C Corporation Apportionment

Apportionment Requirements

A Corporation doing business only in Colorado will compute its tax on 100% of the Colorado taxable income. However, a corporation doing business in more than one state must apportion its taxable income to any states in which the corporation is doing business. The apportionment methods reduce the income subject to Colorado taxation by comparing certain Colorado revenue, expenses, and assets to the total revenue, expenses, and assets of the corporation. For more information, review the Corporate Income Tax Guide. Generally, income is apportioned using the receipts factor.

Types of Apportionment

Not Apportioning

The C corporation has no income from business activity outside of Colorado. Tax will be calculated on 100% of the Colorado taxable income.

Receipts Factor

All business income must be apportioned using a receipts factor. Non-business income may either be directly allocated to the appropriate state or treated as business income, subject to the single sales factor. The Receipts Factor Apportionment Schedule (DR 0112RF) is required if using this method and can be completed by clicking the appropriate edit button on Revenue Online. Otherwise, submit via the e-Filer Attachment on Revenue Online. The Receipts Factor Apportionment Schedule should be included with the paper C Corporation Income Tax Return (DR 0112) if you are mailing your return to the Department. Printable/downloadable forms can be found on the Business Income Tax Forms web page.

Gross Receipts

The C corporation whose only activities in Colorado consist of making sales, that does not own or rent real estate within the State of Colorado, and that generates annual Colorado gross sales of $100,000 or less, may elect to pay tax on 0.5% of the annual Colorado gross receipts in lieu of paying the normal income tax. Please read the Corporate Income Tax Guide to determine if this applies to you.

Other Apportionment Method

When Colorado apportionment methods do not fairly measure the Colorado-source income, the corporation may request (or the Department might require) an alternative apportionment method.