Can a contractor provide an affirmation or other statement that it will satisfy its income tax filing requirement and be exempt from withholding?
No. The only exceptions to withholding are those identified in the Exceptions to Withholding section of Directive PD-98-3. A contractor that qualifies for one of the exceptions to withholding is still subject to North Carolina income tax on the compensation received for services performed in North Carolina and must file the appropriate North Carolina income tax return to report the compensation.
Related Questions
- Can a contractor provide an affirmation or other statement that it will satisfy its income tax filing requirement and be exempt from withholding?
- May such agents or agencies use their underwriters’ filed closing fees? If they can, are they exempt from the above closing fee filing requirement?
- Who is exempt from filing electronically? To which documents does the requirement apply?
