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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 13

Capital Gains

(1) Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 (Income from Immovable Property) and situated in the other Contracting State may be taxed in that other State.

(2) Gains derived by a resident of a Contracting State from the alienation of shares or comparable interests, such as interests in a partnership or trust, may be taxed in the other Contracting State if, at any time during the 365 days preceding the alienation, these shares or comparable interests derived more than 50 per cent of their value directly or indirectly from immovable property as defined in Article 6, situated in that other Contracting State.

(3) When the provisions of paragraph (2) are not applicable, gains derived by a resident of a Contracting State from the alienation of shares, other rights and comparable interests in a company, partnership or trust, which are not traded in a recognised stock exchange, that is a resident of the other Contracting State may be taxed in that other State, but the tax so charged shall not exceed:

  • (a) 0 percent if the gains derived by the government of the first-mentioned Contracting State which owned, directly or indirectly, at any time during the 12-month period preceding such sale, exchange or other disposition, interests granting less than 10 percent of the voting power of the company, partnership or trust.
  • (b) 5 percent if the gains derived by the government of the first-mentioned Contracting State which owned, directly or indirectly, at any time during the 12-month period preceding such sale, exchange or other disposition, interests granting 10 percent or more of the voting power of the company, partnership or trust.
  • (c) 10 percent if the gains derived by a resident of the first-mentioned Contracting State which owned, directly or indirectly, at any time during the 12-month period preceding such sale, exchange or other disposition, interests granting less than 10 percent of the voting power of the company, partnership or trust.

(4) 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, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.

(5) Gains that an enterprise of a Contracting State that operates ships or aircraft in international traffic derives from the alienation of such ships or aircraft, or of movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.

(6) Gains from the alienation of any property other than that referred to in paragraphs (1), (2), (3), (4) and (5) shall be taxable only in the Contracting State of which the alienator is a resident, if that resident is the beneficial owner of the property from which the capital gains are derived.

(7) The provisions of this Article shall not affect the right of a Contracting State to tax, in accordance with its laws, income from the alienation of any property derived by a person who is a resident of that State at any time during the year of income in which the property is alienated, or has been so resident at any time during the 5 years immediately preceding that year.