Instructions For Corporate Taxes - Oregon Department Of Revenue
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1
2
3
4
5Corp
porate Tax
xes
Im
mportant
Ore
gon does not
t have a sale
es tax.
For
tax years be
ginning befor
re January 1,
, 2009, the co
orporate tax
rate is 6.6 pe
ercent; excis
se tax
filer
rs are subject
t to a $10 mi
nimum tax. F
For consolida
ted returns,
the minimum
m tax is $10
mul
tiplied by the
e total numbe
er of corporat
tions doing b
usiness in Or
regon and inc
cluded in the
cons
solidated retu
urn.
Ore
gon follows t
he federal e
entity classif
fication reg
ulations. If
an entity is c
classified or t
axed
as a
a corporation
for federal in
ncome tax pu
urposes, it wi
ll be treated
as a corpora
tion for Oreg
gon
tax
purposes.
Info
ormation cont
tained herein
n is a guide. F
For complete
details of law
w, refer to
Or
regon Revised
d
Stat
tutes.
Ore
egon excise
tax addition
n on Forms
20, 20-S, an
nd 20-INS
Ore
gon Revised
Statute (ORS
S) 317.314 re
equires that s
state taxes u
pon or meas
ured by net
inco
ome or profits
s that are ded
ducted from
income on th
he federal ret
turn must be
added back t
to
inco
ome on the O
Oregon return
. In the past
, Oregon has
s not different
tiated betwee
en the
corp
poration mini
mum tax and
d the calculat
ted excise tax
x; both were
required add
ditions on the
e
Ore
gon returns.
However, ba
ased on the d
epartment’s
interpretatio
n of a recent
t tax court
deci
ision the Ore
egon corpora
ation minim
mum tax is n
not subject t
to the state
tax add bac
ck
pro
ovision of OR
RS 317.314.
. This change
e applies to a
ll open tax ye
ears.
The
change abov
ve does not a
apply to insur
rance compan
nies that file
an Oregon F
orm 20–INS
beca
ause ORS 31
7.314 is not
applicable to
insurance co
ompanies. In
surance com
panies are,
inst
ead, subject
to the add ba
ack provision
n of ORS 317
.655, which r
requires the a
add back of a
any
stat
te income tax
xes deducted
in computing
g net gain fro
om operation
s. If an insur
rance compan
ny
ded
ucts the min
imum tax on
its annual st
tatement the
e amount is
required to
be added b
back
to i
ncome on th
he Form 20-
-INS.
Ca
n credits re
educe corpor
rate minimu
um tax?
Our
r position on
n the applica
ation of tax
x credits to O
Oregon's co
rporate min
nimum tax
The
Oregon Tax
Court issued
a decision o
n December
27, 2011, Co
on-Way, Inc.
& Affiliates v
v.
Dep
partment of R
Revenue TC50
003, that sug
ggests all corp
porate tax cr
redits shall be
e applied aga
ainst
the
corporate mi
inimum tax if
f the tax cred
dit is not spec
cifically prohi
bited from do
oing so by
stat
tute. The two
o tax credits t
that are proh
ibited from b
being applied
against the m
minimum tax
x are
the
corporate su
rplus kicker c
credit (ORS 2
291.349) and
d the credit fo
or contributio
on of compute
er
equ
ipment (ORS
S 317.151).
The
court's decis
sion contradic
cts the depar
rtment's long
-standing po
sition that cr
redits cannot
redu
uce corporati
on excise tax
x below the m
minimum tax.
. The departm
ment has app
pealed the
deci
ision to the O
Oregon Supre
eme Court. U
ntil the appea
al is final, the
e department
t's long-stand
ding
posi
ition remains
s unchanged:
taxpayers ca
annot use tax
x credits to re
educe the co
rporate minim
mum
tax.
How
wever, taxpay
yers may file
protective cl
aims with the
e department
t to secure th
he right to a
refu
und pending t
the Supreme
Court procee
edings. The d
department w
will defer actio
on on all claim
ms
pen
ding a final d
decision. Prot
ective refund
d claims gene
erally must be
e filed by the
e later of thre
ee
yea
rs from: (1) t
the due date
of the origin
al return, or
(2) the date
the original
return was fi
led.
If no
o action is ta
ken, earlier y
years' statute
es of limitatio
ons may expi
re resulting i
n disallowanc
ce of
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