2022 Net Profit Tax 09-30-2022
NPT Page 1
Preparer Signature_________________________________________ Date_______________________Phone #_________________________
Taxpayer Signature________________________________________ Date_______________________Phone #_________________________
Under penalties of perjury, as set forth in 18 PA C.S. ยงยง 4902-4903 as amended, I swear that I have reviewed this return
and accompanying statements and schedules, and to the best of my knowledge and belief, they are true and complete.
A
pplied, up to the tax due, to the 2022 Business Income & Receipts Tax Return.....................................................21b.
21c.
A
pplied to the 2023 Net Profits Tax............................................................................................................................
2022 City of Philadelphia NET PROFITS TAX
CORPORATIONS ARE NOT SUBJECT TO THIS TAX. PROOF OF PRO RATA SHARE MUST BE ATTACHED (if applicable)
IF YOU ARE NOT ELIGIBLE FOR PA 40 SCHEDULE SP, YOU ARE NOT ELIGIBLE FOR
INCOME-BASED TAXATION AND ARE NOT ELIGIBLE FOR LINES 3-4 OR LINES 8-9.
PHTIN
EIN
SSN
2022 NPT
DUE DATE: APRIL 18, 2023
Individual/ Sole
Proprietor
Partnership Estate Trust
Entity Classification:
(select one)
Business Name
Final Return:
(add Cease Date)
A
mended Return
Check Box If Applies:
A
ddress Change
--
Street Address Apt / Suite City State Zip / Postal Code
First Name Taxpayer E-mail AddressLast NameMI
17.
18.
19.
20.
21a.
21b.
21c.
%
Enter Percentage from Page 3,
Worksheet D, Line 3, if applicable.
๏ข
Place "X" in box to indicate a loss
16.
Interest and Penalty. Refer to web site for current percentage.................................................................................
17.
TOTAL DUE
including Interest and Penalty (Line 15 plus Line 16).
Use payment coupon. Make check payable to: "City of Philadelphia".............................................................
Tax Overpaid. If Line 14c is greater than Line 13, enter difference here..................................................................18.
19.
Enter 50% of Page 2, Worksheet C, Line 3. Do not use this line to remit estimated payments..........................
Balance Available: Line 18 minus Line 19. If greater than 0 proceed to Overpayment Options....................
20.
Pro Rata Resident taxable income/loss NOT eligible for Income Based Rate from Page 2, Worksheet A, Line 5...
1.
1.
Line 1 X .037900. If Line 1 is a loss, enter "0"........................................................................................................
2.
2.
Pro Rata Resident taxable income/loss eligible for Income Based Rate from Page 2, Worksheet A, Line 6...........
3.
3.
4.
Line 3 X .01500. If Line 3 is a loss, enter "0"...........................................................................................................
4.
5.
Total Resident Tax Due (Line 2 plus Line 4)..............................................................................................................5.
6.
6.
Pro Rata Non-Resident taxable income/loss NOT eligible for Income Based Rate from Page 2,
Worksheet B, Line 7....................................................................................................................................................
7.
Line 6 X .034400. If Line 6 is a loss, enter "0".......................................................................................................
8.
Pro Rata Non-Resident taxable income/loss eligible for Income Based Rate from Page 2, Worksheet B, Line 8..
9.
Line 8 X .01500. If Line 8 is a loss, enter "0".........................................................................................................
10. Total Non-Resident Tax Due (Line 7 plus Line 9).....................................................................................................
Total Tax Due (Line 5 plus Line 10)...........................................................................................................................11.
12. 60% BIRT credit from Page 3, Worksheet K, Line 4 or Worksheet D, Line 8............................................................
13.
Tax Due after 60% credit (Line 11 minus Line 12).....................................................................................................
14a.
KOZ Credits ...............................................................................................................................................................
14b.
Estimated payments and other credits from Page 3, Worksheet E, Line 4...............................................................
7.
8.
9.
10.
11.
12.
13.
14b.
14a.
14c.
14c.
Total payments and credits (Line 14a plus Line 14b)................................................................................................
15.
16.
Net Tax Due: (Line 13 minus Line 14c). If less than 0 enter the difference on Line 18...........................................
15.
21a.
OVERPAYMENT OPTIONS
Only available if Line 20 is greater than 0. Enter the amount to be:
Refunded. Do not file a separate Refund Petition.................................................................................................
WORKSHEETS A, B and C
2022 NET PROFITS TAX RETURN
Page 2
These are worksheets only.
Do not file these worksheets with your return.
Instructions for Worksheets A and B
Enter on Line 1 the net income or loss from the appropriate Federal Tax return(s) or if applicable, the Profit and Loss Statement.
Examples of Line 2 adjustments (not all inclusive): Federal Form 1040, Schedule "C" filers - add back to net income any taxes based on net income which
have been deducted in arriving at reported net income, e.g., prior year Net Profits Tax (the Business Income & Receipts Tax paid is deductible).
