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(1) Affiliated group--Entities in which a controlling interest is owned by a common owner, either corporate or noncorporate, or by one or more of the member entities.
Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state. All taxable entities must file completed franchise tax and information reports each year.
$1,180,000 Tax Rates, Thresholds and Deduction Limits ItemAmountNo Tax Due Threshold$1,180,000Tax Rate (retail or wholesale)0.375%Tax Rate (other than retail or wholesale)0.75%Compensation Deduction Limit$390,0002 more rows Franchise Tax - Texas Comptroller Texas.gov ? taxes ? franchise Texas.gov ? taxes ? franchise
Taxable entity Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax. Franchise Tax Overview - Texas Comptroller Texas Comptroller (.gov) ? taxes ? publications Texas Comptroller (.gov) ? taxes ? publications
The Texas franchise tax calculation is based on margin, which can be calculated using one of the following methods: Total revenue times 70% Total revenue minus cost of goods sold (COGS) Total revenue minus compensation. Texas Franchise Tax Calculator | David French Austin CPA davidfrenchcpa.com ? texas-franchise-tax-calculator davidfrenchcpa.com ? texas-franchise-tax-calculator
The wage and cash compensation deduction for each 12-month period are as follows: $400,000 per person for reports originally due in 2022 and 2023. $390,000 per person for reports originally due in 2020 and 2021.
To apply for franchise and sales tax exemptions, complete and submit Form AP-204, Texas Application for Exemption ? Federal and All Others (PDF) to the Comptroller's office. Include a copy of the IRS-issued exemption determination letter with any addenda. 501(c)(3), (4), (8), (10) or (19) - Texas Comptroller texas.gov ? 501(c)-exemptions-1 texas.gov ? 501(c)-exemptions-1
Reports and Payments For franchise tax reports originally due?The no tax due threshold is?on or after Jan. 1, 2022, and before Jan. 1, 2024$1,230,000on or after Jan. 1, 2020, and before Jan. 1, 2022$1,180,000on or after Jan. 1, 2018, and before Jan. 1, 2020$1,130,0005 more rows