- 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 or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or such fixed base may be taxed in that other State.
- 3
- Gains from the alienation of ships or aircraft operated in international traffic, boats engaged in inland waterways transport or movable property pertaining to the operation of such ships, aircraft or boats, 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 – other than shares which are quoted on a stock exchange as may be agreed by the Contracting States – or other corporate rights in a company the assets of which consist directly or indirectly for more than 50 per cent of immovable property referred to in Article 6 may be taxed in the other Contracting State. The provisions of the preceding sentence shall not apply if:
-
- a)the person who derives the gains owns less than 5 per cent of the shares or other corporate rights in the company prior to the alienation; or
- b)the gains are derived in the course of a corporate reorganisation, amalgamation, division or similar transaction; or
- c)the immovable property is used by a company for its own 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 State of which the alienator is a resident.
- 6
- Paragraph 5 shall not prevent the Netherlands from applying its domestic tax law to an individual in respect of the so-called “preservative tax assessment” (“conserverende aanslag ”) that has been issued to that individual, before that person ceased to be a resident of the Netherlands, with respect to a substantial interest in a company. The preceding sentence shall only apply insofar the assessment or a part thereof is still outstanding.
