North Dakota Administrative Code

Repealed effective July 1, 2016.

Tax credits must be taken in the following order: 1. Tax credits with no carryback or carryforward provisions. 2. Tax credits with carryback provisions. 3. Tax credits with carryforward provisions. If there is more than one tax credit having the same priority, the tax credits mus…

1. The following provisions are applicable for purposes of interpreting subsection 1 of North Dakota Century Code section 57-38-34.4: a. If a change or correction to federal taxable income or federal income tax liability is initiated by the United States internal revenue service,…

Employers are subject to subsection 1 of North Dakota Century Code section 57-38-42 except with respect to the payment of wages to an employee. History: Effective November 1, 1992. General Authority: NDCC 57-38-56 Law Implemented: NDCC 57-38-42 7…

1. A resident who pays income tax to another state or territory of the United States or the District of Columbia on income which is also taxed by this state, is entitled to a tax credit. The tax credit may be deducted from the North Dakota income tax liability. A copy of the inco…

The federal alternative minimum tax may not be deducted in computing North Dakota taxable income. 1 History: Effective July 1, 1985; amended effective May 1, 1991. General Authority: NDCC 57-38-56 Law Implemented: NDCC 57-38-01.2…

1. An individual who moves out of this state and who claims moving expenses as a deduction on that individual's federal income tax return for the year in which the move was made may not deduct those expenses for purposes of computing North Dakota taxable income on individual inco…

1. Every fiduciary for a resident trust or estate must file an income tax return with the tax commissioner. 2. A trust or estate is a resident trust or estate when it has a relationship to the state sufficient to create nexus. This includes, but is not limited to, the following c…

Repealed effective July 1, 2016. 2

A portion of the pay received for service in the armed forces by a resident of this state is not subject to income tax imposed by this state. This portion is determined as follows: 1. An amount up to a maximum of one thousand dollars for pay received by an individual for services…

Adjustments to determine net taxable income received from the sale or lease of agricultural land and from interest income received on a contract for deed are subject to the conditions and limitations established in North Dakota Century Code chapter 57-38 and as follows: 1. Net re…

businessman. Adjustments to determine net taxable income received from the sale or lease of a revenue-producing enterprise and from interest received on a contract are subject to conditions and limitations established in North Dakota Century Code chapter 57-38 and as follows: 1. …

Repealed effective September 1, 1997.

An individual who files North Dakota individual income tax return form ND-2 or form 37 for the current year may make the following adjustments only if form ND-2 or form 37 was filed for the applicable prior year: 4 1. Refunds of state and local income taxes may only be deducted o…

1. An individual is entitled to a credit for premiums paid for long-term care insurance coverage if the policy complies with the provisions of North Dakota Century Code title 26.1 and all other applicable insurance laws insofar as they do not conflict with North Dakota Century Co…

1. The provisions in this subsection apply to the calculation and administration of the credit under North Dakota Century Code chapter 57-38.5 for tax years beginning before January 1, 2002: a. The credit must first be credited against the taxpayer's income tax liability for the …

on credit - Carryover. For the purpose of administering the credit under North Dakota Century Code chapter 57-38.6, the following apply: 1. The credit must first be credited against the taxpayer's income tax liability for the taxpayer's taxable year in which the investment is rec…

1. A nonresident individual who moves into this state with the intent to establish permanent residence acquires status as a resident immediately upon entering this state. That individual may file an individual income tax return for the first tax year either as a resident or as a …

1. An individual who moves into this state during the tax year with the intent to establish permanent residence acquires status as a resident immediately upon entering this state. That individual must file an individual income tax return for the first tax year as a part-year resi…

A nonresident must report to this state income from tangible property located in this state and must pay North Dakota tax on that income. Such income may not be excluded by a reciprocal agreement or for any other reason unless specifically excluded by statute. Income from tangibl…

estate, or trust electing to file under North Dakota Century Code section 57-38-30.3. Repealed effective July 1, 2016.

In determining the North Dakota taxable income of a nonresident, the deduction for the federal income tax liability must be adjusted as follows: 1. The federal foreign income tax credit must be subtracted. 2. After subtracting the federal foreign income tax credit, the result mus…

Repealed as a result of S.L. 1987, ch. 695, § 3, 4, 5, 6, 8, and 9.

An employer who is required to withhold state income tax must register with the office of tax commissioner within seven days of hiring an employee. The application must be made on a form prescribed by the tax commissioner. History: Effective July 1, 1985; amended November 1, 1987…

Repealed as a result of S.L. 1987, ch. 695, §§ 3, 4, 5, 6, 8, and 9.

