OR-21-AP: Schedule OR-21-AP Instructions, Oregon Pass-through Entity Elective Tax Apportionment of Income (2025)
Oregon · Oregon DOR · Used for tax years 2025
These instructions explain how to complete Oregon Schedule OR-21-AP for the pass-through entity elective tax. The schedule reports Oregon sales and total sales everywhere to calculate the Oregon apportionment percentage entered on Form OR-21. An informational worksheet is include
Who files this form
A pass-through entity (PTE) with business income taxable by Oregon and at least one other state must apportion its income. Include Schedule OR-21-AP when filing Form OR-21.
PTEs generally apportion income under Oregon’s Uniform Division of Income for Tax Purposes Act, ORS 314.605 to 314.675. Financial institutions and public utilities must use the provisions of ORS 314.280 instead.
PTEs doing all their business within Oregon do not need Schedule OR-21-AP.
What you'll need
To prepare the schedule, have the following information for the tax year:
- Oregon sales, separated by the categories on lines 1 through 9, including sales of tangible personal property, partnership sales, and other business receipts.
- The PTE’s total sales everywhere.
- For insurance companies only, direct premiums, annuity considerations, and finance and service charges.
If the PTE is a partner in partnerships, use Schedule OR-PI as a guide for its Oregon partnership sales. The amount for Schedule OR-21-AP, line 5, is the amount that would appear on Schedule OR-PI, line 3. Schedule OR-PI is not required to be filed with Form OR-21.
You may use Worksheet OR-21-AP to prepare the schedule, but do not file the worksheet.
How to file
Complete Worksheet OR-21-AP to prepare to file the schedule. To complete your filing, go to Revenue Online at www.oregon.gov/dor. The worksheet is for information only and must not be filed.
- Add lines 1 through 9 to get total Oregon sales on line 10.
- Enter total sales everywhere on line 11.
- Divide line 10 by line 11. Round to four decimal places and enter the result as a percentage on line 12.
- Enter that percentage on Form OR-21, line 19.
Include Schedule OR-21-AP when you file Form OR-21.
Common mistakes
- Filing the worksheet: Worksheet OR-21-AP is for informational purposes only. Do not file it.
- Leaving out the schedule: Include Schedule OR-21-AP when you file Form OR-21.
- Completing insurance-only lines unnecessarily: Lines 7, 8, and 9 are for insurance companies only.
- Treating Schedule OR-PI as a required Form OR-21 attachment: It is a guide for partnership sales, but it is not required to be filed with Form OR-21.
Questions people ask
How is the sales factor calculated?
Divide the PTE’s total Oregon sales by its total sales everywhere during the tax year. For the PTE-E tax, all apportionable income must be apportioned using the sales factor.
What makes up Oregon income?
Oregon income is the sum of the PTE’s Oregon apportioned income and income allocated to Oregon.
When are charges for services treated as Oregon sales?
Charges for a service are Oregon sales if the service is delivered to a location in Oregon.
Can a PTE be taxable in another state even if that state does not actually impose a net income tax on it?
Yes. A PTE is taxable in another state if that state has jurisdiction to subject it to a tax imposed on or measured by net income, even if the state does not actually impose that tax on the PTE.
Where can I get help?
Visit www.oregon.gov/dor, call 503-378-4988 or 800-356-4222, or email questions.dor@dor.oregon.gov. You can also contact the department for ADA accommodations or assistance in other languages.