SUBJECT:
Extended Tax Relief — Nexus and Income Tax Withholding Requirements for Employers with Workers Temporarily Working Remotely as a Result of COVID-19 (Income Tax and Sales Tax)
DATE:
November 30, 2020; Effective from March 13, 2020 – June 30, 2021
MODIFIES:
SC Information Letter #20-11
SC Information Letter #20-24
AUTHORITY:
S.C. Code Ann. Section 12-4-320 (2014)
S.C. Code Ann. Section 1-23-10(4) (2005)
SC Revenue Procedure #09-3
SCOPE:
An Information Letter is a written statement issued to the public to announce general information useful in complying with the laws administered by the Department. An Information Letter has no precedential value.
On May 15, 2020, the Department issued SC Information Letter #20-11 to announce temporary relief regarding a business's establishment of nexus (income and sales) solely because an employee is temporarily working in a different work location due to COVID-19 and provided guidance with respect to employer withholding requirements for these employees. The relief was effective from March 13, 2020 through September 30, 2020. SC Information Letter #20-24, issued August 26, 2020, extended the relief until December 31, 2020.
The Department is announcing that the relief set forth in SC Information Letter #20-11 is further extended through June 30, 2021.
The full text of SC Information Letter #20-11 and the relief provided can be found on the Department's Law and Policy page at dor.sc.gov/policy.