ATTM 001.pdf
PDF 30 KB Posted
- Attached to
- FY26 IRONSCALES IFB
- Solicitation number
- 5400028911
- Issued by
- Richland County, South Carolina
About this file
This attachment is a tax notice issued by the State of South Carolina regarding withholding requirements for payments to nonresidents conducting business or performing services in the state. The notice applies to all governmental entities using contracts, including the entity issuing the FY26 IRONSCALES IFB. Section 12-8-550 of the South Carolina Code of Laws requires a 2% withholding on payments to nonresidents performing temporary services within the state, with limited exceptions for contracts not exceeding $10,000 annually, purchases of tangible personal property without accompanying services, nonresidents not conducting business in South Carolina, and nonresidents who register with the S.C. Department of Revenue or Secretary of State and submit Form I-312 (Nonresident Taxpayer Registration Affidavit - Income Tax Withholding). Additionally, Section 12-8-540 requires a 7% withholding on rental or royalty payments of $1,200 or more annually to nonresident individuals and 5% to nonresident corporations.
Nonresidents must submit a separate copy of Form I-312 to each governmental entity making payments under this solicitation, and once submitted, the affidavit remains valid for all contracts between the nonresident and that entity unless the Department of Revenue revokes the withholding exemption. The notice clarifies that this agency does not administer tax matters and directs all registration and withholding questions to the South Carolina Department of Revenue at 1-844-898-8542 or dor.sc.gov. This informational notice is intended to ensure compliance with state tax withholding obligations for the contract opportunity.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| ATTM 005.pdf | ||
| ATTM 004.pdf | ||
| FY26 Ironscales IFB Final.pdf | ||
| ATTM 002.pdf | ||
| ATTM 003.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 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
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