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                                                    City of Portland Business License Tax 
                        Multnomah County Business Income Tax 
      Form C-2022 Combined Business Tax Return for Corporations Instructions 

                                                               • Federal Form  1120 (pages 1 through  5) with 
General Information 
                                                                 statements 
                                                               •
Important Reminders                                              Federal Form 1125-E and statements (if filed) 
                                                               • HVT Schedule, if required (Portland form) 
Note: S corporations should file SC-2022.                      • PRS Schedule, if required (Portland form) 
File and  Pay Online and Manage your Business  Tax             • Schedule R, if required (Portland form) 
Accounts at Pro.Portland.Gov.  The Revenue Division’s 
taxpayer portal can be used to manage your business tax        What’s New? 

accounts. Portland Revenue Online (PRO) allows you to:                                                      For tax 
                                                               Increase to Owner’s Compensation Deduction.
•     Register your business                                   years beginning on or after January 1, 2022, the maximum 
•     Update your business account information                 Owner’s Compensation  Deduction  has  increased to 
•     File a Combined Business Tax Return                      $147,000, per owner,  for the  City of  Portland Business 
•     Make payments                                            License Tax. 
•     Upload supporting tax pages and documents                For tax years beginning  on or after January 1, 2022, the 
•     View correspondence mailed to you                        maximum Owner’s Compensation Deduction has increased 
•     Provide Third-Party Access to your preparer              to  $145,000,  per  owner,  for  the  Multnomah County 
For more  information and  to create your  account, please     Business Income Tax. 
visit Pro.Portland.gov. 
                                                               Increase to Residential Rental Registration Fee. For tax 
Filing Deadline. The filing deadline for this return is April  years beginning on or after January 1, 2022, the Residential 
18, 2023. Since the C-2022 relies on information reported      Rental Registration fee has increased to $65 per unit. 
on the federal and Oregon tax return, the due date for the 
C-2022  will be changed  when there  is a change to the        Amended Returns 
federal or State of Oregon due dates. 
                                                               The Revenue Division does not have a separate form for 
Extensions. The  Revenue  Division  does  not  generally       amended tax returns. To amend your Combined Business 
allow an extension of time to pay the tax, even if the IRS     Tax Return, use the form for the tax year being amended 
allows an extension. The tax balance is due on the original    and check the “Amended” box. If the address for the year 
return due date. The submission of an extension payment        you’re amending has changed,  use your  current  mailing 
by the original return due date provides an automatic six-
                                                               address and check the “Mailing Address Change” box. 
month filing extension. If there is not a tax balance due but 
you would like to file an extension, your federal or State of  Fill in all amounts on your amended return, even if they are 
Oregon  extension will serve as your  Combined Business        the same as originally filed. If you are amending to make a 
Tax extension and a separate extension will not need to be     change to additions, subtractions, or credits, include detail 
submitted.  When filing your return on the extended due        of all items and amounts as well as any carryovers. Please 
date, check the “Extension Filed” box on the return. If no     include  a  statement  explaining  what  changed  from  the 
extension payment was made, please attach a copy of your       original return. 
federal or State of Oregon extension with your return. 
                                                               If you change taxable  income by  filing an original or 
Federal  and State  Tax Pages.  Be sure  to  include the       amended federal or Oregon income tax return, you must file 
following federal tax pages (and statements), Oregon tax       an amended Combined Business Tax Return within 60 days 
pages (and statements), and Portland schedules with your       of when the original or amended federal or Oregon income 
C-2022 Combined Business Tax Return:                           tax return is filed. Include a copy of your original or amended 
•     Oregon Form OR-20 or OR-20-INC (including OR-            federal or Oregon  income tax  return with your amended 
      AP, OR-ASC, and  any  other Oregon forms  and            Combined  Business  Tax  Return  and  explain  the 
      schedules you have filed) with statements                adjustments made. 

Page 1 of 6, C-2022 Instructions (Rev. 01/17/2023)

