TABLE OF CONTENTS
GENERAL INFORMATION AND INSTRUCTIONS 3
NEW LEGISLATION 3
WHO MUST FILE 4
TIME AND PLACE FOR FILING 4
ELECTRONIC FILING 4
TAXPAYER ACCESS POINT (TAP) 5
WHO MUST SIGN 5
REQUIRED FORMS AND SCHEDULES 5
TAX PAYMENTS 5
ESTIMATED TAX PAYMENTS 5
INTEREST AND PENALTY PROVISIONS 5
ACCOUNTING METHODS 6
ACCOUNTING PERIOD 6
ROUND TO THE NEAREST DOLLAR 6
RECORDKEEPING 6
TAX RATES 6
AMENDED RETURN 6
FRANCHISE TAX 7
INCOME TAX 8
INSTALLMENT SALES 8
INTANGIBLE AND INTEREST EXPENSES 8
ARMS-LENGTH TRANSACTIONS 8
LONG TERM CAPITAL GAINS FROM SALES OF STOCK 8
EXTRATERRITORIAL INCOME 8
APPORTIONMENT/ALLOCATION
8
NET OPERATING LOSS (NOL) AND CAPITAL LOSS 9
COMBINED INCOME 9
PRODUCERS OF MINERAL OR NATURAL RESOURCE PRODUCTS 9
UNRELATED BUSINESS TAXABLE INCOME – EXEMPT ORGANIZATIONS 9
INCENTIVE CREDITS AND EXEMPTIONS 10
SPECIFIC INSTRUCTIONS 14
FORM 83-105 15
FORM 83-122 16
FORM 83-150 18
FORM 83-155 18
FORM 83-305 18
FORM 83-310 19
INSURANCE COMPANIES 20
DISTRICT OFFICES 21
APPENDIX – COUNTY CODES 22
TAX CREDIT CODES 23
3
GENERAL INFORMATION AND INSTRUCTIONS
Important tips to help expedite processing of your return:
✓ Use black ink when preparing the return.
✓ To indicate a loss (negative income), use brackets around
the dollar amount.
✓ Attach a copy of the federal return behind the state return
including returns filed electronically. Combined filers must
attach the consolidated Federal Form 1120 (pages 1-5),
Schedule M-3 and a complete Pro-Forma Federal Return.
✓ Additional schedules and attachments should be stapled to
the return.
Visit our website at www.dor.ms.gov to download forms by tax
year and tax type.
TAXPAYER ACCESS POINT (TAP)
Remember, TAP is:
• Easy to use
• Convenient
• Free
Go Paperless!
With TAP, you have the option to Go Paperless. This means that
you can pay your taxes online and receive certain
correspondence electronically.
TAP email lets you know that you have new correspondence to
view online. You then logon to TAP to read the letter or message
and take appropriate action on your account. Only you or persons
you authorize can see your correspondence.
When making payments or updating profile information, you
should always log directly into TAP using your User ID and
password. TAP does not provide links containing your
transaction or personal information to any external website.
Remember, you can pay your bill online through TAP without
registering for a TAP account. For more information on TAP,
view the Electronic Filing Section of this booklet.
House Bill 1108 (2022 Legislative Session)
Authorized an income tax credit for new, reconstruction and
replacement expenditures made by Class II and Class III
railroads. Any credit claimed, but not used in any taxable
year may be carried forward for five (5) consecutive years
from the close of the taxable year in which the credit was
earned. The total amount of credits that may be claimed by
all taxpayers shall not exceed $8,000,000 during a calendar
year. A taxpayer may transfer by written agreement any
unused tax credit to an eligible transferee at any time during
the year in which the credit is earned and five (5) years
following the year in which the credit is earned.
House Bill 1162 (2022 Legislative Session) – Miss. Code
Ann. §27-7-22.7 & §27-7-22.9
Reenacted the income tax credit for taxpayers that use port
facilities for the export of cargo and that use airport facilities
at public airports to export or import cargo.
House Bill 1685 (2022 Legislative Session)
Created the “Pregnancy Resource Act” that authorizes an
income tax credit, insurance premium tax credit and ad valorem
tax credit for voluntary cash contributions by certain taxpayers
to eligible charitable organizations. The credit is available to a
business enterprise engaged in commercial, industrial or
professional activities and operating as a corporation, limited
liability company, partnership or sole proprietorship. The credit
is limited to 50% of the income tax due. Any unused portion of
the credit may be carried forward for five (5) years. This bill also
authorizes an income tax credit for an employer of $20 for each
verified blood donation made by an employee as part of a blood
drive.
House Bill 1691 (2022 Legislative Session)
Allows any partnership, S corporation or similar pass-through
entity to elect to be taxed as an electing pass-through entity and
pay the tax imposed at the entity level.
Senate Bill 2159 (2022 Legislative Session)
Created the Mississippi Flexible Tax Incentive Act (MFLEX).
The Mississippi Development Authority is authorized to award
tax incentives to qualified economic development projects.
Senate Bill 2770 (2022 Legislative Session)
Extended the repeal date for the income job tax credit for each
full-time employee employed by enterprises that are primarily
engaged in providing inland water transportation of cargo on
lakes, rivers and intercoastal waterways.
Senate Bill 2773 (2022 Legislative Session)
Extended the repeal date for the income tax credit for companies
that transfer or relocate its national or regional headquarters to
Mississippi. However, this amendment also excludes any
medical cannabis establishment from being eligible for the tax
credit.
Senate Bill 2858 (2016 Legislative Session) - Miss. Code
Ann. §27-7-5 and §27-7-18
Beginning with tax year 2018, the 3% tax rate on corporate
income tax will be phased out over a five-year period ending
with tax year 2022 as follows:
Tax Year 2018
First $1,000 @ 0% and the next
$4,000 @ 3%
Tax Year 2019
First $2,000 @ 0% and the next
$3,000 @ 3%
Tax Year 2020
First $3,000 @ 0% and the next
$2,000 @ 3%
Tax Year 2021
First $4,000 @ 0% and the next
$1,000 @ 3%
Tax Year 2022
First $5,000 @ 0%
Senate Bill 2858 (2016 Legislative Session) - Miss. Code
Ann. §27-13-1, §27-13-5, §27-13-7 and §27-13-67
Beginning with tax year 2018, the franchise tax will be
completely phased out over a nine-year period ending with tax
year 2027 as follows:
NEW LEGISLATION
4
Tax Year 2018
$2.50 per $1,000 of capital in excess of
$100,000
Tax Year 2019
$2.25 per $1,000 of capital in excess of
$100,000
Tax Year 2020
$2.00 per $1,000 of capital in excess of
$100,000
Tax Year 2021
$1.75 per $1,000 of capital in excess of
$100,000
Tax Year 2022
$1.50 per $1,000 of capital in excess of
$100,000
Tax Year 2023
$1.25 per $1,000 of capital in excess of
$100,000
Tax Year 2024
$1.00 per $1,000 of capital in excess of
$100,000
Tax Year 2025
$0.75 per $1,000 of capital in excess of
$100,000
Tax Year 2026
$0.50 per $1,000 of capital in excess of
$100,000
Tax Year 2027
$0.25 per $1,000 of capital in excess of
$100,000
Tax Year 2028
Franchise tax repealed effective January
1, 2028
Tax Cuts and Jobs Act (TCJA)
Mississippi will follow the federal TCJA changes listed below:
• Section 179 expensing amounts increased from $500,000
to $1,000,000.
• The change in accounting method allowed for taxpayers with
average gross receipts of less than $25 million for the
previous years to elect to use the cash method of accounting.
A copy of the federal Form 3115 is required to be attached
to the Mississippi income tax return.
• The deduction for entertainment, amusement and
recreation expenses when directly related to a taxpayer’s
trade or business is eliminated. Mississippi will also follow
the other TCJA provisions related to food and beverage
expenses, transportation fringe benefits, fines, penalties
and research and experimental expenditures.
• IRC Section 1031 like-kind exchange of property will apply
to real property not held primarily for sale and Mississippi
personal property per Miss. Code Ann. §27-7-9(f)(1)(A).
• Contractors with average gross receipts less than $25 million
for the previous three (3) tax years are exempt from the
requirement to use the percentage of completion for
contracts to be completed within two (2) years. Taxpayers
will be allowed to use the completed contract method.
• Every corporation domesticated or qualified to do business
in Mississippi must file a return even if the corporation is
inactive or not otherwise engaged in business. Such
corporation will remain subject to the filing requirements
until it is officially dissolved or withdrawn through the Office
of the Mississippi Secretary of State.
• Foreign corporations engaged in business in Mississippi or
having sources of income in this state although not qualified
to transact business in this state through the Office of the
Secretary of State are subject to the measure of the income
and franchise tax levy.
• Every exempt corporate organization as described in Miss.
Code Ann. §27-7-27 or §27-7-29 and not otherwise exempt
from the income tax levy is required to make a corporate tax
filing if they have Mississippi unrelated business taxable
income. Refer to the “Unrelated Business Taxable Income
of Exempt Organizations” section of this booklet for more
information.
• Title insurance companies and class A burial insurance
companies should use Form 83-105. Class B burial
companies, writing life, accident and health, fire and
casualty insurance companies should use Form 83-391.
Refer to the “Insurance Companies” section of this booklet
for additional information regarding Form 83-391.
The Mississippi combination return of corporate income and
franchise tax must be filed on or before the 15th day of the 4th
month following the close of the accounting year. A short
taxable year is considered a taxable year and must be filed
on
or
be
for
e
th
e
15
th
day
of th
e
4
th m
on
th f
ollowing
th
e
c
lo
s
e
of the
short fiscal year. If the due date falls on a Saturday, Sunday or
legal holiday, the return is due the next business day. A
business day is any day that is not a Saturday, Sunday, or legal
holiday.
Extension of Time to File Return
Mississippi will follow federal return filing and extended due
dates. Taxpayers requesting an extension of time to file the
return must remit the tax due with Form 83-180 on or before
the due date of the return. The authorized extension of time to
file does not extend the time for payment of the income or
franchise tax due. Interest and penalty will apply on any
underpayment of tax.
