Download as PDF
1
INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES, §422.34A
422.34A Exempt activities of foreign corporations.
A foreign corporation shall not be considered doing business in this state or deriving income
from sources within this state for the purposes of this division by reason of carrying on in this
state one or more of the following activities:
1. Holding meetings of the board of directors or shareholders or holiday parties or
employee appreciation dinners.
2. Maintaining bank accounts.
3. Borrowing money, with or without security.
4. Utilizing Iowa courts for litigation.
5. Owning and controlling a subsidiary corporation which is incorporated in or which is
transacting business within this state where the holding or parent company has no physical
presence in the state as that presence relates to the ownership or control of the subsidiary.
6. Recruiting personnel where hiring occurs outside the state.
7. Training employees or educating employees, or using facilities in Iowa for this purpose.
8. Utilizing a distribution facility within this state, owning or leasing property at a
distribution facility within this state that is used at or distributed from the distribution
facility, or selling property shipped or distributed from a distribution facility. For purposes of
this subsection, “distribution facility” means an establishment where shipments of tangible
personal property are processed for delivery to customers. “Distribution facility” does not
include an establishment where retail sales of tangible personal property or returns of such
property are undertaken with respect to retail customers on more than twelve days a year
except for a distribution facility which processes customer sales orders by mail, telephone,
or electronic means, if the distribution facility also processes shipments of tangible personal
property to customers provided that not more than ten percent of the dollar amount of
goods are delivered and shipped so as to be included in the gross sales of the corporation
within this state as provided in section 422.33, subsection 2, paragraph “a”, subparagraph
(2), subparagraph division (h).
96 Acts, ch 1123, §1, 2; 97 Acts, ch 46, §1, 2; 2006 Acts, ch 1179, §58, 66; 2014 Acts, ch 1026,
§140
Section not amended; internal reference change applied
Wed Feb 08 03:44:52 2017
Iowa Code 2017, Section 422.34A (14, 1)
Disclaimer: These codes may not be the most recent version. Iowa may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
