Tax Type
Employer Income Tax Withholding
Description
Nonresident actors
Topic
Persons Subject to Tax
Date Issued
05-23-1984
May 23, 1984
Dear **************
Enclosed is a policy memorandum discussing the income and withholding tax liability of nonresident actors and film crew members.
Please let me know if we can be of further assistance.
Sincerely,
W. H. Forst
State Tax Commissioner
Policy Memorandum
SUBJECT: Income and Withholding Tax Liability of
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- Nonresident Actors and Film Crew Members:
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DATE: May 23, 1984
A nonresident of Virginia is any individual who maintains a place of abode in Virginia for 183 or fewer days during the taxable year and who is domiciled in some jurisdiction other than Virginia. Nonresident actors and film crew members have liability for state income and withholding tax, as set forth below.
State Income Tax. A nonresident actor or crew member who is engaged in shooting a film in Virginia is deemed to have income from carrying on a business, trade, profession or occupation in Virginia, and therefore is subject to Virginia income tax and must file a nonresident return. The requirement to file and pay does not apply if the Virginia adjusted gross income for the taxable year is less than $3,000 (or a combined total of $3,000 in the case of a nonresident and spouse). (Virginia adjusted gross income means federal adjusted gross income for the taxable year with certain additions and subtractions set forth in the Virginia Code.)
A nonresident's Virginia taxable income with respect to his/her income from Virginia sources would be determined as follows: the nonresident's Virginia taxable income (computed as if he/she were a resident), would be multiplied by the ratio of his/her net income, gain, loss and deductions from Virginia sources to his/her net income, gain, loss and deduction from all sources.
Withholding. An employer is required to withhold tax from wages paid to an individual, whether a Virginia nonresident or resident, who performs or performed any service in Virginia for wages. However, withholding is not required from remuneration paid for acting in or service as a member of the crew of a (i) motion picture feature film, (ii) television series or commercial, or (iii) promotional film filmed totally or partially in Virginia by an individual or corporation which conducts business in Virginia for fewer than 90 days of the tax year and when such film, series or commercial is processed, edited and marketed outside Virginia. Immediately after filming in Virginia, the individual or corporate business must file with the State Tax Commissioner a list of the names and social security account numbers of each actor or crew member who is a Virginia resident and is compensated by the business.
This policy memorandum can be relied upon unless and until rescinded by regulation or ruling signed by the State Tax Commissioner.
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner