The San Francisco Annual Business Tax Returns include the Gross Receipts Tax, Payroll Expense Tax, Administrative Office Tax, Commercial Rents Tax and Homelessness Gross Receipts Tax. To avoid late penalties/fees, the returns must be submitted and paid on or before March 2, 2020.
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Persons other than lessors of residential real estate must file applicable Annual Business Tax Returns if they were engaged in business in San Francisco in 2019 (as defined in Code section 6.2-12, qualified by Code sections 952.3 (f) and (g)), were not otherwise exempt under Code sections 906 or 954, 2105, and 2805, except as follow:
- They do not need to file a Payroll Expense Tax Return if their taxable payroll expense in the City, computed without regard to the small business tax exemption in Code section 905-A, is less than or equal to $320,000; and
- They do not need to file a Gross Receipts Tax Return if their combined taxable gross receipts in the City, computed without regard to the small business exemption in Code section 954.1, is less than or equal to $1,170,000.
However, persons taking the Biotechnology Exclusion, the Clean Technology Business Exclusion, the Enterprise Zone Tax Credit, the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion, the Central Market Street Limit, or the Credit for Child Care Facilities with respect to the Commercial Rents Tax must file a Return regardless of their payroll expense or gross receipts.
Returns and payments must be transmitted before midnight on March 2, 2020 unless you have received an extension to file by May 1, 2020. Failure to meet these deadlines will result in penalties, interest, and fees.You may request a 60-day extension.
To qualify for a 60-day extension to file your 2019 Return, you must complete and submit a request AND pay 100% of your 2019 Annual Business Tax liability on or before March 2, 2020. If you do not make the required 100% payment by March 2, 2020, or you do not file your Return by May 1, 2020, your Request for Extension to File will be denied and you will be subject to penalties, interest, and fees.
Extension requests will be approved or denied per each tax type requested.
Gross Receipts rates vary depending on a business’s gross receipts and business activity. Taxpayers deriving gross receipts from business activities both within and outside San Francisco must generally allocate and/or apportion gross receipts to San Francisco using rules set forth in Business and Tax Regulations Code Sections 956.1 and 956.2.
This table indicates the tax rate and applicable apportionment and/or allocation methodology for each business activity. The Code is based on the 2012 NAICS classifications. For more information on the 2012 NAICS codes, go to www.census.gov/eos/www/naics.
Use your San Francisco Business Activity, our Allocation and/or Apportionment Worksheets and the SF Gross Receipts Tax Computation Worksheet to determine your San Francisco Gross Receipts Tax obligation.
|Business Activity||0-$1m||$1-$2.5m||$2.5-$25m||$25m +||Calculation Method|
|Retail Trade; Wholesale Trade; and Certain Services||0.075%||0.100%||0.135%||0.160%||Apportionment for Retail Trade and Wholesale Trade is 50% Sale Location and 50% Payroll Expense (Section 953.1(e)) Apportionment for Certain Services is Payroll Expense (Section 953.1(f))|
|Manufacturing; Transportation and Warehousing; Information; Bio-Technology; Clean Technology; and Food Services||0.125%||0.205%||0.370%||0.475%||Apportionment for this section is 50% Real, Personal, Tangible and Intangible Property, and 50% Payroll Expense (Section 953.2(g))|
|Accommodations; Utilities; and Arts Entertainment and Recreation||0.300%||0.325%||0.325%||0.400%||Apportionment for Accommodations is receipts derived from or related to properties located or used in the City (Section 953.3(e)) Apportionment for Utilities is 50% Real, Personal, Tangible and Intangible Property and 50% Payroll Expense (Section 953.3(f)) Apportionment for Arts, Entertainment and Recreation is Payroll Expense (Section 953.3(g))|
|Private Education and Health Services; Administrative and Support Services; and Miscellaneous Business Activities||0.525%||0.550%||0.600%||0.650%||Apportionment for this Section is Payroll Expense (Section 953.4(d))|
|Construction||0.300%||0.350%||0.400%||0.450%||Apportionment for this Section is 50% Real, Personal, Tangible and Intangible Property and 50% Payroll Expense (Section 953.5(c)) In addition, Real, Personal, Tangible and Intangible Property shall be reduced by the amounts paid to a subcontractor in the City. Person must submit itemized deduction list in order to claim. (Section 953.5(c))|
|Financial Services; Insurance; and Professional, Scientific and Technical Services||0.400%||0.460%||0.510%||0.560%||Apportionment for this Section is Payroll Expense (Section 953.6(e))|
|Real Estate and Rental and Leasing Services||0.285%||0.285%||0.300%||0.300%||Apportionment for this Section is receipts derived or related to properties located or used in the City. (Section 953.7 (c))|
You are required to file a return within 15 days of closing your business. Instructions will be available soon.
2008 EZ Payroll Expense Tax Statement and 2009-2010 Registration Form (PDF)
2008 LG Payroll Expense Tax Statement and 2009-2010 Registration Form (PDF)
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