Broker Check

Tax Tip #15, Texas adopts Economic Nexus for Franchise Tax

January 14, 2020

Texas has responded to the South Dakota v. Wayfair Supreme Court Case by adopting an amended regulation that is effective December 29, 2019. This regulation now requires foreign entities to file Texas Franchise Tax Reports beginning January 1, 2020. This now extends nexus for the Texas franchise tax to all businesses doing business in the state of Texas that have $500,000 or more in gross sales in the state.

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