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Veteran
Entrepreneurs Exempt From Franchise Tax |
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New veteran-owned businesses that are formed or begin doing
business in the state of Texas on or after January 1, 2016
will be entitled to a tax break.
They will not be required to pay the
Franchise Tax.
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To qualify as a veteran-owned business the owner(s) must be
veterans who served in and was honorably discharaged from a
branch of the United States armed forces.
The owners must provide verification to the state
comptroller in order to be certified.
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Veteran-owned businesses will enjoy this tax break status
for a period of 5 years or sooner if the business ceases to
qualify as a veteran-owned entity.
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The annual franchise tax report is due every year on May 15th.
The rates are as follows:
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Item
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Amount
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No Tas Due Threshold
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$1,110,000
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Tax Rate (Retail or Wholesale)
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0.375%
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Tax Rate (other than Retail or Wholesale)
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0.75%
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Sources:
S.B. No. 1049
Texas Franchise
Tax
By Wendy
Stewart
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