- 1
- Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.
- 2
- Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.
- 3
- Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
- 4
- Gains derived by a resident of a Contracting State from the alienation of shares or comparable interests, such as interests in a partnership or trust, deriving, at any time during the 365 days preceding the alienation, more than 50 per cent of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.
- However, this paragraph shall not apply to gains derived from the alienation:
-
- a)of shares of a company listed on a recognised stock exchange of one or both Contracting States or a European Union or European Economic Area Member State, where the alienator at all times during the 12 month period preceding such alienation held directly or indirectly not more than 25% of the capital of the company whose shares are alienated;
- b)of shares of a company which is a resident of the other Contracting State and benefits from tax deferral in the first-mentioned State under its domestic law within the framework of a special tax regime which applies to reorganizations which takes places between companies within the same group. For the purposes of determining the gain on a subsequent alienation, the cost of the shares for the acquirer shall be determined on the basis of the cost that they had for the alienator. This provision shall not preclude the obligation of informing of the reorganization under domestic law of the Contracting States.
- 5
- Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
- 6
- Where an individual has been a resident of a Contracting State and has become a resident of the other Contracting State, the provisions of this Article shall not prevent the first-mentioned State from taxing under its domestic law the capital appreciation of shares, profit sharing certificates, call options and usufruct on shares and profit sharing certificates in and debt-claims on a company for the period of residency of that individual in the first-mentioned State. In such case, the appreciation of capital taxed in the first-mentioned State shall not be included in the tax base when determining the appreciation of capital by the other State.
