International investment management services

From the 2024 DOR Tax Exemption Study

Home Forms & Publications Publications By Subject Special Notices Additional Tax Imposed On Specified Financial Institutions Print Additional tax imposed on specified financial institutions Issue Date October 18, 2019 Intended audience: financial institutions. Effective Jan. 1, 2020, there will be an additional 1.2% tax imposed on the income of specified financial institutions subject to service and other activities business and occupation tax. This tax is in addition to any other taxes imposed on these specified financial institutions. What is a specified financial institution? A specified financial institution is a financial institution that is a member of a consolidated financial institution group that reported an annual net income of at least $1 billion on its consolidated financial statement for the previous calendar year, not including net income attributable to noncontrolling interests. What is a financial institution? The definition of a financial institution for this additional tax differs from the definition for income apportionment purposes. A financial institution, for this purpose, generally means any of the following (see RCW 82.04.29004 for the complete definition):