IMPORTANT TAX NOTICE - NONRESIDENTS ONLY.pdf
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- Solicitation number
- CCU-9300819
- Issued by
- South Carolina
About this file
This is a tax notice document issued by Coastal Carolina University Procurement Services regarding withholding requirements for nonresidents conducting business in South Carolina. The notice applies to all entities using contracts under South Carolina law, specifically in relation to Coastal Carolina University's solicitation for a research-grade Differential Interference Contrast (DIC) compound microscope. The document outlines that Section 12-8-550 of the South Carolina Code of Laws mandates a 2% withholding requirement on payments made to nonresidents performing services of a temporary nature within the state, with specific exemptions for purchases of tangible personal property without accompanying services, nonresidents not conducting business in South Carolina, contracts not exceeding $10,000 in a calendar year, and nonresidents who register with 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 making payments under this contract, and nonresidents must submit a separate copy of Form I-312 to each using entity. Additionally, Section 12-8-540 establishes a 7% withholding requirement for payments to nonresident individuals and 5% for nonresident corporations when rental or royalty payments reach $1,200 or more annually. The document provides contact information for the South Carolina Department of Revenue's Withholding Section (803-898-5383 and 803-896-1420) and License and Registration Section (803-898-5872) for inquiries regarding registration and withholding obligations, and directs contractors to the department's website for Form I-312 and additional information.
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Text version
CCU Procurement Services (rev. Mar. 2020) 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: http://www.sctax.org/forms/withholding/i-312-form http://www.sctax.org/forms/withholding/i-312-form
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