Connecticut Administrative Code
Title 12 - Taxation
740(a) - INCOME TAX
Part VI - Credit for income taxes paid to another jurisdiction
Section 12-704(a)-4 - Definitions
Universal Citation: CT Reg of State Agencies 12-704(a)-4
Current through September 9, 2024
(a) As used in this Part, unless the context otherwise requires:
(1) "Connecticut tax
liability" means the Connecticut income tax determined pursuant to chapter 229,
after subtracting any personal credit allowable under Section
12-703
of the general statutes, but before subtracting the credit for taxes paid to
other qualifying jurisdictions allowable under Section
12-704
of the general statutes and the regulations of this Part, but does not include
any net Connecticut minimum tax, as defined in section
12-701
of the General Statutes.
(2)
"Income tax paid to a qualifying jurisdiction" means the lesser of (i) the
income tax (other than an alternative minimum tax that is similar to that
imposed under section
12-700a
of the General Statutes) that is actually due to a qualifying jurisdiction for
the taxable year, exclusive of any interest and penalties, or (ii) the income
tax (other than an alternative minimum tax that is similar to that imposed
under section
12-700a
of the General Statutes) that is actually paid thereto for the taxable year,
exclusive of any penalties or interest.
(3) "Income derived from or connected with
sources within a qualifying jurisdiction" is to be construed so as to accord
with the definition of the term "derived from or connected with sources within
this state" set forth in Part II in relation to the adjusted gross income of a
nonresident individual. Thus, the credit against Connecticut income tax is
allowed for income tax imposed by another jurisdiction upon compensation for
personal services performed in the other jurisdiction, income from a business,
trade or profession carried on in the other jurisdiction, and income from real
or tangible personal property situated in the other jurisdiction. On the other
hand, the credit is not allowed for tax imposed by another jurisdiction upon
income from intangibles, except where such income is from property employed in
a business, trade or profession carried on in the other jurisdiction. For
example, no credit is allowed for an income tax of another jurisdiction on
dividend income not derived from property employed in a business, trade or
profession carried on in such jurisdiction.
(4) "Qualifying jurisdiction" means a state
of the United States, a political subdivision of such a state, or the District
of Columbia, but does not mean the United States or any other nation or
political subdivision of any other nation.
(b) While this section pertains to Section 12-704(a) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.
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