Section 23222 Of Article 4. Commencing Corporations From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 2. >> Article 4.
23222
. (a) If a taxpayer commences to do business in this state
during its first taxable year its tax for that year shall be adjusted
upon the basis of the net income received during that taxable year,
at the rate applicable to that year, a credit being allowed for the
prepayment of the minimum tax. The return for the first taxable year,
which shall be filed within 2 months and 15 days after the close of
that year, shall also be the basis for the tax of said taxpayer for
its second taxable year, if its first taxable year is a period of 12
months. In every case in which the first taxable year of a taxpayer
constitutes a period of less than 12 months, or in which a taxpayer
does business for a period of less than 12 months during its first
taxable year, said taxpayer shall pay as a prepayment of the tax for
its second taxable year a tax based on the income for the first
taxable year computed under the law and at the rate applicable to the
second taxable year, the same to be due and payable at the same
times and in the same manner as if that amount were the entire amount
of its tax for that year; and upon the filing of its tax return
within 2 months and 15 days after the close of the second taxable
year it shall pay a tax for said year, at the rate applicable to that
year, based upon its net income received during that year, allowing
a credit for the prepayment; but in no event, except as provided in
Section 23332, shall the tax for the second taxable year be less than
the amount of the prepayment for that year, and said return for its
second taxable year shall also be the basis for the tax of said
taxpayer for its third taxable year, if the second taxable year
constitutes a period of 12 months.
(b) The provisions of subdivision (a) shall be applicable only if
a taxpayer commenced doing business in this state before January 1,
1972.