Utah updates guidance on pass-through entity withholding

For corporate income tax purposes, the Utah Tax Commission has updated its guidance on pass-through entity withholding. Effective for tax years beginning on or after January 1, 2009, pass-through entities must withhold Utah income tax on income from Utah sources for nonresident individual partners, members and shareholders, and for resident and nonresident nonindividual partners, nonindividual members and nonindividual shareholders. Further, effective for tax years beginning on or after January 1, 2013, estates and trusts are considered pass-through entities if they are required to divide income, gains, losses, deductions, or credits and pass them through to beneficiaries. The guidance explains, among other topics, withholding requirements and calculations, credits, disregarded entities, income subject to withholding, withholding tax rate and due date, reporting, and waiver of withholding tax. (Utah State Tax Commission, Publication 68, September 2018.)

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