Replacement of the Qualifying PTE Requirement with an Eligible Owner Requirement

Under legislation enacted by the 2023 General Assembly, changes were made to Virginia’s Pass-Through Entity Tax (PTET) that relaxed the requirements to qualify for the PTET election and altered how the PTET is calculated. This bulletin provides guidance on how to reconcile this legislation with 2022 Virginia PTET returns.

Details about the changes can be found in Tax Bulletin 23-3the Tax Bulletin

If you have additional questions, go to www.tax.virginia.gov, or contact us at 804.367.8031 for individual income tax questions and 804.367.8037 for business tax questions.