Section 45IAC3.1-1-32. Definition of commercial domicile

   "Commercial Domicile" Defined. The term "commercial domicile" is defined in the Act as "the principal place from which the trade or business of the taxpayer is directed or managed." Commercial domicile is not necessarily in the state of incorporation. A corporation that is incorporated in a state, but that has little or no activity in that state, has not established a commercial domicile there.

  Each corporation has one, and only one, commercial domicile. Generally, it is where the executive authority of the business is concentrated. However, if such authority is not centralized in one state, then the commercial domicile is the place where the majority of the corporation's daily operational decisions are made. There are several factors to be considered in determining the commercial domicile of a corporation. These factors include, but are not limited to:

(a) The relative amount of revenue from sales in the various states

(b) The relative value of fixed assets in the various states

(c) The principal place of work of a majority of the employees

(d) The place where the corporate records are kept

(e) The principal place of work of the corporate executives

(f) The place where policy and investment decisions are made

(g) The relative amount of decision-making power held by various executives and employees

(h) The place where payments are made on intangibles held by the corporation

(i) Whether income from intangibles held by the corporation is taxable elsewhere

(j) The office from which the Federal income tax return is filed

(k) Information contained in the corporation's annual and quarterly reports

(l) The place where the board of directors meets.

(Department of State Revenue; Reg 6-3-1-22(010); filed Oct 15, 1979, 11:15 am: 2 IR 1522; errata, 2 IR 1743)