Article 13 Capital gains

Capital 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.

Capital gains derived by a resident of a Contracting State from the alienation of movable property that form part of the business property of a permanent establishment of the alienator in the other Contracting State or is closely connected with the performance of independent personal services (to which Article 14 applies) by the alienator in that other State, including capital gains arising from the alienation of such a permanent establishment, may be taxed in that other State.

Capital gains derived by a resident of a Contracting State from the alienation of shares in a company may be taxed in the State in which the company exists unless the beneficial owner of the shares is a company (other than a partnership) which holds directly or indirectly at least 10% of the capital of the company and such shares have been acquired after the signing of this Convention.

Subject to provisions of paragraph 3 of this Article, with respect to investments made prior to the signing of this Convention, in case of a corporate reorganization, amalgamation, division, or a similar transaction, whereby the final ownership of the shares does not change, it is allowed for postponement of taxation of any capital gains generated until the actual disposition of such shares, and such taxation shall apply to all capital gains realized from the beginning date of investment until the date on which the final alienation of investment is made.

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 Contracting State in which the place of effective management of the enterprise is situated. If the place of effective management of a shipping enterprise is aboard a ship, then for the purposes of this paragraph it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

Capital gains derived from the alienation of any property other than that referred to in the preceding paragraphs of this Article shall be taxable only in the Contracting State of which the alienator is a resident.