The return should be mailed to:
Department of Revenue
P.O. Box 23191
Jackson, MS 39225-
3191
Street Address:
500 Clinton Center Drive
Clinton, MS 39056
Pursuant to the authority granted to the Department of Revenue
in Miss Code Ann Section 27-3-83 and Title 35, Part I, Chapter
4 of the Mississippi Administrative Procedures and Procedures
Code, the Department of Revenue will mandate all
Corporations, S corporations, and Partnerships with assets of
$250,000 or more to file electronically for tax years beginning
on or after January 1, 2019 and all subsequent tax years.
Failure to file returns electronically may subject taxpayers to a
penalty of twenty-five dollars ($25.00) for the first instance of
noncompliance and five hundred dollars ($500.00) for each
additional instance of noncompliance.
Please contact the Department of Revenue at 601-923-7700 if
you are unable to comply with this mandate.
ELECTRONIC FILING
WHO MUST FILE
5
TAP provides online access to your tax account information
24 hours a day, 7 days a week. TAP is free and convenient!
Users of TAP are able to:
• Make electronic payments of returns and assessments;
• view previously filed returns and amended returns;
• make address changes and view tax correspondence;
• view recent account activity, and;
• register a new business or add accounts to the business;
Third Party Access for Tax Practitioners
Tax practitioners can have TAP access to account information
for each of your clients - from one login. First, create your own
TAP account (only one per FEIN). Once you are registered in
TAP, select "Add Access to Existing Account."
Your client (taxpayer) must provide you the Letter ID and
Account ID in order for you to have access to their accounts.
All accounts you set up for third party access are found under
the "Other Taxpayers' Accounts" tab in TAP. For more
information on TAP, visit our website at www.dor.ms.gov.
Users cannot file Corporate Income and Franchise Tax
Returns in TAP. However, tax preparers have the ability to file
the tax returns electronically through an authorized software
provider. A copy of the complete federal return must be
submitted electronically. Please visit our website at
www.dor.ms.gov for additional information on how to file
Mississippi returns on-line and how to access approved on-
line software providers.
The return must be signed by the president, vice president or
other officer of the corporation. A receiver, trustee or assignee
must sign any return which he/she is required to file on behalf
of a corporation.
Anyone who prepares the return but does not charge the
corporation should not complete the paid preparer section.
Generally, anyone who is paid to prepare the return must
legibly sign it and must also furnish the preparer tax
identification number (PTIN) issued by the Internal Revenue
Service (IRS).
To be a complete return, the return should contain all the
requisite general information, as well as all summary tax
information and the basic back up schedules. Examples of the
required general information are complete name, current
address, FEIN, officer information and signature and other
information relating to the filing entity as requested on page 2
of Form 83-105.
Examples of the summary tax information are the front
page of the return, the franchise tax schedule, the computation
of net income, the computation of the apportionment factor (if
applicable), the balance sheet, nonbusiness income schedule
(if applicable), the direct accounting income statement (if
applicable), schedules showing the computation of any tax
credit taken (such as jobs credit) and schedules showing the
computation of any major items on the return.
Examples of the basic backup schedules are details of other
additions or other deductions as requested on the computation
of net income schedule, details of other additions or other
deductions as requested on other statements made a part of the
return, details of other current assets and other assets, and
details of other current liabilities and other liabilities on the
balance sheet as are normally included with the federal return.
The total tax due on the combination return must be paid in full
no later than the 15th day of the 4th month after the end of the
tax year.
Payment Options:
• Online Payments: To pay online, go to www.dor.ms.gov,
click on Taxpayer Access Point (TAP) and follow the
instructions. Without a MARS account or a TAP login, users
are able to make estimate payments online.
• Check or Money Order Payments: To pay by check or
money order, complete the payment voucher (Form 83-
300), make the check or money order payable to the
Department of Revenue and mail both to P.O. Box 23192,
Jackson, MS 39225-3192.
Every corporate taxpayer with an annual income tax liability in
excess of $200 must make estimated tax payments. At least
90% of the current income tax liability must be paid by
submitting quarterly payments. The remaining of the balance
is due by the due date of the return. The due dates for
estimated tax payments are:
• 15
th
day of the 4
th
month after year end;
• 15
th
day of the 6
th
month after year end;
• 15
th
day of the 9
th
month after year end, and;
• 15
th
day of the 12
th
month after year end.
The payment is due on the next business day if the date falls
on a Saturday, Sunday or legal holiday.
Penalties may apply if the corporation does not make the
required estimated tax payments by the due date. Use Form
83-305 to determine the amount of interest and penalty on
underestimate. See detailed instructions for the form under the
“Specific Instructions” for Form 83-305 section of this booklet.
• Late Payment: Interest and penalty are charged on taxes
paid late even if an extension of time to file is granted. The
interest is assessed from the due date until paid and is
computed at 1/2 of 1% per month.
The penalty imposed for failure to pay the tax when due is
1/2% per month not to exceed 25% in the aggregate.
• Late or Non-Filer: Penalties are imposed for failure to file
a return when due on the total amount of the tax deficiency
or delinquency. The penalty is 5% per month not to exceed
25% in the aggregate. The penalty shall not be less than
$100 for income tax for failure to file a return.
TAXPAYER ACCESS POINT (TAP)
6
• Incomplete Returns: A corporation that does not file a
complete return or does not file a return within the
prescribed time may be subject to a penalty of $25 per
required attachment or schedule up to a maximum of
$500 per return.
The purpose of this penalty provision is to ensure that sufficient
information is disclosed on the return. If major schedules (such
as the balance sheet) are omitted or incomplete, or if schedules
are consistently omitted or incomplete, then the penalty will be
imposed. The more severe or consistent the omission, the more
likely it is that the penalty will be imposed. Refer to the Required
“Forms and Schedules” section of this booklet for additional
information on what constitute a complete return.
Direct or Separate Accounting Method: Producers of mineral
or natural resource products and construction contractors are
required to use direct accounting in computing their taxable
income to this state. For more details, see Title 35, Part III,
Subpart 08, Chapter 06 of the Miss Administrative Code. Other
taxpayers may not employ a direct accounting or separate
accounting method unless they have obtained written authority
from the Commissioner to do so. Refer to the “Producers of
Mineral or Natural Resource Products” section of this booklet for
additional information.
Returns should be filed on the basis of the 12-month accounting
period established by the corporation. A corporation on a fiscal
year basis must enter the beginning and ending dates of the
taxable year in the appropriate spaces on the return. No
accounting period, other than calendar year, will be recognized,
unless before its close it was definitely established as an
accounting period by the taxpayer and the books of such
taxpayer were kept in accordance therewith.
All dollar amounts should be rounded to the nearest whole dollar
(no pennies). Round down to the next lower dollar amounts
under $.50 and round up to the next higher dollar amounts of
$.50 and over. For example: $2.15 becomes $2.00; $4.75
becomes $5.00; and $3.50 becomes $4.00.
Taxpayers are required to maintain an accurate and complete
set of records and other information necessary for the
Department to determine the correct amount of tax due. The
records and other information must be available for inspection
by the Department upon request at a reasonable time and
location. Refusal or delay by the taxpayer to p r o v i d e
documentation upon the Department’s request will result in an
assessment being made from any information available, which
shall be prima facie correct.
Franchise Tax: $1.50 per $1,000 of capital, or fractional part
thereof, of capital surplus, undivided profits and true reserves
employed in Mississippi in excess of $100,000. (Minimum tax of
$25).
Income Tax: 0% on the first $5,000 of taxable income and 4% on
the next $5,000 of taxable income and 5% on all taxable income
in excess of $10,000.
File an amended return to:
• make adjustments to tax;
• claim a refund due to an adjustment to tax;
• claim a net operating loss (NOL) carryback deduction;
• report federal adjustments (1120X), and;
• report IRS audit adjustments (RAR)
When to File: A taxpayer may apply to the Department for
revision of any return filed at any time within 3 years of the due
date; or, if an extension was granted, 3 years from the date the
return was filed. The 3-year period is not applicable to an IRS
audit; however, no additional assessment or refund will be
made more than 3 years after the date the IRS disposes of the
tax liability in question.
Net Operating Loss (NOL): Form 83-155 must be filed with
an amended return in order to claim a net operating loss
deduction. Form 83-155 is used to make an irrevocable
election to carryback or carry forward the current year NOL. For
more information concerning net operating losses, see the “Net
Operating Loss (NOL) & Capital Loss” section of this booklet.
Internal Revenue Service Audit (RAR): To document
adjustments made as a result of an IRS audit, the Revenue
Agent Report should be attached to the Mississippi amended
return.
Amended Federal: To document adjustments made as a
result of an amended federal return, a copy of the amended
federal (Form 1120X) should be attached to the amended
Mississippi return. If a consolidated amended federal return
was filed, please attach an amended Pro-Forma Federal
Return, as well as the amended consolidated federal return to
the amended state return.
Any other documentation supporting the adjustments made
should also be included with the amended Mississippi return.
Attach a copy of the original filed return. Overpayments that
are not refunded will be applied to the next period for which the
corporation makes a filing.
AMENDED RETURN
7
FRANCHISE TAX
The franchise tax is measured by the value of capital used,
invested or employed in the exercise of any power, privilege
or right enjoyed by the corporation within Mississippi. The
mode of measurement is the amount of capital of the
corporation employed or so situated as to be privileged to be
employed in this state. In determining the amount of capital,
the net book value as regularly employed in conducting the
affairs of the corporation should be accepted as prima facie
correct as to the true capital of the corporation, except where
the Commissioner determines that the book value does not
properly reflect capital employed in this state and in that
situation the Commissioner's determination of capital should
be prima facie correct.
Form 83-110 must be completed by all corporations to indicate
the amount of capital of the corporation. All reserves that do
not represent definitely known and fixed liabilities must be
considered as elements of capital of the corporation. Amounts
designated for payment of dividends may not be excluded
unless such amounts have been definitely and irrevocably
placed to the credit of the stockholder, subject to withdrawal
on demand. Sums representing debts, notes, bonds,
mortgages due and payable, depreciation reserves, bad debt
reserves, or reserves representing valuation accounts may be
excluded (unless between affiliated companies or
shareholders).
Holding Corporation: A holding corporation, as defined in
Miss. Ann. Code § 27-13-1(i), is (1) any corporation owning at
least eighty percent (80%) of the value of capital stock and at
least eighty percent (80%) of the combined voting power of all
classes of capital stock of another corporation and (2) deriving
at least ninety-five percent (95%) of its gross receipts from
dividends, interest, royalties, rents, services provided to
members of an affiliated group (as defined in Section 27-7-
37(2)(d)) to the extent of the cost of providing such services.
