By: William A. Buck, Esq.
On Monday, January 4, 2016, Pennsylvania Governor Tom Wolf announced the successful January 1 phase-out of Pennsylvania’s capital stock and foreign franchise tax, a tax on corporations that dated back to 1844.
The tax was imposed on corporations with capital stock, joint-stock associations, limited liability companies, business trusts and other companies doing business within Pennsylvania. Domestic corporations were subject to the capital stock tax, while foreign corporations are subject to the foreign franchise tax on capital stock apportioned to Pennsylvania.
The long planned phase-out of the capital stock and foreign franchise tax, which is effective for the 2015 tax year, is an important step in maintaining Pennsylvania’s competitive business climate.
Leech Tishman’s Taxation Practice Group is able to assist with any questions you may have regarding the capital stock and foreign franchise tax.
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Leech Tishman is a firm dedicated to providing full-service commercial legal services to individuals, businesses, and institutions. We combine a deep understanding of our clients and their businesses with skilled legal counsel to find solutions. Leech Tishman offers legal services in alternative dispute resolution, bankruptcy & creditors’ rights, construction, corporate, employee benefits, employment, energy, environmental, safety & toxic torts, estates & trusts, government relations, immigration, insurance coverage & corporate risk mitigation, intellectual property, internal investigations, international legal matters, litigation, real estate, and taxation. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Los Angeles, New York and Wilmington, DE. For more information call 412.261.1600 or visit us at www.leechtishman.com.