Common use of CALIFORNIA NONRESIDENTS Clause in Contracts

CALIFORNIA NONRESIDENTS. Payments made to service contractors that do not have a permanent place of business in the state of California or that are not qualified through the Office of the Secretary of the State to do business in California are subject to seven percent (7%) state income tax withholding (California Revenue and Taxation Code Section 18662). Types of income subject to withholding include, but are not limited to, payments for services performed in California and payments of leases, rents and royalties for property (real or personal) located in California. No withholding is required on payments for goods. California non-residents that are exempt must complete California Withholding Exemption Certificate, Form 590 (xxxx://xxxxxxxxxxxxxxxx.xxx.xxx/for-suppliers/forms/) in order to exempt California non-residents from this seven percent income tax withholding. This Certificate needs to be submitted with the first invoice to USC. The California Franchise Tax Board may reduce the withholding if the seven percent will result in substantial over-withholding or waive the withholding if the payee has a current history of filing California returns and/or making estimated payments when due. For more information contact: X.X. Xxx 000 Telephone: (000) 000-0000 Xxxxxxxxxx, XX 00000-0000 Fax: (000) 000-0000

CALIFORNIA NONRESIDENTS. Payments made to service contractors Consultants that do not have a permanent place of business in the state of California or that are not qualified through the Office of the Secretary of the State to do business in California are subject to seven percent (7%) state income tax withholding (California Revenue and Taxation Code Section 18662). Types of income subject to withholding include, but are not limited to, payments for services performed in California and payments of leases, rents and royalties for property (real or personal) located in California. No withholding is required on payments for goods. California non-residents that are exempt must complete California Withholding Exemption Certificate, Form 590 (xxxx://xxxxxxxxxxxxxxxx.xxx.xxx/for-suppliers/forms/) in order to exempt California non-residents from this seven percent income tax withholding. This Certificate needs to be submitted with the first invoice to USC. The California Franchise Tax Board may reduce the withholding if the seven percent will result in substantial over-withholding or waive the withholding if the payee has a current history of filing California returns and/or making estimated payments when due. For more information or to request a waiver or reduced withholding rate, contact: X.X. Xxx 000 Telephone: (000) 000-0000 Xxxxxxxxxx, XX 00000-0000 Fax: (000) 000-0000