reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0470 - Pre-change and Built-in Losses

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Pre-change and built-in losses, other than capital losses, which the taxpayer
			 elects to carry back under federal law, must be carried forward and subtracted
			 in computing Oregon taxable income to the extent that such losses are
			 apportioned or allocated to Oregon. All limitations imposed under ORS
			 317.478 apply to the loss
			 carryforward amount. If the pre-change or built-in loss carried back for
			 federal purposes is a capital loss, the provisions of OAR 150-317.013
			 apply.
(2) When the assets of a
			 corporation are acquired by another corporation and the provisions of IRC
			 section 382 apply, the Oregon apportionment factors of the old loss corporation
			 for the reporting period ending on the date of ownership change are considered
			 the Oregon apportionment factors of the new loss corporation existing at the
			 time of the change in ownership. These apportionment factors must be used to
			 compute the IRC section 382 limitation applicable to Oregon.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.478
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0480 - Definition of "Premiums" in the Insurance Sales Factor

Current through Register Vol. 63, No. 7, July 1, 2024
For purposes of computing the Insurance Sales Factor, the term
				"premiums" shall mean "premiums written" as required to be reported in the
				Annual Statement filed with the Department of Consumer and Business Services,
				Insurance Division.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.660
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0490 - Insurers; Wage and Commission Factor

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years beginning on or after
			 January 1, 2007, ORS 317.660 provides that the
			 apportionment factor for insurance companies consists of only the insurance
			 sales factor.
(2) For tax years
			 beginning prior to January 1, 2007, the wages, salaries, commissions and other
			 compensation for personal services included in the wage and commission
			 apportionment factor denominator for insurers are the amounts required to be
			 included in appropriate schedules of the annual report filed with the Insurance
			 Division of the Department of Consumer and Business Services.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.660
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0500 - Applicable Date

Current through Register Vol. 63, No. 7, July 1, 2024
OAR 150-317.705 to 150-317.725, concerning consolidated Oregon
				returns, apply to tax years beginning on or after January 1,
				1986.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.705
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0520 - Direct or Indirect Relationships

Current through Register Vol. 63, No. 7, July 1, 2024
In determining whether a unitary business exists, all direct
				and indirect relationships may be considered. This is true even when the
				relationships extend to corporations not includable in the consolidated return.
Example 1
:
Corporation M
			 is a U.S. company engaged in the marketing of oil and oil products. It has two
			 wholly-owned domestic subsidiaries, Corporations E and R. Corporation E is a
			 drilling company involved in exploration for oil. Corporation R buys the crude
			 oil from E, refines it, and sells the refined oil to M. Although the operations
			 of Corporations E and M are not directly related, they are part of a unitary
			 business by virtue of their indirect relationship through Corporation
			 R.
Example 2
:
Assume
			 the same facts as in Example 1, except that the refining company, Corporation
			 R, is jointly owned by Corporation M and another oil company (50 percent each).
			 Although Corporation R is no longer includable in the consolidated return (due
			 to less than 80 percent ownership), Corporations E and M are still considered
			 part of a unitary business.
Example
			 3
:
Assume the same facts as in Example 1, except that
			 the refining company, Corporation R, is a foreign subsidiary of Corporation M
			 doing business only in Mexico. In determining whether Corporations E and M are
			 part of a unitary business, the relationships and transactions with Corporation
			 R may be considered.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  317.705
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0530 - Corporations Doing Business Outside the United States

Current through Register Vol. 63, No. 7, July 1, 2024
A corporation included in a consolidated federal return shall
				not be excluded from a consolidated Oregon return simply because its business
				operations are conducted outside the United States.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.705
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0540 - Consolidated Oregon Return: Format and Information Required

