Income tax withholding on nonresident members

# (a)

The withholding tax requirements of Arkansas Code § 26-51-919 are not applicable to the share of income of a business entity for a taxable year that is distributed to a nonresident member if the:

# (1)

Members of the business entity elect to be taxed as an affected business entity under the Elective Pass-Through Entity Tax Act, Arkansas Code § 26-65-101 et seq.; and

# (2)

Election to be taxed as an affected business entity is made on or before the time for filing a return under this part.

# (b)

The requirement to withhold income tax from the share of income of the business entity that is distributed to a nonresident member shall continue to apply for any taxable year for which the members of the business entity do not elect to be subject to the pass-through entity tax.

# (c)

The provisions of this section do not affect the obligation of the business entity to withhold income tax on the payment of wages.

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In this chapter (9 sections)

133-101 · Citation
133-102 · Definitions
133-103 · Election
133-104 · Pass-through entity tax return and payment
133-105 · Calculation of pass-through entity tax
133-106 · Members
133-107 · Income tax withholding on nonresident members
133-108 · Annual prepayments
133-109 · Application of Arkansas Tax Procedure Act

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