- 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 in a company or comparable interests deriving 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 alienation of shares or comparable interests:
-
- (i)listed on a recognised stock exchange,
- (ii)in the course of a corporate reorganisation such as a qualifying merger, division and similar transaction,
- (iii)where the immovable property from which the shares derived their value is immovable property in which the business is carried on,
- (iv)when the alienator owns, directly or indirectly, either alone or with related persons 25 per cent or less of the capital or other comparable interests prior to the first alienation of shares,
- (v)when the alienator is a recognised pension fund of the first-mentioned State.
- 5
- Where an individual has been a resident of a Contracting State and has become a resident of the other Contracting State, paragraph 6 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 by reference to which the amount was taxed in the first-mentioned State shall not be included in the determination of the subsequent appreciation of capital by the other State.
- 6
- Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxable only in the Contracting State of which the alienator is a resident.
