Article 13 Capital gains

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.

Where a resident of a Contracting State owns more than 50 per cent of the share-capital in, or controls more than 50 per cent of the voting power in a company which is a resident of the other Contracting State (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 State, any gain derived by such resident from the alienation of shares in that company may be taxed in that other State. 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 gain is 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 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 of such fixed base, may be taxed in that other State.

Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic by an enterprise of that Contracting State or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State.

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.

The provisions of paragraph 5 shall not affect the right of each of the Contracting States to levy according to its own law a tax on gains from the alienation of shares or ‘jouissance’ rights in a company, the capital of which is wholly or partly divided into shares and which under the laws of that State is a resident of that State, derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State in the course of the last ten years preceding the alienation of the shares or ‘jouissance’ rights.