(a) The withholding tax requirements of Ark. Code Ann. § 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:
(1) The members of the business entity elect to be to be taxed as an affected business entity under the Elective Pass-Through Entity Act; and
(2) The election to be taxed as an affected business entity is made on or before the time for filing a return under these rules.
(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.
Credits
Adopted Nov. 28, 2022.
Authority. Ark. Code Ann § 26-18-301; Ark. Code Ann. § 26-51-919(e); Ark. Code Ann. § 26-65-103; Ark. Code Ann. § 26-65-105.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.523-VII, AR ADC 006.05.523-VII
