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Taxes and IRS Information

  • Federal Excise Tax

    In order to claim the Federal excise tax exemption, an exemption certificate must be on file with the vendor and the certificate must be renewed at least every three years. Some vendors will request an updated certificate annually. Read more about this policy in the Busines Manual.

    For further information or assistance, please contact Ree Cooley (desirec@clemson.edu) 656-5603 in Accounting Services.

  • Research and Development Tax

    Equipment used 50% or more directly and exclusively for research and development purposes may be exempt from sales and use tax. A Research and Development Sales/Use Tax Exemption Form must be completed for P-Card purchases, approved and attached with the supporting documentation to support the exemption. When using buyWays, check the R&D box and add an internal note that gives a brief description of the R&D activity for which the equipment will be used and the workflow will capture the approval.

    If you have questions, please contact Accounting Services for further clarification.

  • Sales/Use Tax

    Sales tax is imposed on the sale of goods and certain services in South Carolina . Generally, all retail sales are subject to the sales tax. Statewide the sales tax is 6%, however counties may elect to impose an additional 1% local sales tax. Effective, June 1, 2007 the statewide sales tax is 6%. Read more about this policy in the Business Manual.

  • Other Tax Informtion

    Federal Excise Tax
    Federal Tax Exemption Determination Letter (PDF)

    Tax Identification Number:

    Clemson University is an agency of the State of South Carolina
    Federal Tax Identification Number: 57-6000254

    Unrelated Business Income Tax

    Policy

    Annual Filing
    Clemson University annually files an Unrelated Business Income Tax Return (Form 990-T) based on its fiscal year ending June 30. The Comptroller’s Office is responsible for reviewing the University activities and accounts and consults with staff to identify activities that may meet the Internal Revenue Service criteria as unrelated business income. The Comptroller’s Office files the Unrelated Business Income Tax Return for Clemson University.

    Revenue Review
    The Comptroller’s Office reviews new revenue sources for their potential to be unrelated business income (UBI). The revenue sources that were reported on the 990-T in the previous year are assessed to help ensure that they should continue to be reported as UBI. Other ways in which UBI is determined is through being aware of activities occurring on campus by reading Inside Clemson and other local announcements or advertisements (radio, newspaper, bill boards, etc.)

    State

    Federal Excise Tax
    Research & Development Tax
    Sales/Use Tax

    Federal Government Links

    Internal Revenue Service
    SC Department of Revenue

  • Withholding Tax

    Based on South Carolina Department of Revenue Code Sections 12-8-540 and 12-8-550, when a department utilizes the services of a Non SC Resident individual or business to perform personal services within the State of SC, Clemson University may be required to withhold a percentage of the payment.

    Withholding is not required if the Non Resident taxpayer submits to Clemson University an I-312 form (PDF) that certifies the Vendor is registered with either the SC Secretary of State or the South Carolina Department of Revenue or if the total payments to the Vendor do not meet certain minimum amounts (as noted below).

    Click here to register with the State of South Carolina.

    If the Vendor does not provide Clemson University with a completed I-312 form and the designated amounts are exceeded, the following percentages must be withheld from the Vendor payment.

    Paying Contractors
    The South Carolina Department of Revenue Code Section 12-8-550 requires persons hiring or contracting with a Non Resident (not a resident of SC) taxpayer to withhold 2% of each payment made to the nonresident where the payments under the contract exceed $10,000 or could reasonably be expected to exceed $10,000.

    Paying Rents Or Royalties
    Code Section 12-8-540 requires persons making payment to a Non Resident taxpayer of rentals or royalties for SC properties at a rate of $1,200 or more a year to withhold 7% of the total of each payment made to a Non Resident taxpayer who is not a corporation and 5% if the payment is made to a corporation.

    How To Process A Withholding Payment:

    Enter a Voucher in CUBS, select the CU business unit.

    Documentation for Voucher:

    • Signed contract
    • Approved Contract Review Form from CU Risk Management
      (This form may be obtained from E309 Martin Hall, 656-3354)

    For Example:  If $20,000 is to be paid to a non-resident individual or business and they did not have an I-312 form, $400 would be paid to CU Payroll Account on a voucher and $19,600 would be paid to the individual or business.

    Example of Voucher:

    Charge to your chartfield, not the example, but always use account 2457 for the 2% Withholding Liability.

    Withholding tax

  • Sales/Use Tax Discussion
  • Sales Tax Rate by Zip Code
  • Tax Forms
    • Vendor W9 (PDF)
    • W-8BEN (PDF) — Foreign Individuals
    • W-8EXP (PDF) — Foreign Government or or Other Foreign Organization fo United States Tax Withholding Exempt Organizations
    • W-ECI (PDF) - Foreign Company or Individual That Income is Effectively Connected with the Conduct