Utah Code 59-7-401. Determining threshold level of business activity for corporations organized or incorporated outside of the United States
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(1) Except as provided in Subsection (2) , in determining whether a corporation is a foreign operating company or has met the threshold level of business activity, business activity within and without the United States shall be measured by means of the factors ordinarily applicable under Sections 59-7-312 through 59-7-319 .
Terms Used In Utah Code 59-7-401
- Business income: means the same as that term is defined in Section 59-7-302. See Utah Code 59-7-101
- Foreign operating company: means a corporation that:(19)(a)(i) is incorporated in the United States;(19)(a)(ii) conducts at least 80% of the corporation's business activity, as determined under Section 59-7-401, outside the United States; and(19)(a)(iii) as calculated in accordance with Part 3, Allocation and Apportionment of Income - Utah UDITPA Provisions, has:(19)(a)(iii)(A) at least $1,000,000 of payroll located outside the United States; and(19)(a)(iii)(B) at least $2,000,000 of property located outside the United States. See Utah Code 59-7-101
- Income: includes losses. See Utah Code 59-7-101
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Taxpayer: means any corporation subject to the tax imposed by this chapter. See Utah Code 59-7-101
- Threshold level of business activity: means business activity in the United States equal to or greater than 20% of the corporation's total business activity as determined under Section 59-7-401. See Utah Code 59-7-101
- United States: includes the 50 states and the District of Columbia. See Utah Code 59-7-101
(2)(2)(a) Any taxpayer who would ordinarily be required to apportion business income in accordance withPart 3, Allocation and Apportionment of Income – Utah UDITPA Provisions , shall use a two-factor formula of property and payroll.(2)(b) The results of the property and payroll factor computation shall be divided by two, or by one if either the property or payroll factor has a denominator of zero.