Corporation Franchise Tax
Chapter 147, RSMO: Corporations pay Franchise tax for doing business within the state. It is not a tax on franchisees. Franchise tax is based on the “par value of the corporation’s outstanding shares and surplus”. This is defined as the “total assets or the par value of issued and outstanding capital stock, whichever is greater”. For capital stock with no par value, the value is $5.00 per share or actual value, whichever is higher. The franchise tax basis (Schedule MO-FT, Line 6) is the basis of the assets as of the first day of the taxable year. For taxable years beginning on or after January 1, 2000, all domestic and foreign corporations under Chapter 351 or engaged in business must file the franchise tax return. However, only those corporations whose assets in or apportioned to Missouri that exceed one million dollars for taxable years 2000 through 2009 or $10 million for taxable years 2010 through 2015, are liable to pay the tax. The due date of the franchise tax return is the 15th day of the fourth month from the beginning of the taxable period.
For franchise tax years beginning on or after January 1, 2016, no franchise tax is imposed. The franchise tax rate for all other years is shown in the table below.
For all taxable periods prior to January 1, 2000, the tax rate was 1/20 of 1 percent (.0005). The tax rate for periods beginning January 1, 2000, is below:
|Tax Year Beginning on or After||Tax Rate|
|January 1, 2000 – December 31, 2011||1/30 of 1% (.000333)|
|January 1, 2012 – December 31, 2012||1/37 of 1% (.000270)|
|January 1, 2013 – December 31, 2013||1/50 of 1% (.000200)|
|January 1, 2014 – December 31, 2014||1/75 of 1% (.000133)|
|January 1, 2015 – December 31, 2015||1/150 of 1% (.000067)|
|January 1, 2016||0%|
In addition, a corporation’s franchise tax liability for tax years beginning on or after January 1, 2011, is limited to the franchise tax liability approved on the corporation’s return for the tax year ending on or before December 31, 2010. If the corporation was not required to file a franchise tax return for the tax year ending on or before December 31, 2010, because such corporation was not in existence or doing business in Missouri, the annual franchise tax for the first taxable year in which such corporation exists shall be determined by applying the applicable rate of tax to the corporation’s outstanding shares and surplus if the outstanding shares and surplus exceed ten million dollars, but in no case shall such corporation’s tax liability for any subsequent taxable year exceed the amount of annual franchise tax liability of such corporation for the first full taxable year such corporation was in existence or doing business in Missouri.
- Corporation Franchise Tax Changes
- Corporation Franchise Tax Forms
- Frequently Asked Questions about Corporation Franchise Tax