![]() ![]() Then a taxpayer must situs (or source) those gross receipts to Ohio in order to calculate their total “taxable gross receipts.” A taxpayer’s total taxable gross receipts will then determine their remaining obligations under the CAT. ![]() To determine what is a “taxable gross receipt” a taxpayer must undergo a three-step analysis that starts with determining what is a “gross receipt” under Ohio law. The focus of this article will be on what is and is not a “taxable gross receipt” under the CAT. There are certain “excluded taxpayers” including any taxpayer with $150,000 or less of “taxable gross receipts”, non-profit organizations, governmental entities, and others. The CAT is measured by a taxpayer’s “taxable gross receipts” during the tax period, which for most taxpayers will be the calendar year.Īs a general rule, any individual or business entity that is required to register or pay tax under Ohio law is subject to paying Ohio’s Commercial Activity Tax. Since July 1, 2005, Ohio has imposed an annual Commercial Activity Tax (“CAT”) on taxpayers doing business in Ohio. The privilege of doing business in Ohio comes at a cost. Lewis, Esq., Attorney and Program Coordinator, OSU Income Tax Schools and Barry Ward, Leader, Production Business Management Director, OSU Income Tax Schools 31 to April 15th.What are “Taxable Gross Receipts” Under Ohio’s Commercial Activity Tax?īy: Jeffrey K. Monthly returns are due on 25th of the following month quarterly returns are due by the end of the month following the close of the quarter and the due date for the annual returns changed from Jan. Once you are registered, you will receive information about filing. If you are a new business, register with the Department of Revenue first. The B&O tax is reported and paid on the excise tax return or by electronic filing.
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