Federal Form 1065 filers - add back to net income any taxes based on net income, capital gains, and guaranteed payments to partners; deduct from net
income IRC section 179 expense. Nonresidents may take an income exclusion for Public Law 86-272 activity.
WORKSHEET A: Business Income (Loss) for Residents
2022 NPT Worksheets P2 09-27-2022
WORKSHEET B: Business Income (Loss) for Nonresidents
Nonresidents of Philadelphia may apportion all or part of their net income to their places of business located outside of Philadelphia on Line 5, using
Worksheet NR-3 on Page 4. The apportionment is based on a three factor formula consisting of an average of the property owned, the salaries and
wages paid, and the receipts earned during the tax year.
1. Net Income (Loss).................................................................................................................................
2. Federal Form 1065, Schedule K-1 and other adjustments.....................................................................
3. Other taxable income............................................................................................................................
4. Taxable Resident Net Income (Loss). Add Lines 1 through 3..............................................................
1.
2.
3.
4.
.00
.00
.00
.00
.00
.00
5.
6.
5. Taxable Pro Rata Resident portion of Net Income/Loss NOT eligible for Income-based rate.
Enter here and on Page 1, Line 1.........................................................................................................
6. Taxable Pro Rata Resident portion of Net Income/Loss eligible for Income-based rate.
Enter here and on Page 1, Line 3.........................................................................................................
1. Net Income (Loss)................................................................................................................................
2. Federal Form 1065, Schedule K-1 and other adjustments...................................................................
3. Other taxable income...........................................................................................................................
4. Total Net Income (Loss). Add Lines 1 through 3................................................................................
5. Philadelphia apportionment factor from Page 4, Worksheet NR-3, Line 12..........................................
6. Taxable Nonresident Net Income (Loss). (Line 4 times Line 5)............................................................
1.
2.
3.
4.
5.
6.
.00
.00
.00
.00
.00
.
WORKSHEET C: Computation of Estimated Tax Base
If the amount on Line 3 is $100 or less, estimated payments are not required. If the amount on Line 3 is greater than $100, enter 25% of the amount on
the first and second estimated coupon. If Net Profits Tax estimated payments are required, there are two payments due. Payments for the current year's
estimated tax are due twice per year. The first payment is due April 15 of each year, and the second installment is due by June 15. Estimated tax
payments are not required on September 15, 2022 or January 15, 2023.
1. Net Profits Tax Liability from Page 1, Line 11........................................................................................
2.
B
usiness Income & Receipts Tax Credit from Page 1, Line 12 or Page 3, Worksheet D, Line 8..........
3. Estimated Payments Base (Line 1 minus Line 2)
If Line 2 is greater than Line 1, no Estimate coupon is needed.............................................................
1.
2.
3.
.00
.00
.00
.00
.00
8.
8. Taxable Pro Rata Nonresident portion of Net Income/Loss eligible for Income-based rate.
Enter here and on Page 1, Line 8.........................................................................................................
7.
Taxable Pro Rata Nonresident portion of Net Income/Loss NOT eligible for Income-based rate.
Enter here and on Page 1, Line 6.........................................................................................................
7.
8. Business Income & Receipts Tax Credit allowed. Enter the lesser of Line 6 or Line 7 here and on
P
age 1, Line 12....................................................................................................................................
WORKSHEETS D, E, K and EXTENSION
2022 NET PROFITS TAX RETURN
These are worksheets only.
Do not file these worksheets with your return.
WORKSHEET D: ALLOCATION OF BUSINESS INCOME & RECEIPTS TAX CREDIT FOR PARTNERSHIPS, ETC., WITH
CORPORATE MEMBERS (THIS SCHEDULE IS TO BE USED ONLY BY PARTNERSHIPS, JOINT VENTURES AND ASSOCIATIONS
WHICH ARE COMPOSED OF ONE OR MORE CORPORATE PARTNERS, CORPORATE JOINT VENTURES, OR CORPORATE
A
SSOCIATES.)
1.
Enter the portion of taxable income on which 2022 Business Income & Receipts Tax has been paid,
AND which represents the distributive shares of net income of ALL CORPORATE MEMBERS...........
2.
Enter the total taxable income of the taxpayer on which 2022 BIRT has been paid...............................
3. Divide Line 1 by Line 2 and enter the percentage here and on Page 1 of the return...............................
4. Enter the amount from Worksheet K, Line 2..........................................................................................
5.
Multiply the amount on Line 4 by the percentage on Line 3....................................................................
6.
Subtract Line 5 from Line 4...................................................................................................................
7. Enter the amount from Page 1, Line 11.................................................................................................
1.
2.
3.
4.
5.
6.
7.
8.
.00
.00
%
.00
.00
.00
.00
.00
Page 3
WORKSHEET E: Summary of Payments and Other Credits
1. 2022 Estimated Net Profits Tax Payments..............................................................................................
2.
Payments of 2022 Net Profits Tax made with Application for Extension of Time to File........................
3.
Overpayment of 2022 Business Income & Receipts Tax or 2021 Net Profits Tax
to be applied to this return......................................................................................................................
4.
