(A) A trust or estate making a distribution of South Carolina taxable income to a nonresident beneficiary must withhold seven percent of the beneficiary's distribution which is attributable to South Carolina taxable income. The amounts withheld must be remitted to the department at the time estimated tax payments are due.
(B) This section does not apply to a:
(1) trust that is exempt from taxation under Internal Revenue Code Section 501;
(2) nonresident beneficiary who is exempt from taxation under Internal Revenue Code Section 501; or
(3) nonresident beneficiary who agrees to be subject to the jurisdiction of the department and the courts of this State to determine South Carolina tax liability, including estimated taxes and related interest and penalties. The agreement is not an admission of tax liability.
HISTORY: 1995 Act No. 76, Section 2; 1998 Act No. 387, Section 1.
Structure South Carolina Code of Laws
Chapter 8 - Income Tax Withholding
Section 12-8-510. Parties subject to withholding laws.
Section 12-8-520. Incomes subject to withholding and amounts to be withheld.
Section 12-8-1010. Withholding exemptions and exemption certificates.
Section 12-8-1020. Change in exemptions; decrease.
Section 12-8-1040. Waiver of withholding requirements.
Section 12-8-1060. Estimated quarterly payments by employer of withholding.
Section 12-8-1510. Inapplicability of article's provisions to withholding.
Section 12-8-1520. Withholding agents' duties to deposit and pay withholdings.
Section 12-8-1530. Quarterly returns; agent to continue to file reports until certain events occur.
Section 12-8-1540. Agents shall furnish statements to taxpayers and department; contents.
Section 12-8-2010. Liability of agent failing to withhold or pay tax.