New Process for Taxable Income (UBIT) Starting FY 2027
VCU is a non-profit organization and an agency of the Commonwealth, so most of our income is exempt from federal income tax. However, some activities that are not directly related to VCU’s mission can generate income that is taxable. This is called Unrelated Business Income Tax (UBIT).
In the past, VCU Finance has paid UBIT from a central fund.
Beginning in Fiscal Year 2027, any unit that generates taxable income will be charged for the UBIT related to that income. In most cases, the tax should be paid from the same revenue that created the tax obligation.
If you have questions about UBIT or how this change may affect your area, please contact Brian Fowlkes in the Controller’s Office at [email protected].
Categories Controller's Office