The Philadelphia Business Income & Receipts Tax (BIRT) is based on both gross receipts and net income. Every individual, partnership, association, and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must file a Business Income & Receipts Tax Return, whether or not they earned a profit during the preceding year.
Income earned by a not-for-profit entity that relates to its tax-exempt mission is not subject to the Business Income & Receipts Tax. However, income earned that is not related to a not-for-profit’s tax exempt mission is recognized as unrelated business income and is subject to the Business Income & Receipts Tax.
The University files the Philadelphia BIRT annually to report its unrelated business income. The financial data reported on the worksheet is used to calculate the Philadelphia Business Income & Receipt Taxes, net income and gross receipts.
The City of Philadelphia has more information about the BIRT Tax on its website.