Article 13 Capital Gains

Gains derived by a resident of a territory from the alienation of immovable property referred to in Article 6 and situated in the other territory may be taxed in that other territory.

Where a resident of a territory owns all or virtually all of the shares in a company which is a resident of the other territory (other than a company of which the shares are quoted on a stock exchange) and the property of such company consists principally of immovable property situated in that other territory, any gains derived by such resident from the alienation of shares in that company may be taxed in that other territory. For the purpose of this paragraph the term ‘immovable property’ does not include immovable property in which the business of the company is carried on. The provision of this paragraph shall not apply if such gains are derived in the course of a corporate reorganisation, amalgamation, division or similar transaction.

Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a territory has in the other territory or of movable property pertaining to a fixed base available to a resident of a territory in the other territory 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 of such fixed base, may be taxed in that other territory.

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 territory in which the place of effective management of the enterprise is situated.

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 territory of which the alienator is a resident.

Notwithstanding the provisions of paragraph 5, gains from the alienation of shares or other corporate rights in a company resident under the laws of that territory, and gains from the alienation of any other securities which are subjected in that territory to the same taxation treatment as gains from the alienation of such shares or other corporate rights, derived by an individual who has been a resident of a territory, and who has become a resident of the other territory, may be taxed in the first-mentioned territory if the alienation of the shares, other corporate rights or securities at any time during the ten years next following the date on which the individual has ceased to be a resident of the first-mentioned territory.