Microsoft Wins Refund on Repatriated Income at Oregon Tax Court

Microsoft Corp. is entitled to a partial refund of the nearly $17 million it paid in Oregon income tax to account for repatriated earnings, the Oregon Tax Court ruled in an opinion posted Monday.

Microsoft can include 20% of its $159 billion in gross foreign dividends from repatriation when calculating how much of its income is taxable in Oregon compared to other states, Judge Robert T. Manicke ruled. The court rejected the company’s arguments that more of the repatriated income already subjected to foreign taxation should be included, but rejected the Oregon Department of Revenue’s argument that no amount ...