OAR 150-317-0030
Definition: “Doing Business”

(1)

A taxpayer is doing business when it engages in any profit-seeking activity in the State of Oregon. What transaction or transactions need be entered into within this state in the course of such an activity to constitute the doing or carrying on of business within the state is primarily a question of fact, depending upon the circumstances in each case.
Example 1: The taxpayer is clearly doing business within this state if it occupies, has, maintains or operates an office, shop, store, warehouse, factory, agency or other place within this state where some of its affairs are systematically and regularly carried on, notwithstanding the fact that it may also enter into transactions outside this state.
Example 2: A corporation engaged in the sale of tangible personal property is doing business within this state if sales activities are regularly carried on within this state by an employee or agent of the seller, and if either a stock of goods is maintained within this state, or an office or other place of business where affairs of the corporation are regularly carried on is maintained within this state.
Example 3: A foreign corporation consigns goods to one or more consignees within Oregon who then sell the goods. The foreign corporation is doing business in Oregon since it has sales activity and a stock of goods within Oregon.

(2)

A foreign corporation whose business is providing services is “doing business” in this state if it has employees providing those services in Oregon. It does not matter whether the services are provided on the client’s property or on the corporation’s own property since it is engaged in a profit seeking activity in Oregon.

(3)

If a foreign corporation’s business activities in this state are confined to purchase and storage of personal property incident to shipment outside the state, the corporation is not deemed to be doing business for corporation excise tax purposes if the following conditions are met:

(a)

The personal property remains in the exact state or form as it was when purchased during the time it is located within Oregon.

(b)

The foreign corporation is not an affiliate of another foreign or domestic corporation, as defined in section 1504 of the Internal Revenue Code, which is doing business in Oregon.

(4)

The fact that a corporation has no employees in Oregon does not mean the corporation is not doing business in this state. If activities are performed in Oregon by a third party on behalf of the corporation, and the activities are not protected under Public Law 86-272, the corporation is doing business in Oregon.
Example 4: The provision of in-state repair and warranty services by an independent contractor for a direct marketing computer company, advertised as part of its standard warranty or as an option that can be separately purchased, contribute significantly to the company’s ability to establish and maintain its market for computer hardware sales in Oregon. Therefore, the computer company is doing business in Oregon. The extension of immunity for activities by independent contractors under Public Law 86-272 does not include repair and warranty service.

(5)

A corporation that is not “doing business” in Oregon may still be subject to tax in this state. The Oregon corporation income tax under ORS Chapter 318 (Corporation Income Tax) imposes tax on corporations that have income derived from sources within Oregon. See OAR 150-318-0040 (Income Subject to Tax Under ORS Chapter 318) for a list and description of the activities that, if conducted in Oregon, will result in a corporation being subject to the corporation income tax.
[Publications: The publication(s) referred to in this rule is available from the agency pursuant to ORS 183.360 (Publication of rules and orders)(2) and 183.355 (Filing and taking effect of rules)(6).]

Source: Rule 150-317-0030 — Definition: “Doing Business”, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-317-0030.

