OR-DRD: Form OR-DRD, Oregon Dividends-Received Deduction (2025)
Oregon · Oregon DOR · Used for tax years 2025
Form OR-DRD calculates Oregon’s dividends-received deduction for corporations. It lists dividends and certain foreign corporation income by type, calculates the Oregon deductions, and totals the amount to enter on Schedule OR-ASC-CORP using subtraction code 370.
Who files this form
Corporations using Form OR-DRD to report an Oregon dividends-received deduction must include it with their Oregon corporation tax return.
Deductions are allowed only for dividends included in federal taxable income.
What you'll need
Have the following information ready to complete the form:
- Your corporation’s federal employer identification number (FEIN).
- Your corporation’s legal name as shown on your Oregon return.
- Dividend amounts for the categories that apply, including the ownership percentages needed to choose the correct lines.
- The federal deduction amount for dividends on debt-financed stock, if you use line 3.
- Form(s) 5471, if applicable, for Subpart F income reported on lines 14a or 15a.
You will also use Schedule OR-ASC-CORP to report the total deduction from line 18.
How to file
- Enter your corporation’s legal name and FEIN.
- Enter the dividend or income amounts on the applicable “a” lines. Calculate the deductions on the corresponding “b” lines using the percentages or instructions printed on the form.
- Add all “b” lines, 1b through 17b, and enter the total on line 18.
- Enter the line 18 total on Schedule OR-ASC-CORP using subtraction code 370.
- Include Form OR-DRD with your Oregon corporation tax return. Include Form(s) 5471 for lines 14a and 15a if applicable.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Claiming deductions for dividends that were not included in federal taxable income. The form allows deductions only for dividends included in that income.
- Leaving Form OR-DRD out of your Oregon corporation tax return. The form says it must be included.
- Ignoring the preparation reminders: use UPPERCASE letters, use blue or black ink, and print at actual size (100%).
- Submitting photocopies or using staples. The form says not to do either.
Questions people ask
What deduction applies to dividends from domestic corporations?
Line 1 applies a 70% deduction to dividends from less-than-20%-owned domestic corporations. Line 2 applies an 80% deduction to dividends from 20%-or-more-owned domestic corporations.
How are dividends on debt-financed stock handled?
Report dividends on debt-financed stock of domestic and foreign corporations on line 3a. The Oregon deduction on line 3b is the same as the federal deduction.
Do I need to include Form 5471?
Lines 14a and 15a, for Subpart F income from controlled foreign corporations, direct you to include Form(s) 5471 if applicable.
Where do I report the total deduction?
Add lines 1b through 17b and enter the total on line 18. Then enter that total on Schedule OR-ASC-CORP using subtraction code 370.