We are seeing an increasing number of Ohio Commercial Activity 税 (CAT) audits among our clients. Ohio has an aggressive audit program to seek companies doing business in the state, and they aggressively pursue tax, penalty and interest to the inception date of the tax.

The recent increase in Ohio sales tax registrations could be related to the 经济联系要求. Many companies are unaware of what the Ohio CAT is and if they are required to file and remit payments.

General Overview of Ohio Commercial Activity 税 (CAT) 审计s

If you are unfamiliar with the tax, the Ohio CAT is a gross receipts tax that replaced the Ohio Franchise tax. The phased-in implementation of the tax began July 1, 2005. Your gross receipts are the total revenue (without subtracting returns, 折扣, 营业费用, or unpaid invoices) your business collects in a tax year. The tax is somewhat unusual in that Ohio’s position is that a company will have “nexus” and have to file/pay the tax if the company meets one of the following “bright-line” nexus standards:

  • The company has $500,000 in Ohio sales,
  • 俄亥俄州的工资是5万美元
  • $50,000 in property in Ohio, or
  • have minimum 25% total property, total payroll, or total taxable gross receipts within the state.

Ohio also asserts that companies have nexus for the CAT if:

  • They are authorized to do business in the state and applies to most business types regardless of whether it’s located within OH, or
  • If they otherwise have nexus to the extent that the person can be required to remit the CAT under the Constitution of the United 状态s.

The Ohio CAT is also somewhat unusual in that there are combined/consolidated reporting rules in place, even though it is a gross receipts tax and not an income tax. 也, the CAT applies to all types of businesses, 包括企业, 有限责任公司, 独资企业, 合作伙伴关系, 零售商, 服务提供商, manufacturers and other types of businesses.The tax doesn’t apply to nonprofit organizations and certain financial institutions and insurance companies.

There is a $1,000,000 per year deduction before CAT tax is due. 然而, 拥有150美元的企业,000 to $1,000,000 in gross receipts are expected to file and pay the minimum tax ($150). 比率是 .26% and returns are generally filed quarterly.

例子:

俄亥俄州年度总收入:$3,000,000
少扣除:(1,000,000)
应税收入:2,000,000
由于税收:2,000,000 X .0026=$5,200 + $150 annual fee = $5,350 (total tax amount)

关系的考虑

Many companies that we are working with have so far chosen to file/pay the tax, although others may not choose this route. 注意这一点很重要 Ohio has a voluntary disclosure program with a 3-4 year look-back. This voluntary disclosure program could be of tremendous benefit for companies that have tax exposure in the state of Ohio.

Our state and local tax experts can analyze your tax exposure and recommend solutions. If you need assistance with this issue please 明升体育app下载. 欲了解更多信息，请访问明升体育app下载 州税和地方税 服务.