers who fail to sign the return or provide their assigned tax identification number shall be liable for a $25 penalty for each such failure. If the tax preparer is not self-employed, the name of the tax preparer’s employer and the employer’s tax identification number should also be provided. In the case of a corporation in liquidation or in the hands of a receiver or trustee, certification shall be made by the person responsible for the conduct of the affairs of such corporation.
Any change or correction made by the Internal Revenue Service must be reported to the Division within (90) days. Amended NJ-K-1s must be provided to the appropriate shareholders. Refer to instruction 43 for additional information. FEDERAL/STATE TAX AGREEMENTThe New Jersey Division of Taxation and the Internal Revenue Service participate in a federal/ State program for the mutual exchange of tax information to verify the accuracy and consistency of information reported on federal and New Jersey tax returns
Part I All taxpayers must answer all questions on this schedule. If necessary, include a rider detailing the information requested in the questions.
- GENERALPart I
- If the corporation has filed a federal income tax return on its own separate basis, the figures shown at Part I, lines 1 to 21 must be the same as lines 1 to 21 on page 1 of the federal income tax return, Form 1120S.
- If the corporation has not filed a separate federal income tax return, or if the figures shown at Part I, lines 1 to 21 are not the same as lines 1 to 21 on page 1 of the federal income tax return, the taxpayer must explain and reconcile the differences on a rider.
- Combined Reporting – New Jersey enacted mandatory combined reporting for unitary businesses for tax years ending on and after July 31, 2019. Groups of companies that have common ownership and are engaged in a unitary business, where at least one member of the group is subject to the New Jersey Corporation Business Tax, are required to calculate their tax liability on a combined basis on Form CBT-100U, Combined Corporation Business Tax Return. A New Jersey S Corporation is not included as a member of a combined group unless the New Jersey S Corporation affirmatively elects to be included as a member of the combined group on the CBT-100U. NOTE: The law change did not impact the treatment of parent New Jersey S Corporations and New Jersey Qualified Subchapter S Subsidiaries. The parent of New Jersey Qualified Subchapter S Subsidiary(ies) must include the figures from itself and all the New Jersey QSSSs.
- Line 31 – Must reflect entire net income in the same manner and to the same extent as if no federal income tax S or New Jersey S election had been made.
- A copy of the federal Form 1120S, including Schedule K, must be submitted with the CBT-100S.
The amounts reported on this schedule must be the same as the amounts reported on the taxpayer’s federal income tax return or federal pro forma.
This schedule must be completed if any tax credits are being claimed for the current tax period. Any tax credit(s) claimed on this schedule must be documented with a valid New Jersey Corporation. Business Tax credit form and must be included with the tax return. See page 13 for a list of available credit forms and for instructions on obtaining them. If the taxpayer is claiming a valid tax credit that is allowable in accordance with the New Jersey Corporation Business Tax Act for which a place has not been provided somewhere else on the schedule, report the amount on line 23 of Schedule A-3.
Part I – Tax Credits Used Against Liability The total on line 24 must equal the amount reported on page 1, line 3. Amounts to be entered are calculated on the credit forms. See the specific New Jersey Corporation Business Tax credit form for information about each credit.
NOTE: Most tax credits cannot reduce the tax liability below the minimum tax. However, there are rare instances where it can. Follow the instructions on the credit form regarding how and where to record the information to ensure the credit is properly offsetting the tax liability. Part II – Refundable Tax Credits If the credit form calculates an amount to be refunded, enter the refundable portion on the appropriate line. The total on line 5 must equal the amount reported on page 1, line 8c.Every corporation must complete this schedule. Report the information on each line of Schedule A-4 from the return schedules indicated. All lines must be completed. Non-allocating taxpayers must enter 1.000000 on line 6.
Subtract line 3 from line 2 on page 1. If the resulting tax liability is less than $2,000, complete this schedule. Enter the greater of the computed tax liability or the amount on Schedule A-GR, line 7, on page 1, line 4. If the taxpayer is part of an affiliated group whose total payroll is $5,000,000 or more, the minimum tax is $2,000 regardless of the amount of the taxpayer’s New Jersey gross receipts, and Schedule A-GR need not be completed.
