ATTM 001.pdf
PDF 144 KB Posted
- Attached to
- THIRD PARTY CONSULTING SERVICES State and local contract opportunity
- Solicitation number
- 5400023278
- Issued by
- Richland County, South Carolina
About this file
This attachment provides a tax notice from the State of South Carolina regarding withholding requirements for nonresident contractors performing services within the state. The document applies to all governmental entities in South Carolina that engage contractors through this solicitation for third-party consulting services. The notice outlines the mandatory 2% withholding requirement on payments to nonresidents conducting business or performing temporary personal services in South Carolina, with specific exemptions for tangible personal property purchases without accompanying services, nonresidents not conducting business in South Carolina, contracts not exceeding $10,000 annually, and nonresidents who register with the South Carolina Department of Revenue or Secretary of State and submit Form I-312.
Additionally, the notice specifies a separate 7% withholding requirement (or 5% for corporations) for payments to nonresidents of rentals or royalties at rates of $1,200 or more annually for property use privileges in South Carolina. Nonresident contractors must submit a separate copy of the Nonresident Taxpayer Registration Affidavit—Income Tax Withholding (Form I-312) to each Using Entity making payments under this solicitation. Once submitted, the affidavit remains valid for all contracts between the nonresident and the Using Entity unless the Department of Revenue revokes the withholding exemption. The notice directs inquiries regarding registration to the License and Registration Section at 803-898-5872 and withholding questions to the Withholding Section at 803-896-1420, emphasizing that the contracting agency has no authority over tax administration matters.
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Other files for this state and local contract opportunity
| File | Type | Posted |
|---|---|---|
| Amendment 1.docx | DOCX document | |
| ATTM 010.xlsm | XLSM spreadsheet | |
| Award Posting Notice.docx | DOCX document | |
| ATTM 002.pdf | ||
| Amendment 2.docx | DOCX document | |
| Revised ATTM 005_ (1).docx | DOCX document | |
| ATTM 006.pdf | ||
| ATTM 003.pdf | ||
| ATTM 009.pdf | ||
| Solicitation Document.docx | DOCX document | |
| ATTM 011 Q & A.xlsx | XLSX spreadsheet | |
| ATTM 004.pdf |
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Text version
ATTACHMENT 001
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 Withholding Section at the South Carolina Department of Revenue at 803-898-5383 or visit the Department's website at: https://dor.sc.gov
This notice is for informational purposes only. This agency does not administer and has no authority over tax issues. All registration questions should be directed to the License and Registration Section at 803-898- 5872 or to the South Carolina Department of Revenue, Registration Unit, Columbia, S.C. 29214-0140. All withholding questions should be directed to the Withholding Section at 803-896-1420.
PLEASE SEE THE "NONRESIDENT TAXPAYER REGISTRATION AFFIDAVIT INCOME TAX
WITHHOLDING" FORM (FORM NUMBER I-312) LOCATED AT: https://dor.sc.gov/forms-site/Forms/I312_05182015.pdf
[09-9005-3]
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