Gains derived by Clause Samples
Gains derived by an enterprise of a Contracting State 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 that State.
Gains derived by a resident of a Contracting State from the alienation of immovable property, as defined in paragraph 2 of Article 6 or shares in a company the assets of which consist mainly of such property may be taxed in the Contracting State in which such property is situated.
Gains derived by a resident of a Contracting Party from the alienation of shares of a company more than 50 per cent of the value of which is derived directly or indirectly from immovable property situated in the other Contracting Party, may be taxed in that other Party. However, this paragraph does not apply to gains derived from the alienation:
(a) of shares quoted on a recognised stock exchange of one of the Parties; or
(b) of shares alienated or exchanged in the framework of a reorganisation of a company, of a merger, of a scission or of a similar operation; or
(c) of shares more than 50 per cent of the value of which is derived from immovable property in which the company carries out its activity.
Gains derived by a resident of a Contracting Party from the alienation of shares of a company deriving more than 50 per cent of its asset value directly or indirectly from immovable property situated in the other Contracting Party may be taxed in that other Contracting Party.
Gains derived by a resident of a Contracting Party from the alienation of shares in a company deriving more than 50 per cent of its asset value directly or indirectly from immovable property situated in the other Contracting Party may be taxed in that other Contracting Party provided that the resident owns, directly or indirectly, a minimum of 5 per cent of the issued shares. However, this paragraph does not apply to gains derived from the alienation of shares:
(a) quoted on a recognised stock exchange; or
(b) alienated or exchanged in the framework of a reorganisation of a company, a merger, a scission or a similar operation; or
(c) in a company deriving more than 50 per cent of its asset value directly or indirectly from immovable property in which it carries on its business.