Section 23332.
Cal. Revenue and Taxation Code - RTC § 23332.
in effect(a)
Except in the case of a taxpayer subject to the provisions of Section 23222a, any taxpayer which is dissolved or withdraws from the state during any taxable year shall pay a tax only for the months of the taxable year which precede the effective date of the dissolution or withdrawal, according to or measured by (1) the net income of the preceding income year or (2) a percentage of net income
determined by ascertaining the ratio which the months of the taxable year, preceding the effective date of dissolution or withdrawal, bears to the months of the income year, whichever is the lesser amount. The taxes levied under this chapter shall not be subject to abatement or refund because of the cessation of business or corporate existence of any taxpayer pursuant to a reorganization, consolidation, or merger (as defined by Section 23251). In any event, each corporation shall pay a tax not subject to offset for the period in an amount equal to the minimum tax prescribed by Section 23153.
(b)
The provisions of subdivision (a) shall be applied only with respect to taxpayers which dissolve or withdraw before January 1, 1973. On and after that date, the tax for the taxable year in which the taxpayer ceases doing business, dissolves, or withdraws shall be determined under the appropriate provisions of Section 23151.1, 23153, 23181, or 23183,
whichever is applicable.
(c)
(1)
A corporation shall not be subject to the minimum franchise tax imposed by this chapter for a taxable year if the corporation does all of the following:
(A)
Files a timely final franchise tax return for a taxable year with the Franchise Tax Board.
(B)
Does not do business in this state after the end of the taxable year for which the final franchise tax return was filed.
(C)
(i)
In the case of a corporation other than a corporation described in clause (ii), files a certificate of dissolution or surrender with the Secretary of State, in accordance with Sections 1809, 1905, 2112, 6615, 8615, and 12635 of the Corporations Code and Section 3126 of the Financial Code, before the end
of the 12-month period beginning with the date the final franchise tax return was filed.
(ii)
In the case of a limited liability company that is a corporation pursuant to subdivision (c) of Section 23038, files a certificate of cancellation with the Secretary of State, in accordance with Section 17707.02 or 17708.07 of the Corporations Code, before the end of the 12-month period beginning with the date the final franchise tax return was filed.
(2)
For purposes of this subdivision, a “final franchise tax return” is a return filed pursuant to Section 18601 on or before the due date of the return, as extended, that the taxpayer designates in the manner prescribed by the Franchise Tax Board as the taxpayer’s final franchise tax return for purposes of the tax imposed under this chapter. A final franchise tax return for purposes of the tax imposed under this chapter is a return filed
pursuant to Section 18601 where the taxpayer is not required to file a subsequent return to reflect the imposition of tax under this chapter.
References
referencesCal. Corporations Code - CORP § 1809.
referencesCal. Corporations Code - CORP § 1905.
referencesCal. Corporations Code - CORP § 2112.
referencesCal. Corporations Code - CORP § 6615.
referencesCal. Corporations Code - CORP § 8615.
referencesCal. Corporations Code - CORP § 12635.
referencesCal. Financial Code - FIN § 3126.
referencesCal. Revenue and Taxation Code - RTC § 23222a.
referencesCal. Revenue and Taxation Code - RTC § 23251.
referencesCal. Revenue and Taxation Code - RTC § 23153.
referencesCal. Revenue and Taxation Code - RTC § 23151.1.
referencesCal. Revenue and Taxation Code - RTC § 23038.
referencesCal. Revenue and Taxation Code - RTC § 17707.02.
referencesCal. Revenue and Taxation Code - RTC § 18601.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026