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Generally, the
			 consolidated Oregon return must be filed by and in the name of the common
			 parent corporation. If the common parent corporation is not a member of the
			 affiliated group filing the consolidated Oregon return or is not subject to
			 Oregon taxation, the return must be filed in the name of a member of the
			 affiliated group doing business in Oregon as defined under ORS
			 317.010(4). If
			 more than one member is doing business in Oregon, the name of the member having
			 the greatest presence in Oregon must be used. If the name under which a prior
			 year's consolidated Oregon return was filed is changed, a statement must be
			 attached to the current year's return advising the department of the name
			 change.
(2) If the affiliated group
			 filing a consolidated federal return consists of more than one unitary group,
			 each unitary group that includes an Oregon taxpayer must file a separate
			 consolidated Oregon return.
(3) For
			 purposes of this section "having the greatest presence" means having the
			 largest Oregon property value as determined under ORS
			 314.655.
(4) The consolidated Oregon return must be
			 prepared in columnar form reflecting separately, for each member of the
			 affiliated group, and in total, the federal consolidated taxable income, the
			 modifications required by ORS
			 317.259, the tax credits, and
			 any other information requested by the department. If taxable income is
			 determined under ORS 317.010(10)(a) to
			 (c), the nonapportionable income or loss and
			 apportionment formula must also be reflected separately for each member of the
			 affiliated group and in total.
(5)
			 A schedule of corporations subject to Oregon's jurisdiction to tax must be
			 attached to the consolidated Oregon return.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  317.710
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0550 - Consolidated Oregon Return: Affiliated Group

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A corporation filing a consolidated
			 federal return must file a consolidated Oregon return. The consolidated Oregon
			 return must include the same affiliated group included in the consolidated
			 federal return, except as provided in this section.
(2) The following taxpayers included in
			 consolidated federal returns must not file consolidated Oregon returns:
(a) A corporation that is not a member of a
			 unitary group (as defined under ORS
			 317.705(2))
			 with any other corporation included in the consolidated federal
			 return;
(b) A corporation that is
			 permitted or required under ORS
			 314.667 to determine its Oregon
			 taxable income on a separate basis;
(c) A corporation that is permitted or
			 required by rule or statute to use different apportionment factors than are
			 applicable to other members of the affiliated group; or
(d) Alien, domestic, or foreign insurers
			 required by ORS 317.710(5) or
			 (7) to file separately from the taxpayer's
			 federal consolidated group.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0560 - Consolidated Oregon Return: Credits

Current through Register Vol. 63, No. 7, July 1, 2024
The amount of credit that may offset tax on a consolidated
				Oregon return is not limited to the tax attributable to the corporation earning
				the credit. This provision applies to credits carried forward from years in
				which a separate or combined report is filed to years in which a consolidated
				return is filed, as well as current year credits.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.710
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0570 - Different Apportionment Factors for Purposes of ORS 317.710(5)(b)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An Oregon
			 taxpayer that is permitted or required to use different apportionment factors
			 under Oregon law cannot be included in an Oregon consolidated return with
			 another Oregon taxpayer using the standard apportionment factor provided in ORS
			 314.650. This restriction only
			 applies when both corporations using different apportionment factors are
			 subject to Oregon tax under ORS Chapters 317 or 318. The only corporations that
			 are permitted or required to use different apportionment factors are:
(a) Insurers required to apportion income as
			 provided in ORS 317.660; and
(b) Taxpayers primarily engaged in utilities
			 or telecommunications that elect to have income from business activity
			 apportioned by applying the weightings used in ORS
			 314.650 (1999 Edition) for tax
			 years beginning on or after May 1, 2003.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0580 - Consolidated Oregon Return: Copy of Federal Return Required

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A complete copy
			 of the taxpayer's federal return must be attached to the Oregon
			 return.
(2) If an affiliated group
			 filing a consolidated federal return is required to file more than one Oregon
			 return under ORS 317.710(5), a
			 copy of the consolidated federal return need not be attached to each Oregon
			 return. Instead, one complete copy of the consolidated federal return may be
			 attached to one of the Oregon returns filed. A statement shall be attached to
			 the other Oregon returns advising the department that a copy of the complete
			 consolidated federal return is being provided with the Oregon return of another
			 taxpayer. The statement must include the corporation's name and federal
			 identification number used on the Oregon return to which the complete copy of
			 the consolidated federal return is attached.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.710
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0590 - Interinsurance and Reciprocal Exchanges

