Ark. Code Ann. § 26-51-703

For purposes of allocation and apportionment of income under this Act, a taxpayer is taxable in another state if (1) in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, or any other tax measured by income or other measure of business activity in the state and the taxpayer files the requisite tax return in the other state, or (2) the state has no net income tax, franchise tax measured by net income, or any other tax measured by income or other measure of business activity in the state as provided in subdivision (1) of this section and the taxpayer has activities in the other state that exceed those protected by 15 U.S.C. §§ 381 — 384.