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Do not amend your Combined Business Tax Return if you           • $50,000 for the City of Portland Business License 
amend the federal return to carry a net operating loss back       Tax exemption, and 
to prior years. The Revenue Division only allows tax entities   • $100,000 for the Multnomah County Business 
to  carry  net  operating  losses  forward.  Additionally,  net   Income Tax exemption. 
operating losses for the City of Portland Business License      To  calculate  the  total  gross  receipts  from  all  business 
Tax and/or Multnomah County Business Income Tax are             activity, add the following lines together: 
only generated from the Combined Business Tax Return, 
                                                                •
not from your IRS or Oregon income tax return.                    Form  1120. Add  the  sum  of  positive  numbers 
                                                                  reported on line 1c and 4 through 10 on page 1 of 
On the prepayments line  of  your amended  Combined               Form 1120. If the corporation owns any residential 
Business Tax Return, enter the net tax for each jurisdiction      rental properties in the City of Portland, make sure 
as reflected on the original return or as previously adjusted.    to complete and submit a     Schedule R  (with 
Do not include any penalty or interest portions of payments       payment) with your exemption request. 
already made. 
                                                                If your total gross receipts from all business activity are 
                                                                $50,000 or more, you do not qualify for the gross receipts 
Apportionment 
                                                                exemption for the City of Portland Business License Tax. 
For each jurisdiction, gross income  includes  all  business    If your total gross receipts from all business activity are 
income including, but not limited to, gross receipts, service   $100,000 or more, you do not qualify for the gross receipts 
income, interest, dividends, income from  contractual           exemption for the Multnomah County Business Income Tax. 
agreements, gross rents, and gains on sale of business 
property.                                                       OTHER EXEMPTIONS 
With a few exceptions, income earned in Portland is also        If you are claiming  an  exemption other than  the gross 
earned in Multnomah County. Income may be apportioned           receipts  exemption, you  must  attach a statement that 
only  if there  is regular business activity outside  Portland  explains which exemption you are claiming and provide 
and/or Multnomah County. Services  performed  outside           support for  that exemption (See  Exemption Codes  in the 
Portland and/or Multnomah County may be apportioned             Appendix). 
based upon  the  percentage of  performance outside the 
applicable jurisdiction. Sales of tangible personal property    Penalty Calculation 
may  be  apportioned  only  if  a  business  has  payroll  or 
                                                                You  may  be  subject  to  penalties  for  underpaying  your 
property outside the jurisdictions. 
                                                                estimated tax, filing a late Combined Business Tax Return, 
Exempt Businesses                                               and/or paying your business tax liability  after the  original 
                                                                due date of the return.  
If your  business is exempt from the City of  Portland 
                                                                Although the Revenue Division assesses a late penalty for 
Business License Tax, as allowed under Portland City Code 
                                                                both failing to file a Combined Business Tax Return by the 
(PCC) 7.02.400 or the Multnomah County Business Income 
                                                                due date and failing to pay the tax by the original due date 
Tax, as allowed  under  Multnomah County Code (MCC) 
                                                                of the return, only one of these late penalties will be applied, 
12.400, you are still required to file a Combined Business 
                                                                even  if there is  a failure  of both requirements. In these 
Tax Return by the due date of your return. Failure to do so 
                                                                cases, only the late filing penalty is applied. 
may result in a Presumptive Fee bill and your account will 
remain in non-compliance status  until the required 
documentation is received.                                      UNDERPAYMENT PENALTY 
This exemption is from the business taxes only. Any other       You  may subject to a  penalty  for underpaying  your 
tax, surcharge, or fee may fall under separate exemption        estimated tax if, by the original due date of the return, timely 
criteria, for which your business may still be liable.          prepayments are not made which are either: 
                                                                • At  least 90%  of the total tax due  on line  19 
GROSS RECEIPTS EXEMPTION 
                                                                  (Multnomah County) and line 31 (City of Portland), 
Note:  The following  amounts are taken from the federal          or 
income tax return.                                              • 100% of the prior year’s tax for each jurisdiction. 
To  claim  a  gross  receipts  exemption  from  the  City  of   If you did not satisfy either requirement, you will be charged 
Portland  Business License Tax and/or the  Multnomah            a 5% underpayment penalty on the unpaid amount, but not 
County Business Income Tax, the total gross receipts from       less than $5 per jurisdiction. 
all business activity must be under: 
Page 2 of 6, C-2022 Instructions (Rev. 01/17/2023)

