Income/Franchise:
Virginia Department of Taxation Issues Guidance on Pass-Through Entity Tax
Public Document No. 24-1, Va. Dept. of Tax. (1/4/24). The Virginia Department of Taxation issued final guidelines explaining legislation enacted in 2022 and 2023 allowing certain pass-through entities to make an annual election to pay an elective income tax at a rate of 5.75% at the entity level, including making the election available to pass-through entities with owners that are corporations or pass-through entities [see H.B. 1456 / S.B. 1476, signed by gov. 3/27/23, and previously issued Multistate Tax Alert for more details on this 2023 legislation]. The guidance addresses the requirements to qualify for Virginia’s pass-through entity tax election, how to make the election, estimated payment requirements and other tax compliance-related matters. Please contact us with any questions.
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