X. Other Issues Affecting Combined FilersX1.1. How is the economic development surcharge computed for a combined group?
All corporations engaged in business in Wisconsin are subject to the economic development surcharge. If at least one member of a combined group is conducting unitary business in Wisconsin, all corporations in the group are considered to be doing business in Wisconsin (sec. 71.255(5)(a), Wis. Stats.).
Each corporation in a combined group is considered a separate corporation for purposes of computing the economic development surcharge. Therefore, the $4,000,000 gross receipts threshold, the $25 minimum economic development surcharge, and the $9,800 maximum economic development surcharge must be determined separately for each entity in the combined group.
A Wisconsin combined group is made up of corporations A, B, C and D. The following gross receipts and gross tax liabilities are reported:
|Corporation||Gross Receipts||Gross Tax|
Corporation A's gross receipts are greater than $4,000,000; therefore, the economic development surcharge must be calculated. The minimum economic development surcharge is 3% of the tax or $25, whichever is greater. Since 3% of the tax is $0, the economic development surcharge is $25.
Corporation B's gross receipts are greater than $4,000,000; therefore, the economic development surcharge must be calculated. The maximum economic development surcharge is 3% of the tax but not more than $9,800. Since 3% of the tax is $9,900, the economic development surcharge is $9,800.
Corporations C and D are not subject to a economic development surcharge because their gross receipts are less than $4,000,000.
The economic development surcharge for the Wisconsin combined group is $9,825, which is the sum of the individual corporations' economic development surcharges of $25, $9,800, $0 and $0.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Phone: (608) 266-1143
Email additional questions to DORCombinedReporting@revenue.wi.gov
December 16, 2014
Updates were made to the code or formatting on this page as of December 16, 2014. This date does not reflect the effective date or any other date relating to the content of this page.