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LATE FILING PENALTY your quarterly underpayment interest at a rate of 10% per
annum from the due date of each quarterly estimated
If you do not file your Combined Business Tax Return by the
payment to the original due date of the tax return to which
original due date, file an extension with the Revenue
the estimated payments apply.
Division by the original due date, or include a copy of your
federal or state extension with your Combined Business Tax The amount of underpayment is determined by comparing
Return when you file by the extended due date, the the 90% of the current total tax liability amount to quarterly
following late filing penalties will apply: estimated payments made prior to the original due date of
the tax return.
• 5% of the amount of the total tax liability if the failure
to file is for a period less than four months. There is no interest on underpayment of quarterly estimated
• An additional penalty of 20% of the total tax liability payments if:
must be added if the Combined Business Tax • The total tax liability of the prior tax year was less
Return is four months or more past due. than $1,000 for the jurisdiction;
• An additional penalty of 100% of the total tax liability • An amount equal to at least 90% of the total tax
of all tax years for any Combined Business Tax liability for the current tax year was paid in
Return which is delinquent for three or more accordance with PCC 7.02.530 and/or MCC
consecutive years. 12.530; or
No late filing penalty is due if a timely extension is filed with • An amount equal to at least 100% of the prior year’s
the Revenue Division and a Combined Business Tax Return total tax liability was paid in accordance with PCC
is filed by the extended due date, or a copy of the federal or 7.02.530 and/or MCC 12.530.
state extension is included with the Combined Business Tax
Return and the ‘Extension Filed’ box is checked. Combined Business Tax Return Filing
Instructions

LATE PAYMENT PENALTY Rounding. Round cents to whole dollars on your return and
Your 2022 business tax must be paid by April 18, 2023, schedules. To round, drop amounts under 50 cents and
even if you requested an extension to file your Combined increase amounts from 50 to 99 cents to the next dollar. For
Business Tax Return. If you do not pay your tax by the example, $1.39 becomes $1 and $2.50 becomes $3. If two
original due date, the following late payment penalties will or more amounts must be added to figure the amount to
apply: enter on a line, include cents when adding the amounts and
round off only the total.
• 5% of the amount of the tax that was not paid by the
original due date.
General Return Information
• An additional penalty of 20% of the unpaid tax must
be added if the failure to pay is for a period of four Tax Year. Enter the beginning and ending dates of your tax
months or more. year. For calendar year filers, this would be 01/01/2022 to
• An additional penalty of 100% of the unpaid tax 12/31/2022.
liability of all tax years if the failure to pay is for three
or more consecutive years. Account #. Enter your BZT account number (ten digits).
This information can be found on letters the Revenue
Interest Calculation Division has mailed to you related to your business tax
account. If you can’t find your account number, call the
Revenue Division at (503) 823-5157.
LATE PAYMENT INTEREST
Interest is calculated at 10% per annum (.00833 multiplied FEIN. Enter the Federal Employer Identification Number
by the number of months). Calculate your interest from the (FEIN) of the entity filing with the Oregon Department of
original due date to the 15 thday of the month following the Revenue.
date of the payment.
NAICS. Enter the NAICS (North American Industry
Classification System) code for your business.
QUARTERLY UNDERPAYMENT INTEREST
Quarterly underpayment interest will be due if estimated Entity Filing in Oregon. Enter the legal name of the entity
payments were required and were underpaid. Calculate filing with the Oregon Department of Revenue. If you have

Page 3 of 6, C-2022 Instructions (Rev. 01/17/2023)

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merged or reorganized, enter the new filing entity’s name business activity everywhere, as reported on your federal
and check the box that the entity has merged or Form 1120.
reorganized. Line 3. Multnomah County apportionment percentage.
Line 1 divided by line 2. Round to 6 decimal places. This
Mailing Address. Always enter your current mailing
line cannot be more than 1.0.
address. If the address for the year you are filing has
changed, check the box indicating the change. Line 4. City of Portland gross income. Portland gross
income includes income from all business activity within the
Name of Parent Corporation, if Applicable. If you file City of Portland (see Apportionment instructions above).
under a different entity for the Oregon Department of Line 5. Total gross income from all sources in all
Revenue than the IRS, please enter the name of the parent locations. Total gross income includes income from all
corporation here. business activity everywhere, as reported on your federal
Form 1120. Generally, this should be the same as the gross
FEIN of Parent Corporation. If you file under a different income reported on line 2, but there are rare situations
entity for the Oregon Department of Revenue, please enter where this amount may be different.
the FEIN of the parent corporation here.
Line 6. City of Portland apportionment percentage. Line
If Merged/Reorganized, Enter Name of Previous 4 divided by line 5. Round to 6 decimal places. This line
Business. If you have checked the Merged/Reorganized cannot be more than 1.0.
box in the Entity Filing in Oregon field, enter the name of the Exempt – Multnomah County. Check this box if you are
previous business here. claiming an exemption from the Multnomah County
Business Income Tax and select a reason for the
FEIN of Previous Business. If you have checked the exemption. If your reason for being exempt is other than for
Merged/Reorganized box in the Entity Filing in Oregon field, gross receipts, attach a statement explaining which
enter the FEIN of the previous business here. exemption you are claiming and provide support for that
exemption (See Exemption Codes in the Appendix).
Initial Return Box. Check this box if this is your first return
you are filing with us. Attach the Business Tax Registration Exempt – City of Portland. Check this box if you are
Form, if not mailed to us previously. claiming an exemption from the City of Portland Business
License Tax and select a reason for the exemption. If your
Final Return Box. Check this box if you no longer conduct
reason for being exempt is other than for gross receipts,
business in the City of Portland and/or Multnomah County
attach a statement explaining which exemption you are
and this is the final return you are filing with us. Attach an
claiming and provide support for that exemption (See
Out of Business Notification Form or an explanation for your
Exemption Codes in the Appendix).
final return. If you have sold your business, indicate the
name and address of the entity you sold your business to. NOTE: If you have claimed an exemption from the
Multnomah County and the City of Portland business
Amended Return Box. Check this box if you are amending
taxes, you generally don’t need to fill out the following
your 2022 tax return. See the Amended Return instructions
parts of the return:
above for more information about amending your Combined
Business Tax Return. • Part II – Net Income
Extension Filed Box. Check this box if you filed an • Part III – Multnomah County Business Income Tax
extension to file your federal or state income taxes. Attach (if claiming an exemption from Multnomah County
a copy of your federal or State of Oregon extension to your Business Income Tax)
tax return. • Part IV – City of Portland Business License Tax (If
claiming an exemption from the City of Portland
Part I – Gross Income Business License Tax)