Per Miss. Ann. Code §27-13-1(i), in the case of a holding
corporation, the value of the capital used, invested or
employed in this state shall exclude that portion of the book
value of the holding corporation’s investment in stock or
securities of its subsidiary corporation using the ratio between
(1) the holding corporation’s investment in stock or securities
of its subsidiary corporation and (2) the holding corporation’s
total assets. Such ratio shall then be applied to the total capital
stock, surplus, undivided profits and true reserves of the
holding corporation in order to arrive at the amount of the
exclusion. The holding company exclusion is computed on line
7 of Form 83-110 and a schedule of computation must be
attached to the return for the exclusion.
Multistate Taxpayers: Lines 9 through 12 of Form 83-110
must be completed by multistate corporations doing
business both within and without Mississippi. Total capital of
a multistate corporation is apportioned to Mississippi in the
ratio that real and tangible personal property owned in
Mississippi and gross receipts from business carried on in
Mississippi bears to the total real and tangible personal
property owned by the corporation and gross receipts
wherever located and from wherever received.
The amount of capital apportioned to Mississippi is computed
online 13 of Form 83-110. The section of Form 83-110
concerning the assessed values of all real and personal
property in Mississippi must be completed by all
corporations. Miss. Code Ann. § 27-13-9 and § 27-13-13,
provide that the amount of the determined capital in
Mississippi should in no case be less than the assessed
value of the Mississippi property of the corporation for the
year preceding the year in which the return is due.
Taxable capital is calculated on lines 15 through 18 of Form
83-110. The amount of taxable capital shown on line 18 should
be entered on line 1, Form 83-105.
For tax years ending on or after December 31, 2001, the
property and receipts of flow-through entities must be
included in a multistate corporate partner’s computation of
the apportionment ratio applied to the capital base. The
assessed value of property of flow-through entities must be
included in a multistate corporate partner's assessed value
of property when determining the alternate capital base.
8
INCOME TAX
Generally, all domestic and foreign corporations having
income from sources within Mississippi must complete Form
83-122, which makes adjustments for additions to and
deductions from federal ordinary income due to differences in
federal and Mississippi laws, to arrive at net income (loss) for
state purposes.
Mississippi does not follow federal rules concerning installment
sales. Gains from the sale of casual property will be
recognized in the year of the sale. However, the tax on the gain
may be deferred. Deferred taxes are generally paid as the
proceeds from the sale are received. However, the following
will result in acceleration of payments:
• Transfer, disposition, sale or disposal of the note in any
manner will result in deferred tax payments becoming
immediately due and payable.
• Liquidation, dissolution, withdrawal from this state and
certain merger transactions will result in deferred tax
payments becoming immediately due and payable.
• Failure to comply with the necessary filing requirements.
Taxpayers who elect the installment method for federal income
tax purposes should include as a part of their return both a
Federal Form 6252 and a schedule of any differences between
the federal and Mississippi amounts.
Taxpayers are required to add back the following to its
computation of net income:
• Intangible expenses and costs and interest expenses and
costs in relation to or in connection with the direct or indirect
maintenance or management, ownership, sale, exchange
or other disposition of intangible property.
• Royalty, patent, technical and copyright fees, licensing fees
and other similar expenses.
• Expenses and costs associated directly or indirectly with
factoring transactions or discounting transactions.
Intangible property includes patents, patent applications, trade
names, trademarks, service marks and similar types of
intangible assets.
Limitations: The adjustment will not apply to such portion of
intangible expenses, interest expenses and costs which are
not with a related member; or the related member is not
primarily engaged in the acquisition, use, maintenance,
management, ownership, sale, exchange, or other disposition
of intangible property; and the transaction(s) were done for a
valid business purpose.
The state definition of "arms-length" is not tied to that of the
federal definition. See Miss. Code Ann. § 27-7-9(j)(6). The
Commissioner can adjust a transaction when income has
been shifted between related parties and/or taxes have been
avoided in this state.
Gains from the sale of certain stocks in domestic entities are
not recognized as a part of income. However, the gain must
be reduced by losses from the sale of certain stocks in
domestic entities if the losses were incurred in the year of the
gain or within the two years preceding or subsequent to the
gain. See Miss. Code Ann. § 27-7-9(f)(10).
Mississippi has not adopted federal provisions related to
Extraterritorial Income Exclusion. The amount related to this
exclusion of income on the federal return must be added
back to the Mississippi income tax return prior to the
apportionment of income. The proper placement for this
Mississippi adjustment to federal income is on Form 83-122,
line 7 titled "Other Additions Required by Law". A copy of
Federal Form 8873 should be attached to the Mississippi
return when this adjustment is being made for federal
purposes.
In addition, a FSC (Foreign Sales Corporation) that is
organized under the laws of a U.S. territory is treated as a
domestic corporation and, thus, dividends received from it
are considered apportionable business income.
Total Assignment of Income: If the business activity in
respect to any trade or business of the corporation occurs
within this state, and if by reason of such business activity the
corporation is not taxable in another state, the total net income
(loss) of the corporation is assigned to Mississippi.
Apportionment of Business Income: If the business
activity in respect to any trade or business of a taxpayer
occurs both within and without this state, and if by reason of
such business activity the taxpayer is taxable in another
state, the portion of the net income (loss) arising from such
trade or business which is derived from sources within this
state, should be determined by apportionment in accordance
with the formulas prescribed by Title 35, Part III, Subpart 08,
Chapter 06 of the Miss. Admin. Code unless prescribed
otherwise. In such case, the taxpayer must complete Form
83-125. Multistate contractors use Form 83- 124.
INSTALLMENT SALES
ARMS- LENGTH TRANSACTIONS
9
Allocation of Nonbusiness Income: Non-business income
(loss) shall be allocated by multistate corporations within and
without this state in accordance with the provisions of Title 35,
Part III, Subpart 08, Chapter 06 of the Miss. Admin. Code. Form
83-150 should be used only if the corporation has activities in
another state and has income, losses, expenses, or deductions
which are to be allocated ("non-business") rather than
apportioned. For a definition of what constitutes "non-
business" income, losses, expenses, and deductions and rules
for allocating these items, See Miss. Code Ann. §27-7-23.
Net Operating Loss: For any taxable year ending after
December 31, 2001, the period for net operating loss
carrybacks and net operating loss carryovers is two periods
back and twenty periods forward. This is NOT in accordance
with federal carryback and carryover provisions that provide for
a five-year carryback period.
A short taxable year counts as a taxable year. A taxpayer may
elect to forgo the carryback on Form 83-155. Once this election
is made, it cannot be changed.
Form 83-155 must be completed and attached or an NOL
deduction will not be allowed. Taxpayers must indicate the
income year the NOL was applied (Column C of Form 83-155).
Capital Loss: Capital losses may be deducted only to the
extent of capital gains. Capital losses may not be used to offset
the gains of another member in a combined group filing. Any
unused capital losses are carried back three years and forward
five years. The definition of capital loss carryover, capital loss
carryback, short-term capital loss, long-term capital loss, and
similar terms are the same as for federal income tax purposes.
Form 83-155 must be completed and attached, or the capital
loss deduction will not be allowed.
The tax returns of all members in a combined group should be
mailed at the same time. Do not staple all of the returns
together. Each return should be fastened separately.
Each member of an affiliated group of corporations eligible for
and electing to file in a combined income tax return must file its
own Mississippi corporate income tax return (Form 83-105) and
each corporation must complete and attach to their respective
return all applicable schedules including the schedule for
computation of net income (loss), Form 83-122. Mississippi
income tax due on the combined net income of the affiliated
group must be determined and reported by the Reporting
Corporation. In addition to the regular income tax return, the
designated Reporting Corporation must complete and attach to
its return Form 83-310. Other included members of the group
should enter "zero" on Form 83-105, page 1, line 5 and must
indicate the name and FEIN number of the Reporting
Corporation.
In case of delinquency or failure on the part of the Reporting
Corporation to report and pay the income tax due, each
included member of the affiliated group is severally liable for
the tax on a combined return and for any determined deficiency
thereon. Combined reporting is authorized only with respect to
the income tax levy.
Mississippi law does NOT authorize combined reporting for
franchise tax; therefore, separate returns are required of all
corporations chartered to do business in Mississippi or which
are in fact doing business in Mississippi except for the
Reporting Corporation. The Reporting Corporation in a
combined filing must file a return that includes its own
franchise tax and the combined income of the group.
Payments: Taxpayer must issue separate checks for
franchise tax due from all entities included in combined return.
Payments will not be transferred to another entity in the
combined group unless specified on the Application for
Automatic Extension, Form 83-180.
Taxpayers engaged in the trade or business of producing oil,
gas, other liquid hydrocarbons, sulfur, coal, sand, gravel and
other mineral or natural resource products, except timber,
should determine Mississippi net business income from such
activity on a direct or separate accounting basis.
The Mississippi gross business income from the production of
mineral or natural resources shall include: (a) sales of natural
or mineral resources produced in Mississippi and sold in this
state; (b) the market value, at the time of transfer, of all natural
or mineral resources produced in this state and transferred by
the taxpayer to another state for sale, refining, processing or
manufacturing, provided that if the natural or mineral
resources are sold by means of an "arms-length" transaction
prior to refining, processing or manufacturing, the market
value prescribed herein shall not exceed the selling price; and
(c)
the market value at the time of transfer, of all natural or
mineral resources produced by the taxpayer in Mississippi and
transferred to a refinery, processing plant or manufacturing
facility of the taxpayer in Mississippi.
A natural resource product shall be deemed to be sold in
Mississippi if it is located in this state at the time title thereto
passes to the purchaser. In the absence of specific proof of
value of natural resources at the time of transfer from the
state, the value of natural resources at the time of production
should be determined in accordance with the methods
prescribed for the determination of "gross income from the
property" for purposes of percentage depletion for federal
income tax purposes.
For tax years beginning on or after January 1, 2002, every
exempt organization, as described in Miss. Code Ann. § 27-7-
27 or § 27-7-29 and not exempt from the income tax levy
(federal & state agencies, etc.), is required to file an income
tax return with this state if the organization:
1.
Earns or receives unrelated business taxable income as
determined under IRC Section 512 or is an ESOP with an
interest in an "S" corporation, and
2.