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Affiliated interinsurance and reciprocal
			 exchanges may elect to file a consolidated return under ORS
			 317.710(7). The
			 election shall be made by attaching a statement to the timely filed (including
			 extensions) consolidated tax return for the tax year in question. The statement
			 shall contain the names and identifying number of the members, and shall
			 clearly indicate that the members are electing to file a consolidated tax
			 return.
(2) An election, once made,
			 shall remain in effect until revoked. Revocation of the election shall be
			 clearly indicated on a statement attached to each timely filed (including
			 extensions) separate excise tax return filed by the members. The statement
			 shall also include a scheduled allocating consolidated estimated tax payment to
			 the members.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.710
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0600 - Limitations on Deduction of Group Losses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Oregon has adopted the provisions of IRC
			 Section 1503(f) that apply to corporations filing consolidated returns and
			 limit the use of group losses to offset income of a subsidiary paying dividends
			 on preferred stock.
(2) The new
			 limitations apply in tax years ending after November 17, 1989.
(3) Only the income or losses of those
			 corporations included in the Oregon consolidated return will be included in the
			 computation of the "group losses" and "separately computed taxable
			 income."
(4) Oregon modifications
			 that apply should be made prior to computing "group losses," and "separately
			 computed taxable income."
(5) The
			 following examples demonstrate the application of the limitation for Oregon:
Example 1
:
An affiliated group
			 filing a consolidated federal return consists of Corporation P (the parent
			 corporation) and Corporations R and S (subsidiaries of P). All three
			 corporations are unitary and the consolidated Oregon apportionment percentage
			 is 50 percent. Corporation S issues IRC Section 1504(a)(4) preferred stock. In
			 1991, Corporation P has federal income of $900 and an Oregon addition
			 modification of $100. Corporation R has a federal loss of $1,500 with no Oregon
			 modifications. Corporation S has federal "separately computed taxable income"
			 of $1,000, no Oregon modifications, and pays a dividend of $900 on the
			 preferred stock. For both federal and Oregon purposes, R's loss is a group
			 loss. It can be offset against P's Oregon net income of $1,000 leaving a
			 balance of $500. The $500 balance of R's loss can be offset against S's net
			 income to the extent it was not distributed to preferred stockholders ($100).
			 The remaining $400 cannot be deducted in 1991. Therefore, the Oregon
			 consolidated taxable income of the group is computed as follows: [See PDF link
			 below.]
Example 2
:
Assume the same facts as in Example 1, except that corporations R and S are
			 unitary but P is not. Without corporation P in the consolidated Oregon return,
			 the Oregon apportionment percentage increases to 75 percent. In this case, R's
			 loss cannot be offset against P's income since they are not unitary.
			 Corporation R's loss can only be offset against S's net income to the extent it
			 was not distributed to preferred stockholders ($100). Therefore, $1,400 of the
			 loss cannot be deducted in 1991 and the Oregon consolidated taxable income of
			 the group would be computed as follows: [See PDF link
			 below.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0610 - Modified Federal Consolidated Taxable Income

Current through Register Vol. 63, No. 7, July 1, 2024
Federal consolidated taxable income must be modified if the
				affiliated group of corporations consists of more than one unitary group or
				includes any alien, domestic, or foreign insurer that is excluded from the
				consolidated state return under ORS
				317.710(5) or
				(7). The separate taxable income determined
				under the provisions set forth in the treasury regulations under Internal
				Revenue Code (IRC) section 1502 attributable to an affiliated corporation,
				which does not belong to the unitary group of which the corporation subject to
				tax under this chapter is a member, or attributable to insurers excluded from
				the federal consolidated state return under ORS
				317.710(5) or
				(7), must be subtracted from federal
				consolidated taxable income.
Example:
Corporations M, G, P, and W file a
				consolidated federal return. Corporations M, P, and W are engaged in a single
				unitary business. Corporation G's business activities are separate and
				unrelated. Corporation P is an insurance company doing business in Oregon and
				is required to be excluded from the federal consolidated return by ORS
				317.710. Modified federal
				consolidated taxable income is computed by subtracting, from federal
				consolidated taxable income, Corporation G and P's separate taxable incomes and
				by reversing the necessary adjustments pursuant to the provisions set forth in
				the treasury regulations under IRC section 1502 attributable to Corporations G
				and P.
Publications
: Contact the Oregon Department of
				  Revenue for information about how to obtain a copy of the publication referred
				  to or incorporated by reference in this rule pursuant to ORS
				  183.360(2) and
				  183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  317.715
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0620 - Modified Federal Consolidated Taxable Income - Contribution Deduction for the Oregon Consolidated Group