Line 1. Multnomah County gross income. Multnomah However, even if you are exempt from the City of Portland
County gross income includes income from all business Business License Tax, you are still liable for any Heavy
activity within Multnomah County (see Apportionment Vehicle Use Tax or Residential Rental Registration fees
instructions above). that may be due. If you are subject to either tax/fee, please
Line 2. Total gross income from all sources in all complete lines 28 (Heavy Vehicle Use Tax) and/or 30
locations. Total gross income includes income from all (Residential Rental Registration Fee) and attach the
required schedule(s) with your Combined Business Tax
Page 4 of 6, C-2022 Instructions (Rev. 01/17/2023)

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Return. Be sure to include any payment due for these • The compensation reported on line 9,
taxes/fees, or you will be subject to late payment penalties • 75% of the amount on line 13, or
and interest on the unpaid balance. • The number of controlling shareholders multiplied
by $145,000 for the County.
If you have made estimated prepayments and would like
them refunded to you or credited to the next tax year, fill No deduction is allowed if line 13 is a loss.
out the prepayment section(s) of the return to tell us how Line 15. Multnomah County subject net income. Sum of
you would like your overpayment applied in Part V – Tax line 13 and line 14.
Due / Refund.
Line 16. Multnomah County apportioned net income.
Line 15 times multiplied by line 3.
Part II – Net Income
Line 17. Net operating loss deduction. Enter your net
Line 7. Net income or (loss). Net income or loss is the net operating loss (NOL) from previous years as a negative
income before apportionment reported on Oregon Form number here. NOLs are allowed only if reported on prior
OR-20 or OR-20-INC. Enter the net income reported on Combined Business Tax Returns. This deduction cannot be
Oregon Form OR-20 or OR-20-INC, line 5. greater than 75% of line 16. Any unused NOL may only be
carried forward for five years.
Line 8. Taxes based on or measured by net income add-
back. Add back any taxes based on or measured by net Line 18. Income subject to tax. Sum of line 16 and line 17.
income, including the City of Portland Business License
Line 19. Multnomah County Business Income Tax. Line
Tax, Multnomah County Business Income Tax, and Metro
18 multiplied by the tax rate of 2%. The minimum amount of
Business Income Tax, that have been deducted to arrive at
tax owed is $100.
the net income reported on line 7.
Line 9. Owner’s compensation add-back. Enter the Part IV - City of Portland Business License
number of controlling shareholders. Enter any Tax
compensation paid to controlling shareholders (individuals
Line 20. City of Portland modifications. Enter any
or families who together hold more than 5% of the stock).
modifications to City of Portland’s adjusted net income here.
This includes wages, commissions, and salaries (current This would generally apply only in rare circumstances.
and deferred).
Line 21. City of Portland net business income. Sum of
See Business Tax Administrative Rule (BTAR) 600-93.9A line 11 and line 20.
Definition of Controlling Shareholders and Calculation of
Number of Controlling Shareholders for additional Line 22. Owner’s compensation deduction. A deduction
from net business income (line 21) is limited to the lesser of:
guidance.
•
Line 10. Other additions or subtractions. Add or subtract The compensation reported on line 9,
any Oregon modifications related to business income. • 75% of the amount on line 21, or
Subtract any pass-through income (or add any loss) from • The number of controlling shareholders multiplied
entities already taxed by Portland and Multnomah County. by $147,000 for the City.
Attach a schedule for these modifications. No deduction is allowed if line 21 is a loss.
Line 11. Adjusted net income. Sum of lines 7 through 10. Line 23. City of Portland subject net income. Sum of line
21 and line 22.
Part III - Multnomah County Business Line 24. City of Portland apportioned net income. Line
Income Tax 23 multiplied by line 6.
Line 12. Multnomah County modifications. Enter any Line 25. Net operating loss deduction. Enter your NOL
modifications to Multnomah County’s adjusted net income from previous years as a negative number here. NOLs are
here. Multnomah County allows a subtraction for federal allowed only if reported on prior Combined Business Tax
obligation interest taxed in Oregon, enter that amount as a Returns. This deduction cannot be greater than 75% of line
subtraction here if included on line 11. 24. Any unused NOL may only be carried forward for five
tax years.
Line 13. Multnomah County net business income. Sum
of line 11 and line 12. Line 26. Income subject to tax. Sum of line 24 and line 25.
Line 14. Owner’s compensation deduction. A deduction
from net business income (line 13) is limited to the lesser of:
Page 5 of 6, C-2022 Instructions (Rev. 01/17/2023)

