05-166: Texas Franchise Tax Affiliate Schedule (2025)
Texas · Texas Comptroller · Used for tax years 2025
Form 05-166 is the Texas Franchise Tax Affiliate Schedule. It reports affiliate information, including franchise tax and Texas nexus status, gross receipts before eliminations, and cost of goods sold or compensation before eliminations.
Who files this form
Form 05-166 is the Texas Franchise Tax Affiliate Schedule.
The form states these reporting requirements:
- A combined group's reporting entity must submit common owner information if it has a temporary credit for business loss carryforwards preserved for itself and/or its affiliates.
- An information report, Form 05-102 or Form 05-167, must be filed for each affiliate organized in Texas or with a physical presence in Texas.
What you'll need
Have the information requested on the schedule ready, including:
- The reporting entity's taxpayer number, name and report year.
- Taxpayer identification information for the affiliate entries. Where indicated, use the FEI number if there is no taxpayer number.
- Whether an entity is disregarded for franchise tax.
- Gross receipts subject to throwback in other states, gross receipts everywhere and gross receipts in Texas, all before eliminations.
- Cost of goods sold or compensation, before eliminations.
Common owner information is also required when the combined group's reporting entity has a temporary credit for business loss carryforwards preserved for itself and/or its affiliates.
Common mistakes
- Do not omit common owner information when the reporting entity has a temporary credit for business loss carryforwards preserved for itself and/or its affiliates. The form says this information is required to satisfy franchise tax reporting requirements.
- Do not overlook the separate information report requirement. Form 05-102 or Form 05-167 must be filed for each affiliate organized in Texas or with a physical presence in Texas.
Questions people ask
What number should I use if there is no taxpayer number?
Where the form says “if none, use FEI number,” enter the FEI number.
How do I identify an entity that is disregarded for franchise tax?
Blacken the circle in item 4 if the entity is disregarded for franchise tax.
Should the financial amounts be reported before eliminations?
Yes. Items 8 through 11 label gross receipts subject to throwback in other states, gross receipts everywhere, gross receipts in Texas, and cost of goods sold or compensation as amounts before eliminations.
Does an affiliate need a separate information report?
An information report, Form 05-102 or Form 05-167, must be filed for each affiliate organized in Texas or with a physical presence in Texas.
Where can I learn more about Texas franchise tax?
The form directs readers to www.comptroller.texas.gov/taxes/franchise/.