Document Title:  830 CMR 63.39.1: CORPORATE NEXUS

Status:  Final Regulation; Promulgation date: October 18, 2019

Tax Type:  Corporate Excise

Summary:  This regulation, 830 CMR 63.39.1: Corporate Nexus, is being amended to reflect changes in the law since the regulation was last promulgated, including the U.S. Supreme Court decision in South Dakota v. Wayfair. The rules set forth in this regulation explain when a business corporation, financial institution or insurance company is subject to tax under Chapter 63 of the General Laws, with respect to the income measure, non-income measure or minimum excise, taking into consideration the principles that apply under the U.S. Constitution and federal law. Among other things, the rules state that the Commissioner will presume that a general business corporation’s virtual and economic contacts subject the corporation to the tax jurisdiction of Massachusetts under M.G.L. c. 63, § 39, where the volume of the corporation’s Massachusetts sales for the taxable year exceeds five hundred thousand dollars.

Target Audience:  Corporations seeking to determine whether they are subject to the corporate excise pursuant to Chapter 63 of the General Laws; tax practitioners representing such entities.

Link to Regulation:

Copyright © 2019 Massachusetts Department of Revenue, All rights reserved.