Business Entity Income Tax

The business entity income tax applies to S-Corporations, Partnerships, and Limited Liability Companies that elect to be taxed as partnerships or S-Corporations. The income of S-Corporations, Partnerships and Limited Liability Companies attributable to Vermont passes through to the shareholders, partners, or members and is taxed at the individual or corporate income tax rate.  Each shareholder, partner, or member must also file a Vermont Income Tax return.


Due Dates

If the listed due date falls on a weekend or holiday, the due date is the following business day.

   
Income Tax Return Due on the date established for filing under the Internal Revenue Code.  
Extension Business entities holding Federal extensions may file thirty days after the extended Federal due date.  Any tax due, including the Vermont minimum tax, must be paid by the original due date of the return.
Nonresident Withholding Estimated Payment Due on the 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the subsequent year. For calendar year entities, these dates are normally April 15th, June 15th, September 15th, and January 15th.
Composite Filing Estimated Payment Due on the 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the subsequent year. For calendar year entities, these dates are normally April 15th, June 15th, September 15th, and January 15th.


Income Tax Returns

BI-471, Business Income Tax Return
Most business entities will file Form BI-471 - Business Income Tax Return. Generally, a minimum tax of $250 is due.  Additional forms and schedules may be required.

BI-476, Business Income Tax Return (For Resident Only) – Short Form
Business entities owned exclusively by Vermont residents, with income and loss deriving only from Vermont, may file the simplified Form BI-476, Business Income Tax Return (For Resident Only). The Vermont minimum entity tax of $250 must be paid with the return. The BI-476 may be filed and the tax paid using myVTax, our free, secure, online filing site. 

If you cannot file and pay through myVTax, you may still use the paper form.

Extensions

Business entities holding Federal extensions may file thirty days after the extended Federal due date. These business entities must file Form BA-403, Application for Extension of Time to File Vermont Corporate/ Business Income Tax Return, by the original return due date. An extension of time to file does not extend the time to pay the tax due. Any tax due must be paid by the original due date of the return.

Nonresident Withholding

WH-435, Estimated Income Tax Payments For Nonresident Shareholders, Members or Partners
Business entities must make estimated income tax payments on behalf of their shareholders, members or partners for income attributable to Vermont.   These payments are remitted quarterly on Form WH-435, Estimated Income Tax Payments For Nonresident Shareholders, Members or Partners. Entities cannot delegate the requirement to make WH-435 payments to the Vermont nonresident.  If composite filing is mandated or elected, the payments will be applied to the entity’s composite return.

Composite Filing 

Business entities may elect to file a composite return, and pay income tax at the entity level on behalf of all owners who are nonresidents of Vermont. Beginning with the tax year 2013, composite filing became mandatory for pass-through entities with more than 50 non-resident shareholders, partners, or members.   Owners who are included in a composite return are relieved of the obligation to file their own income tax return, provided there is no other income or activity that creates a requirement to file in Vermont.

Entities filing a composite return must make estimated income tax payments.  Use Form WH-435, Estimated Income Tax Payments For Nonresident Shareholders, Members or Partners.

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Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Office Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

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