Okla. Admin. Code § 710:50-17-4 – Federal limitations on taxation of foreign corporations

(a) Under Federal law a state may not impose its income tax on a business selling tangible personal property, if the only activity of that business is the solicitation of orders by its salesman or representative which orders are sent outside the state for approval or rejection, and are filled by delivery from a point outside the state. The activity must be limited to solicitation. If there is any activity which exceeds solicitation, the immunity from taxation is lost.
(b) Immunity from income taxation by states under Federal law does not extend to:
1. (1) Those businesses which sell services, real estate or intangibles in more than one state;
2. (2) Domestic Corporations;
3. (3) Foreign nation corporations, i.e., those not incorporated in the United States.
(c) If the only activities in Oklahoma of a corporation selling tangible personal property are those described below, the corporation is not subject to Oklahoma Income Taxes.
1. (1) Usual or frequent activity in Oklahoma by employees or representatives soliciting orders for tangible personal property, which orders are sent outside this state for approval or rejection.
2. (2) Solicitation activity by non-employee independent contractors, conducted through their own office or business location in Oklahoma. [See: 15 U.S.C.A. §381]