(a) Corporations, partnerships, and LLCs.
- (1) In the case of S corporations, general, limited, or limited liability partnerships, and limited liability companies, withholding at the highest income tax rate levied under Arkansas Code §§ 26-51-201 and 26-51-202 is required on the Arkansas portion of the taxable income distributed to each nonresident member.
- (2) In the case of S corporations paying the tax on behalf of nonresident shareholders or partnerships filing composite returns on behalf of nonresident partners, the nonresident members' withholding can be claimed on the return filed by the S corporation or the partnership.
- (b) Trusts. With regard to trusts, withholding at the highest income tax rate levied under Arkansas Code §§ 26-51-201 and 26-51-202 is required on the Arkansas portion of the taxable income distributed to each nonresident beneficiary of the trust.