Article 9 – Capital Gains from Alienation of Shares or Interests of Entities Deriving their Value Principally from Immovable Property

1. Provisions of a Covered Tax Agreement providing that gains derived by a resident of a Contracting Jurisdiction from the alienation of shares or other rights of participation in an entity may be taxed in the other

Contracting Jurisdiction provided that these shares or rights derived more than a certain part of their value

from immovable property (real property) situated in that other Contracting Jurisdiction (or provided that

more than a certain part of the property of the entity consists of such immovable property (real property)):

a) shall apply if the relevant value threshold is met at any time during the 365 days preceding the alienation; and

b) shall apply to shares or comparable interests, such as interests in a partnership or trust (to the extent that such shares or interests are not already covered) in addition to any shares or rights

already covered by the provisions.

2. The period provided in subparagraph a) of paragraph 1 shall apply in place of or in the absence of a time period for determining whether the relevant value threshold in provisions of a Covered Tax Agreement

described in paragraph 1 was met.

3. A Party may also choose to apply paragraph 4 with respect to its Covered Tax Agreements.

4. For purposes of a Covered Tax Agreement, gains derived by a resident of a Contracting Jurisdiction from the alienation of shares or comparable interests, such as interests in a partnership or trust, may be taxed

in the other Contracting Jurisdiction if, at any time during the 365 days preceding the alienation, these shares

or comparable interests derived more than 50 per cent of their value directly or indirectly from immovable

property (real property) situated in that other Contracting Jurisdiction.

5. Paragraph 4 shall apply in place of or in the absence of provisions of a Covered Tax Agreement providing that gains derived by a resident of a Contracting Jurisdiction from the alienation of shares or other

rights of participation in an entity may be taxed in the other Contracting Jurisdiction provided that these

shares or rights derived more than a certain part of their value from immovable property (real property)

situated in that other Contracting Jurisdiction, or provided that more than a certain part of the property of the

entity consists of such immovable property (real property).

6. A Party may reserve the right:

a) for paragraph 1 not to apply to its Covered Tax Agreements;

b) for subparagraph a) of paragraph 1 not to apply to its Covered Tax Agreements;

c) for subparagraph b) of paragraph 1 not to apply to its Covered Tax Agreements;

d) for subparagraph a) of paragraph 1 not to apply to its Covered Tax Agreements that already contain a provision of the type described in paragraph 1 that includes a period for determining

whether the relevant value threshold was met;

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