IMPORTANT TAX NOTICE - NONRESIDENTS ONLY.pdf
PDF 179 KB Posted
- Solicitation number
- CCU-9300617
- Issued by
- South Carolina
About this file
This document is an official tax notice from CCU Procurement Services regarding South Carolina state tax withholding requirements for nonresident contractors. The notice details specific regulations under Sections 12-8-550 and 12-8-540 of the South Carolina Code of Laws, which mandate that entities hiring or contracting with nonresident businesses performing temporary services within South Carolina must withhold a percentage of payments made to those nonresidents.
The withholding requirements include a 2% withholding for nonresident businesses conducting temporary work in South Carolina, with several exemptions such as contracts under $10,000 annually, purchases of tangible property without accompanying services, and nonresidents who register with the S.C. Department of Revenue or Secretary of State. Additional provisions specify 7% withholding for nonresident taxpayers receiving rental or royalty payments over $1,200 annually (or 5% for corporate payments). The document provides contact information for the South Carolina Department of Revenue for further questions and directs nonresidents to submit a Nonresident Taxpayer Registration Affidavit (Form I-312) to entities making payments.
View the file
Other files
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
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
File details come from the government source that posted it. Updated .