The Massachusetts Department of Revenue has released an emergency regulation 830 CMR 62B.2.3: Motion Picture Production Company Withholding. This regulation “establishes and explains the requirements of motion picture production companies to withhold Massachusetts personal income tax on payments to independent contractors and loan-outs for services rendered in Massachusetts.” The regulation provides information in the following areas:
- Statement of Purpose; Outline of Topics
- Registration and Reporting Obligations of a Production Company; Qualification for the Credit
- Withholding and Reporting Requirements as Prerequisites for Credit Qualification; Loan-Out Filing Requirements
- Personal Income Credit against Taxes; Reporting Requirements
- Coordination with Other Withholding Requirements
- Effective Date
Since the regulation was issued as an emergency regulation, it is effective immediately and requires withholding on covered payments made after February 17, 2010. A transition rule allows certain waivers issued before February 18, 2010 to remain in effect for the duration of the production for which the waiver was issued. Contact Vision Payroll if you have any questions on 830 CMR 62B.2.3.