150–317–0010
Procedure for Handling State Surplus Refund 150–317–0020
Substantial Nexus Guidelines 150–317–0030
Definition: “Doing Business” 150–317–0040
Taxable Income of Regulated Investment Companies and Real Estate Investment Trusts 150–317–0050
Foreign Corporations Subject to Tax 150–317–0060
Capital Losses — Carrybacks and Carry-overs 150–317–0070
Administrative and Judicial Interpretations 150–317–0080
Adoption of Federal Law 150–317–0090
Policy — Application of Various Provisions of the Federal Internal Revenue Code 150–317–0100
Periods of Less than 12 Months Are Tax Years 150–317–0110
Tax Reform Act of 1984 Adjustments 150–317–0120
Farm Capital Gain 150–317–0130
Tax on Homeowner’s Association Income 150–317–0140
Imposition of the Tax: Mercantile, Manufacturing and Business Corporations 150–317–0150
Adoption of Federal Exempt Organizations 150–317–0160
Exemption and Return Requirements 150–317–0170
Minimum Tax 150–317–0190
Affordable Housing Credit 150–317–0200
Commercial Lending Institution Loans for Underground Storage Tanks or Soil Remediation 150–317–0210
Carryover of the Lender’s Credit for Weatherization Loans 150–317–0220
Lender’s Credit: Loans to Wood Heat and Fuel Oil Heat Customers 150–317–0230
Lender’s Credit: Computation 150–317–0240
Lender’s Credit: Definitions 150–317–0245
Commencement of Long Term Enterprise Zone Tax Credit 150–317–0250
Long Term Enterprise Zone Distributions 150–317–0260
Lender’s Credit for Agriculture Workforce Housing 150–317–0270
Credit for Contributions of Computers, Scientific Equipment, and Research 150–317–0280
Qualified Research Credit 150–317–0290
Research Tax Credit: Notice of Election 150–317–0300
Research Tax Credit: Alternative Computation 150–317–0310
Bad Debt Reserve of Financial Institutions Not Qualifying as Large Banks that Have Differences in Reserve for Federal and Oregon Tax Purposes 150–317–0320
Modification of Federal Taxable Income: Dividends from Certain Subsidiaries 150–317–0330
Modification for Dividends Received 150–317–0340
Modification of Federal Taxable Income: Internal Revenue Code Subpart F Income 150–317–0350
Oregon Subtraction Where Charitable Contribution Is Reduced Under Federal Law 150–317–0360
Definition of “State” 150–317–0370
Bad Debt Reserve of Financial Institutions that Have Changed From Reserve Method to Specific Charge-off Method 150–317–0380
Taxes on Net Income or Profits Imposed by any State or Foreign Country 150–317–0390
IRC Section 338: Application to Oregon 150–317–0400
Payments Received Under Federal Safe Harbor Lease Agreements For Transactions Entered Into in Tax Years Beginning on or After January 1, 1983 150–317–0410
Payments Received Under Federal Safe Harbor Lease Agreements for Transactions Entered Into in Tax Years Beginning Prior to 1983 150–317–0420
Modification of Federal Taxable Income: Difference Between Oregon and Federal Bases on Assets Sold, Exchanged or Otherwise Disposed Of 150–317–0430
Modification of Federal Taxable Income: Timber Cut but Unsold 150–317–0440
Depletion Allowance 150–317–0450
Depletion of Metal Mines 150–317–0460
Limitation on Oregon Net Loss Deduction 150–317–0470
Pre-change and Built-in Losses 150–317–0480
Definition of “Premiums” in the Insurance Sales Factor 150–317–0490
Insurers 150–317–0500
Applicable Date 150–317–0510
Unitary Business 150–317–0520
Direct or Indirect Relationships 150–317–0530
Corporations Doing Business Outside the United States 150–317–0540
Consolidated Oregon Return: Format and Information Required 150–317–0550
Consolidated Oregon Return: Affiliated Group 150–317–0560
Consolidated Oregon Return: Credits 150–317–0570
Different Apportionment Factors for Purposes of ORS 317.710(5)(b) 150–317–0580
Consolidated Oregon Return: Copy of Federal Return Required 150–317–0590
Interinsurance and Reciprocal Exchanges 150–317–0600
Limitations on Deduction of Group Losses 150–317–0610
Modified Federal Consolidated Taxable Income 150–317–0620
Modified Federal Consolidated Taxable Income — Contribution Deduction for the Oregon Consolidated Group 150–317–0630
Oregon Return: Apportionment Formula 150–317–0640
Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction 150–317–0650
Stakeholder feedback regarding listed jurisdictions 150–317–0651
Repatriation Tax Credit 150–317–0652
Modification for Listed Jurisdiction Amounts Previously Included in Income 150–317–0660
Computation of Taxable Income 150–317–0670
Application for Relief 150–317–0680
Tax Imposed on Unrelated Business Income of Certain Exempt Corporations 150–317–1000
Definition of Commercial Activity 150–317–1010
Substantial Nexus Guidelines for the Corporate Activity Tax (CAT) 150–317–1020
Corporate Activity Tax Unitary Business Factors, Common Ownership and Filing Requirements for Unitary Groups 150–317–1025
Corporate Activity Tax: Election to Exclude Non-U.S. Members from Unitary Group 150–317–1030
Sourcing Commercial Activity to Oregon from Sales of Tangible Personal Property 150–317–1040
Sourcing Commercial Activity to Oregon of Other than Sales of Tangible Personal Property 150–317–1050
Sourcing of Commercial Activity for Financial Institutions in This State 150–317–1060
Definition of Insurers’ Gross Premiums Receipts 150–317–1070
Sourcing of Motor Carrier Transportation Services 150–317–1100
Agent Exclusion 150–317–1120
Exclusion for subcontracting payments 150–317–1130
Property Brought into Oregon 150–317–1140
Wholesale Sale of Groceries Exclusion 150–317–1150
Retail Sale of Groceries Exclusion 150–317–1160
Farmer’s Sales to Agricultural Cooperatives 150–317–1170
Farming Operations: Clarifying Definitions for Agricultural Commodities, Farming Operations, Out of State Sales Based on Industry Averages 150–317–1200
Cost Input or Labor Cost Subtraction 150–317–1220
Employee Compensation: Labor Cost Subtraction 150–317–1300
Estimated Tax: When Estimated Payments Are Required 150–317–1310
Estimated Tax Payments: Delinquent or Underestimated Payment or Both, Constitutes Underpayment 150–317–1320
Estimated Tax: Unitary Groups and Apportioned Returns 150–317–1330
Extension of Time to File 150–317–1400
Determining Property Resold Out of State, and Methods of Determining 150–317–1410
Motor Vehicle Resale Certificate – Documentation Required 150–317–1420
Damages Received as the Result of Litigation 150–317–1500
Good Faith Effort
Last Updated

Jun. 8, 2021

Rule 150-317-0030’s source at or​.us