Who May File. Subject to the provisions under §§B and C of this regulation, a pass-through entity doing business in this State that pays tax on behalf of nonresident members as required under Tax-General Article, §10-102.1(b)(2)(i), Annotated Code of Maryland, may file a composite return on behalf of all or some of its nonresident members. A pass-through entity doing business in this State and electing to pay tax with respect to the distributive or pro rata shares of all members under Tax-General Article, §10-102.1(b)(2)(ii), Annotated Code of Maryland, is not permitted to file a composite return on behalf of any member. Due Date. A composite return shall be filed by the due date for the filing of an information return under COMAR 03.04.07.03A. Nonresident Qualifications. Nonresident members may not be included in a composite return unless: They are individuals; They elect in writing to the pass-through entity to be included in the composite return; Their only source of income in Maryland is from the pass-through entity filing the composite return; They agree that the Maryland taxable income reported on the composite return shall be taxed at a rate which is the sum of: The top marginal State income tax rate for individuals under Tax-General Article, §10-105(a), Annotated Code of Maryland; and The rate of tax imposed under Tax-General Article, §10-106.1, Annotated Code of Maryland; They agree that the pass-through entity is acting as their agent for the following purposes: Filing an income tax return on their behalf; Receipt of any refund; and Payment of any tax due; They are members of a pass-through entity that pays tax on behalf of nonresident members as required under Tax-General Article, §10-102.1(b)(2)(i), Annotated Code of Maryland; and They have no modifications to income other than the modification required as a result of Maryland's decoupling from the additional depreciation allowance and special 5-year net operating loss carryback provisions that may be claimed on a composite return and, for tax years 2020 and 2021, the subtraction of a coronavirus relief payment under Tax-General Article, §10-207(jj), Annotated Code of Maryland. Requirements for Filing. Statement of Verification. The composite return shall contain a statement signed by an authorized official of the pass-through entity verifying that the nonresident individuals included in the return qualify under §B of this regulation. Tax Rate. The Maryland taxable income reported on the composite return shall be taxed at a rate which is the sum of: The top marginal State income tax rate for individuals under Tax-General Article, §10-105(a), Annotated Code of Maryland; and The rate of tax imposed under Tax-General Article, §10-106.1, Annotated Code of Maryland. The composite return shall contain a schedule which includes: A statement showing the percentage of stock ownership or shares in the pass-through entity of each nonresident member; The total income of the pass-through entity and the amount attributable to Maryland sources; The name, address, and Social Security number or federal identification number of each nonresident member; The filing status of each nonresident member; The distributive income allocable to Maryland for each nonresident member; The allowable exemptions for each nonresident member, which equal the total of allowable exemptions for a resident multiplied by a fraction: The numerator of which is the nonresident taxable income as defined in COMAR 03.04.07.01; and The denominator of which is the distributive or pro rata share of pass-through entity income as defined in COMAR 03.04.07.01B(2) and (9); The amount of the standard deduction of each nonresident member which equals the maximum standard deduction allowed a resident having the same filing status multiplied by a fraction: The numerator of which is the nonresident taxable income as defined in COMAR 03.04.07.01; and The denominator of which is the distributive or pro rata share of the pass-through entity income as defined in COMAR 03.04.07.01B(2) and (9); The taxable income of each nonresident member; The income tax liability of each nonresident member using the top marginal State income tax rate for individuals under Tax-General Article, §10-105(a), Annotated Code of Maryland; The additional tax liability of each nonresident member using the tax rate under Tax-General Article, §10-106.1, Annotated Code of Maryland; The amount of taxes paid on behalf of the nonresident member; The balance of tax due which shall be paid in full with the filing of the composite tax return; and The amount of any refund. Credit for Taxes Paid Other States. Credit for taxes paid other states is not permitted on the composite return. Signature. Partnership. A general partner shall sign the composite return. S Corporation. The president or other authorized officer of the S corporation shall sign the composite return. Limited Liability Company. An authorized member of the limited liability company shall sign the composite return. Effect of Filing a Composite Return. The filing of a composite return on behalf of nonresident members is considered the return of each nonresident member included in the return.