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  • What taxpayers must file an Alabama Business Privilege Tax return?
View All Business Privilege Tax FAQs

What taxpayers must file an Alabama Business Privilege Tax return?

According to the Alabama business privilege tax law, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report. The Business Privilege Tax remains due every registered year until the entity is legally dissolved/withdrawn through Alabama Secretary of State, regardless of whether or not such entity is actively doing business in Alabama.

C-corporations, Financial Institution Groups, insurance companies, REITs, and business trusts must file Alabama Form CPT. Limited liability entities taxed as corporations for federal income tax purposes must also file Alabama Form CPT.
S-corporations, limited liability entities and disregarded entities must file Alabama Form PPT.
Limited liability entity is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, other than a corporation, organized under the laws of this or any other jurisdiction through which business may be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity and which is taxable under subchapter K of the Code, including, without limitation, limited liability companies, registered limited liability partnerships, and limited partnerships
Corporation is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, including a limited liability company electing to be taxed as a corporation for federal income tax purposes, through which business can be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity, other than a limited liability entity or a disregarded entity
“S-corporation” is defined in Section 40-14A-1, Code of Alabama 1975, as: An S corporation defined under Section 40-18-160

For years prior to January 1, 2024, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report. The Business Privilege Tax remains due every registered year until the entity is legally dissolved/withdrawn through Alabama Secretary of State, regardless of whether or not such entity is actively doing business in Alabama.

For taxable years beginning on or after January 1, 2024, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama who would otherwise be subject to the minimum tax due shall be exempt from the privilege tax.

C-corporations, Financial Institution Groups, insurance companies, REITs, and business trusts must file Alabama Form CPT. Limited liability entities taxed as corporations for federal income tax purposes must also file Alabama Form CPT.

S-corporations, limited liability entities and disregarded entities must file Alabama Form PPT.
Limited liability entity is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, other than a corporation, organized under the laws of this or any other jurisdiction through which business may be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity and which is taxable under subchapter K of the Code, including, without limitation, limited liability companies, registered limited liability partnerships, and limited partnerships.

Corporation is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, including a limited liability company electing to be taxed as a corporation for federal income tax purposes, through which business can be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity, other than a limited liability entity or a disregarded entity.

“S-corporation” is defined in Section 40-14A-1, Code of Alabama 1975, as: An S corporation defined under Section 40-18-160.

Related FAQs in Business Privilege Tax

https://www.alabamainteractive.org/sos/

If you have received a business privilege tax delinquency notice from the Alabama Department of Revenue, and you have not filed the required return or made the required payment please do so at this time in order to avoid any further interest and penalties. BPT returns can be filed in MAT (My Alabama Taxes). See “How do I register for MAT?” if you do not have a MAT account. Paper forms can be obtained by clicking on the ADOR Form page. See “How do I find Business Privilege Tax forms on the website?” for step by step instructions of obtaining forms. If you are uncertain if a return was required or filed, please forward a copy of the delinquency notice to your tax professional.

If you believe you received the delinquency notice in error and have filed the required return, please provide a copy of the return and proof of payment after consulting with your tax professional. Attach copies of the return and proof of payment to a copy of the business privilege tax delinquency notice and email to businessprivilege.tax@revenue.alabama.gov or mail the response to:

Alabama Department of Revenue
Income Tax Administration
Business Privilege Tax Section – Delinquency Notice Response
PO Box 327900
Montgomery, AL 36132-7900

Taxpayers must receive an (Online Filing Info) letter to sign up for MAT. Normally after they have registered their business with the Secretary of State, taxpayers will receive their letter within 4-6 weeks from the Alabama Department of Revenue. Once this letter is received, taxpayers need to visit our website https://myalabamataxes.alabama.gov/_/#1. In the left side of the screen you will see username, password, and logon. Beneath that you will see forgot password, forgot username, DON’T HAVE A LOG ON? REGISTER HERE. Taxpayers should click register here. Select: Business Privilege Tax. Then the taxpayer will need to provide the Account number, Sign On ID, and Access Code. This information is located on the (Online Filing Info) letter.

Where do I start?
Click the Home link to go to the summary page you see when you first sign in.
To edit a customer level address:
Click the Names and Addressestab from the customer springboard.
Find the Customer Names & Addresses
To edit an account level address:
Go to the Accounts tab and click the applicable account (i.e. Business Privilege Tax).
Click the Names and Addressestab from the account springboard.
Find the Account Names & Addresses
What do I do?
View an address
Click an address to view it.
Edit an address
Click the Edit
Update the address fields.
Click the Verify Address link to check that it is a valid address. This step is mandatory
Click the Select link next to the verified address (if applicable).
When finished, click the Submit button to submit the request.
A confirmation message appears. Click the Print Confirmation button to print the page, or click OK to continue.

Payment Options

My Alabama Taxes

Pay via Credit/Debit card or ACH online with MyAlabamaTaxes. Billing payments can be made at Pay Bill.

 By Phone

Taxpayer Assistance Group (TAG): To make a credit card payment by phone, please contact the Alabama Department of Revenue Taxpayer Assistance Group at 334-353-8096.

By Mail

Check or money orders may be mailed if the amount owed is less than $750. Attach voucher Form BPT-V and payment. Mail to:

Alabama Department of Revenue
Business Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320