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Corporate Income Tax

Frequently Asked Questions





Sections:
  • Corporate Income Tax FAQs



  • Corporate Income Tax FAQs

    What entities must file and/or pay tax?
    How does Alaska treat S-corporations?
    Does Alaska adopt the federal check the box regulations for limited liability companies?
    What are the filing requirements and tax liabilities for an exempt corporation?
    What is the due date for filing? Do federal extensions apply?
    What is the due date for payment?
    What penalties apply to late payment?
    How does Alaska tax corporations doing business within and without Alaska?
    How does Alaska tax corporations that are members of an affiliated group doing business within and without Alaska?
    Where can I find information about collections, tax rates, and other information about Corporate Income Tax in Alaska?
    Does Alaska follow the IRS guidelines on extended due dates for disaster relief victims?


  • What entities must file and/or pay tax?

  • All corporations doing business in Alaska must file a tax return. The taxable status of a corporation follows the federal treatment of the corporation as explained below.

  • How does Alaska treat S-corporations?

  • Alaska follows the federal treatment of S-Corporations and does not impose tax on pass through income. Alaska tax does apply to corporate level items such as excess net passive income and tax on built-in gains. See the S-Corporation section of the Corporate Income Tax Return Instructions for more information.

  • Does Alaska adopt the federal check the box regulations for limited liability companies?

  • Yes.

  • What are the filing requirements and tax liabilities for an exempt corporation?

  • Exempt corporations that have unrelated business income must file an Alaska return and pay Alaska tax. The corporation must include a copy of the applicable federal form (990-T, 1120-POL, etc.). See the Exempt Organization section of the Corporate Income Tax Return Instructions for more information.

  • What is the due date for filing? Do federal extensions apply?

  • Alaska returns are due within 30 days of the federal due date. A federal extension automatically extends the Alaska due date to 30 days after the federal extended due date. An extension of time to file is not an extension of time to pay.

  • What is the due date for payment?

  • Full payment of the Alaska tax is due on or before the 15th day of fourth month after the close of the tax year.

  • What penalties apply to late payment?

  • AS 43.05.220(a) imposes a penalty of 5% of the underpayment for each 30-day period or fraction of the period, to a maximum of 25%. Taxpayers relying on extensions are cautioned to insure that adequate tax payments have been made.

  • How does Alaska tax corporations doing business within and without Alaska?

  • Multistate taxpayers must apportion their income by the standard apportionment formula set out in AS 43.19 (property, payroll and sales), or, if engaged in oil and gas activities, by the modified formulas set out in AS 43.20.072.

  • How does Alaska tax corporations that are members of an affiliated group doing business within and without Alaska?

  • Alaska requires these corporations to use the combined method of reporting. Taxpayers that are not engaged in oil and gas activity in Alaska must use the water's edge combined reporting method. Corporations that produce oil or gas in Alaska, or that transport oil and gas by pipeline must use the worldwide combined reporting method. For more information see the Guide to Returns Based on Combined Report.

  • Where can I find information about collections, tax rates, and other information about Corporate Income Tax in Alaska?

  • The Tax Division's Annual Report contains statistical information about the Corporate Income Tax program. AS 43.05.230 prohibits the disclosure of tax information about any particular corporation.

  • Does Alaska follow the IRS guidelines on extended due dates for disaster relief victims?

  • Yes

    • Return Due Dates: For return deadlines falling on or after Aug. 23, 2017 (Harvey) or Sept. 4, 2017 (Irma) and before Jan. 31, 2018, the federal due date is extended to Jan. 31, 2018. The Alaska return is due 30 days after the federal return, meaning March 2, 2018.

    • Estimated Payment Due Dates: For estimated payments due on or after Aug. 23, 2017 (Harvey) or Sept. 4, 2017 (Irma) and before Jan. 31, 2018, the federal due date is extended to Jan. 31, 2018. We follow the federal estimated payment dates, so any estimated payments due during that timeframe have an extended due date of Jan. 31, 2018.