Menu
Tax Notes logo

South Carolina Again Extends Tax Relief for Businesses With Remote Workers

Dated Dec. 22, 2021

Citations: SC Information Letter No. 21-31

SUMMARY BY TAX ANALYSTS

The South Carolina Department of Revenue announced that it has extended from December 31, 2021, to March 31, 2022, the temporary relief regarding a business's establishment of nexus solely because an employee is working temporarily in a different location as a result of COVID-19.

The relief was initially effective from March 13, 2020, through September 30, 2020, and has been extended several times, most recently to December 31, 2021.

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:

December 21, 2021; Effective from March 13, 2020 – March 31, 2022

MODIFIES:

SC Information Letter #21-22

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 first effective from March 13, 2020 through September 30, 2020, and extended by SC Information Letters #20-24, #20- 29, and #21-8. SC Information Letter #21-22 further extended the relief until December 31, 2021.

The Department is announcing that the relief set forth in SC Information Letter #20-11 will be extended through March 31, 2022.

The full text to 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.

Copy RID