{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-405.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-405.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-405.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-405.html"}],"law_id":84403,"edition_id":1,"section_id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","history":"Code 1950, \u00a7 58-151.033; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984, c. 675; 2018, cc. 801, 802.","full_text":"Except as provided in \u00a7 58.1-405.1, if the entire business of the corporation is transacted or conducted within the Commonwealth, the tax imposed by this chapter shall be upon the entire Virginia taxable income of such corporation for each taxable year; however, if such corporation is certified by the Virginia Economic Development Partnership Authority as an eligible company pursuant to \u00a7 58.1-405.1, it may elect to (i) apportion its income between qualified localities, as defined in \u00a7 58.1-405.1, and other localities in the Commonwealth, provided that it shall not apportion any of its income to a state other than Virginia and (ii) utilize any modification for which it may be eligible pursuant to the provisions of \u00a7 58.1-408, 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, or 58.1-422.2, as applicable. The entire business of the corporation shall be deemed to have been transacted or conducted within the Commonwealth if such corporation is not subject in any other state to a net income tax, a franchise tax measured by net income, or a franchise tax for the privilege of doing business.","order_by":null,"text":{"0":{"id":302516,"text":"Except as provided in \u00a7 58.1-405.1, if the entire business of the corporation is transacted or conducted within the Commonwealth, the tax imposed by this chapter shall be upon the entire Virginia taxable income of such corporation for each taxable year; however, if such corporation is certified by the Virginia Economic Development Partnership Authority as an eligible company pursuant to \u00a7 58.1-405.1, it may elect to (i) apportion its income between qualified localities, as defined in \u00a7 58.1-405.1, and other localities in the Commonwealth, provided that it shall not apportion any of its income to a state other than Virginia and (ii) utilize any modification for which it may be eligible pursuant to the provisions of \u00a7 58.1-408, 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, or 58.1-422.2, as applicable. The entire business of the corporation shall be deemed to have been transacted or conducted within the Commonwealth if such corporation is not subject in any other state to a net income tax, a franchise tax measured by net income, or a franchise tax for the privilege of doing business.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":13460,"edition_id":1,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:56","date_modified":"2026-06-26 03:44:56","permalink":{"id":253359,"object_type":"structure","relational_id":13460,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60955,"structure_id":13460,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":58533,"structure_id":13460,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":77310,"structure_id":13460,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":79891,"structure_id":13460,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":85449,"structure_id":13460,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":75981,"structure_id":13460,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":56970,"structure_id":13460,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":65538,"structure_id":13460,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":56080,"structure_id":13460,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":false},{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},{"id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":false},{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":54428,"structure_id":13460,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":80735,"structure_id":13460,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":60991,"structure_id":13460,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":65358,"structure_id":13460,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":74292,"structure_id":13460,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},{"id":71471,"structure_id":13460,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","url":"\/58.1-418\/","token":"58.1\/I\/3\/10\/58.1-418","metadata":false},{"id":87267,"structure_id":13460,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","url":"\/58.1-419\/","token":"58.1\/I\/3\/10\/58.1-419","metadata":false},{"id":61390,"structure_id":13460,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","url":"\/58.1-420\/","token":"58.1\/I\/3\/10\/58.1-420","metadata":false},{"id":54421,"structure_id":13460,"section_number":"58.1-421","catch_line":"Alternative method of allocation","url":"\/58.1-421\/","token":"58.1\/I\/3\/10\/58.1-421","metadata":false},{"id":75896,"structure_id":13460,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","url":"\/58.1-422\/","token":"58.1\/I\/3\/10\/58.1-422","metadata":false},{"id":56837,"structure_id":13460,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","url":"\/58.1-422.1\/","token":"58.1\/I\/3\/10\/58.1-422.1","metadata":false},{"id":61386,"structure_id":13460,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","url":"\/58.1-422.2\/","token":"58.1\/I\/3\/10\/58.1-422.2","metadata":false},{"id":54726,"structure_id":13460,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","url":"\/58.1-422.3\/","token":"58.1\/I\/3\/10\/58.1-422.3","metadata":false},{"id":84482,"structure_id":13460,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","url":"\/58.1-422.4\/","token":"58.1\/I\/3\/10\/58.1-422.4","metadata":false},{"id":76648,"structure_id":13460,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","url":"\/58.1-422.5\/","token":"58.1\/I\/3\/10\/58.1-422.5","metadata":false},{"id":63840,"structure_id":13460,"section_number":"58.1-423","catch_line":"Income tax paid by commercial spaceflight entities","url":"\/58.1-423\/","token":"58.1\/I\/3\/10\/58.1-423","metadata":false}],"previous_section":{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},"next_section":{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-405\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1981, chapter 402; in 1984, chapter 675; in 2018, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?181+ful+CHAP0801\">801<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?181+ful+CHAP0802\">802<\/a>.