The Official Website of the Louisiana Department of Revenue
All corporations and entities taxed as corporations for federal income tax purposes deriving income from Louisiana sources, whether or not they have any net income, must file an income tax return. Corporations that obtain a ruling of exemption from the Internal Revenue Service must submit a copy of the ruling to the Department to obtain an exemption.
To determine if your corporation is liable for corporation income tax, complete Form R-4310, the Questionnaire To Assist in Determining Liability For Corporation Income Tax Or Corporation Franchise Tax.
Corporations will pay tax on net income computed at the following rates:
Returns and payments are due on or before the 15th day of the fourth month following the close of an accounting period (April 15 for a calendar year).
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Any corporation meeting any of the following provisions, unless specifically exempted under the provisions of R.S. 47:608, must file a Louisiana corporation franchise tax return:
To determine if your corporation is liable for corporation franchise tax, complete Form R-4310, the Questionnaire To Assist in Determining Liability For Corporation Income Tax Or Corporation Franchise Tax.
$1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana, and $3 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana. The initial corporation franchise tax is $10. For information concerning capital employed in Louisiana and computation of the tax, see the instructions for Forms ICFT-620 and 620A.
Initial return: An initial return covering the period beginning with the date the corporation first becomes liable for filing a return and ending with the next close of an accounting period must be filed on or before the 15th day of the third month after the corporation first becomes liable.
Annual return:Louisiana corporation franchise tax accrues on the first day of each accounting year, and the return for that period must be filed on or before the 15th day of the fourth month of that accounting year.
R.S. 47:287.654 requires that corporations pay estimated income tax if the corporation’s income tax less any credits for the taxable year can reasonably be expected to be $1,000 or more. If the corporation is required to pay estimated income tax, the percentage of the estimated tax must be paid on the 15th day of the following months based on the period in which the estimated tax payment requirement was met:
If, after paying any installment of estimated tax, the taxpayer determines that a new estimate is required, the payment amounts for the remaining installments may be increased or decreased, as the case may be. The amount required by the new estimate is computed by calculating the difference between the previous estimated tax amount and the new estimated tax amount and dividing that difference between the number of installments remaining to be paid.
If a corporation pays a tax installment that is more than the correct amount of the installment, R.S. 47:287.660 allows the overpayment to be credited against the corporation’s unpaid installments, and any excess to be credited or refunded.
Revised Statute 47:287.656 allows corporations to file an application for an adjustment of an overpayment of its estimated income tax for a taxable year. The application must be filed after the close of the taxable year and on or before the 15th day of the fourth month thereafter, and before the tax return is filed. However, no application will be allowed unless the adjustment amount is at least ten percent of the corporation’s estimated tax amount and more than $500. This application for an adjustment of overpayment of estimated income tax does not represent a claim for credit or refund. There is no application form for this adjustment. However, the request should include the following information:
Within 45 days of the date that an application for an adjustment is filed, the adjustment will be allowed or disallowed if it is determined that the application contains material omissions or errors. If the adjustment is allowed, the secretary may credit the amount of the adjustment against any other tax liability owed by the corporation and refund the remainder.
If it is later determined that adjustment amount was excessive, a penalty of 12 percent annually of the excessive amount from the date on which the credit was allowed or the refund is paid to the due date for the taxable year. For the purposes of the penalty, the excessive amount is the lesser of the amount of the adjustment or the amount by which the corporation’s income tax liability exceeds the estimated income tax paid during the taxable year reduced by the amount of the adjustment.
Revised Statute 47:287.614 allows an extension of time for filing the combined corporation income and franchise tax return not to exceed seven months from the date the return is due. All extension requests must be made on or before the return’s due date. The return’s due date is April 15th for calendar year filers, and the 15th day of the fourth month following the close of the taxable year for fiscal year filers. Extension requests received after the return’s due date will not be honored.
If you need to make a payment with your extension request, you must use options 1, 3, or 4 as noted above. Payments cannot be made through the bulk extension filing application on LDR web site.
