                                 CODE OF VIRGINIA

SPECIAL CASES IN WHICH NONRESIDENT NEED NOT FILE VIRGINIA RETURN (§ 58.1-342)

A. A nonresident of Virginia who had no actual place of abode in this
Commonwealth at any time during the taxable year and commuted on a daily basis
from his place of residence in another state to his place of employment in
Virginia is hereby relieved of filing an income tax return with this
Commonwealth for that taxable year provided:

   1. His only income from Virginia sources was from salaries and wages;

   2. Such salaries and wages were subject to income taxation by the state of his
   residence under an income tax law substantially similar in principle to this
   chapter;

   3. The laws of such other state contain a provision substantially similar in
   effect to that contained in &#xA7; 58.1-332 and applicable to residents of
   Virginia; and

   4. The laws of such other state accord like treatment to a resident of this
   Commonwealth who commuted on a daily basis from his place of residence in
   Virginia to his place of employment in such other state.

B. The Department may enter into reciprocal agreements with other states to
exempt nonresidents from the Virginia income tax if such other states similarly
exempt Virginia residents. Under such reciprocal agreements nonresidents are not
required to pay tax or file a return with, nor be subject to withholding by, the
reciprocating state on compensation paid in that state or on income distributed
by a trust domiciled in that state.

HISTORY: Code 1950, § 58-151.063; 1971, Ex. Sess., c. 171; 1982, c. 528; 1984,
c. 675; 1998, c. 352.