Form I 312 PDF Details

Understanding the nuances of compliance for nonresidents conducting business or performing temporary services in South Carolina is vital, and the I-312 form plays a crucial role in this process. This important tax document falls under the umbrella of the South Carolina Code of Laws, specifically section 12-8-550, which stipulates a withholding requirement of 2% on payments made to nonresidents. However, there are specific exemptions to this rule, such as purchases not accompanied by services within the state, non-business activities, contracts under $10,000, and for those who register and submit the Nonresident Taxpayer Registration Affidavit, Form I-312. Moreover, payments exceeding $1,200 a year for property use or rental are subject to a separate withholding rate, emphasizing the need for careful attention to these regulations. Government entities and other organizations making payments to nonresident contractors must navigate these guidelines to ensure compliance. Additionally, understanding the broader withholding requirements and ensuring proper registration with the appropriate state departments is essential for any nonresident taxpayer or entity hiring them. This notice aims to shed light on these requirements and the critical steps nonresidents and hiring entities must undertake, such as submitting the I-312 form, to comply with South Carolina's tax laws.

QuestionAnswer
Form NameForm I 312
Form Length3 pages
Fillable?No
Fillable fields0
Avg. time to fill out45 sec
Other namesi312, htm, South_Carolina, informational

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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.

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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.

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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.

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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 803-898-5383.

(Please note that vendor registration does not substitute for any obligation to register with the S.C. Secretary of State or S.C. Department of Revenue. You can register with the agencies at http://www.scbos.com/default.htm.)

http://www.sctax.org/NR/rdonlyres/21452DFB-804D-4B02-9C26-2E4FBA482D44/0/i312.pdf

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