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Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state. All taxable entities must file completed franchise tax and information reports each year.
What is franchise tax? The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. What does an entity file if it is ending its existence or no longer has nexus? An entity ending its existence that is not part of a combined group must file.
Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state. All taxable entities must file completed franchise tax and information reports each year.
Franchise tax is based on a taxable entity's margin. Unless a taxable entity qualifies and chooses to file using the EZ computation, the tax base is the taxable entity's margin and is computed in one of the following ways: total revenue times 70 percent; total revenue minus cost of goods sold (COGS);
Non-electronic funds transfer (non-EFT) taxpayers who cannot file by June 15 may file an extension request on or before June 15. They must pay 90 percent of the tax due for the current year, or 100 percent of the tax reported as due for the prior year, with the extension request.
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Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state. All taxable entities must file completed franchise tax and information reports each year.
On the 2022 annual report, the entity will file with an accounting period 10-05-2020 through 08-31-2021.
Entities Subject to Franchise Tax Each taxable entity formed in Texas or doing business in Texas must file and pay franchise tax.
Franchise tax reports are due on May 15 each year. If May 15 falls on a Saturday, Sunday or legal holiday, the next business day becomes the due date.
An extension of time to file a franchise tax report will be tentatively granted upon receipt of an appropriate timely online extension payment or request on a form provided by the Comptroller. Timely means the request is received or postmarked on or before the due date of the original report.

form 05 158