DT7313 - DT: France: double taxation agreement, Article 13: Capital gains
(1) Gains derived by a resident of a Contracting State from the
alienation of immovable property, as defined in paragraph (2) of
Article 5, which is situated in the other State may be taxed in
that other State. For the purposes of this provision the second
sentence of paragraph (2)(b) of Article 5 shall not apply.
(2) 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 purposes of performing professional services, including
such gains from the alienation of such a permanent establishment
(alone or together with the whole enterprise) or of such a fixed
base, may be taxed in the other State. However, gains derived by a
resident of a Contracting State from the alienation of ships and
aircraft operated in international traffic and movable property
pertaining to the operation of such ships and aircraft shall be
taxable only in that Contracting State.
(3) Gains from the alienation of any property other than that
referred to in paragraphs (1) and (2) shall be taxable only in the
Contracting State in which the alienator is resident.
(4) Notwithstanding the provisions of paragraph (3), gains
derived by an individual who is a resident of a Contracting State
from the alienation of more than 25 per cent of the shares held,
alone or together with related persons, directly or indirectly, in
a company which is a resident of the other Contracting State may be
taxed in that other State. The provisions of this paragraph shall
only apply if:
(a) the individual is a national of the other Contracting State
without also being a national of the first-mentioned Contracting
State; and
(b) the individual has been a resident of the other
Contracting State at any time in a five 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 purpose 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.