Repealed as a result of S.L. 1987, ch. 695, §§ 3, 4, 5, 6, 8, and 9. 1

For purposes of implementing section 3 of chapter 493 of the 1993 Session Laws, unless the context clearly indicates: 1. "Act" means chapter 493 of the 1993 Session Laws of North Dakota. 2. "New job" means a job for which training is actually provided for under the Act. 3. "Progr…

Except as provided in section 81-03-03.2-03, the new jobs credit from withholding is the total amount of income tax the employer actually withholds pursuant to North Dakota Century Code section 57-38-59 from the wages paid to all individuals employed in a new job during the taxab…

The income tax withheld for an individual employed in a new job may not be included in determining the amount of credit if any of the following apply: 1. Training for the new job has not commenced. 2. The individual employed in the new job is exempt from the individual income tax…

An employer shall complete and file a new jobs credit from withholding statement as prescribed by the tax commissioner. The new jobs credit from withholding statement must be attached to each return the employer is required to file pursuant to subsection 2 of North Dakota Century…

overpayment. 1. Any corporation may elect to make a payment of estimated income tax with the tax commissioner. 2. A corporation is required to make a payment of estimated tax with the tax commissioner if: a. The corporation's previous year's state income tax liability exceeded fi…

1. Except as otherwise provided, an individual, estate, or trust subject to section 6654 of the Internal Revenue Code, relating to failure to pay estimated income taxes, shall make payments of estimated state income tax. 2. For purposes of subsection 5 of North Dakota Century Cod…

Any amount received by the tax commissioner designated as an estimated state income tax payment, including an overpayment of income tax that is credited to the taxpayer's estimated income tax for the following tax year, may not be used by the tax commissioner to offset any liabil…

Cooperative corporations, such as grain elevators, oil companies, creameries, locker plants, and others, which distribute their income through patronage dividends are not exempted from filing state income tax returns. History: Effective July 1, 1985. General Authority: NDCC 57-38…

Repealed effective May 1, 1991.

A DISC (domestic international sales corporation) is treated as an ordinary corporation and subject to state income tax. If the domestic international sales corporation has no activity within this state, but the parent corporation is required to file a tax return with this state,…

Actual distributions received from a DISC (domestic international sales corporation), or a former domestic international sales corporation, after December 31, 1984, on accumulated earnings derived before January 1, 1985, must be treated as taxable income and included in apportion…

1. The following tax credits may be claimed only by a subchapter S corporation required to pay state income tax pursuant to subsection 1 of North Dakota Century Code section 57-38-01.4: a. Corporate tax credit for new industry. b. Corporate tax credit for research and experimenta…

When calculating the tax credit provided for in North Dakota Century Code section 57-38-30.5, the taxpayer may include in the base amount only those amounts that were incurred in or attributable to North Dakota. History: Effective June 1, 1992; amended effective July 1, 2016. Gen…

1. A North Dakota net operating loss must be computed after the allocation and apportionment of a taxpayer's income or loss to North Dakota. 2. A North Dakota net operating loss may be carried forward for the same number of years as a federal loss of like character, e.g., regular…

1. As used in this section: a. "Combined report" means a tax return on which the tax liability is computed using the method described in chapters 81-03-05.2 and 81-03-05.3. b. "Consolidated return" means a single corporation income tax return that reports the tax liability of mor…

As used in these sections and for the administration of North Dakota Century Code chapter 57-38.4, unless the context otherwise requires: 1. "Assets" means both tangible and intangible property valued at original cost less depreciation, amortization, or depletion as reflected on …

A taxpayer may elect to use the water's edge method for any taxable year beginning on or after January 1, 1989. 2. A water's edge election is made when each taxpayer in the unitary group checks the water's edge box on its original North Dakota income tax return for the first year…

A water's edge group shall use a combined report to determine the amount of income which should be assigned to North Dakota on behalf of each member of the group. If the combined report assigns income to North Dakota on behalf of a member of the group, that member shall report th…

1. A taxpayer who elects to use the water's edge method shall include the income and the apportionment factors of the water's edge group in its combined report. The aforementioned group must include the following corporations: a. A United States parent corporation. b. An affiliat…

1. A taxpayer electing to use the water's edge method shall file a domestic disclosure spreadsheet if the affiliated corporations as a group have: a. Property, payroll, or sales in foreign countries exceeding ten million dollars. b. Assets exceeding two hundred fifty million doll…

1. If a taxpayer fails to make a valid water's edge election, the taxpayer will be prohibited from using this method to apportion its income for the year in question. If this occurs, the taxpayer shall determine its income and resulting tax liability pursuant to North Dakota Cent…