International investment management services

From the 2024 DOR Tax Exemption Study

82.04.290(1) - International investment management services Description Businesses providing qualifying international investment management services (IIMS) receive a preferential B&O tax rate of 0.275% rather than the service and other activities B&O tax rate of 1.5% or 1.75%. A business is engaged in qualifying IIMS if it meets all the following qualifications: - Primary business activity is providing investment management services. - At least 10% of its gross income is from providing IIMS to a qualifying collective investment fund. - More than 25% of the business's employees are located in Washington. - The business is a member of an affiliated group with all the following: - 10 or more offices located in at least eight foreign countries. - At least 500 full-time employees worldwide. - Worldwide gross revenue of more than $400 million during the current or preceding calendar year. - Average assets under management of more than $200 billion during the current or preceding calendar year. Purpose To reduce a perceived competitive disadvantage for IIMS businesses and to attract new international trade and finance business. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY