New Jersey Tax Court Again Rules That State May Not Tax International Corporation's Foreign-Source Income

New Jersey Tax Court Again Rules That State May Not Tax International Corporation's Foreign-Source Income

Tax Court of New Jersey

The New Jersey Tax Court ruled that the state's corporation business tax does not require foreign-source income to be added back if it is excluded from federal taxes through an international treaty.

The New Jersey Tax Court ruled that the state's corporation business tax does not require foreign-source income to be added back if it is excluded from federal taxes through an international treaty.

The New Jersey Tax Court ruled that the state's corporation business tax (CBT) does not require foreign-source income to be added back if it is excluded from federal taxes through an international treaty. The Division of Taxation sought a motion for reconsideration of an <a href="/lr/resolve/source-document/1xcm2" target="_blank" title="Source document">earlier opinion</a> in Infosys Ltd. of India Inc. v. Division of Taxation in which the same tax court ruled that the technology giant did not have to include its worldwide income when calculating its CBT.

The New Jersey Tax Court ruled that the state's corporation business tax (CBT) does not require foreign-source income to be added back if it is excluded from federal taxes through an international treaty. The Division of Taxation sought a motion for reconsideration of an earlier opinion in Infosys Ltd. of India Inc. v. Division of Taxation in which the same tax court ruled that the technology giant did not have to include its worldwide income when calculating its CBT.