1. A. Income of a nonresident for personal services rendered partly within and partly without this State shall be determined as follows:

   1. (1) Commissions of a traveling salesman or agent which depend directly on sales made are allocated outside this State if the:

      1. (a) Sales are outside this State, or
      2. (b) Merchandise is delivered to points outside this State;
   2. (2) Compensation other than commissions which depend directly on sales made for service performed partly within and partly outside this State shall be allocated based on the total number of working days employed outside this State compared to all working days employed both within and outside this State.
2. B. Nonbusiness income derived from interest, dividends, and annuities is allocable to the nonresident's state of domicile and not to this State.

3. C. Income from a business, trade, profession, or occupation carried on partly within and partly outside this State shall be determined by separate accounting when practicable. If separate accounting is not practicable, income allocable outside this State shall be determined by:

   1. (1) Percentage allocation which is:

      1. (a) The average value of tangible business property outside this State over the average value of all tangible business property multiplied by 100,
      2. (b) Business income outside this State over total business income multiplied by 100,
      3. (c) The average of the percentages determined in §C(1)(a) and (b) of this regulation, and
      4. (d) The average percentage arrived at in §C(1)(c) of this regulation applied to total business income to arrive at income allocable outside this State;
   2. (2) Apportionment of sales as described in COMAR 03.04.03.08; or
   3. (3) A method or methods subject to approval by the Comptroller.

Authority: Tax-General Article, §§2-103, 10-102.1, 10-208, and 10-823, Annotated Code of Maryland

Effective date:

Regulations .01—.05 adopted as an emergency provision effective November 3, 1980 (7:23 Md. R. 2159); adopted permanently effective March 13, 1981 (8:4 Md. R. 337)

Regulations .01E—H, .02B—I, .04C, and .05A—D amended effective September 26, 1983 (10:19 Md. R. 1689)

Regulations .01—.05, Tax Refund Intercept Program, repealed effective October 3, 1988 (15:20 Md. R. 2333)

Regulations .01—.11, Individual, adopted effective January 9, 1989 (15:27 Md. R. 3126)

Regulation .01 amended effective March 29, 1993 (20:6 Md. R. 579); January 24, 2000 (27:1 Md. R. 74)

Regulation .01B amended effective October 9, 2006 (33:20 Md. R. 1612); February 9, 2009 (36:3 Md. R. 207)

Regulation .02 amended effective October 12, 1992 (19:20 Md. R. 1813)

Regulation .02A amended and C adopted effective November 20, 1994 (21:23 Md. R. 1931)

Regulation .02C amended effective March 31, 2014 (41:6 Md. R. 377)

Regulation .03 amended effective October 12, 1992 (19:20 Md. R. 1813); November 20, 1994 (21:23 Md. R. 1931)

Regulation .03A amended effective March 21, 2011 (38:6 Md. R. 393); July 8, 2013 (40:13 Md. R. 1073)

Regulation .03C amended effective March 31, 2014 (41:6 Md. R. 377)

Regulation .04 repealed and new Regulation .04 adopted effective January 20, 1992 (19:1 Md. R. 23)

Regulation .04 amended effective May 2, 2022 (49:9 Md. R. 529)

Regulation .04A amended effective October 9, 2006 (33:20 Md. R. 1612)

Regulation .04B amended effective October 9, 2006 (33:20 Md. R. 1612); February 9, 2009 (36:3 Md. R. 207)

Regulation .04C amended effective March 29, 1993 (20:6 Md. R. 579); January 14, 1999 (26:1 Md. R. 21); October 9, 2006 (33:20 Md. R. 1612); February 9, 2009 (36:3 Md. R. 207)

Regulation .06 amended effective August 20, 1990 (17:16 Md. R. 1989); October 12, 1992 (19:20 Md. R. 1813); December 28, 1998 (25:26 Md. R. 1919); January 14, 1999 (26:1 Md. R. 21)

Regulation .06C amended effective October 9, 2006 (33:20 Md. R. 1612); April 19, 2010 (37:8 Md. R. 614); March 21, 2011 (38:6 Md. R. 393); April 30, 2012 (39:8 Md. R. 533); March 31, 2014 (41:6 Md. R. 377)

Regulation .06D adopted effective October 22, 2007 (34:21 Md. R. 1913)

Regulation .06D amended effective May 2, 2022 (49:9 Md. R. 529)

Regulation .07 amended effective October 12, 1992 (19:20 Md. R. 1813)

Regulation .07A amended effective August 20, 1990 (17:16 Md. R. 1989)

Regulation .08 amended effective October 12, 1992 (19:20 Md. R. 1813)

Regulation .08B amended effective October 9, 2006 (33:20 Md. R. 1612)

Regulation .10 repealed and new Regulation .10 adopted effective January 14, 1999 (26:1 Md. R. 21)

Regulation .11A amended effective April 28, 2014 (41:8 Md. R. 469)

Regulation .11A, G amended effective January 14, 1999 (26:1 Md. R. 21)

Regulation .12 adopted effective October 25, 1993 (20:21 Md. R. 1653)

Regulation .13 adopted effective December 18, 1995 (22:25 Md. R. 1961)

Regulation .13 amended effective March 21, 2011 (38:6 Md. R. 393)

Regulation .13A amended effective October 9, 2006 (33:20 Md. R. 1612); February 9, 2009 (36:3 Md. R. 207); May 2, 2022 (49:9 Md. R. 529)

Regulation .13D amended effective February 9, 2009 (36:3 Md. R. 207)

Regulation .14 adopted effective December 28, 1998 (25:26 Md. R. 1919)

Regulation .15 adopted effective December 23, 2002 (29:25 Md. R. 1981)

Regulation .15 amended effective February 9, 2009 (36:3 Md. R. 207); May 2, 2022 (49:9 Md. R. 529)

Regulation .15B amended effective March 31, 2014 (41:6 Md. R. 377)

Regulation .16 adopted effective April 25, 2005 (32:8 Md. R. 741)

Regulation .16C amended effective March 31, 2014 (41:6 Md. R. 377)

Regulation .17 adopted effective March 21, 2022 (49:6 Md. R. 404)

Regulation .18 adopted effective March 21, 2022 (49:6 Md. R. 404)