DT18062 - DT: Sweden: double taxation agreement, Article 13: Capital gains

(1) Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

(2) Gains derived by an individual who is a resident of a Contracting State from the alienation of shares in a company which is a resident of the other Contracting State may be taxed in that other Contracting State, but only if the individual is a national of the other Contracting State without also being a national of the first-mentioned Contracting State and has been a resident of the other Contracting State at any time in a seven year period immediately preceding the alienation of the shares. The provisions of this paragraph shall also apply to gains from the alienation of other rights in such company which, for the purposes of capital gains taxation, are subjected to the same treatment as gains from the alienation of shares by the laws of that other Contracting State.

(3) Gains from the alienation of movable property forming part of the business property 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 available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State.

(4) Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. With respect to gains derived by the Swedish, Danish and Norwegian air transport consortium, known as Scandinavian Airlines System (SAS), the provisions of this paragraph shall only apply to such proportion of the gains as corresponds to the shareholding in that consortium held by AB Aerotransport (ABA), the Swedish partner of Scandinavian Airlines System (SAS).

(5) Gains from the alienation of ships or aircraft used for the transportation of supplies or personnel to a location where activities in connection with the exploration or exploitation of the sea-bed and subsoil and their natural resources are being carried on in a Contracting State or from the alienation of tugboats or anchor handling vessels operated in connection with such activities shall be taxable in the Contracting State in which the place of effective management of the enterprise is situated.

(6) Notwithstanding the preceding provisions of this Article, gains derived by a resident of a Contracting State from the alienation of rights to assets to be produced by the exploration or exploitation of the sea-bed and subsoil and their natural resources situated in the other Contracting State, including rights to interests in or to the benefit of such assets, or from the alienation of shares deriving their value or the greater part of their value directly or indirectly from such rights, may be taxed in that other Contracting State.

(7) Gains from the alienation of any property other than that referred to in paragraphs (1) to (6) of this Article, shall be taxable only in the Contracting State of which the alienator is a resident.