Is a resident of this state, doing business in this state, or
receiving income from sources within this state.
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Exempt corporate organizations file Form 83-105 and any
necessary supplemental schedules. These organizations are
not subject to the franchise tax levy and should leave lines 1
through 4 blank.
Exempt trust organizations, including employee and
retirement trust, file Form 81-110 and any necessary
supplemental schedules.
In computing taxable income, enter on line 1 of Form 83-122
(line 1, page 2 of Form 81-110 for trust organizations) the
amount of unrelated business taxable income before any net
operating loss and specific deduction as reported on Federal
Form 990-T. A complete and signed copy of Federal Form 990-
T must be attached to the Mississippi schedules as a part of the
return. Make any necessary adjustments for income/expenses
otherwise included/excluded under the income tax laws of this
state such as income from sources without this state, add- back
of nondeductible income taxes, etc.
Corporate organizations with unrelated business taxable
income are subject to the same estimated payment
requirements as other corporate taxpayers. Corporate
organizations must make all required tax payments by the 15
th
day of the fourth month following the close of the tax year.
While the filing deadline is also the 15th day of the fourth month
following the close of the tax year, an automatic filing
extension is granted. If a taxpayer files an extension for
federal tax purposes, the Mississippi filing deadline will be
extended through the date of the federal extension as well.
Employee Stock Ownership Plans that receive Mississippi
income as a shareholder in an "S" corporation must include
such income as a part of Mississippi taxable income. The
source of the income is determined by the "S" corporation's
activities and is reported on Form 84-132 to the ESOP
shareholder.
Trust organizations must make all required tax payments by
the 15th day of the fourth month following the close of the tax
year. Generally, if a filing extension is granted for federal tax
purposes, it will be granted for state purposes as well. A copy
of the federally approved extension must be attached with the
return filing.
INCENTIVE CREDITS AND EXEMPTIONS
Incentive credits may be used to offset all or part of the
corporate income and/or franchise tax liability. For any of these
credits to be allowed, schedules must be attached showing the
computations. Form 83-401 should be completed and attached
as a part of the return. If more than three income tax credits are
claimed, attach a supplemental schedule and enter the total on
line 3 of Form 83-401.
The following is a brief description of the major credits allowed
under state statutes:
Premium Retaliatory Tax Credit (02)
An income tax credit is available to insurance companies that
paid additional retaliatory premium taxes to other states. The
credit can offset 100% of income tax due. No carryover is
allowed for this credit.
Finance Company Privilege Credit (03)
An income tax credit is provided to finance companies that paid
privilege taxes. The credit can offset 100% of income tax due.
No carryover is allowed for this credit.
Jobs Tax Credit (05)
A credit is allowed for increasing employment levels in certain
types of business. The business must be primarily engaged in
manufacturing, processing, warehousing, distribution,
wholesaling, or research and development; or designated by
rule and regulation by the Mississippi Development Authority as
air transportation and maintenance facilities, final destination or
resort hotels having a minimum of 150 guest rooms, recreational
facilities that impact tourism, movie industry studios,
telecommunications enterprises, data or information processing
enterprises or computer software development enterprises or
any technology intensive facility or enterprises.
The amount of the credit is based on the number of new jobs
created and the county where the jobs are created. The credit
is good
for a period of 5 years. This credit may be used in
combination with any of the other credits. However, the total of
the Jobs Tax Credit is limited to 50% of the income tax liability
attributable to the income derived from operations in this state
for that year. Any credit claimed but not used in a taxable year
may be carried forward for 5 years.
Effective January 1, 2005, the calculation of the credit was
changed to a percentage of payroll for new full-time jobs:
County Ranking
Average Minimum
Increase of Jobs
Percentage
of Payroll
Tier One
(Developed)
20 or More
2.5%
Tier Two
(Moderately
Developed)
15 or More
5%
Tier Three
(Less Developed)
10 or More
10%
The number of jobs must be created within 1 year and is
measured at the end of the fiscal year. They cannot be
accumulated over several years. The credit is available for
each net new full-time job created as long as the minimum
number has been achieved and maintained. The credit is for
full-time positions only and is based on the current year gross
payroll. The credit allowed shall be adjusted in the event of
payroll fluctuations during the additional five (5) years of the
credit. You cannot combine part-time jobs to add up to a full-
time job. The credit is based on filled positions and the
employees must be employed in this state and subject to
Mississippi Withholding Tax. Form 83-450 must be completed
and attached to the return. Please attach to this form, a
schedule listing the new full-time jobs created (titles/pins, date
created and payroll amount for the year).
A job tax credit is authorized for each full-time employee
employed in a new cut and sew job by enterprises that own or
operate an upholstered household furniture manufacturing
facility. The repeal date on this provision is extended to January
1, 2026.
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A jobs tax credit is authorized for each full-time employee of
business primarily engaged in providing inland water
transportation of cargo on lakes, rivers and intracoastal
waterways. This credit is effective from and after January 1,
2019.
National or Regional Headquarters Tax Credit (06)
(Repealed effective July 1, 2022)
An income tax credit is available for a 5-year period for each
position assigned to the national or regional headquarters of
a business created in or transferred to Mississippi. The credit
is $500 for each new full-time employee, $1,000 for each new
full- time employee whose salary is 125% of the average
annual state wage, or $2,000 for each new full-time employee
whose salary is 200% of the average state wage. A minimum
number of 20 new headquarters jobs must be created to
receive the credit. A taxpayer claiming a refund on this
credit must file a separate return; it cannot be included
in a combined return.
Research and Development Skills Credit (07)
This credit provides an incentive to locate full-time positions
requiring research and development skills in the state. These
positions have to be engaged in a research and development
activity. Qualification of jobs for this credit would require at a
minimum, a Bachelor’s degree in a scientific or technical field
of study from an accredited 4 year college or university,
employment in the employee’s area of expertise and
compensation at a professional level with 2 years of related
job experience. Examples are chemist and engineers.
A credit of $1,000 for each full-time position requiring research
and/or development skills is available for a 5-year period. There is
no minimum number of positions that must be created to
qualify for this credit. The credit is for full-time positions only.
Part-time jobs cannot be combined to add up to a full-time job.
The credit is based on filled positions and the employees must
be employed in this state and subject to Mississippi
Withholding Tax. The credit for employees employed for less
than 12 months will be allowed based on a pro-rated portion
in the first and last years. The amount of the credit is pro- rated
based on the number of months the employee is employed in
this state divided by 12.
The total of the Research and Development Skills Credit is
limited to 50% of the income tax liability attributable to the
income derived from operations in this state for that year. Any
excess credit amount can be carried forward for up to 5 years
from the original year in which the excess credit could not be
used.
Employer Child/Dependent Care Credit (08)
The Child/Dependent Care Tax Credit is an incentive to any
business providing dependent day care (both children and
adult) for its employees during the employee's working hours
or assisting community-provided day care. The expenses must
be incurred in the operation of a program certified by the
Mississippi Department of Health. The net cost of any contract
executed by the employer for a third party to provide dependent
care is a qualified expense. If the employer elects to provide
dependent care directly, then the qualified expenses are
expenses for staff, learning and recreational materials and
equipment, and cost associated with the construction and
maintenance of a facility. Additional eligible expenses include
costs assumed by the employer which increases the quality,
availability and affordability of dependent care in the
community used by employees during the employee's work
hours. For facilities and equipment, the eligible expense is the
amount of depreciation expense allowable in computing
taxable income. These expenses are net of any reimbursement.
The Child/Dependent Care Tax Credit may be used in
combination with any other credit. The credit is equal to 50% of
the qualified day care expenses. It is not refundable. It can be
used to offset 100% of the income tax liability. Any excess
credit amount can be carried forward for up to 5 years from the
original year in which the excess credit could not be used.
Reforestation Tax Credit (RTC) (10)
This credit, based on the costs incurred for certain approved
reforestation practices, is an amount equal to the lesser of 50%
of the actual cost of approved practices or 50% of the average
cost of approved practices as established by the Mississippi
Forestry Commission. In any taxable year, the maximum
amount of RTC shall not exceed the lesser of $10,000 or the
amount of income tax imposed upon the eligible owner for the
taxable year reduced by the sum of all other credits allowable
to the eligible owner. The lifetime maximum reforestation tax
credit that an eligible owner may utilize is $10,000 in the
aggregate.
Effective January 1, 2007, the lifetime maximum RTC that an
eligible owner may utilize is $75,000.00. Any unused portion of
the RTC may be carried forward to succeeding years.
Reforested acreage on which the eligible owner receives any
state or federal cost share assistance funds to defray the cost of
an approved reforestation practice is not eligible for the RTC.
The RTC is not available to private corporations which
manufacture products or provide public utility services of any
type or any subsidiary of such corporations.
Gambling License Fee Credit (11)
An income tax credit provided to the licensee that paid a license
fee which is based on gross revenues of the licensee. The credit
can offset 100% of income tax due. No carryover is allowed for this
credit.
Mississippi Business Finance Corporation Revenue Bond
Service Credit (13)
Only debt service paid on revenue bonds issued by the
Mississippi Business Finance Corporation to finance economic
development projects to induce the location of manufacturing
facilities within this state can be taken as a credit. This credit
can be used against the taxes due from the income generated
by or arising out of the economic development project. Effective
January 1, 2014, Senate Bill 2376 amends Miss. Code Ann.
§57-10-401 to revise the term “Economic Development Project”
to include the economic development project of a related
approved company that is merged into or consolidated with
another approved company where the approved companies
are engaged in a vertically integrated manufacturing or
warehouse operation. The bill also amends Miss. Code Section
Ann. §57-10-449 to extend the repeal date until October 1,
2017, the authority for the Mississippi Business Finance
Corporation to issue bonds to finance economic development
projects. For more information on the benefits of this program
contact: Mississippi Development Authority, P.O. Box 849,
Jackson, MS 39205-0849.
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Ad Valorem Inventory Tax Credit (14)
This is an income tax credit for manufacturers, distributors and
wholesale or retail merchants for a certain amount of ad
valorem taxes paid on commodities, goods, wares and
merchandise held for resale. The ad valorem credit may be
claimed for each location where such commodities, products,
goods, wares and merchandise are found and upon which the
ad valorem taxes have been paid. The tax credit for each
location on which ad valorem taxes have been paid should
not exceed the lesser of $15,000 or the amount of income
taxes attributable to such location. Previously, the credit may
be claimed only in the year in which the ad valorem taxes are
paid; however, Senate Bill 2934 amended Miss. Code Ann.
