close
Share with your friends

New Jersey: Corporation business tax law changes enacted

New Jersey: Corporation business tax law changes

New Jersey’s governor on October 4, 2018, signed the following legislation:

1000

Related content

  • Assembly Bill 4495 [PDF 616 KB] containing both technical corrections and substantive changes to the Corporation Business Tax (CBT) Act, as revised earlier this year
  • Assembly Bill 4496 [PDF 380 KB] establishing an economic nexus threshold for remote sellers and requiring certain marketplaces to collect tax on sales they facilitate (effective November 1, 2018) 

The legislation includes measures to revise the effective dates for mandatory combined reporting and market-based sourcing; dividends-received deduction changes; related-party expense addback changes; rules concerning the taxation of GILTI and FDII-determined amounts of income; and maximum tax rules under combined reporting. 

The legislation also represents the state’s legislative response to the decision of the U.S. Supreme Court in South Dakota v. Wayfair, Inc. by establishing an economic nexus threshold for remote sellers and by imposing a requirement on certain electronic and physical marketplaces to collect sales tax on sales that they facilitate. The measures are effective November 1, 2018. 

 

Read an October 2018 report [PDF 183 KB] prepared by KPMG LLP

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.KPMG International Cooperative (“KPMG International”) is a Swiss entity.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal