PWE: Form PWE - Nonresident Passthrough Entity Member Withholding Exemption & Certification (2025)
North Dakota · ND Tax Commissioner · Used for tax years 2025
North Dakota Form PWE lets a nonresident passthrough entity member elect or revoke an exemption from withholding on its North Dakota distributive share of income from another passthrough entity. It identifies both entities and records the effective tax year. The exemption does no
Who files this form
A nonresident member that is itself a passthrough entity uses Form PWE to elect exemption from North Dakota income tax withholding on its North Dakota distributive share of income. The election is optional. The form also lets the member revoke a previous election.
To qualify as a nonresident PTE member, the entity must have its commercial domicile outside North Dakota and own an interest in, or be a beneficiary of, a passthrough entity subject to the withholding requirement. Commercial domicile is the principal office where the entity’s activities are normally managed or directed.
The exemption does not remove any requirement to file a North Dakota income tax return or pay tax due.
When it's due
Submit Form PWE to the passthrough entity on or before the last day of the passthrough entity’s tax year for which the election is to take effect.
If the member and passthrough entity have different tax years, enter the passthrough entity’s tax year in Part 3.
What you'll need
Have the following information ready:
- Names, mailing addresses, FEINs, contact names, email addresses, and telephone numbers for the nonresident PTE member and the passthrough entity.
- Each entity’s classification for federal income tax purposes.
- The settlor’s or owner’s name and Social Security number or FEIN if an entity is a grantor trust or disregarded entity.
- The calendar year or fiscal-year beginning and ending dates when the election or revocation will take effect.
- The authorized representative’s printed name, title, signature, and date signed.
How to file
For the nonresident PTE member
- To elect the exemption, complete Parts 1, 2, 3, and 5. Leave Part 4 blank.
- To revoke an election, complete Parts 1, 2, 4, and 5. Leave Part 3 blank.
- Submit the completed form to the passthrough entity identified in Part 2. Complete a separate form for each passthrough entity.
- Keep a copy for your records.
For the passthrough entity receiving the form
Check that all applicable items are completed and Part 2 is correct. Stop withholding starting with the tax year in Part 3. For a revocation, resume withholding starting with the tax year in Part 4.
For each year the election is in effect, fill in the circle under “Form PWA or Form PWE” on the applicable return schedule:
- Form 38: Schedule BI, Column 6.
- Form 58: Schedule KP, Column 7.
- Form 60: Schedule KS, Column 7.
Attach a copy of Form PWE to the North Dakota income tax return each year the election is in effect. Keep the original signed form.
Common mistakes
- Completing both election and revocation parts. Use Part 3 for an election or Part 4 for a revocation, not both.
- Using the member’s tax year when the entities have different tax years. Part 3 must use the passthrough entity’s tax year.
- Using one form for multiple passthrough entities. Give a separate Form PWE to each entity.
- Treating the exemption as an exemption from tax. Required returns and tax payments still apply.
- Leaving out a required tax identification number. The privacy notice warns that missing Social Security numbers or FEINs may delay or prevent processing.
- Forgetting the annual attachment. The receiving passthrough entity must attach a copy to its North Dakota income tax return each year the election remains in effect.
Questions people ask
Do I need to renew the election each year?
No. The election remains in effect until the nonresident PTE member revokes it.
Does Form PWE eliminate my North Dakota tax obligations?
No. The member certifies that it will file any required return and pay any required tax. It also agrees that North Dakota has jurisdiction to collect the tax and any applicable penalty and interest on the income.
Which entity-type box should an LLC check?
Check the box that matches how the LLC files for federal income tax purposes.
Where can I get help?
Call 701-328-1247 or email individualtax@nd.gov. People with speech or hearing impairments can use Relay ND at 800-366-6888.