Accounting and legal

Accounting and tax

Massachusetts corporate tax information

  1. The corporate excise tax in Massachusetts is levied at variable rates ranging from 15% to 35% of the corporation’s taxable net income. The tax year can either be the calendar year or the company’s fiscal year and the corporate excise tax must be filed by the 15th day of the third month after close of the taxable year;
  2. Branches pay corporate excise tax at the rate of 30% plus a 30% withholding tax on interest. Branches also pay an additional 30% tax on remittances;
  3. There is no VAT in the US. However, sales and use tax is levied on use, storage or consumption of tangible personal property by a business at variable rates upto 11%;
  4. Capital gains tax is levied at variable rates up to 35%;
  5. Withholding tax levied on interest, royalties and rents, dividends and technical services fees paid to non-residents is at the rate of 30%;
  6. An employer is required to submit taxes to the relevant authorities levied on i) federal unemployment at the rate of 6.2% on first US$7,000 of wages ii) social security at the rate of 6.2% on wages upto US$113, 700 and iii) medicare tax at the rate of 1.45%;
  7. Net operating losses may be carried forward for twenty years and may be carried back for two years to offset taxable income for those years;
  8. Massachusetts has signed income tax treaties on withholding tax rates with over 60 countries including France, Russian Federation, South Africa, Sweden, Barbados, India, and the United Kingdom;
  9. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
  10. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

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For additional information on our accounting and legal services in Massachusetts, please email us at Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
client relationship officer - Grace