§27-7-22.5 increasing the income tax credit for ad valorem
taxes paid on certain inventory and authorizes any unused
tax credit claimed to be carried forward for five (5) consecutive
years effective July 1, 2012.
Effective January 1, 2014, House Bill 787 amends Miss. Code
Ann. §27-7-22.5 to provide an income tax credit for ad valorem
taxes paid on rental equipment. Rental equipment is defined
as any rental equipment or other rental items which are held for
short-term rental to the public under rental agreements that are
not subject to privilege taxes. The bill also provides for the
amount of credit to increase each year until the 2016 taxable
year in which the amount of the credit will be limited to the
lesser of the amount of ad valorem taxes paid or the amount
of income taxes due for each location. Any ad valorem taxes
paid by a taxpayer that is applied toward the tax credit may
not be used as a deduction by the taxpayer for state income
tax purposes.
A copy of the tax receipt from the county that shows the
inventory valuation and a schedule showing the
calculation of the ad valorem tax paid based on the
valuation must be attached to the return.
Export Port Charges Credit (15)
An income tax credit is authorized for taxpayers that utilize the
port facilities at state, county, or municipal ports. The income
tax credit is equal to the total export cargo charges paid by
the taxpayer for: (a) receiving in the port; (b) handling to a
vessel; and (c) wharfage. The credit provided should not
exceed 50% of the amount of tax imposed upon the taxpayer
for the taxable year reduced by the sum of all other credits.
Any unused portion of the credit may be carried forward for
the succeeding 5 years.
Import Port Charges Credit (17)
An income tax credit is authorized for taxpayers that utilize the
port facilities at state, county, or municipal ports for the import
of cargo. To be eligible, a taxpayer must locate its United
States headquarters in Mississippi on or after January 1, 2005
employ at least 5 permanent full-time employees who actually
work at such headquarters and have a minimum capital
investment of $5,000,000 in Mississippi. The income tax credit
is equal to the charges paid by the taxpayer for: (a) receiving
in the port; (b) handling to a vessel; and (c) wharfage. The
credit provided shall not exceed 50% of the amount of tax
imposed upon the taxpayer for the taxable year reduced by
the sum of all other credits. Any unused portion of the credit
may be carried forward for the succeeding 5 years. The
maximum cumulative credit that may be claimed ranges
between $1,000,000 and $4,000,000 depending on the
number of permanent full-time employees of the taxpayer.
Broadband Technology Credit (BTC) (19)
A tax credit is provided for telecommunications enterprises
making investments in equipment used in the deployment
of broadband technologies. The credit applies to both income
and franchise taxes. The credit is a percentage of the cost of the
investments incurred after June 30, 2003 and before July 1,
2013. The percentage applied is 5%, 10%, and 15% for Tier 1,
Tier 2, and Tier 3 counties respectively. For more details on
eligibility, computation of the credit, qualifying expenditures,
limitations, carryovers, as well as any necessary forms or work
sheets, please contact the Corporate Tax Division at (601) 923-
7700. Enterprises qualifying for this credit are able to receive
certain sales tax exemptions as well. For more information,
please contact the Sales Tax Bureau at (601) 923-7015.
House Bill 1729 amended Miss. Code Ann. §57-87-5 to extend
until July 1, 2025, the franchise tax credit authorized for
telecommunications enterprises for the cost of equipment used in
the deployment of broadband technologies and to extend until
July 1, 2025 the ad valorem tax exemption for equipment used in
the deployment of broadband technologies by
telecommunications enterprises.
Manufacturing Investment Tax Credit (23)
A manufacturing enterprise who falls within the definition of the
term “manufacturer” in Miss. Code Ann. § 27-65-11 and has
operated in the state for at least 2 years is allowed a
manufacturing investment tax credit for income tax equal to 5% of
the eligible investments made by the manufacturing enterprise.
"Eligible investment" means an investment of at least
$1,000,000.00 in buildings and/or equipment for the
manufacturing enterprise.
The maximum credit that may be claimed by a taxpayer on any
project shall be limited to $1,000,000. The Manufacturing
Investment Tax Credit should not exceed 50% of the taxpayer's
state income tax liability in any 1 tax year net of all other credits.
Any Manufacturing Investment Tax Credit claimed but not used
may be carried forward for 5 years from the close of the tax year
in which the eligible investment was made. For more details on
eligibility, computation of the credit, qualifying expenditures,
limitations, carryovers, as well as any necessary forms or work
sheets, please contact the Corporate Tax Division at (601) 923-
7700.
Historic Structure Rehabilitation Credit (26)
An income tax credit is allowed for certain costs and expenses in
rehabilitating eligible property certified as a historic structure or
structure in a certified historic district. The taxpayer may elect to
receive a 75% rebate on the total amount of excess historic
rehabilitation credit in lieu of a ten-year carryforward.
New Markets Credit (28)
The New Markets Credit allows a credit for income, insurance
premium, or premium retaliatory taxes to investors in eligible
equity securities issued by a Qualified Community Development
Entity that has entered into an allocation agreement with the
Community Development Financial Institutions Fund of the U.S.
Treasury Department (CDFI) with respect to federal income tax
credits authorized by the Federal NMTC Law, which includes the
State of Mississippi in the service area outlined in such
agreement. This Qualified Community Development Entity is
commonly referred to as a “CDE”.
The CDE must use 85% or more of the proceeds of the issuance
of the equity security to make investments that are Mississippi
Qualified Low-Income Community Investments (MQLICIs), and
those investments must be maintained for a minimum of 7 years.
A MQLICI is an investment in Mississippi in a business that meets
the requirements of a Qualified Active Low-Income Community
Business (QALICB) or an investment in Mississippi approved as
13
a Qualified Low Income Community Investment under the
Federal New Markets Tax Credit law. A security meeting these
requirements is commonly referred to as a “QEI”. MDA will
review the QEI to determine if it qualifies for the Mississippi New
Markets Credit. If the QEI does qualify, MDA will issue a
certification of credits allowed. The total Mississippi New
Markets Credit for all Mississippi taxpayers is capped at
$15,000,000 per year.
Wildlife Land Use Credit (30)
Effective January 1, 2010, a state income tax credit is allowed
that provides a $5.50 per acre tax credit for certain taxpayers
that allow land to be used as a natural area preserve, wildlife
refuge, wildlife management area or public outdoor recreation
area. Land must first be approved to be suitable for the uses
listed above by the Mississippi Commission on Wildlife,
Fisheries and Parks. Any unused credit amount may be carried
forward for five (5) years from the close of the taxable year in
which the land was approved for such a use.
Headquarters Relocation Credit (32)
Effective January 1, 2014, an income tax credit is authorized
under House Bill 785 for any company that transfers or relocates
its national or regional headquarters to Mississippi. The amount
of the credit is equal to the actual relocation costs paid by the
company in the taxable year.
Relocation costs shall include those non-depreciable expenses
that are necessary to relocate headquarters’ employees to the
national or regional headquarters, including, but not limited to,
costs such as travel expenses for employees and members of
their households to and from Mississippi in search of homes and
moving expenses to relocate furnishings, household goods and
personal property of the employees and members of their
households.
The company must create twenty (20) jobs to qualify and the
credit shall be applied to the taxable year in which the relocation
costs are paid. The credit is limited to $1,000,000 cap each
fiscal year.
Veteran Employee Credit (33)
This is an income credit for taxpayers that employ persons who
are honorably discharged veterans who served on active duty
on the Armed Forces of the United States on or after September
11, 2001, and who have been unemployed for six consecutive
months immediately prior to being employed by such taxpayers.
Likewise, this bill authorizes any tax credit claimed but not used
in any taxable year to be carried forward for five (5) consecutive
years and the aggregate amount of tax credits that may be
awarded shall not exceed $1,000,000. This bill is effective
January 1, 2016.
Business Contributions to Eligible Charitable
Organizations (36)
Effective from and after January 1, 2019, the Children’s Promise
Act authorized an income tax credit for business enterprises
that donate cash to eligible charitable organizations. The credit
is limited to fifty percent (50%) of the total tax liability and may
be carried forward for five (5) years.
House Bill 1729 amended Miss. Code Ann. §27-7-22.41 to
increase the aggregate amount of credits that may be awarded
during a calendar year for voluntary cash contributions by
business enterprises to eligible charitable organizations and to
revise certain provisions relating to the allocation of such credits.
Endowment Fund Charitable Credit (37)
Provides an income tax credit for donations made to endowed
funds held by community foundations. The tax credit shall be 25%
of the qualified contribution made to the endowed fund with the
minimum amount being $1,000 and the maximum amount being
$200,000. If the amount of allowable credit exceeds the amount of
tax due, the excess may be carried forward for five (5) years. This
credit can be utilized by both individual and corporate taxpayers
and is effective from and after January 1, 2019.
Pregnancy Resource Charitable Contribution Credit (39)
A credit is available for voluntary cash contributions by certain
taxpayers to eligible charitable organizations, which is defined as
an organization that is exempt from federal income taxation under
Section 501(c)(3) of the Internal Revenue Code and is a pregnancy
resource center or crisis pregnancy center eligible to receive
funding disbursed by the Choose Life Advisory Committee. The
credit is available to a business enterprise engaged in commercial,
industrial, or professional activities and operating as a corporation,
limited liability company, partnership, or sole proprietorship. The
credit is limited to 50% of the income tax due. Any unused portion
of the credit may be carried forward for five (5) years. This credit is
in lieu of the charitable contribution deduction.
Railroad Infrastructure Tax Credit (40)
A credit is available for certain new, reconstruction and replacement
expenditures made by Class II and Class III railroads. The credit is
limited to the income tax due. Any unused portion of the credit may
be carried forward for five (5) years. The total amount of credits that
may be claimed by all taxpayers shall not exceed $8,000,000 during
a calendar year. A taxpayer may transfer by written agreement any
unused tax credit to an eligible transferee at any time during the
year in which the credit is earned and five (5) years follow the year
in which the credit is earned.
Blood Donation (41)
A credit is available for an employer of $20 for each verified blood
donation made by an employee as part of a blood drive. The credit
is limited to the income tax due. No carry forward is allowed for any
unused portion.
