US state Washington’s Department of Revenue has updated a regulation concerning the calculation of the portion of a business’s apportionable income generated within Washington State.
Introduced on 15 May, 2024, this rule will go into force on 15 June, 2024.
Among the notable revisions are guidelines for determining when a taxpayer provides a service (unrelated to real or tangible property) to a customer involved in a business and when this service pertains to the customer’s business operations.
In such instances, the customer should benefit from the service when the customer’s related business activities commence.
The new rule clarifies that “A customer’s related business activities will generally occur either in the customer’s market or at the customer’s business location.”
The guidelines also provide examples for further clarification.
