North Dakota Nonresident Passthrough Entity Member Withholding Exemption & Certification

Nonresident Passthrough Entity Member Withholding Exemption & Certification
Form PWE - Nonresident Passthrough Entity Member Withholding Exemption and Certification (2023)
NONRESIDENT PASSTHROUGH ENTITY MEMBER
WITHOLDING EXEMPTION AND CERTIFICATION
OFFICE OF STATE TAX COMMISSIONER

Form PWE

SFN 28754 (12-2023)

Part 1 - Nonresident PTE member information
Federal Employer Identification Number*

Nonresident PTE Member Name
Mailing Address

State

City
Contact Name

Telephone Number

ZIP Code

Email Address

Entity type - Indicate how the entity is filing for federal income tax purposes by checking the appropriate box:
Partnership
S corporation
Trust
Grantor trust*
Disregarded entity*
*If "Grantor trust" or "Disregarded entity" is checked, identify Settlor or Owner in boxes below.
Name of Settlor/Owner

Federal Employer Identification Number*

Part 2 - Passthrough entity information
Federal Employer Identification Number*

Entity Name
Mailing Address

State

City
Contact Name

Telephone Number

ZIP Code

Email Address

Entity type - Indicate how the entity is filing for federal income tax purposes by checking the appropriate box:
Partnership
S corporation
Trust
Grantor trust*
Disregarded entity*
*If "Grantor trust" or "Disregarded entity" is checked, identify Settlor or Owner in boxes below.
Name of Settlor/Owner

Federal Employer Identification Number*

Part 3 - Nonresident PTE member election and certification for exemption
Pursuant to N.D.C.C. § 57-38-31.1, the nonresident PTE member (in Part 1) elects exemption from income tax witholding on its
North Dakota distributive share of income from the passthrough entity (in Part 2), starting with the following tax year:
Calendar year ______

Fiscal year beginning _______________, ______

and ending _____________, ______

This election remains in effect for all subsequent tax years until revoked.
Certification - The nonresident PTE member (in Part 1) certifies that it will file any return and pay any tax required under
N.D.C.C. ch. 57-38 and that it is subject to North Dakota's jurisdiction for the collection of the tax, and any applicable penalty and
interest, on its North Dakota distributive share of income from the passthrough entity (in Part 2).

Part 4 - Nonresident PTE member revocation of exemption
The nonresident PTE member (in Part 1) revokes the election and certification made on a Form PWE previously given to the
passthrough entity (in Part 2). This revocation is effective beginning with the following tax year:
Calendar year ______

Fiscal year beginning _______________, ______

and ending _____________, ______

Part 5 - Nonresident PTE member signature
I declare, under penalty of perjury, that this form is correct and complete to the best of my knowledge and belief.
Printed Name of Authorized Representative of Nonresident PTE Member

Title

Signature of Authorized Representative

Date Signed

*Privacy Act - See instructions

Form PWE
SFN 28754 (12-2023), Page 2

Instructions to
Form PWE
Purpose of form
Under North Dakota Century
Code (N.D.C.C.) § 57-38-31.1, a
passthrough entity is required to
withhold North Dakota income tax
from a nonresident member’s North
Dakota distributive share of income.
A nonresident member that is a
passthrough entity (nonresident
PTE member) may elect to exempt
its North Dakota distributive share
of income from this withholding
requirement. The election is made
on Form PWE.

General instructions
To elect exemption from North
Dakota income tax withholding on
its North Dakota distributive share
of income from a passthrough entity,
a nonresident PTE member must
complete Form PWE and submit it to
the passthrough entity on or before
the last day of the passthrough
entity’s tax year for which the
election is to take effect.
A “nonresident PTE member”
means a passthrough entity with a
commercial domicile outside North
Dakota that owns an interest in, or
is a beneficiary of, a passthrough
entity that is subject to the
withholding requirement under
N.D.C.C. § 57-38-31.1. Commercial
domicile refers to the location of
the principal office from which
the entity’s activities are normally
managed or directed.
A “passthrough entity” means
a general partnership, limited
partnership, limited liability
partnership, limited liability
limited partnership, S corporation,
trust, grantor trust, limited
liability company not taxed as
a C  corporation, and any other
similar entity not taxed at the entity
level for North Dakota income tax
purposes.

An election remains in effect until
it is revoked by the nonresident
PTE member. The election does not
affect the nonresident PTE member’s
requirement to file a North Dakota
income tax return and pay any tax
due on its North Dakota distributive
share of income.

Instructions for nonresident
PTE member
Complete Form PWE as instructed
below and submit it to the
passthrough entity on or before the
last day of the passthrough entity’s
tax year. To make (or revoke) an
election with respect to more than
one passthrough entity, a separate
Form PWE must be completed and
given to each one. Keep a copy of
the completed Form PWE for your
records.
Making the election. To make the
election, complete Parts 1, 2, 3,
and 5. Do not complete Part 4. In
Part 3, specify the tax year the
election is to take effect. If you
and the passthrough entity have
different tax years, specify the tax
year of the passthrough entity for
which the election is to take effect.
The election remains in effect until
you revoke it.
Revoking the election. To
revoke a previously made election,
complete Parts 1, 2, 4, and 5. Do
not complete Part 3.
Entity type. For purposes of the
entity type in Parts 1 and 2, the
following apply:
 If the entity is a limited liability
company, check the box
corresponding to how it is filing
for federal income tax purposes.
 If “Grantor trust” or “Disregarded
entity” is checked, provide the
name and social security number
(or FEIN) of the trust’s settlor or
entity’s owner.

Instructions for passthrough
entity
If you receive a Form PWE from a
nonresident PTE member, do the
following:

1. Check to see that all applicable
items on the form are filled in and
that the information in Part 2 is
correct.
2. Do not withhold North Dakota
income tax on the nonresident
PTE member’s North Dakota
distributive share of income
starting with the tax year
specified in Part 3.
3. On your North Dakota income
tax return filed for each tax year
the election is in effect, fill in
the circle under “Form PWA or
Form PWE” for the nonresident
PTE member on the applicable
schedule as follows—
 If filing Form 38 (fiduciary
return), see Schedule BI,
Column 6.
 If filing Form 58 (partnership
return), see Schedule KP,
Column 7.
 If filing Form 60 (S corporation
return), see Schedule KS,
Column 7.
4. Attach a copy of the Form PWE
to your North Dakota income
tax return for each tax year the
election is in effect. Keep the
original signed Form PWE for your
records.
Revocation. If you receive a
Form PWE revoking a previously
made election, you must withhold
North Dakota income tax from the
nonresident PTE member’s North
Dakota distributive share of income
starting with the tax year specified
in Part 4.

Need assistance?
Phone: 701-328-1247
Speech or hearing impaired:
800-366-6888 (Relay ND)
Email: [email protected]
Website: www.tax.nd.gov
Privacy Act Notification. In compliance
with the Privacy Act of 1974, disclosure of a
social security number or Federal Employer
Identification Number (FEIN) on this form is
required under N.D.C.C. §§ 57-01-15 and
57-38-31.1, and will be used for tax reporting,
identification, and administration of North
Dakota tax laws. Disclosure is mandatory.
Failure to provide the social security number or
FEIN may delay or prevent the processing of
this form.