A qualified remittee is a person who receives oil and gas proceeds from New Mexico wells and who is not a resident of New Mexico. As proof of a New Mexico residence, the Taxation and Revenue Department (TRD) will accept a New Mexico address provided by the remittee as...
Withhold at the top personal income tax bracket rate, which is 4.90% of payments made after January 1, 2008. Please see Form RPD-41284, Quarterly Oil and Gas Proceeds Withholding Tax Return for current rates.
Acceptable proof of redistribution of oil and gas proceeds includes – but is not limited to – written notification from a recipient, or such internal documentation as signed division orders showing that the recipient must make payments to another person.
The United States of America, the State of New Mexico and any agencies, instrumentalities or political subdivisions of either government are not qualified, nor are 501(c)(3) nonprofit organizations. The payer does not need to withhold from oil and gas proceeds paid to...
Submit Form RPD-41284, Quarterly Oil and Gas Proceeds Withholding Tax Return with payment on or before the 25th day of the month following the close of the calendar quarter in which tax was withheld.
For tax years beginning January 1, 2011, Form RPD- 41283, Annual Summary of Oil and Gas Proceeds Withholding Tax, is no longer required to be mailed to the Department. Form RPD-41283 should be completed and retained by the remitter. Form RPD-41283 reconciles the total...
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...
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.