When a non-resident sells an investment property, the lawyer will often withhold 35% of the total sale price as a reserve tax. In this case, the seller must submit a clearance certificate application within ten days after the transaction is completed. Once the clearance certificate is received, the lawyer will pay the 35% tax on the capital gain portion to the government as prepayment, and return the remaining funds to you. When filing taxes the following year, the accountant will calculate the final settlement based on the actual tax exemptions, and typically, a portion of the money can be refunded.

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If you have any other tax-related questions regarding the sale of property by non-tax residents, please consult with us.