Important Tax Notice for Non Residents.pdf
PDF 45 KB Posted
- Solicitation number
- CCU-9300822
- Issued by
- South Carolina
About this file
This is a tax notice document issued by CCU Procurement Services for the State of South Carolina, establishing withholding requirements applicable to nonresident contractors and service providers. The notice outlines the regulatory framework under South Carolina Code Section 12-8-550, which mandates that entities contracting with nonresidents performing temporary business or personal services within the state must withhold 2% of each payment. Specific exemptions apply to purchases of tangible personal property unaccompanied by in-state services, nonresidents not conducting business in South Carolina, contracts not exceeding $10,000 annually, and nonresidents who register with either the South Carolina Department of Revenue or Secretary of State and submit the required Nonresident Taxpayer Registration Affidavit (Form I-312). The withholding requirement applies to all governmental entities using contracts under this solicitation, and nonresidents must submit a separate affidavit copy to each Using Entity; once submitted, the affidavit remains valid for all contracts between the nonresident and that entity unless revoked by the Department of Revenue.
A separate withholding requirement under South Carolina Code Section 12-8-540 applies to payments for rentals or royalties at $1,200 or more annually, requiring 7% withholding for nonresident individuals and 5% for corporations. The notice is informational only and does not constitute tax administration by the issuing agency. Nonresidents and contracting entities should direct registration questions to the South Carolina Department of Revenue at 803-898-5872 or the Registration Unit in Columbia, and withholding questions to the Withholding Section at 803-896-1420. The complete Form I-312 is available through the South Carolina Department of Revenue website at www.sctax.org/forms/withholding/i-312-form.
View the file
Other files
| File | Type | Posted |
|---|---|---|
| Avoiding Common Submission Mistakes.pdf | ||
| CCU-9300822_Amendment 1.pdf | ||
| Amendment #2 CCU 9300822.pdf | ||
| RFQ CCU-9300822 Cleanroom Repair_2.pdf | ||
| 1445202-event.pdf |
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Text version
CCU Procurement Services (rev. Sept 2026)* Page 1 of 1
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:
www.sctax.org
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: SC Tax Withholding Form http://www.sctax.org/forms/withholding/i-312-form http://www.sctax.org/forms/withholding/i-312-form
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