IMPORTANT TAX NOTICE - NONRESIDENTS ONLY.pdf
PDF 179 KB Posted
- Solicitation number
- CCU-9300818
- Issued by
- South Carolina
About this file
Summary of Tax Notice
This is an Important Tax Notice document issued by Coastal Carolina University Procurement Services regarding South Carolina's nonresident withholding tax requirements applicable to the commercial-grade Kelsan cleaning equipment solicitation. The notice outlines mandatory withholding obligations for payments to nonresidents conducting business or performing temporary personal services within South Carolina under Section 12-8-550 of the South Carolina Code of Laws. Nonresidents subject to the solicitation must be aware that a standard 2% withholding requirement applies to all payments unless specific exemptions are met. Exemptions from withholding include payments for tangible personal property without accompanying 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 a Nonresident Taxpayer Registration Affidavit (Form I-312) to the Using Entity.
The withholding requirement applies to all governmental entities utilizing contracts under this solicitation, and nonresidents must submit a separate Form I-312 to each Using Entity making payments on the contract. Additionally, Section 12-8-540 establishes separate withholding requirements for rental or royalty payments of $1,200 or more annually, requiring 7% withholding for nonresident individuals and 5% for corporations. Bidders should direct all registration inquiries to the South Carolina Department of Revenue's License and Registration Section at 803-898-5872 or the Registration Unit in Columbia, and direct withholding questions to the Withholding Section at 803-896-1420 or visit www.sctax.org for additional information and required forms.
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Other files
| File | Type | Posted |
|---|---|---|
| CCU-9300818 Provide and Deliver Kelsan Cleaning Equipment.pdf | ||
| 1440123-event.pdf |
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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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