R.I. Gen. Laws § 44-11-14.4 — Allocation and apportionment — Retirement and pension plans

Notwithstanding any provisions of this chapter, any taxpayer located within the state
that sells management, distribution or administration services, including without
limitations, transfer agent, fund accounting, custody and other similar or related
services, as described in this section to or on behalf of an employee retirement plan
or pension plan may elect the allocation and apportionment method for the taxpayer’s
net income provided for in this section. The election, if made, shall be irrevocable
for successive periods of five (5) years. All net income derived directly and indirectly
from the sale of the management, distribution, or administration services to or on
behalf of a retirement plan or pension plan, including net income received directly
or indirectly from trustees, sponsors or participants of such a retirement plan or
pension plan, shall be apportioned to Rhode Island only to the extent that the beneficiaries
or participants of a retirement plan or pension plan are domiciled in Rhode Island
as follows:
(1) Net income shall be multiplied by a fraction, the numerator of which shall be Rhode
Island receipts from the services during the taxable year and the denominator of which
shall be the total receipts everywhere from the services for the same taxable year.
(2) For the purposes of this section, Rhode Island receipts shall be determined by multiplying
total receipts for the taxable year from a retirement plan or pension plan for which
the services are performed by a fraction. The numerator of the fraction shall be the
average of the number of total beneficiaries or participants of each retirement plan
or pension plan domiciled in this state at the beginning of and at the end of taxable
year of the taxpayer, and the denominator of the fraction shall be the average of
the number of total beneficiaries or participants of the retirement plan or pension
plan everywhere at the beginning of and at the end of each taxable year of the taxpayer.