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 In general. The contribution deduction allowed corporations subject to taxation
			 under Oregon Revised Statutes (ORS) Chapter 317 or 318, that file federal
			 consolidated returns, is limited to the lesser of:
(a) The contributions made by the members of
			 the unitary group; or
(b) 10
			 percent of the modified federal consolidated taxable income of the members of
			 the unitary group.
Example 1 : Corporation A
			 files a consolidated federal return for tax year 2010. A's federal return
			 consists of two unitary groups of corporations, one of which is required to
			 file an Oregon return. Corporation B is a member of the unitary group of
			 corporations required to file a 2010 Oregon return. B contributed $1,000,000 to
			 charities. No other corporation included in A's consolidated federal return
			 made contributions in 2010. For tax year 2010, A has federal consolidated
			 taxable income of $20,000,000 before any contribution deduction. The unitary
			 group required to file the Oregon return has modified federal consolidated
			 taxable income of $500,000 before any contribution deduction.
Under Treasury Regulations adopted under section
				1502 of the Internal Revenue Code
				(IRC), A is allowed to claim a contribution deduction of $1,000,000 (the lesser
				of the amount paid by all members of the federal consolidated group or 10
				percent of the federal consolidated taxable income of the entire group before
				the contribution deduction). For Oregon purposes, however, the unitary group is
				allowed a contribution deduction of $50,000 (the lesser of the $1,000,000 paid
				by members of the unitary group or 10 percent of the $500,000 modified federal
				consolidated taxable income before the contribution deduction).
Example 2 : Assume the same facts
			 as in Example 1 except that the unitary group required to file an Oregon return
			 has modified federal consolidated net loss of $100,000. This unitary group has
			 no allowable contribution deduction even though A will be permitted to deduct
			 the entire contribution on its 2010 consolidated federal return.
Example 3 : Assume the same facts as in
			 Example 1 except that no member of the unitary group required to file an Oregon
			 return made any contribution and members of the nonunitary group made the
			 $1,000,000 contribution. For federal purposes, the consolidated group is
			 permitted to claim a deduction for the contributions made by any member of the
			 group. However, for Oregon purposes, no deduction is allowed.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0630 - Oregon Return: Apportionment Formula

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Each member of an affiliated group of
			 corporations must be treated as a separate corporation for purposes of
			 determining whether it is subject to the tax jurisdiction of Oregon. A
			 corporation is subject to the tax jurisdiction of Oregon if it is "doing
			 business" in Oregon as defined under ORS
			 317.010(4) or
			 has income from Oregon sources taxable under 318.020.
(2) In applying the apportionment provisions
			 of ORS 314.280 or
			 314.605 to
			 314.667, each corporation
			 subject to the tax jurisdiction of Oregon must be considered separately.
Example: Corporations A, B and C are members of the same
				unitary group and file a consolidated federal return. Corporation C is "doing
				business" in Oregon as defined under ORS
				317.010(4)
				while Corporations A and B have no activities in Oregon. Since Corporation C is
				the only member of the affiliated group subject to the tax jurisdiction of
				Oregon, the Oregon amounts included in the numerator of the apportionment
				formula are determined by applying the provisions of 314.605 to 314.667 to the
				business activities of Corporation C. The denominator of the apportionment
				formula will include the everywhere amounts for Corporations A, B and C as
				determined by applying the provisions of 314.655 to 314.667. See OAR
				150-314-0439 and 150-314-0441 for an explanation regarding how ORS
				317.715(3) and
				this rule work with the "primary business activity" provisions of
				314.665(6).
(3) The factors
			 included in the apportionment formula of an Oregon return must be computed by
			 eliminating transactions between members of the affiliated group filing the
			 Oregon return. See OAR 150-314-0385 regarding transactions between members of
			 an affiliated group filing an Oregon return and related pass-through entities
			 such as partnerships and S corporations owned by other members of that
			 affiliated group.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  317.715
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0640 - Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction

