Article 14 - Capital gains - Kenya (Old - Effective upto 29-08-2017)

Article 14 : Capital gains 1. Gains from the alienation of immovable property, as defined in paragraph 2 of article 6 may be taxed in the ContractingState in which such property is situated. 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 purpose 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 that other State. 3. Notwithstanding the provisions of paragraph 2 gains by an enterprise of a Contracting State from the alienation of ships and aircraft which it operates in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in that State. 4. Gains from the alienation of-- (a) shares of a company, the property of which consists principally of immovable property situated in a ContractingState, and (b) interest in a partnership or a trust, the property of which consists principally of immovable property situated in a ContractingState, may be taxed in that State. For the purposes of this paragraph the term "immovable property" includes the shares of a company referred to in sub-paragraph (a) or an interest in a partnership or a trust referred to in sub-paragraph (b). 5. Gains derived by a resident of a Contracting State from the alienation of any property other than those mentioned in paragraphs 1, 2, 3 and 4 shall be taxable only in that State.