2017 Delaware Code
Title 30 - State Taxes
CHAPTER 19. CORPORATION INCOME TAX
§ 1901. Definitions.

As used in this chapter:

(1) "Administration services" means, in each case with respect to intangible investments (as such term is defined in § 1902(b)(8) of this title):

a. Clerical;

b. Accounting;

c. Bookkeeping;

d. Data processing;

e. Internal auditing;

f. Tax services;

g. Regulatory compliance, operations and related services;

h. Risk analytics; and

i. Trade processing, clearing and execution services.

(2) "Asset management corporation" means a corporation:

a. Ninety percent or more of the gross receipts of which are derived from the performance of asset management services;

b. That is not exempt from taxation under this chapter pursuant to § 1902(b)(8) of this title; and

c. That makes an election for each taxable year to be treated as an asset management corporation by filing the appropriate form of return prescribed by the Director to make such election.

For purposes of this paragraph, "gross receipts" shall mean gross receipts reported by the corporation for its taxable year for purposes of the federal income tax.

(3) "Asset management services" means, in each case with respect to intangible investments (as such term is defined in § 1902(b)(8) of this title):

a. Rendering investment advice, including investment analysis;

b. Making determinations as to when sales and purchases are to be made;

c. Selling or purchasing of intangible investments;

d. Rendering administration services;

e. Rendering distribution services; or

f. Managing contracts for sub-advisory services.

(4) "Board" means the Tax Appeal Board.

(5) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

(6) "Corporation" includes a joint stock company or any association which is taxable as a corporation under the federal income tax law.

(7) "Distribution services" means, in each case with respect to intangible investments (as such term is defined in § 1902(b)(8) of this title):

a. Advertising;

b. Servicing investor accounts (including redemptions);

c. Marketing shares or selling shares of corporations or business trusts registered as investment companies under the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.); and

d. Marketing asset management services (including selling interests in a pool of intangible investments, such as a fund).

(8) "Domestic corporation" means any corporation organized under the laws of this State.

(9) "Domicile" means:

a. In the case of an individual, the State of the individual's domicile under the law of Delaware;

b. In the case of an estate, this State, if the estate is a resident estate under § 1601 of this title, and outside of this State, if the estate is a nonresident estate under § 1601 of this title;

c. In the case of a trust (as defined in § 1601(9) of this title), this State, if the trust is a resident trust under § 1601 of this title, and outside of this State, if the trust is a nonresident trust under § 1601 of this title;

d. In the case of a corporation or a pass-through entity (as defined under § 1601(6)a. of this title), its commercial domicile;

provided, however, domicile shall be presumed to be the mailing address of the beneficiary of a pension plan, or the owner of an account or interest in a pool of intangible investments based on the records of the sponsor of such pension plan, account or pool of intangible investments or the shareholder's mailing address on the records of an investment company under the Investment Company Act of 1940 (15 U.S.C. § 80a-1 et seq.).

(10) "Federal income tax" means the tax imposed on corporations by the federal Internal Revenue Code of 1986 and amendments thereto.

(11) "Foreign corporation" means any corporation other than a domestic corporation.

(12) "Income year" means the taxable year for which the taxpayer computes its net income for purposes of the federal income tax.

(13) "Non-U.S. corporation" means a foreign corporation organized under the laws of a state other than the United States of America (or any of the states, territories or possessions of the United States of America) that is engaged in a trade or business in the United States.

(14) "Risk analytics" means performing risk analysis of intangible investments (as such term is defined in § 1902(b)(8) of this title), providing reports of such analyses and providing interactive, software-based risk analytical tools to users of such tools.

(15) "Secretary" and "Secretary of Finance" mean the Secretary of Finance or the Secretary's duly authorized designee; provided, that any such delegation of authority is consistent with the provisions of Chapter 83 of Title 29.

(16) "Sponsor" means the person that has contracted directly with the beneficiaries of a pension plan or retirement account or the owner of any account or interest in a pool of intangible investments to administer and manage the pension plan or retirement account, other account or pool of intangible investments.

(17) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof.

(18) "Taxpayer" means any corporation subject to the tax imposed by this chapter.

(19) "Telecommunications corporation" means a corporation that is a member of a group of corporate and noncorporate entities, which group:

a. Consists of corporate and noncorporate entities that are affiliated through relationships described in § 267(b) of the Internal Revenue Code [26 U.S.C. § 267(b)];

b. Provides both intrastate mobile telecommunications services and other intrastate telephone services, as such terms are used in § 5501(8)a.3. of this title; and

c. In the aggregate earns annual gross receipts in the United States from providing intrastate and interstate telephone and telecommunications services, and from providing Internet access, as such term is defined in § 5501(6) of this title, in excess of $50 billion.

(20) "Treasury Department" means the Treasury Department of the United States.

(21) "Worldwide headquarters corporation" means a corporation that:

a. In its form 10-Q filing with the Securities and Exchange Commission for the quarterly period immediately preceding the calendar quarter in which 80 Del. Laws, c. 195, is effective, records as the site of its principal executive offices an address that is located within this State;

b. As of January 1, 2016, employed at least 400 full-time employees within the structure or structures housing the corporation's headquarters located within this State; and

c. Between July 1, 2014, and June 30, 2018, makes, or contracts with a real estate developer that makes, a capital investment of not less than $25 million to renovate and improve the structure or structures housing the corporation's headquarters located within this State.

30 Del. C. 1953, § 1901; 51 Del. Laws, c. 298; 51 Del. Laws, c. 315, § 1; 57 Del. Laws, c. 741, § 8A; 67 Del. Laws, c. 408, § 3; 70 Del. Laws, c. 186, § 1; 76 Del. Laws, c. 234, § 4; 80 Del. Laws, c. 195, § 7.;