nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends
 

FAQ Articles

Are there any exceptions to the withholding requirement?

An S corporation does not have to withhold North Dakota income tax from a nonresident shareholder’s distributive share of North Dakota income if:

  1. The distributive share for the taxable year is less than $1,000; or
  2. In lieu of filing the North Dakota individual income tax return by the nonresident shareholder elects to be included in a composite filing by the S corporation.
  3. The nonresident shareholder is a passthrough entity and elects to exempt its distributive share of North Dakota income from withholding.  This election is made on Form PWE and remains in effect until it is revoked by the nonresident passthrough entity.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

Are there any exceptions to the withholding requirement?

An S corporation does not have to withhold North Dakota income tax from a nonresident shareholder’s distributive share of North Dakota income if:

  1. The distributive share for the taxable year is less than $1,000; or
  2. In lieu of filing the North Dakota individual income tax return by the nonresident shareholder elects to be included in a composite filing by the S corporation.
  3. The nonresident shareholder is a passthrough entity and elects to exempt its distributive share of North Dakota income from withholding.  This election is made on Form PWE and remains in effect until it is revoked by the nonresident passthrough entity.

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