The Act provides for changes in the income taxation of nonresident members of resident limited partnerships. A nonresident member of a resident limited partnership which derives income exclusively from buying, selling, dealing in, or holding securities on its own behalf, not as a broker, is not required to include on his or her individual return his or her distributed shares, whether distributed or not, of the net income of the partnership for the taxable year. Such net income is not considered taxable income. The same type of nonresident member of a resident limited partnership is also not subject to a withholding tax.
REVENUE AND TAXATION Income Taxes: Provide for Non Income Taxation and No Withholding Tax on the Distributive Share of a Nonresident Member of a Resident Limited Partnership Which Derives Income Exclusively from Buying, Selling, Dealing in, and Holding Securities on its Own Behalf,
Ga. St. U. L. Rev.
Available at: https://readingroom.law.gsu.edu/gsulr/vol14/iss1/5