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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 14

Capital Gains

(1) Gains from the alienation of immovable property, as defined in Article 6, paragraph 2, may be taxed in the State in which such property is situated.

(2) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of one of the States has in the other State, or of movable property pertaining to a fixed base available to a resident of one of the States in the other State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State.

(3) Notwithstanding the provisions of paragraph 2, gains from the alienation of ships and aircraft operated in international traffic and of movable property pertaining to the operation of such ships and aircraft shall be taxable only in the State in which the place of effective management of the enterprise is situated; for the purpose of this paragraph the provisions of Article 8, paragraph 2, shall not apply.

(4) Gains from the alienation of any property other than those mentioned in the foregoing paragraphs shall be taxable only in the State of which the alienator is a resident.

(5)  The provisions of paragraph 4 shall not affect the right of each of the States to levy, according to its own law, a tax on gains from the alienation of shares or jouissance rights in a company, which is a resident of that State, the capital of which is wholly or partly divided into shares, derived by an individual who is a resident of the other State and who in the course of the last five years preceding the alienation of the shares or jouissance rights has been a resident of the first-named State.