Current through Register Vol. 61, No. 4, April 1, 2022
A taxpayer is doing business when it engages in any profit-seeking activity in
the State of Oregon. What transaction or transactions need be entered into
within this state in the course of such an activity to constitute the doing or
carrying on of business within the state is primarily a question of fact,
depending upon the circumstances in each case.
1 : The taxpayer is clearly doing business within this state if it
occupies, has, maintains or operates an office, shop, store, warehouse,
factory, agency or other place within this state where some of its affairs are
systematically and regularly carried on, notwithstanding the fact that it may
also enter into transactions outside this state.
Example 2 : A corporation engaged in the sale
of tangible personal property is doing business within this state if sales
activities are regularly carried on within this state by an employee or agent
of the seller, and if either a stock of goods is maintained within this state,
or an office or other place of business where affairs of the corporation are
regularly carried on is maintained within this state.
Example 3 : A foreign corporation consigns
goods to one or more consignees within Oregon who then sell the goods. The
foreign corporation is doing business in Oregon since it has sales activity and
a stock of goods within Oregon.
(2) A foreign corporation whose business is
providing services is "doing business" in this state if it has employees
providing those services in Oregon. It does not matter whether the services are
provided on the client's property or on the corporation's own property since it
is engaged in a profit seeking activity in Oregon.
If a foreign corporation's business
activities in this state are confined to purchase and storage of personal
property incident to shipment outside the state, the corporation is not deemed
to be doing business for corporation excise tax purposes if the following
conditions are met:
(a) The personal property
remains in the exact state or form as it was when purchased during the time it
is located within Oregon.
foreign corporation is not an affiliate of another foreign or domestic
corporation, as defined in section 1504 of the Internal Revenue Code, which is
doing business in Oregon.
The fact that a corporation has no
employees in Oregon does not mean the corporation is not doing business in this
state. If activities are performed in Oregon by a third party on behalf of the
corporation, and the activities are not protected under Public Law 86-272
corporation is doing business in Oregon.
: The provision of in-state repair and warranty services by an
independent contractor for a direct marketing computer company, advertised as
part of its standard warranty or as an option that can be separately purchased,
contribute significantly to the company's ability to establish and maintain its
market for computer hardware sales in Oregon. Therefore, the computer company
is doing business in Oregon. The extension of immunity for activities by
independent contractors under Public Law 86-272
does not include repair and
corporation that is not "doing business" in Oregon may still be subject to tax
in this state. The Oregon corporation income tax under ORS Chapter 318 imposes
tax on corporations that have income derived from sources within Oregon. See
OAR 150-318.020(2) for a list and description of the activities that, if
conducted in Oregon, will result in a corporation being subject to the
corporation income tax.
Admin. R. 150-317-0030
Renumbered from 150-317.010(8); RD 7-1983, f. 12-20-83, cert. ef. 12-31-83; RD
12-1990, f. 12-20-90, cert. ef. 12-31-90; RD 6-1996, f. 12-23-96, cert. ef.
12-31-96; REV 12-1999, f. 12-30-99, cert. ef. 12-31-99; REV 11-2013, f.
12-26-13, cert. ef. 1-1-14; Renumbered from 150-317.010(4),
67-2016, f. 8-15-16, cert. ef.
Publications: The publication(s) referred to in this rule is
available from the agency pursuant to ORS
Stat. Auth.: ORS
Stats. Implemented: ORS