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<h1>Taxation Rules for Gains on Property and Shares Under Contracting States Agreement Explained</h1> Gains from the sale of immovable property by a resident of one Contracting State, located in the other Contracting State, can be taxed in the latter. Gains from movable property related to business or independent services in the other State are also taxable there. Gains from ships or aircraft in international traffic are taxable only in the resident State. Gains from shares in companies primarily owning immovable property in a Contracting State may be taxed there, while gains from other shares in resident companies are taxable in that State. Other gains are taxable only in the resident State of the seller.