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Major Vermont Taxes

Business Entity/Income Tax
This tax applies to S-Corporations, Partnerships, and Limited Liability Companies that elect to be taxed as partnerships or S-Corporations. The business entity income attributable to Vermont passes through to the shareholder, partner or member. These businesses file form BI-471 , and generally, a minimum entity tax of $250 is due.

Additional Vermont tax may be required at the corporate tax rates on certain income that is taxed at the entity level under the Internal Revenue Code, such as “built in gains”.

Income of S Corporations, Partnerships and Limited Liability Companies attributable to Vermont passes through to the shareholder, partner, or member and is taxed at the individual or corporate income tax rate, depending whether the ultimate recipient taxable in Vermont is an individual or corporation. Each member, shareholder, or partner must file a Vermont income tax return.

A business entity must make estimated income tax payments on behalf of its non-Vermont resident shareholders, members or partners for income attributable to Vermont. Use VT Form WH-435 to make the non-Vermont resident payments. The entity cannot delegate the requirement to make the WH-435 payments to the non-Vermont resident. These payments will be distributed pro-rata to non-Vermont-resident owners, in proportion to income allocable to them. These payments can also be applied to the composite return, if that election is made.

Entities may voluntarily choose to file a composite return, and pay income tax on the entity level on behalf of – eligible individuals consenting to be included. Starting with tax year 2013, composite filing will become mandatory for certain pass-through entities with more than 50 non-Vermont-resident owners. Further administrative advice is currently under development.

Forms and Instructions are available here.



E-Mail the Corporate and Business Income Tax Unit
 

Tax Types :
- Business Entity Income Tax
- Cigarette and Tobacco Taxes
- C Corporation Income Tax
- Estate and Gift Taxes
- Fiduciary Tax
- Franchise Tax
- Fuel Gross Receipts / Petroleum Distributor
- Health Care Claims Assessment/Tax
- Individual Income Tax
- Land Gains and Real Estate Withholding
- Meals and Rooms Tax
- Motor Vehicle Tax
- Property Tax
- Property Transfer Tax
- Sales and Use Tax

 
Vermont Department of Taxes, 133 State Street, Montpelier, Vermont 05633-1401