64:26:04:28.  Federal income tax deductible -- Other income, privilege, and franchise taxes not deductible. Net federal income taxes are deductible from taxable income in the year in which they are paid when the cash method of accounting is used in determining the net income of the taxpayer. Net federal income taxes are deductible from taxable income in the tax year in which they are incurred when the accrual method of accounting is used in determining the net income of taxpayer. Any other income, franchise, or privilege taxes which were deducted to determine federal taxable income are not deductible.

          Source: 4 SDR 35, effective December 22, 1977; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority:SDCL 10-43-42.1.

          Law Implemented:SDCL 10-43-10.3.