Or. Admin. R. 150-317-0640

Current through Register Vol. 63, No. 6, June 1, 2024

Section 150-317-0640 - Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction

The following provisions are intended as guidance for any corporation doing business in this state that is part of a unitary group that includes a member incorporated in a foreign jurisdiction listed in subsection (2)(b) of ORS 317.715.

(1) To determine the computation of income (or loss) for a unitary corporation that is incorporated in a listed foreign jurisdiction and that is not otherwise required to file a consolidated federal return, use the foreign corporation's net income (or loss) as reported on line 18, Schedule C of federal Form 5471.

(2) Unless specifically prescribed by other law, the income of the foreign corporation is not to be double taxed by this state. If any portion of the foreign corporation's income that is added to federal taxable income pursuant to subsection (2)(a) of ORS 317.715 was already included in the taxpayer's Oregon taxable income, the taxpayer is allowed a subtraction for the portion of the income that previously was included in Oregon taxable income. The taxpayer must attach a schedule to the return and explain how the income was previously included in Oregon taxable income and how the subtraction amount was determined.

(3) Unless specifically prescribed by other law, items of expense or loss of the foreign corporation are not to be double deducted by the taxpayer. If any portion of the foreign corporation's loss or expense that is required to be included in the determination of federal taxable income pursuant to subsection (2)(a) of ORS 317.715 was already included in the computation of the taxpayer's Oregon taxable income, the taxpayer must reduce the loss or expense by the amount previously included in the computation of Oregon taxable income. The taxpayer must attach a schedule to the return and explain how the loss was previously included in the computation of Oregon taxable income and how the reduction amount was determined.

Or. Admin. R. 150-317-0640

REV 2-2014, f. & cert. ef. 7-31-14; Renumbered from 150-317.715(5), REV 69-2016, f. 8-15-16, cert. ef. 9/1/2016

Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to 183.360(2) and 183.355(1)(b).

Stat. Auth.: ORS 305.100, 317.715

Stats. Implemented: ORS 317.715