How do governments tax the income of non-residents?

In South Carolina, non-residents may be subject to taxation on any income they receive from sources within the state. The taxation rate and the type of income assessed depends on the international tax law of the country the non-resident is coming from. Generally, income earned from real or tangible property located within South Carolina is taxable to the non-resident. For example, rental income for a property or a gain from a sale of a property located within the state may be subject to taxation. Income from business activities conducted within South Carolina may also be taxable. This includes income from contracts, wages, or other payments made by a South Carolina business for services provided by a non-resident. South Carolina also has a provision to tax of non-residents who are employees of South Carolina corporations or a part of their board of directors. Royalties from patents, copyrights, or trademarks are subject to taxation for non-residents. Additionally, all types of investment income sourced in South Carolina are taxable for non-residents. These may include dividends, interest, and capital gains. Overall, South Carolina’s international tax law requires that all non-resident income that is sourced in the state is subject to taxation. The rates and types of income assessed varies depending on individual circumstances and where the non-resident is coming from.

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How do governments tax the income of non-residents?

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