D. Holding Companies (G.S. 105-120.2)

  1. Definition
    A holding company is any corporation that receives more than eighty percent (80%) of its gross income during its taxable year from corporations in which it owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting stock.

  2. Basis for Taxation
    The basis of the tax is the same as for general business corporations. However, franchise tax payable by a qualified holding company on its capital stock and surplus tax base shall be limited to an amount not exceeding $75,000. There is no limitation on the amount of franchise tax payable where the alternative tax bases of investment in tangible property or appraised value of property apply.