Capital gains from alienation of shares tied to immovable property may be taxed in the property jurisdiction under treaty rules. Gains from alienation of shares or comparable interests in entities deriving value chiefly from immovable property may be taxed by the jurisdiction where the immovable property is located if the relevant value threshold is met at any time during the 365 days preceding the alienation. This rule applies to shares and similar interests, and Parties may instead adopt an alternative rule taxing such gains where those interests derived more than 50 per cent of their value from immovable property during the same lookback period. Parties may reserve application and must notify the Depositary regarding covered treaty provisions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains from alienation of shares tied to immovable property may be taxed in the property jurisdiction under treaty rules.
Gains from alienation of shares or comparable interests in entities deriving value chiefly from immovable property may be taxed by the jurisdiction where the immovable property is located if the relevant value threshold is met at any time during the 365 days preceding the alienation. This rule applies to shares and similar interests, and Parties may instead adopt an alternative rule taxing such gains where those interests derived more than 50 per cent of their value from immovable property during the same lookback period. Parties may reserve application and must notify the Depositary regarding covered treaty provisions.
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