Rhode Island § 44-11-2 - Business Corporation Tax
Full text of Rhode Island Rhode Island General Laws § 44-11-2 — Business Corporation Tax, with citation guidance and answers to common questions.
§ 44-11-2. Business Corporation Tax
R.I. Gen. Laws § 44-11-2
§ 44-11-2. Imposition of tax.
(a) Each corporation shall annually pay to the state a tax equal to nine percent (9%) of net income, as defined in § 44-11-11, qualified in § 44-11-12, and apportioned to this state as provided in §§ 44-11-13 — 44-11-15, for the taxable year. For tax years beginning on or after January 1, 2015, each corporation shall annually pay to the state a tax equal to seven percent (7.0%) of net income, as defined in § 44-11-13 — 44-11-15, for the taxable year.
(b) A corporation shall pay the amount of any tax as computed in accordance with subsection (a) after deducting from “net income,” as used in this section, fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year, if for the taxable year:
(1) The corporation is engaged in buying, selling, dealing in, or holding securities on its own behalf and not as a broker, underwriter, or distributor;
(2) Its gross receipts derived from these activities during the taxable year amounted to at least ninety percent (90%) of its total gross receipts derived from all of its activities during the year. “Gross receipts” means all receipts, whether in the form of money, credits, or other valuable consideration, received during the taxable year in connection with the conduct of the taxpayer’s activities.
(c) A corporation shall not pay the amount of the tax computed on the basis of its net income under subsection (a), but shall annually pay to the state a tax equal to ten cents ($.10) for each one hundred dollars ($100) of gross income for the taxable year or a tax of one hundred dollars ($100), whichever tax shall be the greater, if for the taxable year the corporation is either a “personal holding company” registered under the federal Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., “regulated investment company,” or a “real estate investment trust” as defined in the federal income tax law applicable to the taxable year. “Gross income” means gross income as defined in the federal income tax law applicable to the taxable year, plus:
(1) Any interest not included in the federal gross income; minus
(2) Interest on obligations of the United States or its possessions, and other interest exempt from taxation by this state; and minus
(3) Fifty percent (50%) of the excess of capital gains over capital losses realized during the taxable year.
(d)(1) A small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be subject to the Rhode Island income tax on corporations, except that the corporation shall be subject to the provisions of subsection (a), to the extent of the income that is subjected to federal tax under subchapter S. Effective for tax years beginning on or after January 1, 2015, a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall be subject to the minimum tax under § 44-11-2(e).
(2) The shareholders of the corporation who are residents of Rhode Island shall include in their income their proportionate share of the corporation’s federal taxable income.
(3) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]
(4) [Deleted by P.L. 2004, ch. 595, art. 29, § 1.]
(e) Minimum tax. The tax imposed upon any corporation under this section, including a small business corporation having an election in effect under subchapter S, 26 U.S.C. § 1361 et seq., shall not be less than four hundred fifty dollars ($450). For tax years beginning on or after January 1, 2017, the tax imposed shall not be less than four hundred dollars ($400).
History of Section.
G.L. 1938, ch. 37, § 2; P.L. 1947, ch. 1887, art. 1, § 1; P.L. 1949, ch. 2168, § 1;
P.L. 1951, ch. 2733, art. 1, § 1; P.L. 1952, ch. 3026, art. 1, § 1; P.L. 1953, ch.
3150, art. 1, § 1; P.L. 1954, ch. 3254, art. 1, § 1; P.L. 1955, ch. 3521, art. 1,
§ 1; G.L. 1956, § 44-11-2; P.L. 1956, ch. 3739, art. 1, § 1; P.L. 1957, ch. 44, art.
1, § 1; P.L. 1958, ch. 17, art. 3, § 1; P.L. 1959, ch. 169, art. 2, § 1; P.L. 1960,
ch. 66, art. 2, § 1; P.L. 1965, ch. 34, § 1; P.L. 1966, ch. 238, § 1; P.L. 1966, ch.
245, § 7; P.L. 1968, ch. 263, art. 5, §§ 1, 2; P.L. 1970, ch. 139, art. 1, § 1; 1970,
ch. 226, § 1; P.L. 1974, ch. 151, art. 4, § 1; impl. am. P.L. 1974, ch. 200, art.
2, § 2; P.L. 1977, ch. 133, § 2; P.L. 1983, ch. 2, art. 8, § 1; P.L. 1988, ch. 12,
§ 1; P.L. 1989, ch. 126, art. 20, § 1; P.L. 1992, ch. 15, art. 4, § 1; P.L. 2004,
ch. 595, art. 17, § 6; P.L. 2004, ch. 595, art. 29, § 1; P.L. 2014, ch. 145, art.
12, § 15; P.L. 2015, ch. 141, art. 11, § 1; P.L. 2016, ch. 142, art. 13, § 9.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 44-11-2
What does Rhode Island General Laws § 44-11-2 cover?
Section 44-11-2 ("Business Corporation Tax") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Rhode Island § 44-11-2?
A common citation format is "Rhode Island General Laws § 44-11-2" (Rhode Island). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 44-11-2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Rhode Island.