- (a) Where a taxpayer meeting the requirements of 26 CAR § 131-103 has income from sources both within and without this state, the amount of business income from sources within this state shall be determined pursuant to Arkansas Code § 26-5-101(IV)(9) and § 26-51-709 except as modified by this part.
(b)
- (1) If a passive intangible holding company has income both from intragroup intangible licensing transactions and from other sources, the income derived from sources other than intragroup intangible licensing transactions shall not be subject to Arkansas income tax unless the income would have been taxable in Arkansas regardless of the intragroup intangible licensing transactions.
(2) The purpose of this part is to require passive intangible holding companies to:
- (A) Apportion income derived from intragroup intangible licensing transactions; and
- (B) Pay Arkansas income tax on that apportioned income.
- (3) This part is not intended to require the apportionment of other income which would not have otherwise been subject to Arkansas income tax.