Nov 20, 2017
From KPMG TaxWatch
The Vermont Department of Taxes has released a draft Technical Bulletin summarizing when taxpayers are considered to have established Vermont corporate income tax nexus. Vermont doesn't have statutory economic nexus, but per the bulletin, for income tax purposes, substantial nexus does not require physical presence and is established when a foreign corporation intentionally or regularly exploits Vermont’s market. Examples of activities that are deemed to create nexus include, but are not limited to, sending representatives to exhibit at a trade show or festival, having employees who telecommute from their homes in Vermont, making loans to Vermont residents, using intangibles in Vermont, and licensing software to Vermont customers. The bulletin also outlines the state’s approach to P.L. 86-272 and provides information on when “No Vermont Activity” returns must be filed. The Department is requesting comments on the draft bulletin through December 8, 2017. Please stay tuned to TWIST for more nexus updates.
For more information about TWIST or to view archived episodes, please visit our TWIST homepage.
To receive TWIST e-mails each Monday morning, make sure that state, local and indirect is checked off as one of your topics of interest on the KPMG TaxWatch registration site.
The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.