MS HB1620

Expands Mississippi income tax to nonresidents' net income derived from property, activity, or other sources within Mississippi, not just income from business operations.

Broadens the definition of "doing business" in Mississippi to include regular solicitation of business, performance of services outside Mississippi with benefits received inside Mississippi, and conduct of intangible property transactions with in-state customers.

Defines "valid business purpose" for purposes of restricting deductions of intangible expenses and interest paid to related members; requires transactions to have economic substance apart from tax effects and comparable terms to arm's-length transactions.

Adds new restrictions on deducting interest expenses and intangible expenses paid to related members unless the related member paid those amounts to unrelated parties or the transaction meets specific requirements including valid business purpose and arm's-length pricing.

Effective January 1, 2017.