Bank Share Credit (50)
The Bank Share Credit is a franchise tax credit that equals the
amount of all ad valorem taxes paid by banks on personal property
and on the assessed value of its intangibles to any county, district
or municipality. The credit can offset 100% of franchise tax due. No
carryover is allowed for this credit.
General Restrictions on Incentive Credits
The only credits whose usage is dependent on another credit are
the Export Port Charges Credit, Import Port Charges Credit and the
Reforestation Tax Credit (RTC). The RTC should be used last.
The total of the Jobs Tax Credit, the Headquarters Credit and the
R & D Skills Credit cannot exceed 50% of the total income tax due.
The other credits are not limited in such a manner and their usage
will be independent of one another. When one credit is limited to
50% of the income tax due and another one is also limited to 50%,
when combined they may offset 100% of the income tax due.
It will be up to the taxpayer to list which credits are to be used on
the tax return. Please keep in mind that a number of the credits do
not have carryforward provisions. When a deduction on the
Mississippi tax return also gives rise to a tax credit, the amount of
that credit which is being used on the current return must be added
back to Mississippi income (loss) after any apportionment of
income.
14
The adding back of the credit to taxable income will increase
the tax liability, which may increase the amount of credit that
may be taken. When this is the case, continue to increase the
amount of credit being used and add back to income until there
is a difference of $1,000 or less between the two. Therefore, the
credit added back may be, at most, $1,000 less than the credit
being used.
Some credits are based on a percentage of an expense, and in
this case only the credit used should be added back. Those
credits which are affected are: Finance Company Privilege,
Child/Dependent Care, Skills Training, Gaming, Rural
Economic Development (RED), Export Port Charges, Import
Port Charges, Reforestation, and Ad Valorem tax credits.
The credits allowed should not be used by any business
enterprise or corporation other than the business enterprise
actually qualifying for the credit. As a general rule, all credits
generated by the S corporation or partnership are passed
through to the shareholders based on their respective
ownership percentages. In the event that a composite return is
filed on behalf of some or all of the nonresident shareholders,
or in the event that a liability for taxes arises due to the failure
to secure an agreement from a resident shareholder or a
nonresident shareholder fails to file a return and to make timely
payment of taxes due, any credit which would otherwise be
passed through to the shareholder(s) involved may be utilized
against the tax liability.
Growth and Prosperity (GAP) Areas Tax Exemption
The Growth and Prosperity (GAP) Areas Tax Exemption was
created to encourage businesses to locate facilities and hire
individuals in areas that have a certain percentage of the
population below the federal poverty level or have an
unemployment rate that is 200% of the state’s average
unemployment rate.
The income and franchise tax exemption is available for a
period of 10 years for certain businesses locating in a
designated GAP area. The eligible businesses include ones
that manufacture, process, assemble, store, warehouse,
service, distribute, sell any products or goods including
products of agriculture, research and development, and others
as determined by MDA which will create at least 10 jobs.
Businesses that cannot claim the exemption are retail
establishments, gaming businesses or casinos and electrical
generation facilities. An eligible business that constructs a new
facility or expands an existing facility located in one of the
designated GAP areas can apply to MDA to be exempted from
state and local taxes for a period of 10 years or until December
31, 2022, whichever occurs first.
A business that relocates from a county in Mississippi to a GAP
area is not eligible for the exemption. When filing the state
income and franchise tax return claiming the exemption, attach
a schedule showing the calculation of how the exemption was
calculated, a copy of the certification from the MDA and the
completed application, and the income and Franchise Tax
Credit Summary (Form 83-401) showing all credits taken.
The GAP Area Exemption is authorized under Miss. Code Ann.
§ 27-7-21, § 27-13-5 and § 57-80-1 through § 57-80-11. For
more information on the GAP Areas, please contact:
Mississippi Development Authority
Financial Resources Division – GAP Program
P.O. Box 849
Jackson, MS 39205
15
SPECIFIC INSTRUCTIONS
TAXPAYER INFORMATION
Please provide all information requested. Enter the county
code corresponding to your principal business location (see
Appendix for a list of the codes).
FRANCHISE TAX
Line 1: Enter the amount of taxable capital from Form 83-110,
line 18.
Line 2: Enter the amount of franchise tax due. For tax year
2022, the franchise tax rate is $1.50 per $1,000 of
capital in excess of $100,000 (minimum tax of
$25).
Line 3: Enter the total amount of credit claimed from Form
83- 401, line 1.
Line 4: Enter the net franchise tax due (line 2 minus line 3).
If line 3 equal or exceeds the amount shown on line
2, enter a zero.
INCOME TAX
If filing a combined return, enter the name and Federal
Employer Identification Number (FEIN) of the reporting
corporation.
Each corporation included in the combined return must file its
own separate return (except for the reporting corporation) on
which it computes and remits its franchise tax, and also
computes its Mississippi taxable income. The taxable income
(loss) computed by each corporation is then combined on the
reporting corporation’s return (Form 83-310). The reporting
corporation must file a return that includes its own franchise
tax and the combined income tax.
Line 5: If a corporation is not included in a combined return,
enter the amount of Mississippi net taxable
income from line 30 of Form 83-122. If a
combined return is filed, enter zero, except the
reporting corporation, which enters the
combined group's Mississippi net taxable income
from Form 83-310, line 5, column C. If the total in
column C is negative, enter zero.
Line 6: Enter the amount of income tax due. The rates of
tax are: 0% on the first $5,000, 4% on the next
$5,000 of taxable income; and 5% on taxable
income in excess of $10,000.
In the case of taxpayers having a fiscal year
beginning in a calendar year with a rate in effect
that is different than the rate in effect for the next
calendar year and ending in the next calendar year,
the tax due for that taxable year shall be determined
by: (a) Computing for the full fiscal year the amount
of tax that would be due under the rates in effect for
the calendar year in which the fiscal year begins;
and (b) Computing for the full fiscal year the
amount of tax that would be due under the rates in
effect for the calendar year in which the fiscal year
ends; and (c) Applying to the tax computed under
paragraph (a) the ratio which the number of months
falling within the
earlier calendar year bears to the total number of
months in the fiscal year; and (d) Applying to the tax
computed under para g raph(b)the ratio which the
number of months falling within the later calendar year
bears to the total number of months within the fiscal
year; and (e) Adding to the tax determined under
paragraph (c) the tax determined under paragraph (d)
the sum of which shall be the amount of tax due for the
fiscal year.
Line 7: Enter the total amount of taxes paid on your behalf by
electing pass-through entities, from MS Schedule K-1
Form 84-132, Part V. The K-1(s) you received must
be attached to the return.
Line 8: Enter the total amount of credit claimed from Form 83-
401, line 3. For limitations, see the “General Restrictions
on Incentive Credits” section of this booklet.
Line 9: Enter the net income tax due (line 6 minus line 7 and line
8). If line 8 equals or exceeds the amount shown on line
6, enter a zero.
PAYMENTS AND TAX DUE
Line 10: Enter the total franchise and income tax due (add line 4
plus line 9).
Line 11: Enter the amount of overpayment from the previous filed
return. The overpayment from the prior year should be
the amount shown on the previous return as an
overpayment to be credited to the next year.
Line 12: Enter the total amount of estimated tax payments and
payment with extension. This amount should equal the
total of quarterly estimated income tax payments and the
amount paid with the request for an automatic extension of
time to file.
Line 13: Enter the total amount of previous payments made for the
tax year (line 11 plus line 12).
Line 14: Enter the net total franchise and income tax due. This is the
amount of total tax due less previous payments (line 10
minus line 13).
Line 15: If the current Mississippi income tax liability (line 9) is
$200 or less, then estimated income tax payments were
not required for this year. If the current year Mississippi
income tax liability exceeds $200, Form 83-305 should
be completed and attached to the return. Enter on this
line the amount shown on Form 83-305, line 19.
Line 16: Enter the amount of interest due on late payment of tax.
An extension of time only extends the time for filing a
return, not payment of the tax. If the income and franchise
tax is not paid by the original due date of the return, then
interest is due at the rate ½ of 1% per month.
Line 17: Enter the amount of penalty due on late payment of tax.
An extension of time only extends the time for filing a
16
return, not the payment of tax. The penalty imposed for
failure to pay the tax when due is 1/2% per month, not
to exceed 25% in the aggregate.
Line 18: Enter the amount of penalty due for failure to file a
return by the due date of the return. The penalty for
failure to file a return is 5% per month not to exceed
25% in the aggregate. The penalty imposed for
failure to file is based on the additional amount of tax
due. Such failure to file penalty shall not be less than
$100 for income tax.
Line 19: Enter the balance of tax due (if line 9 is larger than
line 13). This is the amount of total tax due less
previous payments plus interest and penalties (add
line 14 through line 18).
Line 20: Enter the amount of overpayment, if any (if line 13
is larger than line 10 plus line 15, subtract line 10
and line 15 from line 13).
Line 21: Enter the portion of line 20 that you wish to carry
forward and credit against your next year’s tax liability.
This credit will be considered for estimated income
tax purposes as a first quarter payment.
Line 22: Enter the portion of line 20 that you wish to be
refunded. The total of line 21 and line 22 should
equal line 20.
Taxpayers must make certain adjustments to federal taxable
income in arriving at Mississippi net income. This schedule
highlights some of the differences but is not an all-inclusive
list. The Mississippi Administrative Code and Regulations are
available on our website at www.dor.ms.gov.
Multistate construction contractors and producers of mineral
or natural resource products are required to use direct
accounting and file Form 83-124. In this situation, lines 1
through 22 of this form are not completed unless the taxpayer
also has income apportionable to this state from another line
of business.
For a certain major medical or pharmaceutical supplier of a
Mississippi distribution facility, the apportionment percentage
shall be computed by adding together a payroll factor which
shall be counted twice, property factor which is counted twice
and sales factor which is counted once, then divide the sum
by five.
Lines 17, 18, 19 of this form do not apply to taxpayers doing
business only in Mississippi.
Line 1: Enter the amount of taxable income (loss) (before net
operating loss and special deductions) per federal
Form 1120.
Line 2: Enter the amount of state, local and foreign
government income taxes claimed as a deduction on
Form 1120.
Line 3: Enter the amount of interest on obligations of states
and political subdivisions thereof (other than
Mississippi) received by the corporation, net of
expenses.
