Controller's Office Policy CO 09 09
Personal Services Income Paid to a Nonresident
North Carolina income tax is required to be withheld from non-wage compensation paid to nonresidents for certain personal services rendered in this State. The requirement to withhold applies to payers who, in the course of a trade or business, pay more than $1,500 of non-wage compensation to a nonresident individual or to a nonresident entity for services performed in this State in connection with a performance, an entertainment or athletic event, a speech, or the creation of a film, radio, or television program. These payers must withhold North Carolina income tax at the rate of four percent (4%) from the compensation. (Note: See NC-30, Income Tax Withholding Tables and Instructions for Employers, for a more detailed explanation of requirements.) Out-of-State corporations must get a Certificate of Authority from the North Carolina Secretary of State to do business in North Carolina prior to payment for services.