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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 and situated in the other Contracting State may be taxed in that other State.

(2) 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.

(3) Gains derived from the alienation of ships and aircraft operated in international traffic and boats engaged in inland waterways transport, and movable property pertaining to the operation of such ships, aircraft and boats, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(4) Gains derived by a resident of a Contracting State from the alienation of shares deriving more than 50% of their value directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State.

However, this paragraph shall not apply to:

  • (a) gains derived from the alienation of shares in companies listed on a recognized stock exchange of one of the States;
  • (b) gains derived from the alienation of shares in connection with a corporate reorganization;
  • (c) gains from the alienation of shares where the immovable property which the shares derive their value from, is a good (such as a mine or a hotel) in which business activities are exercised.

(5) Gains, other than those provided in paragraph (4) of this Article derived from the alienation of shares or membership interests representing a participation of over 50% in a company which is a resident of a Contracting State may be taxed in that State, but the tax so charged shall not exceed 25% of the gains.

(6) Gains from the alienation of any property, other than that referred to in preceding paragraphs, shall be taxable only in the Contracting State of which the alienator is a resident.