January 1, 2014 Effective Date is Retroactive
On April 15, 2014, Delaware Governor Jack Markell signed House Bill No. 265, as amended by House Amendment Numbers 1 and 3, into law. The bill increases the annual tax paid by alternative entities and the minimum corporation franchise tax. The legislation has a retroactive effective date of January 1, 2014.
For most filers, the increase will have no effect until 2015 when they pay their 2014 taxes. However, entities that are dissolving, cancelling, converting or merging out of existence in 2014 must pay their taxes up to the date of filing. The 2014 tax that must be paid prior to filing will be based on the new schedule.
To view our chart comparing the old and new rates, click here.
To view the full text of House Bill 265, as amended, click here.If you have questions, feel free to contact an COGENCY GLOBAL INC. corporate specialist.
This article is provided for informational purposes only and should not be considered, or relied upon, as legal advice.