The Texas franchise tax due date is May 16, 2022. Qualifying health care providers are eligible for impactful exclusions from their taxable base and might be overpaying tax in Texas.
Health care providers based in Texas and those that are doing business in Texas are required to file and pay the franchise tax. If a provider is not based in Texas, physical presence through employees and assets or sales exceeding the economic nexus threshold could trigger a franchise tax obligation.
Health care providers qualify for an exclusive 100% reduction in their taxable base for patient revenues generated under any of the following circumstances:
Other providers will qualify as health care institutions and be eligible for a 50% exclusion of the qualifying revenues. Health care institutions include the following:
To assess whether you have a Texas filing obligation and to determine your eligibility for these exclusions, contact our experts.