Current through Register Vol. 63, No. 7, July 1, 2024
The following provisions are intended as guidance for any
				corporation doing business in this state that is part of a unitary group that
				includes a member incorporated in a foreign jurisdiction listed in subsection
				(2)(b) of ORS 317.715.
(1) To determine the computation of income
			 (or loss) for a unitary corporation that is incorporated in a listed foreign
			 jurisdiction and that is not otherwise required to file a consolidated federal
			 return, use the foreign corporation's net income (or loss) as reported on line
			 18, Schedule C of federal Form 5471.
(2) Unless specifically prescribed by other
			 law, the income of the foreign corporation is not to be double taxed by this
			 state. If any portion of the foreign corporation's income that is added to
			 federal taxable income pursuant to subsection (2)(a) of ORS
			 317.715 was already included in
			 the taxpayer's Oregon taxable income, the taxpayer is allowed a subtraction for
			 the portion of the income that previously was included in Oregon taxable
			 income. The taxpayer must attach a schedule to the return and explain how the
			 income was previously included in Oregon taxable income and how the subtraction
			 amount was determined.
(3) Unless
			 specifically prescribed by other law, items of expense or loss of the foreign
			 corporation are not to be double deducted by the taxpayer. If any portion of
			 the foreign corporation's loss or expense that is required to be included in
			 the determination of federal taxable income pursuant to subsection (2)(a) of
			 ORS 317.715 was already included in
			 the computation of the taxpayer's Oregon taxable income, the taxpayer must
			 reduce the loss or expense by the amount previously included in the computation
			 of Oregon taxable income. The taxpayer must attach a schedule to the return and
			 explain how the loss was previously included in the computation of Oregon
			 taxable income and how the reduction amount was determined.
Publications: Contact the Oregon Department of Revenue for
				  information about how to obtain a copy of the publication referred to or
				  incorporated by reference in this rule pursuant to 183.360(2) and
				  183.355(1)(b).
Stat. Auth.: ORS
				  305.100,
				  317.715
Stats. Implemented: ORS
				  317.715
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0651 - Repatriation Tax Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) For tax years beginning on or after
			 January 1, 2017, and before January 1, 2018 (the 2017 tax year), a repatriation
			 tax credit is allowed under ORS chapter 317 or 318 for Oregon tax attributable
			 to income reported under section
			 965 of the Internal Revenue Code
			 as post-1986 deferred foreign income. The amount of the credit equals the
			 lesser of the amount of Oregon tax for the 2017 tax year attributable to the
			 section 965 mandatory repatriation or the total amount of Oregon tax for the
			 2014, 2015, and 2016 tax years attributable to the addition required under ORS
			 317.716, if any.
(b) No tax credit is available unless an
			 addition under ORS 317.716 was required for at
			 least one of tax years 2014, 2015, or 2016.
(c) The method for determining the amount of
			 Oregon tax attributable to the section 965 mandatory repatriation is set forth
			 in section (2) below. The method for determining the total amount of Oregon tax
			 attributable to the addition required by ORS
			 317.716 for tax years 2014,
			 2015, and 2016 is set forth in section (3) below.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0652 - Modification for Listed Jurisdiction Amounts Previously Included in Income; Election in Lieu of Claiming the Repatriation Tax Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A taxpayer may elect to claim a
			 modification under ORS
			 317.038 for tax year 2017, 2018,
			 or, when applicable, both years, to subtract listed jurisdiction income amounts
			 included in income due to the mandatory repatriation under IRC section 965, as
			 amended by Section 14103 of H.R. 1 (2017) (an IRC 965 repatriation), to the
			 extent those amounts were previously included in income for tax year 2014,
			 2015, or 2016 pursuant to ORS
			 317.715(2)
			 (2013) or ORS
			 317.716(2015).
			 The election to claim the modification is made in lieu of claiming the
			 repatriation tax credit under section 33 of SB 1529 (2018). The election may be
			 claimed on an original or amended tax return.
(2)
(a) A
			 taxpayer may elect to claim a modification under section (1) of this rule or a
			 repatriation tax credit under section 33 of SB 1529 (2018), but not
			 both.
(b) A taxpayer who has an IRC
			 965 repatriation in tax years 2017 and 2018 must use the modification in both
			 tax years if the taxpayer elected the modification described in section (1) in
			 one tax year. The election by a taxpayer with an IRC 965 repatriation for tax
			 years 2017 and 2018 to use the modification described in section (1) may not be
			 changed on an amended tax return if the taxpayer's return for either one of tax
			 years 2017 or 2018 is closed to refund or adjustment.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0660 - Computation of Taxable Income; Excess Loss Accounts

Current through Register Vol. 63, No. 7, July 1, 2024
An Oregon subtraction is allowed for the amount of excess loss
				account included in federal taxable income under the provisions of Treasury
				Regulation subsection 1.1502-19 if:
(1) The losses did not offset unitary income
			 in the year incurred; or
(2) The
			 excess losses were attributable to losses incurred in tax years beginning prior
			 to January 1, 1986.
Example 1: Corporation P
			 purchased 100 percent of the stock of Corporation S for $1,000 on January 1,
			 1986. P and S were not unitary and S had negative earning and profits (E&P)
			 of $1,000 in the tax year ending December 31, 1986. They filed a consolidated
			 federal and separate Oregon returns in 1986. P and S were unitary and filed
			 consolidated federal and Oregon returns in 1987. During 1987, S realized
			 another negative E&P of $1,000. P sold S to an unrelated buyer for $1,000
			 on January 1, 1988. [Table not included. See PDF link below.]
Example 2: Same facts as Example (1), except
			 that all events took place two years earlier. The 1986 Oregon return would show
			 a subtraction of $2,000,000 because both losses, even the 1985 loss which did
			 offset unitary income, were incurred in tax years beginning before January 1,
			 1986.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0670 - Application for Relief

