DF&A will process franchise taxes in 2021

by Talk Business & Politics staff ([email protected]) 292 views 

The Arkansas Department of Finance and Administration (DFA) will accept and process franchise taxes beginning Jan. 1, 2021. Franchise taxes were previously administered by the Arkansas Secretary of State’s Office, but a 2019 state law altered the process.

Companies that conduct business in Arkansas are required to pay the annual tax, which totaled $28 million in 2019. Approximately 150,000 companies pay franchise taxes each year in Arkansas.

While the due date for filing an Arkansas Franchise Tax Report is May 1, 2021, they may be filed beginning Jan. 1, 2021, through the Arkansas Taxpayer Access Point (ATAP) at www.atap.arkansas.gov. ATAP offers free electronic filing and payment options.

“We appreciate the ongoing support and assistance from the Secretary of State’s Office throughout the transition of Franchise Tax to DFA,” DFA Secretary Larry Walther said. “We look forward to serving Arkansas companies in this new capacity.”

The Secretary of State’s Office will continue to serve as the point of contact for registering and launching a business in the state as well as defining the organizational structure of the business.

Companies in Arkansas that that must file franchise taxes include banks, legal reserve mutual insurance companies, insurance companies with authorized capital stock, limited liability companies, non-stock corporations, and stock corporations.

Companies that have registered franchise tax accounts with the Secretary of State’s Office will be made aware of the transfer to DFA via mail, which will include a hard copy of a franchise tax return.

Facebook Comments