REV-802: Schedule C-6 - Add-Back for Intangible Expenses or Cost and Related Interest (REV-802) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
Pennsylvania Schedule C-6 (REV-802) reports intangible expenses and related interest paid, accrued or incurred directly or indirectly with affiliated entities. Corporations use it to calculate the required add-back to federal taxable income and report any claimed exclusions.
Who files this form
Corporations that entered into transactions with an affiliated entity for payment of intangible expenses or related interest expenses, as defined in the cited Pennsylvania law, must file Schedule C-6.
The schedule calculates the required add-back to federal taxable income for certain deductions involving intangible property, such as trademarks and patents. Report all covered payments, even if you claim an exception.
What you'll need
Have these forms and details ready:
- RCT-101, PA Corporate Net Income Tax Report: Use the same corporation name, 9-digit FEIN, and tax-year beginning and ending dates.
- Affiliated entity details: Names, FEINs, states of organization, locations where the entities are managed or directed, and intangible expense and related interest amounts.
- Foreign-entity exception details, if applicable: Each foreign affiliate's name and country of domicile, expense amounts, and the domestic affiliate's FEIN if payments went through one.
- Conduit exception details, if applicable: The unaffiliated recipient's name, the conduit affiliate's FEIN, payment amounts, and allocation calculations. Attach a schedule showing the computations and a statement explaining the exclusion percentage.
- REV-803, Schedule C-7, if applicable: Submit it with Schedule C-6 and RCT-101.
How to file
Submit Schedule C-6 with your RCT-101 at the same time you file that report. Include REV-803, Schedule C-7, if applicable. The supplied text does not give a mailing address or e-filing directions.
- Report payments to affiliated entities in Section I.
- Complete Section II for the foreign income tax treaty exception and Section III for the conduit exception, when applicable.
- Report allowable exceptions on Section I, Lines 6 through 8.
- Add Lines 10a and 10b to complete Section I, Line 11. Carry that total to RCT-101, Section C, Line 3E.
Common mistakes
- Leaving out payments because you claim an exception: All intangible and related interest payments must be reported in Section I. Failure to complete Schedule C-6 properly may result in disallowance of claimed exceptions.
- Using the wrong format: Use all capital letters, no dashes or slashes in any field, dates in MMDDYYYY format, and whole dollars only.
- Including conduit markups or other affiliates' transactions in an exception: Exclude those amounts. The exception cannot exceed the actual amount paid to the outside party for your corporation's use of the intangible property.
- Omitting allocation support: For Section III, attach the computation schedule and the statement explaining how the exclusion percentage was calculated.
Questions people ask
Do I report payments if I believe an exception applies?
Yes. Report all intangible and related interest payments in Section I, even when claiming an exception.
What exceptions does the schedule list?
It lists payments where tax avoidance was not a principal purpose and the terms and rates were at arm's length; payments to an affiliate domiciled in a foreign nation with a comprehensive income tax treaty with the United States; and qualifying payments through an affiliate acting as a conduit to an unaffiliated entity.
What if I need more transaction rows?
Use a photocopy of the schedule when you exceed the four-transaction capacity in Sections I or II, or the five-transaction capacity in Section III.
Where does the final add-back amount go?
Add Section I, Lines 10a and 10b, enter the result on Line 11, and carry it to RCT-101, Section C, Line 3E.