Sc Sch Td-1 - Deferred Income Taxes Sc Sch Td-1 3257 For South Carolina (Page 2 of 2) in pdf

GENERAL INSTRUCTIONS

For tax years beginning after 12-31-85, taxpayers, except Domestic International Sales Corporations (DISC) or Foreign

Sales Corporations, may elect to defer South Carolina Income Taxes attributable to the increase in Gross Income from

Foreign Trading Receipts.

"Foreign Trading Receipts" means receipts from invoices issued by a seller directly to an unrelated purchaser

outside the United States from:

(a)

the sale, exchange, or other disposition of export property outside the United States;

(b)

the lease or rental of export property that is used by the leasee outside the United States;

(c)

the performance of services that is related and subsidiary to the sale, exchange, lease, rental, or other

disposition of export property outside the United States by the South Carolina taxpayer including, but not

limited to, maintenance and training services;

(d)

the performance of engineering, architectural, or consulting services for projects located outside the United

States.

A portion of the tax on Foreign Trading Receipts may be deferred as long as the base amount does not exceed five million

dollars and the taxpayer pays interest annually on the aggregate deferred tax at the "base period T-bill rate". Tax on

Foreign Trading Receipts may NOT be deferred if the taxpayer intentionally ceases exporting property or after three

taxable years in which the taxpayer has no Gross Income from Foreign Trading Receipts.

The interest is due on the date the taxpayer is required to file the annual return without regard to any extension, but no

interest is due on amounts deferred for less than an entire taxable year. If the taxpayer fails to pay interest as required,

then all deferred taxes are due and payable on the annual return filing date.

The payment of deferred tax is due no later than the tax return filing date of the fifth tax year, following the taxable year for

which the tax was first deferred.

Example: Tax deferred in 2004 is due with the tax return filed in 2009. Deferred taxes may be paid at an

accelerated rate. Failure to pay deferred taxes when due renders the taxpayer ineligible to defer payment

of taxes for a subsequent tax year.

On Form SC1120 enter the payment of deferred tax on line 8 or its equivalent and attach a statement. For other returns,

enter the deferred tax on an "other " tax line and label in the dotted line.

SPECIFIC INSTRUCTIONS

Line 1

Foreign Trading Receipts are defined in the General Instructions.

Line 6

Enter the Net Income subject to South Carolina tax from the appropriate tax return. These returns include:

an individual, a corporation, a fiduciary of an estate or trust, a partnership or a limited liability company

(L.L.C.) taxed as either a partnership or a corporation.

Line 7

If a Partnership or S Corporation, or L.L.C. taxed as a partnership DO NOT complete lines 8 - 11 of this

form. The amount on line 7 is the amount of Deferred Income from Foreign Trading Receipts. Partners,

shareholders or members of an L.L.C. taxed as a partnership must be furnished their prorata share of the

Deferred Foreign Trading Receipts.

Line 10

Corporations must use the tax rate provided for form SC1120.

Individuals and Fiduciaries must use the tax rate schedule provided for forms SC1040 or SC1041.

File the original SC SCH TD-1 with your tax return. Taxpayers also are requested to send a copy of SCH TD-1 to the

address below.

South Carolina Department of Revenue

Research and Review

Columbia, SC 29214-0019

32572018

Sc Sch Td-1 - Deferred Income Taxes Sc Sch Td-1 3257 For South Carolina Page 2

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