Current through Register Vol. 63, No. 7, July 1, 2024
If the application of ORS
				317.715 is unduly burdensome or
				produces an inequitable or unreasonable result, the taxpayer may request relief
				under this section. The request for relief must be made in writing to the
				Oregon Department of Revenue, Business Division. The request for relief must be
				filed within 180 days after the beginning of the tax year for which the relief
				is being requested, and must include the following information:
(1) A statement that the request for relief
			 is made under the provisions of ORS
			 317.725(1)(b);
(2) A concise statement of the
			 facts on which the request is based;
(3) A statement of the proposed solution; and
(4) A statement of the impact of
			 the proposed solution on the tax liability of the taxpayer.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.725
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0680 - Tax Imposed on Unrelated Business Income of Certain Exempt Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) ORS
			 317.920 to ORS
			 317.950 apply to those
			 corporations which earn unrelated business income although normally exempt
			 under ORS 317.080.
(2) For purposes of ORS
			 317.920, the term "unrelated
			 business income" shall have the same meaning as it is given in section
			 512 of the Internal Revenue Code.
(3) Such income shall be reported
			 on an Oregon Corporation Excise Tax Return, Form 20, with a full copy of the
			 Federal Form 990T or other required federal return attached.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.920
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317.715(2)-(A) - Modified Federal Consolidated Taxable Income

Current through Register Vol. 63, No. 7, July 1, 2024
Federal consolidated taxable income shall be modified if the
				affiliated group of corporations consists of more than one unitary group. The
				separate taxable income determined under the provisions set forth in the
				treasury regulations under Internal Revenue Code (IRC) Section 1502
				attributable to an affiliated corporation, which does not belong to the unitary
				group of which the corporation subject to tax under this chapter is a member,
				shall be subtracted from federal consolidated taxable income.
Example: Corporations M, G and W file a consolidated federal
				return. Corporations M and W are engaged in a single unitary business.
				Corporation G's business activities are separate and unrelated. Modified
				federal consolidated taxable income is computed by subtracting, from federal
				consolidated taxable income, Corporation G's separate taxable income and by
				reversing the necessary adjustments pursuant to the provisions set forth in the
				treasury regulations under IRC Section 1502 attributable to Corporation
				G.
Publications: The publication(s) referred to or incorporated
				  by reference in this rule is available from the agency pursuant to ORS
				  183.360(2) and
				  ORS 183.355(6).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.713
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317.715(2)-(B) - Modified Federal Consolidated Taxable Income - Contribution Deduction for the Oregon Consolidated Group

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 In general. The contribution deduction allowed corporations subject to taxation
			 under Oregon Revised Statutes (ORS) Chapter 317 or 318, that file federal
			 consolidated returns, is limited to the lesser of:
(a) The contributions made by the members of
			 the unitary group; or
(b) 10
			 percent of the modified federal consolidated taxable income of the members of
			 the unitary group.
Example 1: Corporation A files a consolidated federal return
				for tax year 1987. A's federal return consists of two unitary groups of
				corporations, one of which is required to file an Oregon return. Corporation B
				is a member of the unitary group of corporations required to file a 1987 Oregon
				return. B contributed $1,000,000 to charities. No other corporation included in
				A's consolidated federal return made contributions in 1987. For tax year 1987,
				A has federal consolidated taxable income of $20,000,000 before any
				contribution deduction. The unitary group required to file the Oregon return
				has modified federal consolidated taxable income of $500,000 before any
				contribution deduction.
Under Treasury Regulations adopted under section
				1502 of the Internal Revenue Code
				(IRC), A is allowed to claim a contribution deduction of $1,000,000 (the lesser
				of the amount paid by all members of the federal consolidated group or 10
				percent of the federal consolidated taxable income of the entire group before
				the contribution deduction). For Oregon purposes, however, the unitary group is
				allowed a contribution deduction of $50,000 (the lesser of the $1,000,000 paid
				by members of the unitary group or 10 percent of the $500,000 modified federal
				consolidated taxable income before the contribution deduction).
Example 2: Assume the same facts as in Example 1 except that
				the unitary group required to file an Oregon return has modified federal
				consolidated net loss of $100,000. This unitary group has no allowable
				contribution deduction even though A will be permitted to deduct the entire
				contribution on its 1987 consolidated federal return.
Example 3: Assume the same facts as in Example 1 except that no
				member of the unitary group required to file an Oregon return made any
				contribution and members of the nonunitary group made the $1,000,000
				contribution. For federal purposes, the consolidated group is permitted to
				claim a deduction for the contributions made by any member of the group.
				However, for Oregon purposes, no deduction is allowed.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317.715(3)(b) - Consolidated Oregon Return: Apportionment Formula

