Back to top 14. Withholding is not required and waivers are not needed for distributions to entities exempt from tax under either California or federal law. The partnership may rely on a signed statement from the partner stating it is exempt from tax. Back to top 15. California generally conforms to IRC Section 1446.
Partnerships withhold using California's highest tax rate.
Back to top 16. Back to top 17. Payment of the withholding amounts for foreign partners is due in four equal installment payments during the taxable year in which the California source income is derived. The due dates are the same as the federal, on or before the 15th day of the fourth, sixth, ninth, and twelfth months of the partnership's tax year for income tax purposes. Back to top 18.