- 1
- Gains derived by a resident of a Contracting Party from the alienation of immovable property referred to in Article 6 and situated in the other Contracting Party may be taxed in that other Contracting Party.
- 2
- Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) may be taxed in that other Contracting Party.
- 3
- Gains derived by an enterprise of a Contracting Party 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 that Contracting Party.
- 4
- Gains derived by a resident of a Contracting Party from the alienation of shares in a company deriving more than 50 per cent of its asset value directly or indirectly from immovable property situated in the other Contracting Party may be taxed in that other Contracting Party provided that the resident owns, directly or indirectly, a minimum of 5 per cent of the issued shares. However, this paragraph does not apply to gains derived from the alienation of shares:
-
- a)quoted on a recognised stock exchange; or
- b)alienated or exchanged in the framework of a reorganisation of a company, a merger, a scission or a similar operation; or
- c)in a company deriving more than 50 per cent of its asset value directly or indirectly from immovable property in which it carries on its business.
- 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 Party of which the alienator is a resident.
- 6
- Notwithstanding the provisions of paragraph 5, a Contracting Party may, in accordance with its own laws, including the interpretation of the term “alienation”, levy tax on gains derived by an individual who is a resident of the other Contracting Party from the alienation of shares in, “jouissance” rights or debt-claims on a company whose capital is divided into shares and which, under the laws of the first-mentioned Contracting Party, is a resident of that Contracting Party, and from the alienation of part of the rights attached to the said shares, “jouissance” rights or debt-claims, if that individual – either alone or with his or her spouse – or one of their relations by blood or marriage in the direct line directly or indirectly holds at least 5 per cent of the issued capital of a particular class of shares in that company.
