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South Carolina Department of Revenue

Columbia, SC 29214-0004
Phone: 803-898-5000



  • Code § 12-8-550 requires persons hiring or contracting with a nonresident taxpayer to withhold 2% of each payment made to the nonresident under the contract that exceeds $10,000. However, this section does not apply to payments on purchase orders for tangible personal property when those payments are not accompanied by services to be performed in this state.
  • Code § 12-8-540 requires persons making payment to a nonresident taxpayer for rentals or royalties, at a rate of $1,200 or more a year for the use of/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
    • 5% of the total of each payment made to a nonresident taxpayer that is a corporation
  • Code § 12-8-570 requires trusts or estates making distribution of South Carolina taxable income to a nonresident beneficiary to withhold 7% of the beneficiary's distribution that is attributable to South Carolina taxable income.
  • A person is not required to withhold taxes for a nonresident taxpayer who submits an affidavit (Form I-312) certifying that they are registered with either the South Carolina Secretary of State or the South Carolina Department of Revenue. That nonresident taxpayer has agreed to be subject to the jurisdiction of the Department and the courts of South Carolina to determine it's South Carolina tax liability, including withholding and estimated taxes, along with any related interest and penalties.



Form I-312 is not mailed to the SCDOR. It is retained by the company or individual hiring or contracting with the nonresident taxpayer. 

Due Dates:

The monies withheld for 2% Non-Resident Contractor withholding should be included with all other reported employer withholdings and be deposited according to the withholding agents regular deposit schedule.