<\/p>","references":[{"id":79092,"section_number":"58.1-399.1","catch_line":"Elective payment by a partnership","order_by":null,"url":"\/58.1-399.1\/"},{"id":56464,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","order_by":null,"url":"\/58.1-405.1\/"}],"refers_to":[{"id":56464,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","order_by":null,"url":"\/58.1-405.1\/"},{"id":86858,"section_number":"58.1-408","catch_line":"What income apportioned and how","order_by":null,"url":"\/58.1-408\/"},{"id":86205,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","order_by":null,"url":"\/58.1-417\/"},{"id":71471,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","order_by":null,"url":"\/58.1-418\/"},{"id":87267,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","order_by":null,"url":"\/58.1-419\/"},{"id":61390,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","order_by":null,"url":"\/58.1-420\/"},{"id":75896,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","order_by":null,"url":"\/58.1-422\/"},{"id":56837,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","order_by":null,"url":"\/58.1-422.1\/"},{"id":61386,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","order_by":null,"url":"\/58.1-422.2\/"}],"permalink":{"id":253397,"object_type":"law","relational_id":84403,"identifier":"58.1-405","token":"58.1\/I\/3\/10\/58.1-405","url":"\/58.1-405\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","dublin_core":{"Title":"Corporations transacting or conducting entire business within this Commonwealth","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-405","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Except as provided in \u00a7&nbsp;<a class=\"law\" title=\"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority\" href=\"\/58.1-405.1\/\">58.1-405.1<\/a>, if the entire business of the <span class=\"dictionary\">corporation<\/span> is transacted or conducted within the Commonwealth, the tax imposed by this chapter shall be upon the entire Virginia taxable income of such <span class=\"dictionary\">corporation<\/span> for each taxable year; however, if such <span class=\"dictionary\">corporation<\/span> is certified by the Virginia Economic Development Partnership Authority as an eligible company pursuant to \u00a7&nbsp;<a class=\"law\" title=\"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority\" href=\"\/58.1-405.1\/\">58.1-405.1<\/a>, it may elect to (i) apportion its income between qualified localities, as defined in \u00a7&nbsp;<a class=\"law\" title=\"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority\" href=\"\/58.1-405.1\/\">58.1-405.1<\/a>, and other localities in the Commonwealth, provided that it shall not apportion any of its income to a state other than Virginia and (ii) utilize any modification for which it may be eligible pursuant to the provisions of \u00a7&nbsp;<a class=\"law\" title=\"What income apportioned and how\" href=\"\/58.1-408\/\">58.1-408<\/a>, <a class=\"law\" title=\"Motor carriers; apportionment\" href=\"\/58.1-417\/\">58.1-417<\/a>, <a class=\"law\" title=\"Financial corporations; apportionment\" href=\"\/58.1-418\/\">58.1-418<\/a>, <a class=\"law\" title=\"Construction corporations; apportionment\" href=\"\/58.1-419\/\">58.1-419<\/a>, <a class=\"law\" title=\"Railway companies; apportionment\" href=\"\/58.1-420\/\">58.1-420<\/a>, <a class=\"law\" title=\"Manufacturing companies; apportionment\" href=\"\/58.1-422\/\">58.1-422<\/a>, <a class=\"law\" title=\"Retail companies; apportionment\" href=\"\/58.1-422.1\/\">58.1-422.1<\/a>, or <a class=\"law\" title=\"Apportionment; taxpayers with enterprise data center operations\" href=\"\/58.1-422.2\/\">58.1-422.2<\/a>, as applicable. The entire business of the <span class=\"dictionary\">corporation<\/span> shall be deemed to have been transacted or conducted within the Commonwealth if such <span class=\"dictionary\">corporation<\/span> is not subject in any other state to a net income tax, a franchise tax measured by net income, or a franchise tax for the <span class=\"dictionary\">privilege<\/span> of doing business.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nCORPORATIONS TRANSACTING OR CONDUCTING ENTIRE BUSINESS WITHIN THIS COMMONWEALTH\n(\u00a7 58.1-405)\n\nExcept as provided in \u00a7 58.1-405.1, if the entire business of the corporation\nis transacted or conducted within the Commonwealth, the tax imposed by this\nchapter shall be upon the entire Virginia taxable income of such corporation for\neach taxable year; however, if such corporation is certified by the Virginia\nEconomic Development Partnership Authority as an eligible company pursuant to \u00a7\n58.1-405.1, it may elect to (i) apportion its income between qualified\nlocalities, as defined in \u00a7 58.1-405.1, and other localities in the\nCommonwealth, provided that it shall not apportion any of its income to a state\nother than Virginia and (ii) utilize any modification for which it may be\neligible pursuant to the provisions of \u00a7 58.1-408, 58.1-417, 58.1-418,\n58.1-419, 58.1-420, 58.1-422, 58.1-422.1, or 58.1-422.2, as applicable. The\nentire business of the corporation shall be deemed to have been transacted or\nconducted within the Commonwealth if such corporation is not subject in any\nother state to a net income tax, a franchise tax measured by net income, or a\nfranchise tax for the privilege of doing business.\n\nHISTORY: Code 1950, \u00a7 58-151.033; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984,\nc. 675; 2018, cc. 801, 802.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}