Apportionment of Income from Sales of Services and Intangibles
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چکیده
When a tangible product is sold, Virginia’s apportionment formula uses the sales factor to assign it to the state in which it is delivered. This destination approach means that customer location is a significant factor in the apportionment of income from the sale of tangible products. But when services and intangibles are sold, the sales factor assigns it based on an analysis of the income-producing activity and costs of performance. In many cases this assigns income to the state in which the corporation’s originating offices are located, not the states in which customers may be located.
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