ATTM 001.pdf
PDF 99 KB Posted
- Attached to
- Ironscales Licenses
- Solicitation number
- 5400026241
- Issued by
- Richland County, South Carolina
About this file
This is a tax notice document issued by the State of South Carolina regarding nonresident withholding requirements applicable to contract payments. The notice pertains to the Ironscales Licenses procurement opportunity in South Carolina and outlines mandatory withholding obligations for payments made to nonresident contractors and service providers.
The document specifies that South Carolina Code Section 12-8-550 requires contracting entities to withhold 2% of payments made to nonresidents conducting business or performing temporary personal services within the state. Exemptions from withholding apply to: purchases of tangible personal property 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 (Nonresident Taxpayer Registration Affidavit - Income Tax Withholding). Additionally, Section 12-8-540 requires 7% withholding on rental or royalty payments of $1,200 or more annually to individual nonresidents, and 5% for corporate nonresidents, with potential exceptions available through the Department of Revenue. Nonresident contractors must submit a separate Form I-312 to each using entity making payments under this solicitation, and once submitted, the affidavit remains valid for all subsequent contracts between the nonresident and the entity unless the Department of Revenue revokes the exemption. Inquiries regarding withholding requirements, registration, and applicable exceptions should be directed to the South Carolina Department of Revenue at 1-844-898-8542 or via the department's website at dor.sc.gov.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| ATTM 006.docx | DOCX document | |
| Solicitation.doc | DOC document | |
| ATTM 004.docx | DOCX document | |
| ATTM 002.pdf | ||
| ATTM 003.pdf | ||
| ATTM 005.docx | DOCX document | |
| Ironscales Solicitation.pdf |
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Text version
ATTM 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
[09-9005-5]
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