United States

Oregon: Pending Legislation Would Revise Oregon’s Tax Haven Provisions

Jul 13, 2015
From KPMG TaxWatch

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Legislation enacted in Oregon in 2013 requires the income of certain entities organized in countries considered to be “tax havens” to be included in the Oregon consolidated return. Specifically, effective for tax years beginning on or after January 1, 2014, Oregon corporate taxpayers that have a unitary group member incorporated in certain designated “tax haven” countries are required to add the income or loss of such member to the group’s federal consolidated income. Likewise the factors of such member must be included in computing the Oregon apportionment percentage.  

As originally enacted, thirty-nine countries were designated as tax havens. Currently, Senate Bill 61, which has passed both houses of the Oregon legislature, would make changes to the list of tax haven jurisdictions and expand the scope of the tax haven provisions. Newly-designated tax havens would include: Bonaire, Curacao, Guatemala, Niue, Saba, Saint Eustatius, Saint Maarten, and Trinidad and Tobago.  Countries that would be eliminated from the list include the Netherlands Antilles and Monaco. In addition to revising the list of tax haven jurisdictions, Senate bill 61 would also broaden the scope of the tax haven provisions to capture certain separate filers that are incorporated in the designated jurisdictions. These changes are effective for tax years beginning on or after January 1, 2016. Under current law, the Department is required to submit recommendations of jurisdictions that should be included in the list, as it did in January 2015. Senate Bill 61 retains this requirement, but adopts certain criteria that the Department must consider in making these recommendations. Please contact Rob Passmore at 503-820-6844 with questions on Senate Bill 61.


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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.