ATTM 001 IMPORTANT NOTICE - NONRESIDENTS ONLY.docx
DOCX document 25 KB Posted
- Attached to
- BABYNET IDEA PART C
- Solicitation number
- 5400018456
- Issued by
- Richland County, South Carolina
About this file
This is a tax notice attachment for the South Carolina BABYNET IDEA Part C state and local contract opportunity, issued by the State of South Carolina. The document outlines mandatory withholding requirements applicable to nonresident contractors and service providers working on state contracts in South Carolina. The notice specifies that entities making payments to nonresidents must withhold 2% of each payment for individuals conducting business or performing temporary personal services within the state, unless specific exemptions apply. Exemptions include payments for tangible personal property without accompanying services, contracts not exceeding $10,000 annually, nonresidents not conducting business in South Carolina, and nonresidents who register with the South Carolina Department of Revenue or Secretary of State and submit a Nonresident Taxpayer Registration Affidavit (Form I-312).
The document additionally addresses rental and royalty payments, requiring 7% withholding for nonresident individuals and 5% for corporations when annual payments reach $1,200 or more for property use in South Carolina. The withholding requirement applies to all governmental entities (Using Entities) that make payments under the contract, and nonresidents must submit a separate Form I-312 affidavit to each Using Entity. 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. Inquiries regarding registration should be directed to the South Carolina Department of Revenue License and Registration Section at 803-898-5872, while withholding questions should be directed to the Withholding Section at 803-896-1420 or the Department's website at https://dor.sc.gov.
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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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