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Line 27. City of Portland Business License Tax. Line 26 Line 39a. Refund. Enter the amount of the overpayment
multiplied by the tax rate of 2.6%. The minimum amount of you would like refunded to you on this line. If you would like
tax owed is $100. direct deposit of your refund, please file your Combined
Line 28. Heavy Vehicle Use Tax (HVT). If you are subject Business Tax Return online at Pro.Portland.gov. If your
to Portland’s Heavy Vehicle Use Tax, enter the amount from return is filed on paper, you will receive your refund in the
line 4 of the HVT Schedule here. mail by check.
Line 29. Pay Ratio Surtax. If you are subject to the City of Line 39b. Credit carryforward. Enter the amount of the
Portland’s Pay Ratio Surtax, enter the amount due from the overpayment you would like to apply as an estimated
PRS Schedule here. payment for tax year 2023 on this line. This election is
Line 30. Residential Rental Registration Fee. If you are irrevocable.
subject to Portland’s Residential Registration Fee, enter the Line 40. Combined amount due with report. If the sum of
amount due from the Schedule R here. lines 32 through 37 is positive, this is the balance due.
Line 31. Total of City of Portland taxes and fees. Sum of Make your check payable to ‘City of Portland’ and submit
lines 27, 28, 29, and 30. with your Combined Business Tax Return. For fastest
payment processing, pay online by logging into your PRO
Part V - Tax Due / Refund account at Pro.Portland.gov.
Line 32. Total business taxes and fees. Sum of line 19
Appendix
and 31.
Line 33. Late payment or late filing penalty. Enter the Exemption Codes
amount of any late payment of taxes or late filing penalty
owed. If you are claiming an exemption from the City of Portland
Business License Tax and/or Multnomah County Business
Line 34. Underpayment penalty. Enter the amount of any
Income Tax, please use one of the following Exemption
underpayment penalty owed. Codes listed below:
Line 35. Interest. Enter any quarterly underpayment
Code Explanation
interest and/or interest due on taxes not paid by their due
1 No business activity in jurisdiction
dates.
Gross business income from all sources less
Line 36. Quarterly estimated payments and other 2 than $100,000 (Multnomah County Only)
prepayments. Enter the total amount of prepayments as a Gross business income from all sources less
negative number here. This includes all quarterly estimated 3 than $50,000 (City of Portland Only)
payments, extension payments, and any credits carried Only business is the operation of less than 10
forward from prior years. 4 residential rentals (Multnomah County Only)
5 Real estate brokers (City of Portland Only)
Line 37. Business Retention Credit. Enter the amount of
6 Insurance agent
Business Retention Credit being claimed on the tax return
7 PL 86-272
as a negative number here. Please attach Form BRC
8 Non-profit under ORS 317.080
showing your calculations.
Trusts exempt from Federal income tax under
Line 38. Overpayment. If the sum of lines 32 through 37 is 9 IRC § 501
negative, this is the amount you have overpaid. If you have 10 Farm/Ag only (HVT still possible)
an overpayment, you may choose to have the balance: 99 Other (explanation required, please attach)
• Refunded to you, or
• Credited forward to the next tax year.
If no election is made, any overpayment will be refunded to
you.

Page 6 of 6, C-2022 Instructions (Rev. 01/17/2023)

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