Companies subject to financial institution excise
Massachusetts financial institution excise applies to:
- Trust companies
- Federal or state savings and loan associations existing by authority of the United States, or any state or a foreign country.
It also applies to:
- Bank holding companies
- Subsidiaries of bank holding companies
- Savings and loan holding companies
- Corporations subject to supervision by the Massachusetts Division of Banks
- Other corporations
- Certain other corporations that derive more than 50% of gross income from loan origination,lending activities and credit card activities.
Credit unions are not subject to the excise.
For more information see
Engaged in Business - Massachusetts Nexus
The financial institution excise applies to any financial institution engaged in business in Massachusetts.
The term "engaged in business," includes:
- Having a business location in Massachusetts
- Having employees, representatives or independent contractors conducting business activities on its behalf in Massachusetts
- Maintaining, renting or owning any tangible or real property in Massachusetts
- Regularly performing services in Massachusetts
- Regularly engaging in transactions with customers in Massachusetts that involve intangible property and result in income flowing to the taxpayer from residents of Massachusetts
- Regularly receiving interest income from loans secured by tangible personal property or real property located in Massachusetts or
- Regularly soliciting and receiving deposits from customers in Massachusetts.
The activities described in the last 4 bullets above are presumed to be conducted on a regular basis in Massachusetts if:
- They are conducted with 100 or more residents of Massachusetts during any taxable year
- The taxpayer has $10,000,000 or more of assets from sources in Massachusetts or
- The taxpayer has more than $500,000 in receipts from sources in Massachusetts.
Estimated payment requirements and procedures are the same as other corporations.
See TIR 16-9 for more information on filing estimated payments.