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.

The Business Entity Income Tax is usually $250. 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 Corporation, Partnership and Limited Liability Company attributable to Vermont passes through to the shareholder, partner, or member and is taxed at the individual income tax rate. Each member, shareholder, or partner must file a Vermont income tax return.

For taxable years beginning January 1, 2007, entities may voluntarily choose to file a composite return, and pay income tax on the entity level on behalf of the individuals consenting to be included.

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. The entity uses
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. Since these are
estimated payments, an administrative "safe harbor" and "catch-up payment" procedure has been established.

Vermont Technical Bulletin 5 -
Information on Composite Returns and WH-435 payments.

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
- 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