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Untd A Emirates - France Tax Treaty (as amended by 1993 protocol) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 11

Capital Gains

(1)

  • (a) Gains derived by a resident of one State from the alienation of immovable property referred to in Article 5 and situated in the other State may be taxed in that other State.
  • (b) Gains from the alienation of shares in a company more than 80 per cent of the assets of which consists of immovable property or of rights relating to such property may be taxed in the State in which the immovable property is situated, where, under the laws of that State, such gains are subjected to the same tax regime as gains from the alienation of immovable property. As regards the application of this provision, immovable property used by that company in its own business or agricultural operations or in the performance of independent personal services shall not be taken into consideration.

(2) Gains from the alienation of any property other than that referred to in paragraph (1) may be taxed only in the State of which the alienator is a resident, unless the property in respect of which the gain is realized is effectively connected either with a business activity carried on in the other State by the alienator through a permanent establishment situated therein, or with independent personal services performed in the other State by the alienator from a fixed base situated therein.

(3) Notwithstanding the provisions of paragraph (2), gains from the alienation of shares representing a substantial participation in the capital of a company may be taxed in the State of which the company is a resident. There is deemed to be a substantial participation when the alienator holds, directly or indirectly, shares which, together, entitle him to more than 25 per cent of the profits of the company.