- 1
- Gains derived by a resident of a Contracting State from the alienation of immovable property as defined 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 of 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, may be taxed in the other Contracting State if, at any time during the 365 days preceding the alienation, these shares or comparable interests derived more than 75 per cent of their value directly or indirectly from immovable property, as defined in Article 6, situated in that other State. This paragraph shall not apply:
-
- a)to gains derived from the alienation of shares of companies, or interest in entities or arrangements, that are listed on an approved stock exchange of one of the States;
- b)to gains derived from the alienation of shares or comparable interests in the course of a corporate reorganisation;
- c)where the immovable property from which the shares or comparable interests derive their value is immovable property in which a business is carried on;
- d)where the resident owned, directly and indirectly, less than 50 per cent of the shares or other comparable interests prior to the first alienation; or
- e)where the resident is a recognised pension fund of that Contracting State.
- 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 paragraph 5 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.