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Each member of an affiliated group of
			 corporations must be treated as a separate corporation for purposes of
			 determining whether it is subject to the tax jurisdiction of Oregon. A
			 corporation is subject to the tax jurisdiction of Oregon if it is "doing
			 business" in Oregon as defined under ORS
			 317.010(4) or
			 has income from Oregon sources taxable under ORS
			 318.020.
(2) In applying the apportionment provisions
			 of ORS 314.280 or
			 314.605 to
			 314.670, each corporation
			 subject to the tax jurisdiction of Oregon must be considered separately.
Example
: Corporations A, B and C are members of
				the same unitary group and file a consolidated federal return. Corporation C is
				"doing business" in Oregon as defined under ORS
				317.010(4)
				while Corporations A and B have no activities in Oregon. Since Corporation C is
				the only member of the affiliated group subject to the tax jurisdiction of
				Oregon, the Oregon property, payroll and sales included in the numerator of the
				apportionment formula are determined by applying the provisions of ORS
				314.605 to
				314.670 to the business
				activities of Corporation C. The denominator of the apportionment formula will
				include the total property, payroll and sales for Corporations A, B and C as
				determined by applying the provisions of ORS
				314.655 to ORS
				314.670. See OAR 150-314.665(6)
				and 150-314.665(6)(a) for an explanation regarding how ORS
				317.715(3) and
				this rule work with the "primary business activity" provisions of ORS
				314.665(6).
(3) The property, payroll, sales
			 and other factors included in the apportionment formula of a consolidated
			 Oregon return must be computed by eliminating transactions between members of
			 the affiliated group filing the consolidated Oregon return. See OAR
			 150-314.650(9) regarding transactions between members of an affiliated group
			 filing a consolidated Oregon return and related pass-through entities such as
			 partnerships and S corporations owned by other members of that affiliated
			 group.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.715
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-1000 - Definition of Commercial Activity

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Commercial activity" means the fair
			 market value of all amounts realized in the regular course of a taxpayer's
			 trade or business that meet the "transactional test" in OAR
			 150-314-0335(5).
(2) "Amounts
			 realized" means all items of value received in a trade or business, including
			 but not limited to money, property received, debt forgiven and services
			 rendered.
(3) Commercial activity
			 does not include amounts that meet the "functional test" in OAR 150-314-0335(6)
			 unless the amount in question meets the definition of commercial activity
			 pursuant to section (1) of this rule.
(4) The definition of commercial activity is
			 not based on or tied to the definition of gross income in IRC section
			 61.
(5) Commercial activity is
			 realized when a taxpayer realizes the amount in question pursuant to the method
			 of accounting used by a taxpayer for federal income tax purposes.
Publications: Contact the Oregon Department of Revenue for
				information about how to obtain a copy of the publication referred to or
				incorporated by reference in this rule pursuant to ORS
				183.360(2) and
				ORS 183.355(1)(b).
Publications: Contact the Oregon Department of Revenue for
				  information about how to obtain a copy of the publication referred to or
				  incorporated by reference in this rule pursuant to ORS
				  183.360(2) and
				  ORS 183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100 &
				  317A.143
Statutes/Other Implemented: ORS Chapter
				  317A
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-1010 - Substantial Nexus Guidelines for the Corporate Activity Tax (CAT)

