Texas Comptroller Amends Franchise Tax Regulation on Margin, Compensation Threshold for Taxable Entities

The Texas Comptroller of Public Accounts Dec. 16 amended a franchise tax regulation on computing margin and the compensation threshold for taxable entities, for corporate income tax purposes. The rule includes measures: 1) correcting an error in the 2020-2021 compensation threshold amount, adjusted biennially based on the Consumer Price Index, under the Texas Tax Code (Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction); and 2) specifying that the correct compensation threshold amount is $390,000 for reports originally due on or after Jan. 1, 2020, but before Jan. 1, 2022. The regulation takes effect Dec. 19. [Tex. Comptroller ...