Corporate Income Tax is paid on a company's taxable income, which includes revenue minus expenses. Expenses include cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs. Every corporation that does business in North Dakota, has sources of income in North Dakota, and/or has federal unrelated business taxable income (UBTI) must file a Form 40 – Corporation Income Tax Return.
Tax Rate
North Dakota Corporate Income Tax Rate
| Over | But Not Over | The Tax Is |
|---|---|---|
| $0 | $25,000 | 1.41% of North Dakota Taxable Income |
| $25,000 | $50,000 | $352.50 Plus 3.55% of Amount Over $25,000 |
| $50,000 | -- | $1,240 Plus 4.31% of Amount Over $50,000 |
If a corporation elects to use the water's edge method to apportion its income, the corporation will be subject to an additional 3.5% surtax on its North Dakota taxable income.
Prior Year Tax Rates
For the tax rates that apply to corporations for prior tax years, see North Dakota Corporation Income Tax Rates.
Filing a Return
Filing requirements for corporations:
- Corporations that do business in North Dakota or have sources of income in North Dakota: Every corporation that does business in North Dakota or has sources of income in North Dakota must file a Form 40 – Corporation Income Tax Return. A signed Form 40 is required along with a minimum of the first 6 pages of the Federal 1120 and any relevant schedules. The return is due on April 15 of each year. Date for fiscal filers is on or before the 15th day of the 4th month following the end of the tax year. (The date may vary if the due date lands on a weekend or state holiday.)
- Corporations that are tax exempt for federal income tax but have taxable income in North Dakota: A corporation that is tax exempt for federal income tax purposes and has federal unrelated business taxable income (UBTI) is required to file a Form 40 - Corporation Income Tax Return. A signed Form 40 is required along with a Federal Form 990-T. Returns of tax-exempt organizations UBTI are due on the 15th day of the 5th month following the close of the tax year. For cooperatives that file Federal 1120-C, returns are due on the 15th day of the 9th month following the close of the tax year. (The date may vary if the due date lands on a weekend or state holiday.)
- Corporations that are tax exempt for federal income tax purposes and have no taxable income in North Dakota: A corporation that is tax exempt for federal income tax purposes and has no federal unrelated business taxable income (UBTI) is tax exempt for North Dakota corporate income tax purposes and does not need to file a North Dakota return for that year.
How to File
To find tax forms for the current and previous tax years, visit our Forms Library where you can search by form name, tax type, tax year, and SFN.
The Office of State Tax Commissioner offers a variety of E-Filing options for corporations. See more information:
How to Amend
To amend a corporate income tax return, complete Form 40X - Amended Corporation Income Tax Return and submit it to the Office of State Tax Commissioner.
Request an Extension
You may request additional time to file your North Dakota corporate income tax return by receiving a federal extension or a North Dakota extension.
Tax Relief
North Dakota offers a variety of income tax credits to corporate entities as shown below.
Charitable contribution related credits:
- Contributions to a maternity home, child placing agency, or pregnancy help center credit
- Endowment fund credit
- Nonprofit private primary school contribution credit
- Nonprofit private high school contribution credit
- Nonprofit college contribution credit
- Rural leadership North Dakota program contribution credit
Employment related credits:
- Apprentice employment credit
- Credit for wages paid to a mobilized employee
- Developmentally disabled/mentally ill employee credit
- Employer child care contribution credit
- Employer internship program credit
- Workforce recruitment credit
Investment related credits:
- Agricultural commodity processing facility investment credit
- Automation equipment purchase credit
- Renaissance zone credits
- Seed capital investment credit
Other credits/incentives:
- Biodiesel/green diesel fuel blending credit
- Biodiesel/green diesel fuel sales equipment credit
- New and expanding business exemption
- Renaissance zone exemption
- Research expense credit
- Soybean or canola crushing equipment costs credit
Payment Options
Pay Online- Fast and Convenient!
Make a corporate income tax payment electronically to the Office of State Tax Commissioner by using ND TAP.
Mail- Check or money order
If you are unable to pay using ND TAP, you may pay by check or money order, made payable to North Dakota State Tax Commissioner. Complete and print the payment voucher on ND TAP and mail both to the Office of State Tax Commissioner at 600 E. Boulevard Ave. Dept. 127, Bismarck, ND 58505-0599.
Estimated payments
Estimated payments are required if a corporation’s income tax liability is expected to exceed $5,000 for the current taxable year and the previous year’s state income tax liability exceeded $5,000. Use Estimated Income Tax Form 40-ES.
Additional Resources
Business Codes
The Office of State Tax Commissioner uses the North American Industry Classification System (NAICS codes) to categorize industries for statistical reporting purposes.
Nexus
Nexus means a corporation is present in the state and is subject to a North Dakota tax return filing requirement. North Dakota also conforms to the Multistate Tax Commission’s comprehensive statement regarding nexus.
Form: Nexus Questionnaire Regarding Activities in North Dakota During The Past Ten Years
International Tax Provisions
The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017. The TCJA makes significant changes to the taxation of foreign-sourced income earned by U.S. corporations and their foreign subsidiaries.
See the guidance for North Dakota tax purposes of Internal Revenue Code (IRC) §§ 965 (deemed repatriation of foreign dividends), 951A (global intangible low-taxed income), 250 (foreign-derived intangible income), and 59a (base erosion anti-abuse tax).
International Tax Provisions Guidance
Voluntary Disclosure – Just Learned You Have a Tax Obligation to North Dakota?
The North Dakota Voluntary Disclosure Program allows a taxpayer who has been conducting business activities in North Dakota or has been collecting but not remitting North Dakota sales tax to, voluntarily come forward and resolve potential tax liabilities. The program allows taxpayers to anonymously seek a resolution with the Office of State Tax Commissioner for income, withholding, and sales and use taxes.