DT6912 - DT: Falkland Islands: double taxation agreement, Article 13: Capital gains

(1) Gains derived by a resident of a territory from the alienation of immovable property referred to in Paragraph 6 of this Arrangement and situated in the other territory may be taxed in that other territory.

(2) Gains derived by a resident of a territory from the alienation of:

(a) shares, other than shares in which there is substantial and regular trading on a Stock Exchange, deriving their value or the greater part of their value directly or indirectly from immovable property situated in the other territory, or
(b) an interest in a partnership or trust the assets of which consist principally of immovable property situated in the other territory, or of shares referred to in sub- paragraph (a) above,
may be taxed in that other territory.

(3) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a territory has in the other territory or of movable property pertaining to a fixed base available to a resident of a territory in the other territory 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 fixed base, may be taxed in that other territory.

(4) Gains derived by a resident of a territory from the alienation of ships or aircraft operated in international traffic by an enterprise of that territory or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that territory.

(5) Gains from the alienation of any property other than that mentioned in sub-paragraphs (1), (2), (3) and (4) of this Paragraph shall be taxable only in the territory of which the alienator is a resident.

(6) The provisions of sub-paragraph (5) of this Paragraph shall not affect the right of a territory to levy according to its own laws a tax on gains from the alienation of any property derived by a person who is a resident of the other territory and has been a resident of the first-mentioned territory at any time during the five years immediately preceding the alienation of the property.