ArticleCalifornia FTB Updates Sourcing Rules for Sales of Services and Intangibles
September 23, 2025The California Franchise Tax Board has adopted amendments to its market-based sourcing regulation, effective for tax years beginning January 1, 2026. Key changes include updated rules for sales of marketable securities, removal of distinctions between individual and business customers, and new requirements for the reasonable approximation method. Taxpayers seeking to change their method must notify and obtain prior approval from the FTB.
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