Oregon tax system: audit, reporting and optimization of taxation of Oregon companies and individuals: VAT, income tax and capital gains
Basic taxes (briefly)
|Corporate tax (in detail)|
|Capital gains tax. Details|
International tax agreement
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:
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).
|Tax Bracket||Tax Rate $0+||5% $3,150+||7% $7,950+||9% $125,000||9.90%|
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.
|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|
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.
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.
LLC are not subject to withholding tax in Oregon.
Stamp duty is not levied in the US, including Oregon.
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.
LLC is not required to file financial statements.
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.
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|