Note: This is not the most up to date Practice Note on this issue. Practitioners should review the most recent Practice Note on tax clearance for non-resident vendors issued in March 2025.

Under the provisions of Sections 1034, 1035 and 1043 of the Taxes Consolidation Act, 1997, a non-resident person may be assessed and charged to income tax and capital gains tax in the name of any representative of any kind including a solicitor in the State.

The Taxation Committee’s standing advice to solicitors is to withhold the proceeds of sale until confirmation is available from the Revenue Commissioners that all tax affairs are in order (Practice Note 25/09/2018 refers). Practitioners notified the Law Society of the issues and delays encountered in obtaining these letters of confirmation from Revenue and on foot of subsequent discussions between Tax Administration Liaison Committee (TALC) representatives and the Revenue Commissioners, a deemed clearance process has been introduced. This clearance process is set out in Tax and Duty Manual 45-01-05 (TDM) which will apply from the 24 October 2022.

The TDM sets out how the clearance request should be submitted and the necessary documentation that must accompany a valid clearance request. A new online process to manage these applications has been established on ROS. Practitioners will need to be registered as a TAIN advisor to make the application.

It is recommended that reference is made to the requirements set out in the TDM in the irrevocable retainer and authority to be signed by the client to their solicitor at the outset of the transaction.

If an accountant or chartered tax advisor is making the application for clearance, it is recommended that the solicitor obtains confirmation from them in writing confirmation that (1) a complete and accurate submission was made to Revenue (2) that they have received no notification of a compliance intervention from Revenue and no request from Revenue for further information within the defined period of 35 working days (3) that clearance pursuant to the requirements outlined in the TDM  is available. A copy of these documents together with Revenue automated reply message should be requested by the solicitor for their file.

The new process outlined in this TDM applies from 24 October 2022 and will be subject to ongoing review by Revenue. The TDM and further information are available at Revenue eBrief 192/22.