{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-418.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-418.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-418.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-418.html"}],"law_id":71471,"edition_id":1,"section_id":71471,"structure_id":13460,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","history":"Code 1950, \u00a7 58-151.050:1; 1976, c. 436; 1979, c. 32; 1981, c. 402; 1984, c. 675; 2018, cc. 801, 802.","full_text":"A\n\nThe Virginia taxable income of a financial corporation, as defined herein, excluding income allocable under § 58.1-407, shall be apportioned within and without this Commonwealth in the ratio that the business within this Commonwealth is to the total business of the corporation. Business within this Commonwealth shall be based on cost of performance in the Commonwealth over cost of performance everywhere.B\n\n“Financial corporation” means any corporation not exempted from the imposition of tax under the provisions of \u00a7 58.1-401, which derives more than seventy percent of its gross income from the classes of income enumerated in subdivisions 1 through 4 below, without reference to the state wherein such income is earned, including but not limited to small loan companies, sales finance companies, brokerage companies and investment companies:1\n\nFees, commissions, other compensation for financial services rendered;2\n\nGross profits from trading in stocks, bonds, or other securities;3\n\nInterest; and4\n\nDividends received to the extent included in Virginia taxable income.C\n\nIn computing the amounts referred to in subdivisions 1 through 4 of subsection B of this section, any amount received by a member of an affiliated group, determined under § 1504(a) of the Internal Revenue Code but without reference to whether any such corporation is an includable corporation under § 1504(b) of the Internal Revenue Code, from another member of such group shall be included only to the extent such amount exceeds expenses of the recipient directly related thereto.D\n\nAny eligible company, as defined in § 58.1-405.1, may subtract the value of its business within any qualified locality or qualified localities, as defined in § 58.1-405.1, during the taxable year from the numerator of the ratio in subsection A. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (i) total, cumulative new capital investment falls below the applicable initial threshold or (ii) number of new jobs falls below the applicable initial threshold.","order_by":null,"text":{"0":{"id":257627,"text":"The Virginia taxable income of a financial corporation, as defined herein, excluding income allocable under § 58.1-407, shall be apportioned within and without this Commonwealth in the ratio that the business within this Commonwealth is to the total business of the corporation. Business within this Commonwealth shall be based on cost of performance in the Commonwealth over cost of performance everywhere.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":257628,"text":"“Financial corporation” means any corporation not exempted from the imposition of tax under the provisions of \u00a7 58.1-401, which derives more than seventy percent of its gross income from the classes of income enumerated in subdivisions 1 through 4 below, without reference to the state wherein such income is earned, including but not limited to small loan companies, sales finance companies, brokerage companies and investment companies:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":257629,"text":"Fees, commissions, other compensation for financial services rendered;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":257630,"text":"Gross profits from trading in stocks, bonds, or other securities;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":257631,"text":"Interest; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":257632,"text":"Dividends received to the extent included in Virginia taxable income.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":257633,"text":"In computing the amounts referred to in subdivisions 1 through 4 of subsection B of this section, any amount received by a member of an affiliated group, determined under § 1504(a) of the Internal Revenue Code but without reference to whether any such corporation is an includable corporation under § 1504(b) of the Internal Revenue Code, from another member of such group shall be included only to the extent such amount exceeds expenses of the recipient directly related thereto.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"D"},"7":{"id":257634,"text":"Any eligible company, as defined in § 58.1-405.1, may subtract the value of its business within any qualified locality or qualified localities, as defined in § 58.1-405.1, during the taxable year from the numerator of the ratio in subsection A. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (i) total, cumulative new capital investment falls below the applicable initial threshold or (ii) number of new jobs falls below the applicable initial threshold.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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; 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apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-418\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 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 1976, chapter 436; in 1979, chapter 32; in 1981, chapter 402; in 1984, chapter 675; in 2018, chapters 801<\/a> and 802<\/a>.