Taxpayers that fail to timely file their return and pay tax due may be subject to penalties and interest. Likewise, receipts by partners or members in pass-through entities that may have had a separate Nevada filing obligation are not subject to Nevada Commerce Tax (see Nev. Specifically, payments between affiliated entities, defined as entities with 50% or more common direct or indirect ownership, constitute "pass-through revenue" that is not subject to Nevada Commerce Tax (see Nev. Section 363.070), is not subject to Nevada Commerce Tax. For example, "pass-through revenue," as defined by the statute ( Nev. Even single-member limited liability companies that are engaged in business in Nevada and disregarded for US federal income tax purposes must separately file a return based on their activity in Nevada.ĭespite the lack of a combined or consolidated filing, the Nevada Commerce Tax allows taxpayers to avoid double taxation of certain related party transactions. Unlike other states (e.g., Ohio with its commercial activity tax), Nevada does not permit consolidated or combined filing by related businesses for Commerce Tax purposes. Once a taxpayer has selected a classification on its initial return, it must petition the Nevada Department of Revenue to change it on future returns. Sections 363C.300 to 363C.560.)įor purposes of the statute, a business's Commerce Tax classification is based on its North American Industry Classification System (NAICS) code. (The rates by industry sector are set forth in Nev. The tax rate varies, depending on the type or classification of earned business revenue. The Commerce Tax is a tax on Nevada-sitused gross receipts. Businesses with less than $4 million of Nevada gross receipts are not required to file a return. The Commerce Tax is based on a taxpayer's Nevada gross receipts over $4 million, earned from Jthrough June 30, 2020. This year, the return is due August 14, 2020. The Nevada Commerce Tax return is due 45 days following the end of Nevada's fiscal year, which ended on June 30, 2020.
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