[et_pb_section fb_built=”1″ _builder_version=”4.6.6″ _module_preset=”default”][et_pb_row _builder_version=”4.6.6″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.6.6″ _module_preset=”default”][et_pb_text _builder_version=”4.6.6″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]A corporation that generates income from activities or sources in New Mexico and must file a federal corporation income tax return or an equivalent return is subject to New Mexico\u00a0Corporate Income Tax. Such corporations must file a New Mexico form\u00a0CIT-1,\u00a0Corporate Income and Franchise Tax Return, or an\u00a0S-Corp,\u00a0S Corporate Income and\u00a0Franchise Tax\u00a0Return, if a Subchapter S Corporation.<\/p>\n
A corporation that has, or exercises, its corporate franchise in New Mexico is subject to the\u00a0Franchise Tax, even if the corporation is not actively engaging in business in New Mexico or owes no New Mexico Corporate Income Tax. Taxpayers must use form CIT-1,\u00a0Corporate Income and Franchise Tax Return\u00a0to report the $50 annual Franchise Tax. Entities taxed as an S-corporation for federal income tax purposes report the franchise tax on the\u00a0S-Corp,\u00a0Subchapter S Corporate Income and\u00a0Franchise Tax\u00a0Return.<\/p>\n
Exempt from New Mexico Corporate Income Tax and Franchise Tax are:<\/p>\n
For a detailed overview of New Mexico Corporate Income and Franchise Taxes, see publication\u00a0FYI-350: Corporate Income Tax and Corporate Franchise Tax<\/a>.<\/p>\n New Mexico imposes its corporate income tax on the net income of every domestic corporation and every foreign corporation that:<\/p>\n A “corporation” is a:<\/p>\n “Net income” generally is federal taxable income adjusted to exclude amounts not taxable by states.<\/p>\n New Mexico Corporate Franchise Tax is the obligation of every domestic and foreign corporation, including S corporations, that either engages in business in New Mexico or exercises its corporate franchise in this state, whether actively engaged in business or not.<\/p>\n A corporation exercises its corporate franchise when it seeks treatment as a legal entity or person who is subject to the jurisdiction of, and privileges provided by, state law. Indications of exercise of a corporate franchise include, but are not limited to:<\/p>\n To obtain a certificate of incorporation or to dissolve a corporation, you must contact the Corporations Bureau of the\u00a0New Mexico Secretary Of State<\/a>, which regulates corporations in this state.<\/p>\n New Mexico Taxation and Revenue Department New Mexico Taxation and Revenue Department For assistance, call (505) 827-0825. Or, for tax return help, email us at\u00a0CIT.TaxReturnHelp@state.nm.us<\/a>.<\/p>\n Manage your account online<\/a>Corporate Income Tax<\/h2>\n
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Franchise Tax<\/h3>\n
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Registering and Dissolving Corporations<\/h2>\n
Contact Information<\/h3>\n
US Postal Service Delivery:<\/h4>\n
\nCorporate Income Tax
\nP.O. Box 25127
\nSanta Fe, NM 87504-5127<\/p>\nUPS\/FedEx Delivery:<\/h4>\n
\nCorporate Income Tax Unit
\nManuel Lujan, Sr., Building
\n1100 S. St. Francis Drive
\nSanta Fe, NM 87505<\/p>\nLinks<\/h3>\n
\nFYI-350: Corporate Income Tax and Corporate Franchise Tax<\/a>
\nStatutory Reference: Look for\u00a0Chapter 7, Article 2A NMSA 1978\u00a0 in the\u00a0<\/span>New Mexico State Statutes<\/a>.
\nAll Forms & Publications<\/a><\/p>\nCorporate Income and Franchise Tax\u00a0Forms and Documents<\/h3>\n