1. (a) General. Commencing with the calendar year 1985 and each year thereafter, the Capital Stock or Foreign Franchise Tax of a regulated investment company is the sum of the following products:

   1. (1) Seventy five dollars multiplied by the quotient, rounded to the nearest whole number, produced by dividing the net asset value of the regulated investment company by 1 million.
   2. (2) The apportioned undistributed Personal Income Tax income of the regulated investment company multiplied by the Personal Income Tax rate for the same tax year.

2. (b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise:

   Apportioned undistributed Personal Income Tax income—Undistributed Personal Income Tax income multiplied by a fraction, the numerator of which is income distributed during the taxable period to shareholders who are Commonwealth resident individuals, estates or trusts and the denominator of which is income distributed during the taxable period.

   Monthly net asset value—The actual market value of assets owned by the regulated investment company without exemptions or exclusions, less liabilities, debts and other obligations as of the last day of the month.

   Net asset value—Determined by adding the monthly net asset values for each month during the taxable period and dividing the sum by the number of months involved.

   Personal Income Tax income—Income computed in the same manner and on the same basis as the income of an individual under Article V (relating to personal income tax).

   Regulated investment company—A domestic corporation and a foreign corporation which is registered to do business in this Commonwealth, maintains an office in this Commonwealth, has filed a timely election to be taxed as a regulated investment company with the Federal government and qualifies to be taxed as a regulated investment company under the IRC.

   Undistributed Personal Income Tax income—Personal Income Tax income, other than Personal Income Tax income undistributed on account of the Capital Stock or Foreign Franchise Tax liability of the regulated investment company, less Personal Income Tax income distributed to shareholders.

3. (c) Determination of income considered to be distributed.

   1. (1) Personal Income Tax income is deemed to be either distributed to shareholders or undistributed in the same proportion that the total income received by the regulated investment company during the taxable year is distributed to shareholders or undistributed.
   2. (2) At the election of the regulated investment company, income distributed after the close of a taxable year, but deemed distributed during the taxable year for Federal income tax purposes, is deemed distributed during the year.
   3. (3) If a regulated investment company in a taxable year has both current income and income accumulated from a period year, distributions made during the year shall be deemed to have been made first from current income.

Authority

The provisions of this § 155.30 issued under sections 408 and 603 of the Tax Reform Code of 1971 (72 P. S. § § 7408 and 7603).

Source

The provisions of this § 155.30 adopted January 16, 1987, effective January 17, 1987, 17 Pa.B. 273; amended December 10, 1999, effective December 11, 1999, 29 Pa.B. 6249. Immediately preceding text appears at serial pages (205462) to (205463).

Cross References

This section cited in 61 Pa. Code § 155.21 (relating to general).