Tax Clearance Certificates CGT

Applications for CGT Clearance Certificates

Section 980 TCA provides for a deduction of an amount in respect of capital gains tax from the purchase price of certain assets by the purchaser (referred to as “withholding tax”) where a tax clearance certificate is not provided. The purchaser is then required to forward this sum to the Revenue Commissioners along with information regarding the acquisition.

Where the vendor produces a clearance certificate (Form CG50A) from the inspector, the vendor is entitled to obtain payment in full. Revenue will only accept an original application for a CGT clearance certificate (Form CG50).

In future where:

• The signing and closing of a contract are scheduled to occur on or about the same time, and
• A draft Form CG50 and draft contract are submitted by fax not later than 5 days prior to the closing date

Revenue will examine and process the application, and prepare a Form CG50A for issue. On production of the original CG50 and a copy of final contract, providing both are unaltered from the faxed versions, Revenue will, where appropriate, issue the Form CG50A.