ARE YOU A RESIDENT OR A NONRESIDENT?
Each corporation, individual/sole proprietor, partnership, estate or
trust doing business with the State of California must indicate
their residency status along with their vendor identification
number.
A corporation will be considered a “resident” if it has a permanent
place of business in California. The corporation has a permanent
place of business in California if it is organized and existing under
the laws of this state or, if a foreign corporation has qualified to
transact intrastate business. A corporation that has not qualified to
transact intrastate business (e.g., a corporation engaged
exclusively in interstate commerce) will be considered as having a
permanent place of business in this state only if it maintains a
permanent office in this state that is permanently staffed by its
employees.
For individuals/sole proprietors, the term “resident” includes
every individual who is in California for other than a temporary or
transitory purpose and any individual domiciled in California who
is absent for a temporary or transitory purpose. Generally, an
individual who comes to California for a purpose which will extend
over a long or indefinite period will be considered a resident.
However, an individual who comes to perform a particular
contract of short duration will be considered a nonresident.
For withholding purposes, a partnership is considered a resident
partnership if it has a permanent place of business in California.
An estate is considered a California estate if the decedent was a
California resident at the time of death and a trust is considered a
California trust if at least one trustee is a California resident.
More information on residency status can be obtained by calling
the Franchise Tax Board at the numbers listed below:
From within the United States, call ………1-800-852-5711
From outside the United States, call ……..1-916-854-6500
From hearing impaired with TDD, call …...1-800-822-6568
ARE YOU SUBJECT TO NONRESIDENT WITHHOLDING?
Payments made to nonresident vendors, including corporations,
individuals, partnerships, estates and trusts, are subject to income
tax withholding. Nonresident vendors performing services in
California or receiving rent, lease or royalty payments from
property (real or personal) located in California will have 7% of
their total payments withheld for state income taxes. However, no
California tax withholding is required if total payments to the
vendor are $1500 or less for the calendar year.
A nonresident vendor may request that income taxes be withheld
at a lower rate or waived by sending a completed form FTB 587
to the address listed below. A waiver will generally be granted
when a vendor has a history of filling California returns and
making timely estimated payments. If the vendor activity is carried
on outside of California or partially outside of California, a waiver
or reduced withholding rate may be granted. For more
information, contact:
Franchise Tax Board
Withhold at Source Unit
Attention: State Agency Withholding Coordinator
P.O. Box 651
Sacramento, CA 95812-0651
Telephone: (916) 845-4900
FAX: (916) 845-4831
If a reduced rate of withholding or waiver has been authorized
by the Franchise Tax Board, attach a copy to this form.
FOREIGN CITIZENS and FOREIGN BUSINESS
Federal tax withholding regulations differ significantly from
California tax withholding requirements. A tax analysis
consultation and additional forms may be required before a
payment can be released.
PRIVACY STATEMENT
Section 7(b) of the Privacy Act of 1974 (Public Law 93-5791) requires that any federal, state, or local governmental agency which requests an
individual to disclose his social security account number shall inform that individual whether that disclosure is mandatory or voluntary, by
which statutory or other authority such number is solicited, and what uses will be made of it.
The State of California requires that all parties entering into business transactions that may lead to payment(s) from the State must provide their
Taxpayer Identification Number (TIN) as required by the State Revenue and Taxation Code, Section 18646 to facilitate tax compliance
enforcement activities and to facilitate the preparation of Form 1099 and other information returns as required by the Internal Revenue Code,
Section 6109. The TIN for individual and sole proprietorships is the Social Security Number (SSN).
It is mandatory to furnish the information requested. Federal law requires that payments for which the requested information is not provided
be subject to a 31 % withholding and state law imposes noncompliance penalties of up to $20,000.
You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business
services unit or the accounts payable unit of the state agency(ies) with which you transact business.
Please call the Department of Finance, Fiscal Systems and Consulting Unit at (916) 324-0385 if you have any questions regarding this Privacy
Statement.
Questions related to residency or withholding should be referred to the telephone numbers listed above. All other questions should be referred
to the requesting agency listed in Part I.
| Page 2 of 2California State University, East Bay | Vendor Data Record
