26 CAR § 133-107. 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.