Or. Admin. R. 150-317-0050 - Foreign Corporations Subject to Tax

Current through Register Vol. 61, No. 4, April 1, 2022

(1) Generally, foreign corporations doing business in Oregon that are exempt from federal income taxes pursuant to treaties between the United States and a foreign country are not exempt from Oregon corporation excise and income taxes.

(2) For foreign corporations to be exempt from the Oregon corporation excise or income tax, the federal treaty must specifically contain a provision exempting them from state corporation taxes upon or measured by net income.

(3) Oregon taxable income is determined by calculating the corporation's federal taxable income as if the corporation was subject to federal income taxes and making certain modifications as provided by Oregon law. As provided under ORS 317.625, income from outside the United States is accounted for in the computation of Oregon taxable income without regard to IRC sections 861 to 864. Income classified as income from outside the United States and excluded from federal taxable income must be added to the federal taxable income calculation required by this rule as an "other addition."

(4) Oregon has adopted the federal IRC provisions for computing taxable income, but did not adopt the federal provisions that define exempt corporations. Oregon law in ORS 317.080 lists those corporations that are exempt from Oregon corporate taxes.

Notes

Or. Admin. R. 150-317-0050

RD 12-1990, f. 12-20-90, cert. ef. 12-31-90; REV 5-2000, f. & cert. ef. 8-3-00; Renumbered from 150-317.010(10), REV 67-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 317.010