How are director fees apportioned?
If a corporate director earns director fees subject to B&O tax, as well as director fees and/or other nonemployee compensation for services that are taxable in another state (including for this purpose the District of Columbia, the Commonwealth of Puerto Rico, any foreign country and political subdivisions of a foreign country), he is permitted to apportion this service income to determine the amount subject to B&O tax. The new apportionment rules make clear that where the services are actually performed is not necessarily determinative. The DOR is currently working on a worksheet that is intended to provide some additional guidance on application of the new apportionment rules. This worksheet has not yet been released. What payments are subject to tax? All compensation received (including reimbursement for expenses), in whatever form, for services rendered as a corporate director is subject to B&O tax, without deduction for costs and expenses. With respect to stock options, the Specia
