Recipients may claim the oil and gas proceeds withholding tax paid against personal or corporate income tax due. On the PIT-1 general return for individuals, or on the CIT-1 corporate income tax return, report the amount withheld. Attach the annual statement of...
Oil and Gas Proceeds Witholding Tax
Is a pass-through entity that has had income withheld from its oil and gas proceeds required to deduct and withhold from similar income distributed to a nonresident owner’s share of net income?
A pass-through entity is not required to deduct and withhold oil and gas proceeds from a nonresident owner’s share of net income under the Oil and Gas Proceeds Withholding Tax Act.
The effective date of legislation requiring withholding from oil and gas proceeds from wells located in New Mexico is October 1, 2003. Withholding is required from any payment made after the effective date regardless of sales/production date.
If any single payment is more than $10, the remitter must withhold. The remitter is not prohibited, however, from withholding if the amount is less than $10.