Franchise Tax Calculation - Texas Franchise Tax printable pdf download

Texas Franchise Tax

Franchise Tax Calculation

RESET CALCULATION

The worksheet below calculates taxable margin on a separate entity basis. The worksheet

Annualized Revenue

will calculate an amount of tax due based upon the amounts that are entered.

Report year

HOWEVER, if your annualized total revenue is less than or equal to $1,110,000, or your

2017

tax due is less than $1,000, you will owe no tax. All taxable entities must file a report, even

if no tax is due.

Accounting

month

day

year

year begin

date

If your annualized total revenue is $20 million or less, you are eligible to use the E-Z

computation for calculating your tax. See the line 11 instructions for additional information.

Accounting

month

day

year

year end

date

SPECIAL NOTE TO TAXABLE ENTITIES THAT ARE PART OF AN AFFILIATED GROUP:

Taxable entities that are part of an affiliated group engaged in a unitary business must file

Total revenue for the report period

a combined report in lieu of individual reports. All members of a combined group must use

the same method to compute margin (i.e. cost of goods sold, compensation or 70%). See

instructions for additional information.

Annualized amount

Step 1. Margin

1a. Total revenue ......................................................................................................................................

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1b. Cost of goods sold ...............................................................................................................................

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1c. Cost of goods sold margin - Line 1a minus Line 1b .............................................................................

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2a. Total revenue ........................................................................................................................................

____________________

2b. Wages and cash compensation ............................................................................................................

____________________

2c. Employee benefits ................................................................................................................................

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2d. Compensation margin - Line 2a minus (Lines 2b and 2c) ...................................................................

____________________

3a. Total revenue .......................................................................................................................................

____________________

3b. % margin - Equals 70% of Line 3a .......................................................................................................

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4a. Total revenue .......................................................................................................................................

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4b. Total revenue less $1,000,000 - Line 4a minus $1,000,000 ...............................................................

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5. Margin - Enter the least of Lines 1c, 2d, 3b or 4b ..............................................................................

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Step 2. Apportionment

6. Texas gross receipts ............................................................................................................................

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7. Everywhere gross receipts ...................................................................................................................

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8. Apportionment factor - Line 6 divided by Line 7 ...............................................................................

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Step 3. Taxable Margin

9. Taxable margin - Line 5 multiplied by Line 8 ......................................................................................

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Step 4. Tax Due

10. Tax due before discount or credits

____________________

- Multiply Line 9 by

.00375 for wholesalers and retailers or

.00750 for other taxable entities

11. Credits ..................................................................................................................................................

____________________

12. E-Z computation (if eligible)

.......................................................

____________________

- Line 3a times Line 8 times 0.00331

For the 2017 report year, discounts do not apply.

13. Discount ...............................................................................................................................................

____________________

14. Net tax due - Line 10 minus (Lines 11 and 13) OR Line 12 minus Line 13.

(If less than $1,000, you owe no tax. Cannot be less than zero.) .........................................................

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