Additionally, the Act allows businesses with receipts less than $20 million (indexed for inflation) to utilize an evenly weighted tentative estimated tax liability schedule (i.e., 25 percent of the estimated tax liability per quarter) in lieu of the standard requirement of 50 percent/20 percent/20 percent/10 percent for the first through fourth quarters, respectively. Prospectively, certain filing thresholds will also now be indexed for inflation based on changes in the US Consumer Price Index. To this end, the thresholds for determining monthly versus quarterly filing requirements for gross receipts tax purposes have generally been doubled, and the thresholds for determining the frequency of filing employer withholding tax returns have also been increased.

The Act makes adjustments to certain gross receipts tax and employer withholding reporting thresholds and CIT estimated payment requirements, apparently with the intent to simplify compliance for smaller businesses. Further, the Act does not amend the existing apportionment rules applicable to a taxpayer meeting the definition of an “Asset Management Corporation” under 30 Del. 3 The Act also does not alter the determination of the sales factor however, the Act specifies that payroll and property data used to calculate apportionment factors for corporations organized under the laws of foreign countries must only include US property and payroll. The Act does not change Delware’s statutory requirement to allocate certain categories of income. However, commencing in tax year 2017, the Act provides that taxpayers meeting the definition of a ”Telecommunications Corporation” or “Worldwide Headquarters Corporation” are not subject to this single sales factor phase-in schedule and, instead, may annually elect to use either single sales factor apportionment or equally weighted three-factor apportionment consisting of property, payroll, and sales factors divided by three to compute their CIT liability. For tax years beginning in 2020 and thereafter, corporations must generally use a single sales factor.For tax years beginning in 2019, the sales factor is generally weighted six times.For tax years beginning in 2018, the sales factor is generally weighted three times.For tax years beginning in 2017, corporations generally must use a double-weighted sales factor.2 The Act amends the CIT apportionment statute to gradually phase in single sales factor apportionment commencing in 2017 as follows:

Historically, Delaware has maintained an equally weighted three-factor apportionment percentage consisting of property, payroll, and sales for CIT purposes.

Gross receipts tax delaware