The Ukraine State Tax Service (STS) recently issued guidance letter 1150/IPK/99-00-21-02-02-06 concerning the tax obligations when a non-residents sales shares in a Ukraine resident company to another non-resident. The letter provides that such sales are generally subject to 15% withholding tax in Ukraine unless an applicable tax treaty provides otherwise. Where tax is to be withheld, the purchaser of the shares is required to register with the Ukraine tax authority prior to making payment for the purchase and when the payment is made, is required to withhold the tax due. If the seller provides the purchaser with documentation proving the capital gain amount on the sale, then the gain is subject to tax. If the capital gains amount is not proven, then the entire sale amount is subject to tax. When tax is withheld, the purchaser is then required to remit the tax due through a bank account established in Ukraine.