Capital gains taxation allocated by property situs and character determines which State may tax disposals of property and shares. Capital gains are allocated by property type and situs: immovable property situated in the other Contracting State may be taxed in that State; gains from movable property of a permanent establishment or fixed base may be taxed where that permanent establishment or fixed base is situated; disposals of ships or aircraft used in international traffic are taxable only in the alienator's State of residence; gains from disposal of shares whose property is principally immovable may be taxed in the State where the immovable property is situated, while other share disposals may be taxed in the company's State of residence; all other gains are taxable only in the State of residence of the alienator.
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 taxation allocated by property situs and character determines which State may tax disposals of property and shares.
Capital gains are allocated by property type and situs: immovable property situated in the other Contracting State may be taxed in that State; gains from movable property of a permanent establishment or fixed base may be taxed where that permanent establishment or fixed base is situated; disposals of ships or aircraft used in international traffic are taxable only in the alienator's State of residence; gains from disposal of shares whose property is principally immovable may be taxed in the State where the immovable property is situated, while other share disposals may be taxed in the company's State of residence; all other gains are taxable only in the State of residence of the alienator.
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