What gives a business income tax nexus with South Carolina?
To determine whether Income Tax nexus exists, the SCDOR must consider all activities that the company is performing in South Carolina, as well as all relationships and transactions occurring within South Carolina. For more information, see
Revenue Ruling 16-11.
What gives a business Sales & Use Tax nexus with South Carolina?
To determine whether Sales Tax nexus exists, the SCDOR must consider all activities that the company is performing in South Carolina as well as all relationships within South Carolina. For more information, see
Revenue Ruling 14-4.
What should a business do if they have nexus, but have not filed tax returns? Is there a voluntary program?
Non-compliant taxpayers having a filing requirement but not filing may be subject to taxes, penalties and interest for periods of ten years or more. Accordingly, such a taxpayer should contact the SCDOR and request consideration for the
Voluntary Disclosure Program.
What is de minimis?
De minimus means that a violation of a law or rule is so small that it is immaterial and should be ignored. This is determined by looking at all of the taxpayer's in-state connections and activities, not focusing on each factor individually.
Once established, how long does Income Tax nexus last?
Nexus determinations are made on a fiscal year by year basis.
Is there a way to see if a business has nexus in South Carolina?
Out of state businesses who need help determining compliance with South Carolina filing requirements should complete the nexus questionnaire
NX-100 and return it to the Nexus Section. Please include a cover letter explaining your need for nexus determination.
Can a business file and pay online?
A business can register and open tax accounts online using our secure tax portal,
MyDORWAY. Returns for nexus purposes or for the voluntary filer program must be filed directly with the Nexus/VDA Section.
If an out-of-state seller does not have nexus, and is not required to file returns, who owes the Use Tax?
When the seller does not have nexus, the Use Tax liability rests with the South Carolina purchaser. However, as a convenience to customers who are concerned with the potential for a Use Tax audit, the out-of-state seller may wish to voluntarily register to collect and remit the Use Tax. In this case, the seller will be provided a discount of up to $10,000 per fiscal year. (All other filers have a $3,000 per fiscal year discount cap.)
