CIT-EXM: Holding Company Corporate Income Tax Exemption Application (Revision)
Delaware · Delaware Division of Revenue · Used for tax years 2024
Form CIT-EXM is an application for Delaware corporation income tax exemption for holding companies under Section 1902(b)(8). It collects details about the corporation’s Delaware operations, intangible investments, income sources, business activities, Delaware employees, and owner
Who files this form
Form CIT-EXM is an application for exemption from Delaware corporation income tax for holding companies under Section 1902(b)(8). The form does not state detailed eligibility requirements or who is required to apply.
What you'll need
Have the following information ready:
- Corporation name, street address, mailing address if different, and taxpayer ID.
- Nature of business, date of incorporation, and state of incorporation.
- A detailed description of Delaware operations, each type of intangible investment owned, and all sources of income.
- Details about any general-partner role, joint venture participation, income from patents or similar intangibles, and business outside Delaware, as requested by the form.
- Names and addresses of Delaware employees and persons, including corporations, owning more than 10% of the corporation's stock.
- The signing officer's title, email address, and phone number.
Provide attachments if you need more space for the operations description or the employee and stockholder lists.
How to file
Complete the corporation information and describe its operations, investments, and income. Answer each yes-or-no question and provide the requested explanations for any “Yes” answers. List Delaware employees and owners of more than 10% of the corporation's stock.
Have an officer sign and date the form and provide their title, email address, and phone number. Keep a copy for your records.
Mail the completed form to:
Delaware Division of Revenue
820 N. French Street
Wilmington, DE 19801
Attn: Conferee
Common mistakes
- Repeating the statute instead of describing operations. The form explicitly says that reciting the statute does not constitute an answer. Describe Delaware operations, intangible investments, and income sources in detail.
- Leaving out information because space is limited. Use attachments when more space is needed for the description or lists.
- Forgetting the signature or your records copy. The form reminds you to sign and keep a copy.
Questions people ask
What is Form CIT-EXM for?
It is an application for exemption from Delaware corporation income tax for holding companies under Section 1902(b)(8).
Can I just quote the exemption statute when describing the corporation's operations?
No. The form says that reciting the statute does not constitute an answer. Provide a detailed description of Delaware operations, each type of intangible investment owned, and all sources of income.
Which stockholders must be listed?
List the names and addresses of persons, including individuals and corporations, owning more than 10% of the corporation's stock. Attach a list if you need more space.
What if the corporation earns income from patents, royalties, copyrights, or know-how?
Answer “Yes” to that question and describe any services the corporation will perform regarding those intangibles.
Who signs the application?
The form calls for an officer's signature, date, title, email address, and phone number. The signature declaration states, under penalties of perjury, that the return and accompanying schedules and statements have been examined and are believed to be true, correct, and complete.