Article 13 - Capital gains - Swiss Confederation

ARTICLE 13 CAPITAL GAINS 1. Gains from the alienation of immovable property referred to in Article 6 and situated in a Contracting State may be taxed in that State. 1 [ 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 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 also be taxed in that other State. ] 3 [ 3 . Gains derived by an enterprise of a Contracting State 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 that State ] 4. Gains from the alienation of shares, other than those referred to in paragraph 5, forming part of a substantial interest in the capital stock of a company which is a resident of a Contracting State may be taxed in that State. A substantial interest exists when the alienator, alone or together with related persons, owns directly or indirectly shares carrying at least 25 percent of the voting power in the company. 2 [ 5. Gains from the alienation of shares other than those mentioned in paragraph 4, of a company which is a resident of a Contracting State : ( a ) shall be taxable only in the Contracting State of which the alienator is a resident ; ( b ) notwithstanding the provision of sub-paragraph ( a ), India may tax gains from the alienation of shares in a company which is a resident of India. In this case the provisions of sub-paragraph ( b ) of paragraph 1, of Article 23 shall apply. ] 6. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4, and 5, shall be taxable only in the Contracting State of which the alienator is a resident. ************** NOTES:- 1 . Substituted vide Notification No. 35 dated 07-02-2001 before it was read as, 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 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 State. 2 . Substituted vide Notification No. 35 dated 07-02-2001 before it was read as, 5. Gains from the alienation of shares of a company, the property of which consists directly or indirectly principally of immovable property situated in a Contracting State, may be taxed in that State. 3 . Substituted vide Notification No. 62/2011 dated 27-12-2011 before it was read as, 3. 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.