USA-Oregon

Basic taxes (briefly)

Personal tax
Corporate tax (in detail)
Capital gains tax. Details
VAT. Details
Other taxes
Government fee
Stamp duty

International tax agreement

   


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TAXATION

General Info

Domestic and foreign LLCs in Oregon are classified as either partnerships or corporations for Oregon tax purposes. LLCs follow the federal rules on how they will be taxed. Accordingly, if your LLC is treated as a partnership on the federal level, then it will not be taxed on its net income. Instead, members must include in their Oregon taxable adjusted gross income their distributive share of LLC income.
If a business is classified as an association taxable as a corporation for federal income tax purposes, it will also be taxable as a corporation for Oregon tax purposes.

Personal Income Tax

All US citizens and residents, including resident aliens and citizens who reside outside the US, pay federal tax on their worldwide income. Nonresident aliens are taxed only on ECI and US-source non-ECI. The 50 states and the District of Columbia also collect income tax from nonresidents and individuals who reside in their territory.
Individuals generally must include nearly all gross income from whatever source derived in their taxable income (including their compensation for services (including all forms of remuneration and allowances), dividends, interest, royalties, rents, fees and commissions, gains from dealings in property and income from a partnership). Nonresident aliens exclude non- ECI in computing taxable income; however, they are subject to US tax on the gross amounts of such income, generally collected on receipt via withholding, if the income is from US sources and not from the sale or exchange of property.
Rates are progressive up to 39.6%.
Oregon collects a state income tax at progressive rate spread across tax brackets:
Tax Bracket Tax Rate
$0+ 5%
$3,150+ 7%
$7,950+ 9%
$125,000 9.90%

The tax year is the calendar year, unless a fiscal year is elected. Any fiscal year must end on the last day of a calendar month.
Tax is deducted at source from employment income. Individual self-assessment tax returns are due by the 15th day of the fourth month following the end of the tax year (or the sixth month, in the case of certain nonresident aliens).

Corporate Tax

Domestic corporations (corporations organized in Oregon) and foreign corporations (corporations organized in a state other than Oregon) are subject to an Oregon income tax. Technically, there are two different taxes. The corporate excise tax applies to domestic corporations and those authorized to do business in the state. The corporation income tax is levied on other corporations with income attributable to Oregon sources. However, both taxes impose the same rate of tax. Thus all corporations, including financial corporations, are subject to the same rate of tax whether it is the corporation excise tax or the corporation income tax.
The Oregon corporate tax is the greater of either: the computed tax or the minimum tax.
The computed tax is calculated as follows (for tax years January 1, 2013 and later):

  • for Oregon taxable income of $10 million or less, multiply taxable income by 6.6%.
  • for Oregon taxable income greater than $10 million, $660,000 plus 7.6 percent of the amount over $10 million.

Minimum tax. C corporations carrying on or doing business in Oregon are subject to minimum tax based on Oregon sales shown below. In addition, all S corporations are liable for the $150 minimum tax.
Sales, $ Minimum Tax, $
< 500,000 150
500,000 or >, but < 1 million 500
1 million or >, but < 2 million 1,000
2 million or >, but < 3 million 1,500
3 million or >, but < 5 million 2,000
5 million or >, but < 7 million 4,000
7 million or >, but < 10 million 7,500
10 million or >, but < 25 million 15,000
25 million or >, but < 50 million 30,000
50 million or >, but < 75 million 50,000
75 million or >, but < 100 million 75,000
100 million or > 100,000

Alternative Tax

If your only activities in Oregon consist of sales and you don't own or rent any property in the state you may be eligible to pay an alternative tax. In order to be eligible, your annual gross sales made during the tax year in Oregon must not exceed $100,000. The alternative tax is 0.25 percent of the dollar volume of your sales. If your return on sales is less than 5 percent, the tax is reduced to 0.125 percent of your dollar volume.

Capital Gains Tax

The current federal top marginal tax rate on long-term capital gains in the United States is 20 percent. In addition, taxpayers have to pay state and local income taxes on their capital gains income.
Top marginal capital gains tax rate in Oregon is 31 percent.

VAT

The US does not levy a federal value added tax or sales tax. Individual states levy sales tax at various rates, subject to state-set requirements.
Sales tax is not levied in Oregon.

Withholding Tax

LLC are not subject to withholding tax in Oregon.

Stamp Duty

Stamp duty is not levied in the US, including Oregon.

Government Fee

Every domestic or foreign LLC in Oregon should pay annual report filing fee of $100.

Other Taxes and Duties

Estate transfer tax is imposed on certain estates when assets are transferred from the decedent’s estate to the estate heirs and beneficiaries.
State lodging tax a tax paid on stay at a lodging property.
Tobacco tax excise tax on each pack of cigarettes.
9-1-1 emergency communication tax any corporation, individual, or group of individuals who provide telecommunications access to the 9-1-1 Emergency Reporting System shall collect this tax from each customer and pay the tax. The tax is 75 cents per access, per month.

Double Tax Agreements

The USA have exchange of information relationships with 88 jurisdictions through:

  • 60 DTC: Australia, Austria, Bangladesh, Barbados, Belgium, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Korea (Republic of), Latvia, Lithuania, Luxembourg, Malta, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russian Federation, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, Venezuela, Viet nam.
  • 34 TIEAs: Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Bermuda, Brazil, Cayman Islands, Colombia, Costa Rica, Curaçao, Dominica, Dominican Republic, Gibraltar, Grenada, Guernsey, Guyana, Honduras, Isle of Man, Jamaica, Jersey, Liechtenstein, Marshall Islands, Mauritius, Mexico, Monaco, Netherlands Antilles, Panama, Peru, Saint Lucia, Sint Maarten, Trinidad and Tobago, Virgin Islands (British).

Foreign Exchange Control

While there are no general restrictions on remittances of profits, dividends, interest, royalties or fees to nonresidents, sanctions and embargoes apply to listed countries and entities, with restrictions on foreign payments, remittances and other types of contracts and trade transactions. Regulations are prescribed by the US Treasury, and Treasury’s Office of Foreign Assets Control maintains related lists. Extensive currency transaction reporting and recordkeeping requirements also apply.

ACCOUNTS

Financial Statements

LLC is not required to file financial statements.

Annual Report

A domestic limited liability company, and a foreign limited liability company authorized to transact business in this state, shall by the limited liability company’s anniversary deliver to the office of the Secretary of State for filing an annual report that sets forth:

  • The name of the limited liability company and the state or country under whose law the limited liability company is organized;
  • The street address of the limited liability company’s registered office and name of the limited liability company’s registered agent at the registered office in this state;
  • The address, including street and number and mailing address, if different, of the limited liability company’s principal office;
  • The names and addresses of the managers for a manager-managed limited liability company or the name and address of at least one member for a member-managed limited liability company;
  • A description of the primary business activity of the limited liability company; and
  • Additional identifying information that the Secretary of State may require by rule.

The information contained in the annual report must be current as of 30 days before the anniversary of the limited liability company.
If an annual report does not contain the above information, the Secretary of State shall notify the reporting domestic or foreign limited liability company in writing and return the report to the domestic or foreign limited liability company for correction. The domestic or foreign limited liability company must correct the error within 45 days after the Secretary of State gives the notice.

Tax Returns

In general LLC’ tax return should be filed by the 15th day of the third month following the end of its taxable year. Related tax must be paid on or before the due date of the return.
Extensions are available. Other filings may be necessary on a quarterly or other basis. Quarterly estimated tax payments are generally required.

    Taxes of USA

    Min. rate for corporate tax
    Capital gains tax
    VAT
    Withholding tax
    Exchange control
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