Alaska imposes no pass-through entity tax, PTE election, composite return, or nonresident owner withholding; Form 6900 is an information return

# Summary

Alaska has not adopted an elective pass-through entity tax, and it operates none of the related nonresident-owner mechanisms. For tax year 2025:

• There is no Alaska pass-through entity tax (PTET) and therefore no PTET rate.
• There is no PTE election and therefore no PTE election deadline.
• There is no Alaska composite return for nonresident owners.
• There is no Alaska nonresident owner withholding on distributive shares.

The reason is structural rather than legislative inaction. A PTET exists to move tax off the owner's individual return so the payment escapes the federal cap on deducting state and local taxes. Alaska imposes no individual income tax at all — AS 43.20.012(a)(1) — so there is no owner-level Alaska liability to shift, nothing for a composite return to consolidate, and no distributive share to withhold against.

Two things a reader should not conclude from this: that a pass-through has no Alaska filing obligation, and that no annual fee applies. Both are addressed below.

# PTE tax rate — none exists

There is no Alaska pass-through entity tax rate, because there is no Alaska pass-through entity tax. No rate, bracket, or percentage applies at the entity level to a partnership, LLC, or S corporation on its distributive income.

The only Alaska net income tax rate is the corporate rate schedule in AS 43.20.011(e), which runs from zero on taxable income under $25,000 to $10,830 plus 9.4 percent of income over $222,000. That rate applies to a corporation's own taxable income under Form 6000. It is not a pass-through entity rate and does not apply to a partnership as such.

# PTE election and election deadline — none exists

There is no Alaska pass-through entity tax election, so there is no election deadline, no election form, no election consent requirement, no annual versus binding election distinction, and no revocation procedure.

Form 6900, the Alaska Partnership Information Return, contains no entity-level tax election. Its instructions describe an information return and a Schedule K-1 reporting distributive shares; they do not describe an election because there is no regime to elect into.

# Composite return — none exists

Alaska has no composite return. A partnership, LLC, or S corporation cannot file a single Alaska return on behalf of its nonresident individual owners, because those owners have no Alaska income tax liability to be consolidated.

There is correspondingly no composite filing election, no composite return form, no minimum participation requirement, and no composite tax rate.

# Nonresident owner withholding — none exists

Alaska imposes no withholding on a nonresident owner's distributive share of pass-through income. There is no nonresident withholding rate, no waiver or exemption certificate, no nonresident owner agreement, and no entity-level remittance obligation on behalf of an owner.

An individual partner is outside AS 43.20 entirely under AS 43.20.012(a)(1), whether resident or nonresident, so there is no liability against which withholding could be credited.

AS 43.20.141 does address the source of a nonresident partner's income, providing that effect may not be given to a partnership agreement provision that characterizes payments to a partner in specified ways. That sourcing rule operates inside AS 43.20, so it matters for a partner that is subject to the chapter — a corporate partner — and creates no obligation for an individual partner.

# Annual fee — no entity-level franchise tax, but a $50 business license fee applies

This one is not a pure absence, and answering it "none" would be wrong.

Alaska imposes no annual franchise tax, no capital-based fee, and no partnership or LLC annual fee measured by income or capital under Title 43.

But AS 43.70.020 requires that, "[f]or the privilege of engaging in a business in the state, a person shall first apply ... and obtain a license, and pay the license fee provided for in AS 43.70.030," and AS 43.70.030(a) sets that fee: "The fee for each business license is $50 a year, except that the fee is $25 if the business is a sole proprietorship and the sole proprietor is (1) 65 years of age or older ... or (2) a disabled veteran." A license issued to a firm for a particular line of business covers all its operations in the state regardless of the number of establishments. This reaches partnerships and LLCs doing business in Alaska.

Separately, Alaska entities file biennial reports with the Department of Commerce, Community, and Economic Development under Title 10, with their own fees. That is a corporations-division filing rather than a tax filing, and it is outside this corpus; check the current fee with DCCED.

# What a pass-through entity does file — Form 6900

A pass-through with Alaska activity can have a real Alaska filing obligation, and the trigger is the composition of its owners.

The Form 6900 instructions state: "A partnership or an LLC treated as a partnership for tax purposes ... which conducts business in the state (also known as having 'nexus' with the state) is required to file Form 6900. If all of the partners or LLC members ... are natural persons or are effectively treated as natural persons, the partnership is not required to file Form 6900. The partnership must file Form 6900 if any partner is a corporation or another partnership."

Alaska treats as "effectively natural persons" those partners that report their income, deductions, and credits directly on a federal individual income tax return — including trusts — as well as tax-exempt organizations not required to file an Alaska return.

So the rule is broader than the statute alone suggests: AS 43.20.030(a) names a corporation as a partner, while the instructions add another partnership. A partnership whose partners are all individuals and trusts files nothing; a partnership with one corporate or partnership partner files Form 6900 and issues Form 6900, Schedule K-1.

Form 6900 is an information return. It reports and allocates income; it does not impose an entity-level tax.

# Coverage and verification

This determination covers tax year 2025 and was verified on 2026-08-18 against the Alaska Department of Revenue's 2025 Form 6900 instruction booklet and against Alaska Statutes Title 43, both ingested in this library.

It asserts the absence of four things — a PTE tax and rate, a PTE election and deadline, a composite return, and nonresident owner withholding — and the presence of two: the Form 6900 information return obligation, and the $50 annual business license fee under AS 43.70.030. It makes no assertion about DCCED biennial report fees under Title 10, about local taxes under Title 29, or about the other Title 43 taxes (fisheries, mining, oil and gas, excise) that can reach an entity regardless of its federal classification.