PA-20S/PA-65 Schedule CP: 2025 PA Schedule CP - Corporate Partner CNI Withholding (PA-20S/PA-65 CP) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania Schedule CP is used by partnerships to calculate corporate net income tax withholding for nonfiling C corporation partners. It reports the partner’s income, losses and deductions from federal Schedule K-1, income apportioned to Pennsylvania, and withholding remitted
Who files this form
Partnerships complete Schedule CP to determine Pennsylvania corporate net income tax withholding for nonfiling corporate partners that are C corporations required to file Form RCT-101, PA Corporate Net Income Tax Report.
Complete a separate Schedule CP for each noncompliant corporate partner. The text defines a noncompliant corporate partner as a corporation that has not filed RCT-101 and paid corporate net income tax for the previous taxable year.
Schedule CP is not required for compliant corporate partners who file RCT-101, and withholding is not calculated for those partners.
What you'll need
Have these forms and details ready:
- The corporate partner’s federal Form 1065 Schedule K-1, which supplies the income, loss and deduction amounts.
- A completed PA-20S/PA-65 Schedule H-Corp, which supplies the Pennsylvania apportionment percentage. Complete it before Schedule CP.
- The corporation’s name, nine-digit FEIN, address, profit-sharing percentage, loss-sharing percentage, capital ownership percentage and date it became a partner.
- The partnership’s name, nine-digit FEIN, address and date it began doing business in Pennsylvania.
- A statement supporting any other income, loss or deductions entered on Line 12.
- A separate statement with the complete foreign address if it will not fit in the form’s address spaces.
How to file
- File Schedule CP with Form PA-65 Corp, Directory of Corporate Partners.
- Send a copy of Schedule CP to the corporate partner for filing its RCT-101.
- Also provide each corporate partner with a copy of PA-20S/PA-65 Schedule H-Corp.
The supplied text does not specify a mailing address or an e-file method.
Common mistakes
- Using Schedule CP for individual partners. Do not submit nonresident individual partner withholding payments with this schedule. It is only for C corporation nonfiler withholding.
- Preparing Schedule CP for compliant partners. Schedule CP is only required for noncompliant corporate partners.
- Leaving corporate partners off the directory. Partnerships that are 100 percent corporate-owned must list all corporate partners on PA-65 Corp, whether compliant or not.
- Omitting certain foreign earnings from Line 12. Include income subject to the Repatriation Transition Tax that is reported on the federal Schedule K-1 Other income line.
- Ignoring foreign address standards. Use uppercase letters, enter only the country name in the city field, enter “OC” in the state field and leave the ZIP code blank. Incorrect formatting may delay correspondence needed to process the return.
Questions people ask
How is the withholding calculated for 2025?
Add Lines 1 through 12 and enter the total on Line 13. Enter the Schedule H-Corp apportionment percentage on Line 14. Multiply Line 13 by Line 14 for Line 15. If Line 15 is greater than zero, multiply it by the 2025 corporate rate of 0.0799 and enter the result on Line 16.
What if the amount calculated for Line 15 is a loss?
Enter zero on Line 15.
Can the partnership adjust federal Schedule K-1 income?
Yes. The partnership is permitted to adjust federal Form 1065 Schedule K-1 income for expenses or deductions. Withholding is based on federal Schedule K-1 income only.
What does Line 16 mean for the corporate partner?
Line 16 shows the corporate net income tax withholding remitted by the issuing partnership on the corporation’s behalf.