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(1) Gains derived by a resident of a Con- tracting State from the alienation of immov- able property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.
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(2) Gains from the alienation of movable property forming part of the business prop- erty of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base avail- able to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal ser- vices, including such gains from the aliena- tion of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base may be taxed in that other State.
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(3) Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated, or containers used, in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
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(4) Gains derived by a resident of a Con- tracting State from the alienation of: a) shares (other than shares listed on an approved stock exchange in the other Contracting State) forming part of a substantial interest in the capital stock of a company which is a resident of that other State the value of which shares is derived principally from immovable property situated in that other State; or b) an interest in a partnership, trust or estate the value of which is derived principally from immovable property situated in the other Contracting State, may be taxed in that other State. For the purposes of this paragraph, the term “immovable property” does not include property (other than rental property) in which the business of the company, part- nership, trust or estate is carried on; and a substantial interest in the capital stock of a company exists when the resident and per- sons related thereto own 10 per cent or more of the shares of any class of the capital stock of a company.
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(5) Where a resident of a Contracting State alienates property in the course of an organization, reorganization, amalgama- tion, division or similar transaction and profit, gain or income with respect to such alienation is not recognized for the purpose of taxation in that State, if requested to do so by the person who acquires the proper- ty, the competent authority of the other Contracting State may agree, subject to terms and conditions satisfactory to such competent authority, to defer the recogni- tion of the profit, gain or income with respect to such property for the purpose of taxation in that other State.
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(6) Gains from the alienation of any prop- erty, other than those mentioned in para- graphs 1 to 4 shall be taxable only in the Contracting State of which the alienator is a resident.
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(7) In the case of an individual who has been a resident of a Contracting State and who has become a resident of the other Contracting State: a) the provisions of paragraph 6 shall not affect the right of either of the Contract- ing States to levy, according to its law, a tax on gains from the alienation of any property derived by such individual at any time during the ten years following the date on which the individual has ceased to be a resident of the first- mentioned State; b) where that individual is treated for the purposes of taxation in the first-men- tioned State as having alienated a prop- erty and is taxed in that State by reason thereof, the individual may elect to be treated for the purposes of taxation in the other State as if the individual had, immediately before becoming a resi- dent of that State, sold and repur- chased the property for an amount equal to its fair market value at that time. However, this provision shall not apply to property any gain from which, arising immediately before the individ- ual became a resident of that other State, may be taxed in that other State nor to immovable property situated in a third State.