Line 4: Enter the amount of depletion claimed on Form 1120 in
excess of the cost basis of the asset on which the
depletion is claimed.
Line 5: Enter the amount of any capital loss carryover claimed
in computing federal taxable income. Capital loss
carryovers, just as net operating losses, must be
computed separately for Mississippi tax purposes.
Line 6: Enter the amount of special depreciation allowance
claimed for federal tax purposes. Federal Form 4562
must be completed twice and attached immediately after
Form 83-122.
The first submission reflects the deductions taken for federal
income tax purposes. The second submission should be labeled
“Mississippi” at the top of the form and will compute the
apportionable and/or allocable depreciation deduction without
taking into account any special depreciation allowance (generally
line 14 of Federal Form 4562).
Any difference between the two submissions resulting from the
special depreciation allowance is reported as an increase on this
line. Any additional depreciation expense for purposes of this
state due to the basis adjustment not being made is reported on
line 13 of this form.
Line 7: Enter any other additions required by law. Other additions
include but are not limited to 1) charitable contribution
carryovers, 2) unrecognized installment sale gains, and 3)
add back of intangible expenses and costs and interest
expenses and costs incurred with certain related
members. Mississippi allows a 20% deduction for
charitable contributions computed without regard to the
deduction for the charitable contributions but does not
allow a carryover of any unused contributions deduction.
For more information on treatment of installment sales, as well as
the years effected, see Miss. Code Ann. § 27-7-9. Intangible
expenses and costs and interest expenses and costs incurred with
certain related members must be added back to income. For
additional details, see Miss. Code Ann. §27-7-17(2).
Line 9: Exempt interest received on direct U.S. Government
obligations (see Title 35, Part III, Subpart 02, Chapter 04
of the Miss. Admin. Code on what constitutes a direct
obligation) is not taxable to Mississippi. Enter the
amount of such interest reported as income on Form
1120, net of expenses.
Line 10: Enter the amount of wage expense that was not
deducted on Form 1120 because a federal tax credit
was taken in lieu of an expense.
Line 11: Enter the income/loss from a partnership or other flow-
through entity. Flow-through entity income is allocated
based on the source as determined in the hands of the
flow-through entity rather than the owner.
Line 12: Multistate construction contractors and producers of
mineral or natural resource products must use direct
accounting (Form 83-124) to report the income from
these lines of business. Enter the income (net of
expenses) from these lines of business as reported on
federal Form 1120.
For further information concerning accounting methods
for contractors and mineral producers see Title 35, Part
III, Subpart 08, and Chapter 06 of the Miss. Admin.
17
Code for details. If this is your only line of business
in Mississippi, skip lines 1 through 22 and start with
line 23.
Line 13: When a special depreciation allowance is taken for
federal tax purposes, the depreciable base must be
reduced by the amount of the allowance. Enter the
additional depreciation expense for purposes of this
state due to the basis adjustment not being made for
state purposes. Attach supporting computations for
any amounts claimed.
Line 14: Enter any other deductions authorized by law. For
each adjustment, provide an explanation of the
basis for exclusion and a schedule showing how the
amount is computed. In particular, gain from the sale
of an interest in certain types of domestic entities
may not be recognized for state purposes. If this is
applicable, provide a schedule showing the
computation of the non-recognized gain. For more
details on what qualifies for this exclusion, see Miss.
Code Ann. § 27- 7-9(f)(10).
Line 17: Enter the amount of non-business income (loss)
shown on the Non-business Income Worksheet,
Form 83-150, column E, line 2.
Line 21: Enter the amount of non-business income (loss)
allocated to this state shown on the Non-business
Income Worksheet, Form 83-150, column F, line 2.
Line 22: Enter the amount of Mississippi sourced income
(loss) received from flow-through entities (attach
Mississippi K-1s).
Line 23: Enter the amount reported on Form 83-124, page 2,
line 31 and/or page 3, line 46.
Line 24: Enter the amount of actual tax credit claimed on this
return from the tax credits with code numbers 2, 3
and 5 through 35 and 50. For further instructions see
the “General Restrictions on the Incentive Credit”
section of this booklet.
Line 25: Enter the appropriate amount of separate company
Mississippi capital loss carryover. The carryover
deduction may not exceed the amount of current
year Mississippi capital gains. Attach a completed
Form 83-155 and a schedule showing how the
amount of allowable capital loss was computed.
Also attach Federal Form 4797, Sale of Business
Property for capital loss.
Line 26: Enter other adjustments required by law including
any adjustments resulting from installment sales.
Attach a schedule of computations.
Line 28: Deduct any available separate company Mississippi
net operating loss carryover or carryback to the
extent of income. Attach a completed Form 83-155.
If the corporation has any unused net operating
loss carryover or carryback, it may be able to offset
the loss against income of other members of its
combined group subject to limitations. Mississippi
does not conform to federal net operating loss rules.
18
PART II: CAPITAL LOSS
This schedule is to be completed only if the corporation has
activities in another state and has income, losses, expenses,
or deductions which are to be allocated ("non-business")
rather than apportioned.
On lines 1a through 1i, enter any non-business income or
losses, including gains (losses) from the disposition of non-
business assets. Enter any expenses associated with such
income (loss) including indirect expenses (such as interest
expense pro-rated to "non-business" assets).
Enter in Column A each item of non-business income or loss
allocated to any state, including Mississippi, and the related
expenses in Column C.
Enter in Column B items allocated to Mississippi, and the
related expenses in Column D.
Enter the net of Columns A and C in Column E, and the net
of Columns B and D in Column F.
PART I: NET OPERATING LOSS
Generally, when a corporation’s Mississippi sourced items of
deduction exceed its Mississippi gross income, a NOL is
generated. A NOL is to be carried by the corporation to each
of the two (2) taxable years preceding the year of the NOL,
starting with the earliest, and then to each of the twenty (20)
tax years following the year of the NOL, until the NOL is
exhausted or the carry forward period expires. An exception
is when, on the original return filing, the corporation elects to
forgo the carryback. In this case the NOL generated is carried
forward for twenty (20) years.
Column A: Enter the year end the net operating loss was
generated.
Column B: Enter the amount of the net operating loss (this
amount should be entered as a positive number).
Column C: Enter the year end in which the net operating loss
deduction is taken. A net operating loss
deduction can be carried back 2 years or carried
forward 20 years.
Column D: Enter the amount of net operating loss deduction
actually used to offset income.
Column E: Enter the remaining of unused net operating loss,
if any (column B minus column D and enter the
result as a positive number).
Line 1: Enter the total amount available from column B.
Line 2: Enter the amount of net operating loss deduction
currently used. Enter this amount on Form 83-122,
line 28 or Form 83-391, page 2, line 16.
Line 3: Subtract line 2 from line 1 to compute the net
operating loss available for carryforward.
If a corporation has a net capital loss for any taxable year, the
amount of capital loss deduction is allowed in the current year
only to the extent of the capital gain. A net capital loss is carried
back 3 years and forward 5 years.
Column A: Enter the year end the capital loss was generated.
Column B: Enter the amount of the capital loss (this amount
should be entered as a positive number).
Column C: Enter the year end in which the capital loss
deduction is taken. A capital loss deduction can be
carried back 3 years and carried forward 5 years.
Column D: Enter the amount of capital loss deduction actually
used to offset the capital gain. The capital loss is
allowed only to the extent of the capital gain.
Column E: Enter the remaining of unused capital loss, if any
(column B minus column D and enter the result as
a positive number).
Line 1: Enter the total amount available from column B.
Line 2: Enter the amount of capital loss deduction currently
used. Enter the amount on Form 83-122, line 25, also.
Line 3: Enter the amount of capital loss deduction currently
used. Enter this amount on Form 83-122, line 25 also.
Line 4: Subtract line 2 from line 1 to compute the capital loss
available for carryforward.
Every corporate taxpayer with an annual income tax liability in
excess of two hundred dollars ($200) must make estimated tax
payments. These estimated tax payments must not be less than
ninety percent (90%) of the annual income tax liability. Any
taxpayer who fails to file an estimated tax return and pay the tax
within the time prescribed or underestimates the required
amount shall be liable for penalty of ten percent (10%) plus
interest at 1/2 of 1% per month on underpayment of tax from the
payment due date until paid or the next payment due date,
whichever is earlier.
Line 1: Enter the amount of current year income tax due from
Form 83-105, line 9 (C Corporations or Form 84- 105,
line 9 (Composite S Corporations or electing pass-
through entities).
Line 2: Multiply line 1 by 90% for S Corporation (not applicable
if using the prior year income tax liability).
Composite partnerships must follow the Individual
Income Tax rules.
Line 3: Enter the amount of prior year income tax due.
Line 4: Enter the lesser of line 2 or line 3 (except large
corporations).
Line 5: Enter the amount of required estimated payment per
quarter by dividing line 4 by four.
19
Line 6: Enter the appropriate months of the S Corporation’s
or electing pass-through entity’s tax year in column
(a) through column (d).
Line 7: Enter the amount from Part 1, line 5 in each column.
The cumulative total should not be less than 90% of
the income tax due for the year (S Corporations or
electing pass-through entities).
Line 8: Enter the actual amount of estimated tax paid each
quarter.
Line 9: Enter in column (a) any overpayment from the
previous year. Enter any excess from the previous
quarter(s), line 9, in column (b) through column (d).
Line 10: Total line 8 plus line 9 minus line 7 and enter the
amount in column (a). If the result is negative
(overpayment), enter zero and carry the
overpayment amount (as a positive amount) in the
next quarter(s), line 9, column (b) through column
(d).
Line 11: Multiply line10 by 10%. If negative, enter zero.
Line 12: Enter the cumulative amount from line 7.
Line 13: Enter the cumulative amount of estimated taxes
paid plus any overpayment from the prior year (line
8 plus line 9).
Line 14: Subtract line 12 from line 13. If the result is negative,
enter zero.
Line 15: Enter the interest rate in column (a) through column
(d). Compute interest at the rate of ½ of 1% per
month on or after 01/01/19 from the payment due
date until paid or until the next payment due date,
whichever is earlier.
Line 16: Multiply line 14 by line 15.
Line 17: Enter the amount of penalty from line 11, column
(a)
through column (d).
Line 18: Enter the amount of interest from line 16, column
(a) through column (d).
