Oklahoma § 68-2365 - Subchapter S corporations

§ 68-2365. Subchapter S corporations

Except as otherwise provided for in the Pass-Through Entity Tax

Equity Act of 2019, the provisions, applicable to the taxation of

income of corporations and stockholders, electing treatment as

provided in subchapter S of the Internal Revenue Code, shall apply

to taxpayers as provided under this act. A corporation having an

election in effect under subchapter S of the Internal Revenue Code

Oklahoma Statutes - Title 68. Revenue and Taxation

shall not be subject to the Oklahoma income tax on corporations and

for tax years beginning after December 31, 1996, shall not be

subject to the tax imposed by subsection A of Section 2370 of this

title, and the shareholders of such corporation shall include in

their taxable incomes their proportionate part of the federal income

of such corporation, subject to the modifications as set forth in

Sections 2358, 2362 and 2370.2 of this title, in the same manner and

to the same extent as provided by the Internal Revenue Code.

However, if any of the shareholders of such corporation are

nonresidents during any part of the taxable year of the corporation,

such corporation shall be taxable for such year on that part of the

income of the corporation, as determined pursuant to Sections 2358,

2362 and 2370.2 of this title, allocable to the shares of stock

owned by such nonresident unless (i) the corporation files with its

return for such year an agreement executed by each nonresident

stockholder stating that such nonresident will file an Oklahoma

income tax return which will include in the adjusted gross income of

such nonresident that portion of the Oklahoma taxable income of the

corporation allocable to the interest of the nonresident in such

corporation, or (ii) the corporation has made a valid election

pursuant to the provisions of the Pass-Through Entity Tax Equity Act

of 2019 and has paid the applicable tax. For purposes of this

section, the term "corporation" shall include state–chartered banks,

state and federal savings associations and national banking

associations that have total assets of Three Billion Dollars

($3,000,000,000.00) or less and that are organized pursuant to the

laws of this state, or the United States, or are located or doing

business in this state.

Added by Laws 1971, c. 137, § 15, emerg. eff. May 11, 1971. Amended

by Laws 2000, c. 5, § 1, emerg. eff. March 14, 2000; Laws 2001, c.

319, § 1, eff. July 1, 2001; Laws 2019, c. 201, § 6, emerg. eff.

April 29, 2019.