Every corporation that does business in North Dakota or has sources of income in North Dakota must file a Form 40 – Corporation Income Tax Return. A signed Form 40 is required along with a minimum of the first 6 pages of the Federal 1120 and any relevant schedules. The return is due on April 15 of each year. Date for fiscal filers is on or before the 15th day of the 4th month following the end of the tax year. (The date may vary if the due date lands on a weekend or state holiday.)
A corporation that is tax exempt for federal income tax purposes and has no federal unrelated business taxable income (UBTI) is tax exempt for North Dakota corporate income tax purposes and does not need to file a North Dakota return for that year.
A corporation that is tax exempt for federal income tax purposes and has federal unrelated business taxable income (UBTI) is required to file a Form 40 - Corporation Income Tax Return. A signed Form 40 is required along with a Federal Form 990-T. Returns of tax-exempt organizations UBTI are due on the 15th day of the 5th month following the close of the tax year. For cooperatives that the Federal 1120C is required, returns are due on the 15th day of the 9th month following the close of the tax year. (The date may vary if the due date lands on a weekend or state holiday.)
Current Tax Rates
| Over | But Not Over | The Tax Is |
|---|---|---|
| $0 | $25,000 | 1.41% of North Dakota Taxable Income |
| $25,000 | $50,000 | $352.50 Plus 3.55% of Amount Over $25,000 |
| $50,000 | -- | $1,240 Plus 4.31% of Amount Over $50,000 |
If a corporation elects to use the water's edge method to apportion its income, the corporation will be subject to an additional 3.5% surtax on its North Dakota taxable income.
Prior Year Tax Rates
For the tax rates that apply to corporations for prior tax years, see North Dakota Corporation Income Tax Rates.
Make a corporate income tax payment electronically to the Office of State Tax Commissioner by using ND TAP.
Estimated payments are required if a corporation’s income tax liability is expected to exceed $5,000 for the current taxable year and the previous year’s state income tax liability exceeded $5,000. Use Estimated Income Tax Form 40-ES.
If you are unable to pay using ND TAP, you may pay by check or money order, made payable to North Dakota State Tax Commissioner.
- Complete and print the payment voucher on ND TAP and mail both to the Office of State Tax Commissioner.
The Office of State Tax Commissioner offers a variety of E-Filing options for corporations. See more information:
To find tax forms for the current and previous tax years, visit our Forms Library where you can search by form name, tax type, tax year, and SFN.
Remember, E-Filing is fast, safe, and easy!
You may have extended time to file your North Dakota corporate income tax return by receiving a federal extension or a North Dakota extension.
To amend a corporate income tax return, complete Form 40X - Amended Corporation Income Tax Return and submit it to the Office of State Tax Commissioner.
Nexus means a corporation is present in the state and is subject to a North Dakota tax return filing requirement. North Dakota also conforms to the Multistate Tax Commission’s comprehensive statement regarding nexus.
Form: Nexus Questionnaire Regarding Activities in North Dakota During The Past Ten Years
The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017. The TCJA makes significant changes to the taxation of foreign-sourced income earned by U.S. corporations and their foreign subsidiaries.
See the guidance for North Dakota tax purposes of Internal Revenue Code (IRC) §§ 965 (deemed repatriation of foreign dividends), 951A (global intangible low-taxed income), 250 (foreign-derived intangible income), and 59a (base erosion anti-abuse tax).
Income and property tax incentives are available to taxpayers for engaging in qualifying zone projects or for investing in a renaissance fund organization set up to provide financing to projects in a North Dakota renaissance zone, learn more at:
The Office of State Tax Commissioner uses the North American Industry Classification System (NAICS codes) to categorize industries for statistical reporting purposes.
The North Dakota Voluntary Disclosure Program allows a taxpayer who has been conducting business activities in North Dakota or has been collecting but not remitting North Dakota sales tax to, voluntarily come forward and resolve potential tax liabilities. The program allows taxpayers to anonymously seek a resolution with the Office of State Tax Commissioner for income, withholding, and sales and use taxes.