Attachment B.docx
DOCX document 19 KB Posted
- Attached to
- SCDJJ PROMOTIONAL ITEMS
- Solicitation number
- 5400027870
- Issued by
- Richland County, South Carolina
About this file
This is a tax notice document from the South Carolina Department of Revenue regarding withholding requirements for nonresident contractors and businesses operating in South Carolina. The document outlines mandatory 2% withholding requirements for payments made to nonresidents conducting temporary business or performing personal services in South Carolina. It applies to all governmental entities using contracts with nonresident contractors.
The notice details specific exemptions from withholding, including payments for tangible personal property without associated services, nonresidents not conducting business in South Carolina, contracts under $10,000 per calendar year, and registered nonresidents who submit Form I-312. Additionally, it specifies withholding rates of 7% for nonresident taxpayer rentals or royalties paid to non-corporations and 5% for corporations when payments exceed $1,200 annually for property use in South Carolina.
View the file
Other files
Show all 36
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
IMPORTANT TAX NOTICE - NONRESIDENTS ONLY
Withholding Requirements for Payments to Nonresidents: Section 12-8-550 of the South Carolina Code of Laws requires persons hiring or contracting with a nonresident conducting a business or performing personal services of a temporary nature within South Carolina to withhold 2% of each payment made to the nonresident. The withholding requirement does not apply to (1) payments on purchase orders for tangible personal property when the payments are not accompanied by services to be performed in South Carolina, (2) nonresidents who are not conducting business in South Carolina,
(3) nonresidents for contracts that do not exceed $10,000 in a calendar year, or (4) payments to a nonresident who (a) registers with either the S.C. Department of Revenue or the S.C. Secretary of State and (b) submits a Nonresident Taxpayer Registration Affidavit - Income Tax Withholding, Form I-312 to the person letting the contract.
The withholding requirement applies to every governmental entity that uses a contract ("Using Entity"). Nonresidents should submit a separate copy of the Nonresident Taxpayer Registration Affidavit - Income Tax Withholding, Form I-312 to every Using Entity that makes payment to the nonresident pursuant to this solicitation. Once submitted, an affidavit is valid for all contracts between the nonresident and the Using Entity, unless the Using Entity receives notice from the Department of Revenue that the exemption from withholding has been revoked.
Section 12-8-540 requires persons making payment to a nonresident taxpayer of rentals or royalties at a rate of $1,200.00 or more a year for the use of or for the privilege of using property in South Carolina to withhold 7% of the total of each payment made to a nonresident taxpayer who is not a corporation and 5% if the payment is made to a corporation. Contact the Department of Revenue for any applicable exceptions.
For information about other withholding requirements (e.g., employee withholding), contact the South Carolina Department of Revenue at 1-844-898-8542 or visit the Department's website at: dor.sc.gov
This notice is for informational purposes only. This agency does not administer and has no authority over tax issues. All registration and withholding tax questions should be directed to the South Carolina Department of Revenue at 1-844-898-8542. Additional contact information can be found by visiting the Department's website at dor.sc.gov
PLEASE SEE THE "NONRESIDENT TAXPAYER REGISTRATION AFFIDAVIT INCOME TAX WITHHOLDING" FORM (FORM NUMBER I-312) LOCATED AT: dor.sc.gov
[09-9005-5]
File details come from the government source that posted it. Updated .