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Tag: Apportionment
Banking & Insurance Companies: Special Margin-Tax Rules in Texas
Introduction Banking and insurance companies in Texas face unique tax obligations under the state’s franchise tax regime, often grappling with complex margin calculations that differ significantly from other industries. Inexperienced tax advisors may misapply these special rules, leading to overpayments or compliance issues with the Texas Comptroller, risking penalties and audits. Are you confident your […]
Throwback Rule? Texas Doesn’t Have One—But Here’s the Catch
Introduction Heard of the “throwback rule” and relieved Texas doesn’t have one? You’re partly right. Texas indeed does not impose a throwback rule, unlike California or New York—but there’s a catch for SaaS and digital businesses. In this 2025 guide, we’ll break down what the throwback rule is, why Texas doesn’t adopt it, and where […]
Texas Comptroller Audits: Top SaaS Margin-Tax Adjustments
Introduction Think Texas doesn’t audit tech startups? Think again. The Texas Comptroller is doubling down on Franchise Tax audits, especially for SaaS companies claiming aggressive cost of goods sold (COGS) or compensation deductions under the Margin Tax. If your business is software-based and relies on recurring revenue, here’s what to know about top adjustments made […]