Corporate Income Tax

Overview

A C Corporation must file Form CO-411, Vermont Corporate Income Tax Return, if:

  • It was incorporated under the laws of the State of Vermont; or
  • It received income allocable or apportioned to Vermont including income received as a shareholder, partner, or member.
  • It has an open corporate income tax account. If there was no activity or tax liability in Vermont for the year, but the business would like to maintain the account, an inactive return must be filed. No tax is due.

The Corporate Income Tax is a net income tax based on income allocated or apportioned to Vermont. A minimum tax applies to all active Corporations (including LLCs electing to be taxed as C-Corporation).

For tax years beginning on or after January 1, 2020, the receipts from services and the sales, rentals or licensing of intangible goods are apportioned to Vermont if the taxpayer’s market for the sale is in Vermont. The Allocation and Apportionment Regulations have been updated, and are provided in draft form at this time. Please provide comments by August 20, 2020.

Forms and Instructions

Payment Methods

You may make electronic payments regardless of the method used to file your return using one of the following payment methods:

Online
myVTax, a convenient and free service that allows you to manage, file, and pay your Vermont taxes using ACH Debit. You may also pay through myVTax using your Credit Card, subject to a 3% processing fee which is retained by the service company. ACH Credit, is an easy and convenient way to pay your Vermont taxes. Review the ACH Credit instructions and ACH Credit Payments QuickStart Guide to get started.

Paper Forms
Mail your personal check, cashier’s check, or money order payable to the Vermont Department of Taxes.

Vermont Department of Taxes
PO Box 1779
Montpelier, VT 05601-1779

Due Dates

Please note: the April 15, 2020 due date for filing returns and tax due has been automatically extended to July 15, 2020. Read the Department's press release for the 2020 tax filing season.

Income Tax Returns Form CO-411, Corporate Income Tax Return, is due on the date prescribed for filing under the Internal Revenue Code.
File an Extension An extension of time to file a federal return automatically extends the time to file with Vermont until 30 days beyond the federal extension date. However, tax is due on the original due date.
Estimated Payments Any corporation anticipating a Vermont tax liability over $500 must make estimated payments of the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s taxable year. Use payment voucher Form CO-414, Corporate Estimated Tax Payment Voucher.

S Corporations, Partnerships and Limited Liability Companies are subject to the Business Income Tax.

Beginning with tax year 2006, groups of affiliated corporations conducting unitary business must file a group return that includes the combined net income of the affiliated group.  For tax years 2008 through 2013, unitary groups file Form CO-411-U, Combined Report for Unitary Group.  Starting in 2014, they file CO-411.

*For Corporations using the calendar year
Due Date Submit
4/15/2020 *

CO-411, Corporate Income Tax Return, or
BA-403, Application for Extension of Time to File Vermont Corporate/Business Income Tax Return
CO-414, Estimated Payment Voucher
  * Extended to July 15, 2020

6/15/2020

CO-414, Estimated Tax Payment Voucher

9/15/2020

CO-414, Estimated Tax Payment Voucher

11/16/2020

Extended due date for:
CO-411, Corporate Income Tax Return

12/15/2020

CO-414, Estimated Tax Payment Voucher

Tax Rates

Marginal Tax Rates (Effective Beginning with Tax Year 2007):
Allocable to VT Base Tax Plus of Amt. Over
$0 - 10,000   6.00% $0
$10,001 - 25,000 $600 7.00% $10,000
$25,001 - and more $1,650 8.50% $25,000.00
Minimum Annual Tax:
Starting with 2012, minimum tax increases to $300, $500, or $750, based on Vermont Gross Receipts. If:
Vermont Gross Receipts are: Minimum Tax is:
$2,000,000 or less $300
$2,000,001 - $5,000,000 $400
$5,000,001 and over $750

For tax years prior to 2012, the minimum tax for every tax year, whether 12 months or a short period, is $250.

Exceptions: Small Farm Corporation - Minimum tax of $75 (see 32 V.S.A. 5832(2)(A))

A small farm corporation is a corporation with gross farm receipts of less than $100,000, owned and operated by occupants.  Its business activity is farming.  It is not an investment property, rental property, or any other type of venture.