Line 19: Enter the total amount of underestimated interest
and penalty due (line 17 plus line 18) on this line
and on Form 83-105, page 1, line 15.
An "affiliated group" of corporations may elect to file on a
combined basis for purposes of the income tax provided that
the requirements of Title 35, Part III, Subpart 08, Chapter 07 are
met. The term combined is used to indicate an election where
the separately computed net income/loss of a group of affiliated
corporations is summed in order to determine the net income
subject to tax.
The reporting corporation of a combined income group will file
Form 83-310, Summary of Net Income of Corporations, as a
part of its combination return filing (in addition to the
computation of the reporting corporation's separate company
income/loss). The combined net income/loss computed on
Form 83-310 will be entered on line 5 of Form 83-105.
Column A: Enter the name and FEIN of the Reporting
Corporation on line 1 and the name and FEIN of
the Subsidiary Corporation(s) on line 2.
Column B: Enter the credit code and the amount of credit
claimed (the codes are in the Appendix of this
booklet). Tax credits can only be claimed by the
corporation earning the credit and may not be used
to offset the income tax liability of another member
of the group.
Column C: Enter the amount of income (loss) from Form 83-
122, line 30.
Line 3: Enter the total of credit amounts from column B, lines
1 and 2 and the total of net taxable income (loss) from
column C.
Line 4: If applicable, enter the total of column B and column
C from any supplemental pages from Form 83-310.
Line 5: Enter the sum of line 3 and line 4 on this line. Enter
the sum from column B on Form 83-105, page 1, line
7 or Form 83-391, line 4, page 1. Enter the total from
column C on Form 83-105, page 1, line 5 or Form
83- 391, page 1, line 1. If the total in column C is
negative, enter zero on Form 83-105, page 1, line 5
or Form 83-391, page 1, line 1.
19
INSURANCE COMPANIES
Form 83-391 is designed for foreign and domestic companies,
including class B burial companies, writing life, accident and
health, fire and casualty insurance. Title insurance companies
and class A burial insurance companies should use the regular
corporation Form 83-105.
The income tax law permits foreign non-life insurance
companies to determine their Mississippi net income from
underwriting by apportioning their company-wide net
underwriting income. See Title 35, Part III, Subpart 10, Chapter
03 of the Miss Administrative Code.
Companies using this method should disregard pages 2, 3 and
4 of the return in computing Mississippi income from
underwriting and prepare a separate schedule. However, such
companies reporting investment income to this state may use
said pages in making this computation, if convenient.
The following instructions are applicable to companies
determining their Mississippi income by the direct accounting
method and should be used in conjunction with the regulations.
INSURANCE COMPANIES – COMBINED FILINGS
Insurance companies may file a combined return if the affiliated
companies in the combined group are filing Form 83-391.
However, insurance companies or corporations that file Form
83-105 cannot be included in the combined return. Attach the
Summary of Net Income Schedule, Form 83-310, if filing a
combined return. Page 2 – COMPUTATION OF NET INCOME
All Companies: See Title 35, Part III, Subpart 10, Chapter 03 for
what constitutes taxable Mississippi reinsurance assumed and
deductible Mississippi reinsurance ceded; Mississippi
investment and other income; and for the computation of
Mississippi unearned premiums when same are not accounted
for specifically.
Life Insurance Companies: All lines are applicable except lines
2, 6, and 10 will apply only to life companies writing accident and
health insurance. Direct premiums less return premiums on page
2, line 1 should reflect Mississippi values.
Accident and Health Insurance Companies: Disregard lines 1,
4, and 5. Report unearned premiums on lines 6 and 10 unless
the increase is shown on page 3, line 12.
Fire and Casualty Insurance Companies: Disregard lines 2, 4,
and 5.
Page 3 – EXPENSE APPORTIONMENT RATIOS
These ratios are to be used in apportioning non-allocable
expenses. The ratio shown on line 1 is to be used only by fire and
casualty companies in apportioning non-allocable loss
adjustment expenses entered on page 4, line 20. Line 2 is
applicable to life companies and fire and casualty companies
and is to be used in apportioning non-allocable expenses on
page 4. Life companies writing accident and health insurance
must separately apportion non-allocable accident and health
expenses on a supplementary page 4 by using the accident and
health ratio shown on line 2.
All companies reporting investment income to Mississippi must
separately apportion non-allocable investment expenses on a
supplementary page 4 by using the investment ratio shown on
line 4.
Page 3 – DEDUCTIONS
Life Companies: The descriptive language on line 12 follows
the language of the statute. The words “reserve funds” have
been construed by the Commissioner as being synonymous
with the word “reserves.”
The increase in reserves must be reduced by the increase in net
deferred and uncollected premiums if the latter increase has not
been included in premium income. The increase in reserves
must be reduced by any additions in excess of the amount
required by the insurance laws and may be increased by excess
reserves released on terminations if said excess was not
deducted from income when established.
All Companies: Losses and contract benefits on reinsurance
assumed are deductible only if the premium income thereon has
been reported. Losses and contract benefits must be reduced
by recoveries on reinsurance ceded if said reinsurance has
been deducted from income. State and federal income taxes are
not deductible under the statute. Payroll taxes should be
allocated on line 15 if the corresponding salaries are allocated.
Accident and Health Companies – Disregard lines 7 through
11. Do not show on line 12 any increase in unearned premiums
reflected on page 2.
Fire and Casualty Companies – Disregard lines 7 through 12.
Pages 2 and 3 – COMPANY- WIDE COLUMNS
Entries in these columns should be made on a net basis that is,
giving full effect to reinsurance assumed and ceded. Company-
wide allocable expenses should be entered on page 3 even
though a corresponding entry is not made in the Mississippi
column. Such entries should be made in order that the same may
be compared with entries in column B on page 4.
PAGE 4 – DEDUCTIONS APPORTIONED
A separate schedule must be completed for each department for
which a part of the income is reported to this state. A life
company reporting no accident and health or investment income
to this state may not deduct accident and health or investment
expense from Mississippi income but should work only from
column (1), page 9 of the Annual Statement. Fire and casualty
companies reporting no investment income to the state should
work only from column (2), page 10 of the Annual Statement,
since loss adjustment expenses are provided for on page 3 of this
return. Expense items which are allocable in their entirety, such
as premium taxes, should not be entered on page 4 but should
appear only on page 3.
20
20
DISTRICT OFFICES
Gulf Coast District Service Office
1141 Bayview Ave., Ste. 400
Biloxi, MS 39530-1601
Ph: (228) 436-0554
Fax: (228) 436-0964
Hattiesburg District Service Office
P.O. Box 1709
Hattiesburg, MS 39403-1709 17
JM Tatum Industrial Dr, Ste. 2
Hattiesburg, MS 39401
Ph: (601) 545-1261
Fax: (601) 584-4051
Jackson District Service Office
P.O. Box 1033
Jackson, MS 39215-1033 500
Clinton Center Drive Clinton,
MS39056
Ph: (601) 923-7300
Fax: (601) 923-7318
Meridian District Service Office
P.O. Box 5794, Meridian, MS 39302
900A Hwy. 19 South Meridian, MS 39301
Ph: (601) 483-2273
Fax: (601) 693 2473
Hernando District Service Office
2631 McIngvale Road, Ste. 116
Hernando, MS 38632
Ph: (662) 449-5150
Fax: (662) 449-5163
21
21
APPENDIX
COUNTY CODES
COUNTY
CODE
COUNTY
CODE
COUNTY
CODE
Adams
01
Itawamba
29
Pike
57
Alcorn
02
Jackson
30
Pontotoc
58
Amite
03
Jasper
31
Prentiss
59
Attala
04
Jefferson
32
Quitman
60
Benton
05
Jefferson-Davis
33
Rankin
61
Bolivar
06
Jones
34
Scott
62
Calhoun
07
Kemper
35
Sharkey
63
Carroll
08
Lafayette
36
Simpson
64
Chickasaw
09
Lamar
37
Smith
65
Choctaw
10
Lauderdale
38
Stone
66
Claiborne
11
Lawrence
39
Sunflower
67
Clarke
12
Leake
40
Tallahatchie
68
Clay
13
Lee
41
Tate
69
Coahoma
14
Leflore
42
Tippah
70
Copiah
15
Lincoln
43
Tishomingo
71
Covington
16
Lowndes
44
Tunica
72
Desoto
17
Madison
45
Union
73
Forrest
18
Marion
46
Walthall
74
Franklin
19
Marshall
47
Warren
75
George
20
Monroe
48
Washington
76
Greene
21
Montgomery
49
Wayne
77
Grenada
22
Neshoba
50
Webster
78
Hancock
23
Newton
51
Wilkinson
79
Harrison
24
Noxubee
52
Winston
80
Hinds
25
Oktibbeha
53
Yalobusha
81
Holmes
26
Panola
54
Yazoo
82
Humphreys
27
Pearl River
55
Out-of-State
83
Issaquena
28
Perry
56
22
22
TAX CREDIT CODES
CODE
CREDIT
CODE
CREDIT
02*
Premium Retaliatory
24
Alternative Energy Jobs
03*
Finance Company Privilege
25
Child Adoption
05
Jobs Tax
26
Historic Structure Rehabilitation (Attach Statement)
06
National or Regional Headquarters
27*
Long Term Care
07
Research and Development Skills
28
New Markets
08
Employer Child / Dependent Care
29
Biomass Energy Investment
09
Basic Skills Training (repealed 07/01/16)
30
Wildlife Land Use
10
Reforestation
31
Prekindergarten Credit
11*
Gambling License Fee
32
Headquarters Relocation Credit
12*
Financial Institution Jobs
34
Qualifying Charitable Contribution Credit Approved by DOR
13
Mississippi Revenue Bond Service
35
Foster Care Charitable Credit
14
Ad Valorem Inventory
36
Business Contributions to Eligible Charitable Organizations
15
Export Port Charges
37
Endowment Fund Charitable Credit
16
Insurance Guaranty
38
Inland Water Transportation
17
Import Credit
39
Pregnancy Resource Charitable Contribution Credit
18
Land Donation
40
Railroad Infrastructure Tax Credit
19
Broadband Technology
41*
Blood Donation
21
Brownfield Credit
50*
Bank Share
22
Airport Cargo Charges
23
Manufacturing Investment Tax Credit
*Carryover not available
23
