These Advisory Notices and FAQs provide guidance on how certain federal tax provisions are treated for Philadelphia business and personal tax purposes.
Note: Information about the CARES Act business interest expense limitation can be found with the COVID-19 tax guidance.
| Name | Description | Released | Format |
|---|---|---|---|
| Tax Treatment of IRC Section 174: BIRT & NPT PDF | This text serves to notify taxpayers of the City’s treatment of IRC Section 174 for Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT). | June 26, 2023 | |
| Tax Treatment of IRC §1031: Exchanges for BIRT & NPT PDF | This text serves to notify taxpayers of the City’s treatment of IRC §1031 Exchanges for Business Income and Receipts Tax (BIRT) and Net Profits Tax (NPT). | September 15, 2022 | |
| Q&A: Disregarded Entity and Philadelphia business taxes PDF | This text provides guidance to taxpayers about disregarded entities, and how that business type should register to pay City of Philadelphia taxes. | May 14, 2021 | |
| Advisory notice update: Deducting employee business expenses PDF | This text serves to notify taxpayers about the City of Philadelphia’s position on deducting employee business expenses and moving expenses. | March 24, 2021 | |
| Advisory notice update (CLARIFICATION): Net Interest Expense Limitation [IRC Sec. 163(j)] PDF | This note serves to clarify the May 29, 2019 Advisory notice about the treatment of Federal Interest Expense Limitation, for the purposes of filing Philadelphia's BIRT. | July 26, 2019 | |
| Advisory notice update: Net Interest Expense Limitation [IRC Sec. 163(j)] PDF | This text serves to notify taxpayers of the City’s treatment of the limitation on deductions for business interest under the new federal law, for the purposes of filing Philadelphia's BIRT. | May 29, 2019 | |
| Advisory notice update: GILTI and FDII provisions PDF | This text serves to notify taxpayers of the City’s treatment of Global Low Intangible Low-Taxed Income (“GILTI”) and Foreign-Derived Intangible Income Deduction (“FDII”) provisions for filing Philadelphia’s BIRT. | February 15, 2019 | |
| Advisory notice update: Repatriation Transition Tax treatment PDF | This text serves to notify taxpayers about the City of Philadelphia’s treatment of the federal Repatriation Transition Tax provision for the purposes of filing BIRT. | February 1, 2019 | |
| IRC Section 199A deduction: Frequently Asked Questions PDF | This text covers some of the most common questions about how the federal change to IRC Section 199A impacts Philadelphia business and income tax filings. | January 17, 2019 | |
| Advisory notice update: Bonus depreciation position PDF | This text serves to notify taxpayers about the City of Philadelphia’s position on bonus depreciation for BIRT and NPT purposes. | August 1, 2018 |