On November 1st, the Commission on Worldwide Reporting for Unitary Businesses Under the Business Profits Tax issued its Final Report recommending against the removal of the water’s edge limitation and the adoption of worldwide reporting for purposes of combined reporting under the Business Profits Tax. The Commission was born out of House Bill 102 from the 2022 legislative session, codified at RSA 77-A:23-b, but substantive working sessions didn’t begin until this past fall.
Testimony from the Council on State Taxation (COST) and the DRA were instrumental in informing the Commission of the unique and specific manner in which New Hampshire already captures and taxes a significant amount of foreign source income, including foreign dividends, Subpart F and GILTI. In addition, the Commission was adept at recognizing that no concrete or quantifiable evidence was presented that would support the proponents’ claims of abusive transfer pricing practices nor the impact on New Hampshire’s revenues.
Chair Walter Spilsbury did an exemplary job in managing the testimony and materials and in drafting the final majority report. The Final Report and supporting materials can be found on the Commission’s website here.
If you have any questions, please contact Kathryn Bibbo of RYP’s State Tax Practice at email@example.com.