Instructions For Form 20-I - Oregon Corporation Income Tax

If your expected net tax changes during the year, divide

Income tax is for corporations not doing business in

the amended net tax amount by the number of required

Oregon, but with income from an Oregon source. Income

payments (usually four) to determine the correct amount

tax filers aren’t subject to corporate minimum tax. Cor-

of each required installment.

poration income tax laws are in Chapter 318 of the Ore-

gon Revised Statutes.

To avoid additional charges for UND, you must pay the

amount of any prior underpayment plus the amount of

What form do I use?

the current required installment. [OAR 150-314.515(2)]

All corporations doing business in Oregon must file

Example: During the year, Corporation A’s expected net

Form 20, Oregon Corporation Excise Tax Return, 150-102-020,

tax increased from $2,000 to $6,000. Corporation A made

and are subject to the minimum excise tax. Any corpora-

timely first and second quarter estimated payments of

tion doing business in Oregon is also required to regis-

$500 before its expected net tax increased.

ter with the Secretary of State Corporation Division. See

Corporation A’s correct amount of each required install-

sos.oregon.gov.

ment is $1,500. Because of its increased net tax, Corpora-

“Doing business” means carrying on or being engaged

tion A will be subject to UND charges for the first and

in any profit-seeking activity in Oregon. A taxpayer

second quarters. To avoid UND charges for the third

having one or more of the following in this state is clearly

and fourth quarters, Corporation A must make a timely

doing business in Oregon:

third-quarter estimated payment of $3,500* and a timely

fourth quarter payment of $1,500.

• A stock of goods.

• An office.

*$1,000 for the first-quarter underpayment, plus $1,000

• A place of business (other than an office) where affairs

for the second-quarter underpayment, plus $1,500 for the

of the corporation are regularly conducted.

required third-quarter installment equals $3,500.

• Employees or representatives providing services to

For

information,

see

ORS

314.525,

OAR

customers as the primary business activity (such as

150-314.525(1)-(A), 150-314.525(1)-(B), 150-314.525(1)(c)-(A),

accounting or personal services), or services incidental

150-314.525(1)(d), 150-314.525(2)-(A), and 150-314.525(2)-(B).

to the sale of tangible or intangible personal property

(such as installation, inspection, maintenance, war-

Filing information

ranty, or repair of a product).

• An economic presence through which the taxpayer

Who must file with Oregon?

regularly takes advantage of Oregon’s economy to pro-

duce income.

Corporations that are doing business in Oregon, or with

Corporations not doing business in Oregon, but with

income from an Oregon source, are required to file an

Oregon corporation tax return. If you have tangible

income from an Oregon source generally must file Form

or intangible property or other assets in Oregon, any

20-I, Oregon Corporation Income Tax Return, 150-102-021.

income you receive in Oregon or from an Oregon source

There is no minimum tax for Form 20-I filers. Most corpo-

is Oregon source income. Public Law (Pub.L.) 86-272 pro-

rations don’t fall within Oregon’s income tax provisions.

vides exceptions to this requirement.

Corporations not doing business in Oregon, and with

Note: Oregon follows the federal entity classification

no Oregon source income, even if incorporated in or

regulations. If an entity is classified or taxed as a corpo-

registered to do business in the state, aren’t required to

ration for federal income tax purposes, it will be treated

file a corporation tax return.

as a corporation for Oregon tax purposes.

Filing requirements

Excise or income tax?

Consolidated returns (ORS 317.705–317.725). If a corpo-

Oregon has two types of corporate taxes: excise and

ration is a member of an affiliated group of corporations

income. Excise tax is the most common. Most corpora-

that filed a consolidated federal return, it must file an

tions don’t qualify for Oregon’s income tax.

Oregon return based on that federal return.

Excise tax is a tax for the privilege of doing business

A consolidated Oregon return is required when two or

in Oregon. It’s measured by net income. All interest

more affiliated corporations are:

is included in income, no matter what its source. This

• Included in a consolidated federal return;

includes interest on obligations of the United States, its

• Unitary; and

instrumentalities, and all of the 50 states and their subdi-

• At least one of the affiliated corporations must be doing

visions. Corporation excise tax laws are in Chapter 317 of

the Oregon Revised Statutes.

business in Oregon or have Oregon-source income.

150-102-021-1 (Rev. 10-14)

Form 20-I Instructions

Instructions For Form 20-I - Oregon Corporation Income Tax - 2014 Page 4

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