Delaware Sample Letter for Exemption - Relevant Information

State:
Multi-State
Control #:
US-0002LTR
Format:
Word; 
Rich Text
Instant download

Description

This form is a sample letter in Word format covering the subject matter of the title of the form.

How to fill out Sample Letter For Exemption - Relevant Information?

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FAQ

§ 531. Limitations on assessment. (i) If a taxpayer omits from a return any amount of income, gross receipts, gross gifts or gross estate properly includible therein which exceeds 25 percent of the amount stated on the return, the tax may be assessed at any time within 6 years after the return was filed.

Doing Business in Delaware Delaware does not impose a state or local sales tax, but does impose a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services in the state.

Any corporation granted an exemption by the IRS as a non-profit organization under Section 501(c) is exempt from Delaware Corporate Income Tax. Delaware does not collect sales and use taxes at the state level.

Delaware is one of many states that have favorable tax treatments for corporations in order to entice these businesses to set up shop in the state. This is a mutually beneficial relationship as it allows businesses to pay less in taxes while bringing jobs, revenues, and more to the state.

There are no state or local sales taxes in Delaware and as such, sales tax exemption certificates and reseller certificates are not applicable to Delaware. Delaware imposes license and gross receipt taxes on the sale of most goods and services.

An exemption or resale certificate is a form or document issued by a business to ensure sales tax is not applied to their invoice when they intend to resell their purchase.

When determining the gross receipts tax due, most businesses are entitled to an exclusion, which varies depending on the business activity conducted. These exclusions, provided monthly or quarterly, generally start at $100,000 per month and can be as high as $1,250,000.

Delaware has a graduated state individual income tax, with rates ranging from 2.20 percent to 6.60 percent. There is also a jurisdiction that collects local income taxes. Delaware has a 8.70 percent corporate income tax rate and also levies a gross receipts tax. Delaware does not have any state or local sales taxes.

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Delaware Sample Letter for Exemption - Relevant Information