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Corporate Activity Tax Registration & Key Deadline Reminders

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Tax Advisory: Oregon

As we approach the midway point of 2021, and the 2nd year of the Oregon Corporate Activity Tax, here are some important reminders for businesses with more than $750,000 in commercial activity in the state of Oregon.

CAT Registration

The Department of Revenue reminds business owners that once they have more than $750,000 in commercial activity in 2021, they have 30 days to complete the one-time registration for Oregon’s Corporate Activity Tax.

Registration for CAT is a one-time requirement, which means businesses that registered in 2020 do not have to register again.

Registrations totaled more than 20,000 in the first year of the CAT in 2020. In 2021, more than 5,000 additional businesses have registered for the CAT, which was created by the legislature in 2019 to raise funding for education. 

The CAT applies to both in-state and out-of-state businesses. It is measured on a business’s commercial activity, the total amount a business realizes from transactions and activity in Oregon.

Businesses with taxable commercial activity in excess of $1 million will have Corporate Activity Tax to pay. The tax is $250 plus 0.57% of commercial activity greater than $1 million after subtractions.

Taxpayers expecting to owe $5,000 or more for 2021 must make quarterly estimated payments. The next estimated payments are due August 2.

 

Key Deadlines:

•    August 2 — Second quarter 2021 CAT estimated payments due
•    October 15 — Last day to file 2020 CAT return with an extension
•    November 1 — Third quarter 2021 CAT estimated payments due
•    January 31, 2022 — Fourth quarter 2021 CAT estimated payments due
•    April 15, 2022 — 2021 CAT returns due

 

Training aids to assist with registration, calculating the tax, and making payments can be found on the CAT page of the Oregon Department of Revenue’s website.

If you have general questions about the CAT, you can email cat.help.dor@oregon.gov or call 503-945-8005. For assistance in estimating quarterly tax payments or preparation of the annual CAT tax return, be sure to contact your tax advisory team.

 


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