What is corporation franchise tax?
The Ohio corporation franchise tax is an excise tax imposed on corporations (other than nonprofit corporations) for the privilege of exercising their corporation franchise in Ohio. The tax applies to both domestic corporations (those incorporated in Ohio) and foreign corporations (those incorporated outside of Ohio) for the privilege of doing business in Ohio, owning capital or property in Ohio, holding a charter or certificate of compliance authorizing the corporation to do business in Ohio, or otherwise having a presence (nexus) in Ohio during a calendar year. Unless an exemption applies, a corporation that has nexus in or with Ohio under the Constitution of the United States is subject to the corporation franchise tax. Note: For most taxpayers, the corporation franchise tax will ratably phase out over the five franchise tax years 2006 through 2010 (taxable years ending in 2005 through 2009). During this same period Ohio’s new commercial activity tax (CAT) will phase in.
The Ohio corporation franchise tax is an excise tax imposed on corporations (other than nonprofit corporations) for the privilege of exercising their corporation franchise in Ohio. The tax applies to both domestic corporations (those incorporated in Ohio) and foreign corporations (those incorporated outside of Ohio) for the privilege of doing business in Ohio, owning capital or property in Ohio, holding a charter or certificate of compliance authorizing the corporation to do business in Ohio, or otherwise having a presence (nexus) in Ohio during a calendar year. Unless an exemption applies, a corporation that has nexus in or with Ohio under the Constitution of the United States is subject to the corporation franchise tax. Note: For most taxpayers, the corporation franchise tax will ratably phase out over the five franchise tax years 2006 through 2010 (taxable years ending in 2005 through 2009). During this same period Ohio’s new commercial activity tax (CAT) will phase in. Please refer
The Ohio corporation franchise tax is an excise tax imposed on corporations (other than nonprofit corporations) for the privilege of exercising their corporation franchise in Ohio. The tax applies to both domestic corporations (those incorporated in Ohio) and foreign corporations (those incorporated outside of Ohio) for the privilege of doing business in Ohio, owning capital or property in Ohio, holding a charter or certificate of compliance authorizing the corporation to do business in Ohio, or otherwise having a presence (nexus) in Ohio during a calendar year. Unless an exemption applies, a corporation that has nexus in or with Ohio under the Constitution of the United States is subject to the corporation franchise tax. Note: For most taxpayers, the corporation franchise tax will ratably phase out over the five franchise tax years 2006 through 2010 (taxable years ending in 2005 through 2009). During this same period Ohio’s new commercial activity tax (CAT) will phase in. Please refer
Related Questions
- Why do destination sales or involvement in interstate commerce make my corporation liable for franchise tax, even though my corporation may be exempt with the Secretary of States Office?
- When a corporation files their franchise tax return in 2009, are they filing for the 2008 tax year or the 2009 tax year?
- Is the PTE tax deductible for Ohio income and corporation franchise tax purposes?
