Vocab Bloom Hub

franchise tax

/ˈfræntʃaɪz tæks/

1 entry

phrase

/ˈfræntʃaɪz tæks/C1formallegal
  • ruНалог, взимаемый государственным или местным органом власти с коммерческой организации за привилегию ведения деятельности или регистрации в данной юрисдикции, обычно рассчитываемый на основе чистого капитала, уставного капитала или активов, а не дохода.

A tax levied by a state or local government on a business entity for the privilege of operating or incorporating within that jurisdiction, typically based on net worth, capital, or assets rather than income.

  1. State business taxC1formalamerican

    A tax levied by some states on corporations and other business entities for the privilege of doing business or existing as a legal entity within that state.

    ruНалог на ведение бизнеса

    • The company must pay its annual franchise tax to the state by March 15th.
    • Franchise tax calculations often depend on a company's net worth or capital.
    • Failure to file the franchise tax return can result in penalties and loss of good standing.