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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Gains derived by a resident of a Contracting

Resolved Question:

Dear Sir, «Gains derived by a resident of a Contracting State from the alienation of shares, may be taxed in that other State.» P.S. Contracting state - Moldova Other state - United Kingdom what does it mean by: may be taxed in that other state? Does it
mean that it is required to pay tax in both states, or just «in that other state» if any tax due?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Gains made on the disposal of shares quoted on a stock exchange or not related to property in the UK by a resident of Moldova will only be taxable in Moldova. If the shares are in a company which owns property in the UK, such gains will be taxable in the UK. If such gains are also taxable in Moldova, then the UK tax will be offset against the Moldovan tax liability (Article 22). I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thanks, ***** ***** shares are disposed within ltd, tax is also payable only in Moldova?
Customer: replied 1 year ago.
In the case of Romania the statement is different, but is the meaning the same as in my first statement? (That the tax has to be paid only in the country in the Contracting State in which the alienator is a resident.)"4. Capital gains from the alienation of any property other than those mentioned in paragraphs 1, 2 and 3 of this Article shall be taxable only in the Contracting State in which the alienator is a resident. "
Expert:  TonyTax replied 1 year ago.
As I said "Gains made on the disposal of shares quoted on a stock exchange or not related to property in the UK by a resident of Moldova will only be taxable in Moldova".
I'm not an expert on Moldovan tax. That's why I said "If such gains are also taxable in Moldova......". I'd be surprised if such gains were not taxable in Moldova.
Expert:  TonyTax replied 1 year ago.
Yes, it is the same.
Customer: replied 1 year ago.
Thanks, ***** ***** a tax in Moldova, which is also not so low unfortunately.. But if a Canadian sells shares within UK ltd, does he have to pay tax only in Canada?Kind regards
Expert:  TonyTax replied 1 year ago.
It depends what type of company the shares are in.
Customer: replied 1 year ago.
That is a UK Limited company, Limited by shares
Customer: replied 1 year ago.
As in upper scenarios
Expert:  TonyTax replied 1 year ago.
What is the nature of the company's business. Are its shares quoted on a stock exchange?
Customer: replied 1 year ago.
No, the share are not quoted on stock exchange, the company carries on the business of Agents in sale of fuels, ores, metals and industrial chemicals.
Customer: replied 1 year ago.
But it is dormant since incorporation.
Expert:  TonyTax replied 1 year ago.
The gains will be taxable only in Canada if the owner is resident in Canada.
Customer: replied 1 year ago.
But if he has a Canadian passport but is not a resident (live on the European continent for more than 5 years), than it means he doesn't have to pay any tax at all?
Expert:  TonyTax replied 1 year ago.
As long as he is not a UK resident he won't pay UK CGT.
Expert:  TonyTax replied 1 year ago.
He may have to pay tax in the country that he is resident in.
Customer: replied 1 year ago.
Yes, but if he doesn't live in that country, but only has citizenship of that country, than he is considered as non resident? And he doesn't have to pay, yes?
Expert:  TonyTax replied 1 year ago.
I don't know his personal circumstances and I don't know where he spends his time. I answer questions on UK tax not on foreign tax jursidictions as they apply to someone who seems to live nowhere.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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Customer: replied 1 year ago.
We understand, thanking you for your time.Mathew
Expert:  TonyTax replied 1 year ago.

Thanks for accepting my answer.

 

It's very difficult to be not-resident for tax purposes such that one doesn't have to pay any tax. If I moved abroad and sold UK shares, I'd almost certainly have to pay tax in the country that I moved to unless it was a tax haven.

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