Oregon Corporate Activity Tax

Passed in 2019, Oregon’s Corporate Activity Tax (CAT) is a unique, first-of-its-kind tax on businesses with customers in the state or that have Oregon-based vendors, suppliers, or service providers.

Approaching the CAT similar to net income taxes, gross receipts, or margins tax imposed by other states could put your business at a risk of an audit assessment or overpaying the CAT.

Our professionals can help determine if you’re liable for the CAT and guide you through managing your tax obligations.

Meet Your CAT Obligations

The CAT’s specific tax base and calculation are atypical, so it’s important to have a deep understanding of its complexities.

Challenges related to navigating the tax obligations include:

  • The 40+ commercial activity exclusions, with contemporary documentation needed to meet some exclusions
  • A business’ CAT unitary group could be different from the unitary group for income tax
  • Rules for identifying Oregon commercial activity could differ from Oregon receipts included in an income tax apportionment percentage
  • Several steps are required when calculating the subtraction

The CAT also includes separate registration and payment mechanisms.

Who We Help

Despite the inclusion of corporate in its title, the CAT can apply to:

  • Individuals
  • Corporations
  • Joint ventures
  • LLCs, including entities disregarded for federal income tax purposes
  • Limited liability partnerships
  • Partnerships
  • Trusts

How We Help You

Our professionals can help you:

  • Determine your unitary group
  • Identify Oregon commercial activity
  • Identify and document exempt commercial activity
  • Add purchases subject to use tax
  • Calculate your subtraction

Insights


Alert
Learn details of amendments including commercial activity exclusions, clarifications to subtractions for cost inputs or labor costs, and more.

Article
Learn how Oregon’s corporate activity tax—imposed at a rate of 0.57% on taxable receipts less deductions above $1 million—could affect your business.

Webcast
The Oregon Corporate Activity Tax (CAT) went into effect on January 1, 2020, impacting most businesses with operations in the state. Join us for an on-demand about the CAT and some key implications for you and your business—including how to prepare and what to expect from the tax.

Article
Effective January 1, 2020, Oregon’s Corporate Activity Tax applies to all forms of business, including those in the timber industry. Learn more.

Article
Learn how Oregon’s proposed new tax will—at a rate of 0.57% on taxable receipts less than deductions above $1 million—affect businesses.

Article
The Clean Energy Surcharge and Corporate Activity Tax could have significant implications for transportation and logistics companies. Get details. Join us for an on-demand about the CAT and some key implications for you and your business—including how to prepare and what to expect from the tax.

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