Nexus

Nexus

Nexus means:
a sufficient presence within the jurisdiction of a taxing authority. The taxable income of a multistate corporation may be apportioned to a specific state only if the corporation has a sufficient nexus in the state. (The Nexus Link is often a requirement in tax law for determination of taxability or deductibility. For example, expenses are deductible if they have a “nexus” with gross income. In US, the taxable income of a multistate corporation may be apportioned to a specific state only if the corporation has a sufficient nexus in the state). The nexus for state sales tax purposes requires a physical presence in the taxing state, and for state income tax purposes the nexus requires more than mere solicitation. The minimum threshold for net income tax nexus purposes is that the aggregate nonimmune activities establish a nontrivial additional connection with the taxing state. National Bellas Hess, Inc., 386 U.S. 753 (1967); Quill Corp. v. N.D., 112 S.Ct. 1904 (1992).

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

See Sales tax in the U.S. Encyclopedia and Sales tax in the International Encyclopedia


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