Corporate Tax Base 5. Are system software royalties excluded from the determination of corporate income tax liability like they were under the Single Business Tax Act (see MCL 208.9(4)(g)(viii) and (7)(c)(vii))?
Unlike the SBTA, but similar to the MBT, there is no specific language in the CIT which excludes such system software royalties from the calculation of the corporate income tax base. However, there are certain royalty adjustments to the corporate income tax base under the CIT that may apply in limited circumstances, generally those involving foreign entities. See MCL 206.623.