<\/p>","references":[{"id":84403,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","order_by":null,"url":"\/58.1-405\/"},{"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\/"}],"refers_to":[{"id":75981,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","order_by":null,"url":"\/58.1-401\/"},{"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":56963,"section_number":"58.1-407","catch_line":"How dividends allocated","order_by":null,"url":"\/58.1-407\/"}],"permalink":{"id":253453,"object_type":"law","relational_id":71471,"identifier":"58.1-418","token":"58.1\/I\/3\/10\/58.1-418","url":"\/58.1-418\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-418\/","token":"58.1\/I\/3\/10\/58.1-418","dublin_core":{"Title":"Financial corporations; apportionment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-418","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Virginia taxable income of a financial corporation<\/span>, as defined herein, excluding income allocable under § 58.1-407<\/a>, shall be apportioned within and without this Commonwealth in the ratio that the business within this Commonwealth is to the total business of the corporation. Business within this Commonwealth shall be based on cost of performance in the Commonwealth over cost of performance everywhere. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> “Financial corporation<\/span>” means any corporation not exempted from the imposition of tax under the provisions of \u00a7 58.1-401<\/a>, which derives more than seventy percent of its gross income from the classes of income enumerated in subdivisions 1 through 4 below, without reference to the state wherein such income is earned, including but not limited to small loan companies, sales<\/span> finance companies, brokerage companies and investment companies: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Fees, commissions, other compensation<\/span> for financial services rendered; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Gross profits from trading in stocks, bonds<\/span>, or other securities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Interest; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Dividends received to the extent included in Virginia taxable income. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In computing the amounts referred to in subdivisions 1 through 4 of subsection B of this section, any amount received by a member of an affiliated<\/span> group, determined under § 1504(a) of the Internal Revenue Code but without reference to whether any such corporation is an includable corporation under § 1504(b) of the Internal Revenue Code, from another member of such group shall be included only to the extent such amount exceeds expenses of the recipient directly related thereto. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any eligible company, as defined in § 58.1-405.1<\/a>, may subtract the value of its business within any qualified locality or qualified localities, as defined in § 58.1-405.1<\/a>, during the taxable year from the numerator of the ratio in subsection A. Such eligible company may make such modification for the taxable year in which it first becomes eligible and for the six subsequent, consecutive taxable years, except for any year in which the eligible company’s (i) total, cumulative new capital investment falls below the applicable initial threshold or (ii) number of new jobs falls below the applicable initial threshold. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFINANCIAL CORPORATIONS; APPORTIONMENT (\u00a7 58.1-418)\n\nA. The Virginia taxable income of a financial corporation, as defined herein,\nexcluding income allocable under § 58.1-407, shall be apportioned within\nand without this Commonwealth in the ratio that the business within this\nCommonwealth is to the total business of the corporation. Business within this\nCommonwealth shall be based on cost of performance in the Commonwealth over cost\nof performance everywhere.\n\nB. “Financial corporation” means any corporation not exempted from\nthe imposition of tax under the provisions of \u00a7 58.1-401, which derives more\nthan seventy percent of its gross income from the classes of income enumerated\nin subdivisions 1 through 4 below, without reference to the state wherein such\nincome is earned, including but not limited to small loan companies, sales\nfinance companies, brokerage companies and investment companies:\n\n 1. Fees, commissions, other compensation for financial services rendered;\n\n 2. Gross profits from trading in stocks, bonds, or other securities;\n\n 3. Interest; and\n\n 4. Dividends received to the extent included in Virginia taxable income.\n\nC. In computing the amounts referred to in subdivisions 1 through 4 of\nsubsection B of this section, any amount received by a member of an affiliated\ngroup, determined under § 1504(a) of the Internal Revenue Code but without\nreference to whether any such corporation is an includable corporation under\n§ 1504(b) of the Internal Revenue Code, from another member of such group\nshall be included only to the extent such amount exceeds expenses of the\nrecipient directly related thereto.\n\nD. Any eligible company, as defined in § 58.1-405.1, may subtract the value\nof its business within any qualified locality or qualified localities, as\ndefined in § 58.1-405.1, during the taxable year from the numerator of the\nratio in subsection A. Such eligible company may make such modification for the\ntaxable year in which it first becomes eligible and for the six subsequent,\nconsecutive taxable years, except for any year in which the eligible\ncompany’s (i) total, cumulative new capital investment falls below the\napplicable initial threshold or (ii) number of new jobs falls below the\napplicable initial threshold.\n\nHISTORY: Code 1950, \u00a7 58-151.050:1; 1976, c. 436; 1979, c. 32; 1981, c. 402;\n1984, c. 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}}