TOTAL of Lines 1 through 3. Enter here and on P
age 1, Line 14b.........................................................
WORKSHEET K: 60% Business Income and Receipts Tax Credit
1. Enter the amount from Page 1, Line 1 of the 2022 Business Income & Receipts Tax or
BIRT-EZ return........................................................................................................................................
2.
Enter 60% of the amount on Line 1. If your entity has corporate members, STOP HERE and
enter this amount on Worksheet D, Line 4..............................................................................................
3.
Enter the amount from Page 1, Line 11 of the 2022 Net Profits Tax return............................................
4. Business Income & Receipts Tax credit allowed. Enter the lesser of Line 2 or Line 3 here and
on Page 1, Line 12..................................................................................................................................
1.
2.
3.
4.
1.
2.
3.
4.
2022 NPT Worksheets P3 09-27-2022
.00
.00
.00
.00
.00
.00
.00
.00
This is an extension worksheet to be used when figuring the amount of Net Profits tax you owe. You must file an actual return by the extension due date
to satisfy your filing requirements. If an extension of time has been obtained from the Internal Revenue Service for filing your corporate, partnership or
individual tax returns, the corresponding returns are due on or before the due date of the federal extension(s). You must pay 100% of the estimated
tax due by April 18, 2023. Filing an extension coupon does not extend the time to pay the tax. Interest and penalty shall be added to the amount
of tax not paid by the statutory due date. You will not receive written confirmation of your extension request. NOTE: If you have filed for an automatic
federal extension but do not believe you will owe any tax, you do not need to file an extension coupon.
1.
100% of estimated 2022 NET PROFITS tax due....................................................................................
2. Other payments and credits you expect to report on the NPT return......................................................
3. Tax Balance Du
e (Line 1 minus Line 2). Enter on the Extension Coupon.
If Line 2 is greater than Line 1, no extension coupon is needed.............................................................
1.
2.
3.
.00
.00
.00
EXTENSION WORKSHEET
Page 4
WORKSHEET NR-3
2022 NET PROFITS TAX RETURN
Computation of apportionment factors to be applied to apportionable
net income of certain nonresidents
of Philadelphia.
2022 NPT Worksheets P4 07-12-2022
Computation of Apportionment Factors:
8A. Total average value of Philadelphia property from Column A, Line 6 above.........................................
8B. Total average value of property everywhere from Column B, Line 7 above.........................................
Allocation versus Apportionment of a Nonresident's Net Profits
A
nonresident individual, partnership, association or other unincorporated entity conducting or carrying on any business, profession,
trade, enterprise or other activity is required to pay the Net Profits Tax (NPT) on the entire net profits of the business if all
activity is
conducted within the City of Philadelphia. This is true despite the absence of a Philadelphia office or business location.
Where a nonresident maintains both Philadelphia and non-Philadelphia branch offices, the taxpayer may allocate net profits between or
among the Philadelphia and non-Philadelphia branch locations. The taxpayer must be prepared to show the Revenue Department that
each branch office or location is self-sustaining and established. This is a question of fact, depending on the particular circumstances in
each case. One factor (of many) used by the Department to support a branch office is the presence of separate branch accounting
books and records to support the allocation of the net profits between or among the various branch offices. In the absence of separate
accounting records, the nonresident taxpayer must apportion
their net profits using the three-factor apportionment formula. Refer to
Income Tax Regulation 222 at www.phila.gov/revenue
.
8C. Philadelphia property factor (Line 8A divided by Line 8B)...................................................................
9A. Philadelphia Payroll............................................................................................................................
9B. Payroll Everywhere.............................................................................................................................
9C. Philadelphia payroll factor (Line 9A divided by Line 9B)......................................................................
10A. Philadelphia receipts before BIRT Statutory Exclusion.....................................................................
10B. Gross receipts everywhere...............................................................................................................
10C. Philadelphia receipts factor (Line 10A divided by Line 10B).............................................................
11.
TOTAL FACTORS (Total of Lines 8C, 9C and 10C)...........................................................................
12.
Philadelphia apportionment factor (Line 11 divided by applicable number of factors)...........................
Enter factor here and on Page 2, Worksheet B, Line 5.
12.
.
.
.
.
.00
.00
.00
.00
.00
.00
.
8A.
8B.
8C.
9A.
9B.
9C.
10A.
10B.
10C.
11.
Calculation of Average Values of Real and Tangible Property Used in Business:
1. Inventories of Raw Materials, Work in Process and Finished Goods...................
2. Land and Buildings Owned (at average original cost)..........................................
3. Machinery and Equipment Owned (at average original cost)...............................
4. Other Tangible Asset
s Owned (at average original cost)......................................
5. R
ented Property (at 8 times the net annual rental)...............................................
6. T
otal average value of Property used WITHIN PHILADELPHIA..........................
7. T
otal average value of Property used EVERYWHERE........................................
XXXXXXXXXX
XXXXXXXXXX
COLUMN A
PHILADELPHIA
COLUMN B
TOTAL EVERYWHERE
1.
2.
3.
4.
5.
7.
6.
