Pennsylvania Corporate Loans Tax

The Pennsylvania Corporate Loans Tax is an annual tax computed at a rate of 4 mills (.004) on the corporate taxable indebtedness to Pennsylvania individual residents or resident partnerships during the current tax year, based on the amount of interest actually paid during the year.   To compute the tax, the actual interest paid on each such obligation is divided by the interest rate of the obligation to determine the  “nominal value of taxable indebtedness” which is multiplied by the tax rate.

The amount so computed is reduced by a Treasurer’s Commission of: 5% on first $1,000 of tax or fractional part thereof; 1% on amount of tax over $1,000 but not exceeding $2,000; 1/2 of 1% on amount of tax over $2,000.

This tax has been repealed for tax years beginning after December 31, 2013, but remains in effect for tax years beginning prior to December 31, 2013.

WEBSITE                                BLOG                             RESOURCES                                 CONTACTS

Roy & Associates, PC serves clients in western Pennsylvania located predominantly in Westmoreland County, Allegheny County, and Fayette County.