A Return Instructions training video and links to four approved e-filing vendors are available to assist business taxpayers with filing their first returns for Oregon’s Corporate Activity Tax.
Businesses with commercial activity in excess of $1 million in 2020 must file a CAT return by April 15. Businesses with more than $1 million in taxable commercial activity will have Corporate Activity Tax to pay. Taxpayers with over $1 million in commercial activity but less than $1 million in taxable commercial activity, must file a return, but do not have to pay tax.
The tax is $250 plus 0.57% of commercial activity greater than $1 million after subtractions.
The CAT was created by the Oregon Legislature in 2019 to raise funding for education.
The Return Instructions video is one of 12 training videos on the CAT training materials webpage . Videos offer instructions on the commercial activity subtraction, sourcing of sales of both tangible and non-tangible personal property, exclusions, and other topics.
The Department of Revenue honored good-faith efforts to comply with the CAT by businesses negatively affected by the COVID-19 pandemic in 2020. Penalties will not be assessed for underestimated quarterly payments or for not making a quarterly payment for the Corporate Activity Tax, if businesses did not have the financial ability to make the estimated payment.
However, payment of 2020 CAT liability is due in full April 15. Businesses can, with good cause, seek an extension to file. An extension to file is not an extension to pay tax owed. More information is available in the CAT frequently asked questions.
Revenue reminds business owners that once they have more than $750,000 in commercial activity in 2021, they have 30 days to register for the Corporate Activity Tax.
Registration for CAT is a one-time requirement, and businesses that registered in 2020 do not have to register again.
The CAT topped more than 20,000 registrations in its first year. That number continues to grow as new businesses begin to reach the $750,000 threshold in 2021. Through Tuesday, 22,095 businesses had registered for the CAT.
More info on COVID-19 relief
Taxpayers can find more information on penalty relief available for the 2020 tax year on the CAT FAQ webpage. CAT penalty relief is also discussed in the Available COVID-19 Penalty Relief for 2020 video on the CAT training materials webpage.
Taxpayers with general questions about the CAT can email firstname.lastname@example.org or call 503-945-8005.