Corporation Franchise Tax Changes
Phase-out of Franchise Tax
Effective August 28, 2011, a corporation’s franchise tax liability for all taxable years beginning on or after January 1, 2011, but before December 31, 2015, shall not exceed the amount of annual franchise tax liability of such corporation for the taxable year ending on or before December 31, 2010. If the corporation had no annual franchise tax liability for the taxable 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.
Below is a breakdown of the franchise tax rates.
|Tax Year beginning on or after||Tax Rate|
|January 1, 2000 – December 31, 2009||1/30 of 1% (.000333)|
|January 1, 2010 – 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%|
For all taxable franchise years beginning on or after January 1, 2016, no franchise tax will be due.
Additional information can be obtained on the Frequently Asked Questions page.