Capital Gains Tax Withholding Tax - Non-Resident Vendors

A non-resident vendor can obtain a Capital Gains Tax Clearance Certificate where the capital gains tax payable on the disposal (and any earlier disposals by him or her on the same asset) has been paid in full (Section 980(8)TCA 1997).

If the vendor does not have sufficient funds to pay the liability in advance of the disposal Revenue will accept a written undertaking from the solicitor acting for the vendor to discharge the liability (and any earlier unpaid tax on his/her disposal of the same asset) from the sale proceeds of the transaction concerned. This undertaking should be on the solicitors headed notepaper, signed and contain the name & address of the vendor, the PPS number if available, the amount for which the undertaking is given and the date by which the payment will be made. It should be submitted with the application.

A payment in satisfaction of an undertaking should be submitted, without request, to the Revenue office which issued the certificate and should be accompanied by a copy of the undertaking and the vendor's PPS number which will be available from the certificate.

This practice is subject to review.

Enquiries on this article should be addressed to miccroke@revenue.ie