Every taxpayer must complete this schedule. The amounts reported must be the same as the year-end figures shown on the taxpayer’s books. Where applicable, data must match amounts reported on Schedule L of the federal pro forma or federal return. If not, explain and reconcile on rider.
Every corporation must complete this schedule. If the taxpayer files federal Schedule M-3, New Jersey Schedule C must still be filed, and a copy of federal Schedule M-3 must be included with the taxpayer’s New Jersey CBT-100S return. If taxpayer is part of a consolidated filing, but is filing a separate return in New Jersey, then the federal Schedule M-3 must be on a separate entity basis.
All applicable information should be provided for each corporate officer regardless of whether or not compensation was received. The data reported on Schedule F must match what is reported on federal Form 1125-E.
Interest paid, accrued, or incurred to related members that was deducted in computing taxable net income on Schedule A, Part II, line 5 must be reported on Schedule G, Part I. Enter the total of such interest expense on Schedule A, Part I, line 37c. Do not include interest expenses and costs that were deducted directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange, or disposition of intangible property in Part I. These expenses and costs are, however, required to be included in Part II. NOTE:For tax years beginning on or after January 1, 2018, the treaty exceptions have been limited pursuant to P.L. 2018, c. 48.
Interest expenses and costs and intangible expenses and costs directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with one or more related members that were deducted in computing taxable net income on Schedule A, Part II, line 5 must be reported on Schedule G, Part II. Enter the total of such intangible expenses and costs on line 37(d) of Schedule A. Exceptions: If the taxpayer is claiming an exception to the disallowance of the expense reported in Part I or Part II, the taxpayer must complete and include Schedule G-2. For information on obtaining this schedule, see the index on page 13. Definitions: Related member means a person that, with respect to the taxpayer during all or any portion of the tax year is (1) a related entity, (2) a component member as defined in subsection (b) of section 1563, of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1563, (3) a person to or from whom there is attribution of stock ownership in accordance with subsection (e) of section 1563 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1563 or (4) a person that, notwithstanding its form of organization, bears the same relationship to the taxpayer as a person described in (1) through (3) of this definition. Related entity means (1) a stockholder who is an individual or a member of the stockholder’s family enumerated in section 318 of the federal Internal Revenue Code of 1986 26 U.S.C. s.318, if the stockholder and the members of the stockholder’s family own, directly, indirectly, beneficially or constructively, in the aggregate, at least 50% of the value of the taxpayer’s outstanding stock; (2) a stockholder, or a stockholder’s partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder’s partnerships, limited liability companies, estates, trusts and corporations own directly, indirectly, beneficially or constructively, in the aggregate, at least 50% of the value of the taxpayer’s outstanding stock; or (3) a corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of the federal Internal Revenue Code of 1986, 26 U.S.C. s.318, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least 50% of the value of the corporation’s outstanding stock. The attribution rules of the federal Internal Revenue Code of 1986, 26 U.S.C. s.318, shall apply for purposes of determining whether the ownership requirements of this definition have been met. Intangible expenses and costs includes (1) expenses, losses, and costs, for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income before operating loss deduction and special deductions for the tax year under the federal Internal Revenue Code of 1986, 26 U.S.C. s.1 et seq., (2) losses related to, or incurred in connection directly or indirectly with factoring transactions or discounting transactions, (3) royalty, patent, technical, and copyright fees, (4) licensing fees, and (5) other similar expenses and costs. Intangible Property means patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets. Intangible Interest Expenses and Costs means amounts directly or indirectly allowed as deductions under section 163 of the federal Internal Revenue Code of 1986 26 U.S.C. s.163, for purposes of determining taxable income under the code to the extent such expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange, or disposition of intangible property.
Itemize all taxes that were in any way deducted in arriving at taxable net income, whether reflected in Schedule A, Part I at line 2 (Cost of goods sold and/or operations), line 12 (Taxes), line 19 (Other deductions), or anywhere else on Schedule A. Also refer to instruction 15(e).
