Effective May 11, 2016, the North Carolina General Assembly amended the royalty reporting option contained in Section 105-130.7A(a).  As a result of the amendment, even if royalty payments are added back to the royalty payor's income, the royalty recipient is nonetheless required to include those royalty payments in the numerator and denominator of its sales factor for apportionment purposes. 

Read a copy of the amended statute.

It is our understanding that the Department's position is that this amendment is a clarification of existing law.

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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