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of
			 ORS 317A.116, substantial nexus
			 exists if a connection between the person and Oregon is sufficient to establish
			 nexus under the U.S. Constitution.
(2) "Substantial nexus" for corporate
			 activity tax jurisdiction purposes, under the Commerce Clause of the U.S.
			 Constitution, does not require a person to have a physical presence in Oregon.
			 Substantial nexus exists where a person regularly takes advantage of Oregon's
			 economy to realize commercial activity for the person and may be established
			 through the significant economic presence of the person in the state.
(3) When determining whether a person has
			 substantial nexus with Oregon, the department may consider whether the person:
(a) Maintains continuous and systematic
			 contacts with Oregon's economy or market;
(b) Conducts deliberate marketing to, or
			 solicitation of, Oregon customers;
(c) Files or is required to file reports or
			 returns with Oregon regulatory bodies;
(d) Realizes significant gross receipts
			 attributable to customers in Oregon;
(e) Realizes significant gross receipts
			 attributable to the use of the person's intangible property in Oregon;
			 or
(f) Receives benefits provided
			 by the state, such as:
(A) Laws providing
			 protection of business interests or regulating consumer credit;
(B) Access to courts and judicial process to
			 enforce business rights including debt collection and intellectual property
			 rights;
(C) Highway or
			 transportation system access for transport of the person's goods or
			 services;
(D) Access to an educated
			 workforce in Oregon; or
(E) Police
			 and fire protection for property in Oregon that displays the person's
			 intellectual or intangible property.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-1015 - Short Tax Period Return Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Short tax period" means a period of less
			 than 12 months that begins on the first day after the close of the former
			 taxable year and ends on the day before the day designated as the first day of
			 the new taxable year.
(2) If a
			 change in accounting period requested by the taxpayer is approved by the
			 Internal Revenue Service for federal purposes, the change shall also be
			 permitted for Oregon corporate activity tax purposes. A taxpayer shall
			 thereafter make returns and compute commercial activity upon the basis of the
			 new accounting period.
(3) If a
			 unitary group appoints a new designated entity for filing corporate activity
			 tax returns and that designated entity uses a different tax year than what was
			 previously used by the unitary group's designated entity, the unitary group
			 must file a short tax period return.
(4) A short tax period return shall be filed
			 on or before April 15 of the calendar year following the calendar year in which
			 the short tax period ends.
(5)
			 Taxpayers who must file a return for a short tax period shall prorate, for the
			 number of days in the short period tax return as defined under section (1) of
			 this rule, the $750,000 commercial activity registration threshold under ORS
			 317A.131, the $1 million tax
			 rate threshold under ORS
			 317A.125, and the $1 million
			 return filing threshold in ORS
			 317A.137. The proration
			 percentage shall be calculated to the nearest fourth decimal point.
(6) The corporate activity tax subtraction
			 shall be based on the expenses allowed per ORS
			 317A.119 that are associated
			 with the commercial activity reported in the short tax period.
(a)
Labor Costs
. Taxpayers
			 shall prorate, for the number of days in the short period tax return as defined
			 under section (1) of this rule, the $500,000 cap on employee compensation to a
			 single employee in determining their eligible labor costs.
(b)
Cost Inputs
. Taxpayers
			 shall determine their cost inputs based on the method used for determining
			 their cost of goods sold as calculated in arriving at federal taxable income
			 under the Internal Revenue Code.
Example.
A taxpayer files a
				return for a period of June 1 through March 31, a period of 304 days or 83
				percent of a full year (304/365=0.8329) and during that time incurs eligible
				cost inputs of $200,000 and eligible labor costs of $175,000. The taxpayer
				calculates the registration threshold as $750,000*83.29%, or $624,675. The
				taxpayer calculates the tax rate and return filing thresholds as
				$1,000,000*83.29%, or $832,900. The taxpayer calculates their CAT subtraction
				by taking the greater of their cost inputs or labor costs (in this case, their
				eligible cost inputs) multiplied by 35 percent: $200,000*35% or $70,000.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-1022 - Unitary Group Tax Year

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
Effective Date.
The provisions of this rule apply to tax years
			 beginning on or after January 1, 2021.
(2)
Annual Accounting
			 Period.
A taxpayer's method of accounting for commercial activity,
			 costs inputs and labor costs for a tax year shall be the same as the taxpayer's
			 method of accounting for federal income tax purposes for the taxpayer's federal
			 tax year that includes the tax year. For a unitary group:
(a) If all members of the unitary group use
			 the same annual accounting period for federal income tax purposes, the unitary
			 group's tax year is the annual accounting period used by all members for
			 federal income tax purposes under section
			 441 of the Internal Revenue
			 Code.
(b) If the unitary group
			 includes members with different accounting periods and two or more members of
			 the unitary group file a federal consolidated return, the unitary group's tax
			 year is the annual accounting period of the federal consolidated group under
			 section 441 of the Internal Revenue
			 Code.
(c) In all other instances,
			 the unitary group's tax year is the accounting period used by the unitary
			 group's designated reporting entity.