45 IAC 17-2-5 Exemptions

Sec. 5. (a) Generally, any taxpayer which is taxable under the FIT (IC 6-5.5) is exempt from the following: (1) Indiana's gross income tax (IC 6-2.1). (2) Adjusted gross income tax (IC 6-3). (3) Supplemental net income tax (IC 6-3-8). (4) Bank tax (IC 6-5-10). (5) Savings and loan tax (IC 6-5-11). (6) Production credit association tax (IC 6-5-12). However, in the case of a partnership with a corporate partner, transacting the business of a financial institution, only the income subject to FIT shall be exempt from the above listed taxes. (See 45 IAC 17-4-4 regarding the tax liability for corporate partners of a partnership which is doing the business of a financial institution.) NOTE: The exemptions provided for the taxes listed in subdivisions (1) through (3) do not apply to a taxpayer to the extent the taxpayer is acting in a fiduciary capacity. (b) Four (4) types of corporations are exempt from the FIT as follows: (1) Insurance companies subject to tax under IC 27-1-18-2 or IC 6-2.1. (2) International banking facilities, as defined in Regulation D of the Board of Governors of the Federal Reserve System. (3) Subchapter S corporations, as defined in Section 1363 of the Internal Revenue Code. (4) Any corporation which is exempt from taxation under the Internal Revenue Code except for the corporation's unrelated business income.