Document ID: chunk:federal_register_of_legislation:C2004A02224:body:0:p21
Version: federal_register_of_legislation:C2004A02224
Segment Type: other
Provision Reference: 
Character Range: 49089–51842

this Agreement.
(7) The principles set forth in paragraphs (1) to (7) inclusive of Article 5 shall be applied in determining for the purposes of this Article whether there is a permanent establishment outside both Contracting States, and whether an enterprise, not being an enterprise of one of the Contracting States, has a permanent establishment in one of the Contracting States.
ARTICLE 13
Alienation of Property
(1) Income from the alienation of real property may be taxed in the Contracting State in which that property is situated.
(2) For the purposes of this Article—
     (a) the term "real property" shall have the meaning which it has under the laws in force in the Contracting State in which the property in question is situated and shall include—
          (i) a lease of land or any other direct interest in or over land;
          (ii) rights to exploit, or to explore for, natural resources; and
          (iii) shares or comparable interests in a company, the assets of which consist wholly or principally of direct interests in or over land in one of the Contracting States or of rights to exploit, or to explore for, natural resources in one of the Contracting States;
     (b) real property shall be deemed to be situated—

SCHEDULE 14—continued
          (i) where it consists of direct interests in or over land—in the Contracting State in which the land is situated;
          (ii) where it consists of rights to exploit, or to explore for, natural resources—in the Contracting State in which the natural resources are situated or the exploration may take place; and
          (iii) where it consists of shares or comparable interests in a company, the assets of which consist wholly or principally of direct interests in or over land in one of the Contracting States or of rights to exploit, or to explore for, natural resources in one of the Contracting States—in the Contracting State in which the assets or the principal assets of the company are situated.
(3) Subject to the provisions of paragraph (1), income from the alienation of capital assets of an enterprise of one of the Contracting States or available to a resident of one of the Contracting States for the purpose of performing professional services or other independent activities shall be taxable only in that Contracting State, but, where those assets form part of the business property of a permanent establishment or fixed base situated in the other Contracting State, such income may be taxed in that other State.
ARTICLE 14
Independent Personal Services
(1) Income derived by an individual who is a resident of one of the Contracting States in respect of professional services or other independent activities of a similar character shall be taxable only in