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POSITIONS ON ARTICLE 13

(CAPITAL GAINS) AND ITS COMMENTARY

1. ArgentinaandBrazilreserve the right to tax at source gains from the alienation of property situated in a Contracting State other than property mentioned in XREFSTYLE=ParaLabelPlural, 2, 3 and 4.(Added on 23 October 1997 see History)

2. ThePeople’s Republic of China,Serbiaand Thailand reserve the right to tax gains from the alienation of shares or rights that are part of a substantial participation in a resident company.(Amended on 17 July 2008 see History)

3. Latviareserves the right to insert in a special Article provisions regarding capital gains relating to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources.(Amended on 15 July 2014 see History)

3.1 Lithuaniareserves the right to insert special provisions regarding capital gains relating to activities carried on in a Contracting State in connection with the exploration or exploitation of natural resources.(Added on 15 July 2014 see History)

4. Lithuaniareserves the right to limit the application of paragraph 3 to enterprises operating ships and aircraft in international traffic.(Amended on 15 July 2014 see History)

5. Colombia,IndiaandVietnamreserve the right to tax gains from the alienation of shares or rights in a company that is a resident of their respective country.(Amended on 15 July 2014 see History)

6. Bulgariareserves the right to tax gains from the alienation of shares or rights in a company that is a resident of Bulgaria other than shares quoted on a regulated stock exchange.(Replaced on 28 January 2003 see History)

7. Bulgariareserves the right to extend the scope of the provision to cover gains from the alienation of railway and road transport vehicles.(Added on 28 January 2003 see History)

8. Vietnamreserves the right to modify paragraph 4 so that the immovable property in question need only be 30 per cent of all assets owned by the company.(Replaced on 17 July 2008 see History)

9. Serbiareserves the right to extend the scope of the provision to cover gains from the alienation of road transport vehicles operated in international traffic.(Amended on 17 July 2008 see History)

10. Indiareserves its position on paragraph 4.(Added on 17 July 2008 see History)

11. Lithuaniareserves the right not to include paragraph 4 in its conventions.(Replaced on 15 July 2014 see History)

Paragraph 1Included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 2Amended on 17 July 2008, by changing the list of countries indicating the position by adding Serbia and replacing “China” with “the People’s Republic of China”, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 2 read as follows:“2. Thailandreserves the right to tax gains from the alienation of shares or rights that are part of a substantial participation in a resident company.”

Paragraph 2 was previously amended on 15 July 2005, by removing Israel from the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 23 October 1997 and until 15 July 2005, paragraph 2 read as follows:“2. IsraelandThailandreserve the right to tax gains from the alienation of shares or rights that are part of a substantial participation in a resident company.”

Paragraph 2 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 3Amended on 15 July 2014, by deleting Lithuania from the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 23 October 1997 and until 15 July 2014, paragraph 3 read as follows:“3. LatviaandLithuaniareserve the right to insert in a special Article provisions regarding capital gains relating to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources.”

Paragraph 3 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 3.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 4Amended on 15 July 2014, by deleting Estonia from the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 4 read as follows:“4. EstoniaandLithuaniareserve the right to limit the application of paragraph 3 to enterprises operating ships and aircraft in international traffic.”

Paragraph 4 was previously amended on 22 July 2010, by deleting Latvia from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 23 October 1997 and until 22 July 2010, paragraph 4 read as follows:“4. Estonia,LatviaandLithuaniareserve the right to limit the application of paragraph 3 to enterprises operating ships and aircraft in international traffic.”

Paragraph 4 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 5Amended on 15 July 2014, by adding Colombia to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 5 read as follows:“5. IndiaandVietnamreserve the right to tax gains from the alienation of shares or rights in a company that is a resident of their respective country.”

Paragraph 5 was previously amended on 22 July 2010, by deleting Chile from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 5 read as follows:“5. Chile,IndiaandVietnamreserve the right to tax gains from the alienation of shares or rights in a company that is a resident of their respective country.”

Paragraph 5 was previously amended on 17 July 2008, by adding Chile and India to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 23 October 1997 and until 17 July 2008, paragraph 5 read as follows:“5. Vietnamreserves the right to tax gains from the alienation of shares or rights in a company that is a resident of Vietnam.”

Paragraph 5 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 6Replaced on 28 January 2003 when paragraph 6 was deleted and a new paragraph 6 was added by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 6 read as follows:“6. Estonia,Israel,Latvia,Lithuania,Romania,Thailand,UkraineandVietnamreserve the right to tax gains from the alienation of shares or rights of a company the assets of which consist mainly of immovable property situated in the State.Ukrainealso reserves the right to tax gains from the alienation of contributions (rights) related to shares mentioned in the preceding sentence.”

Paragraph 6 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 7Added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 8Replaced on 17 July 2008 when paragraph 8 was deleted and a new paragraph 8 was added by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 8 read as follows:“8. Moroccoreserves the right to tax gains derived by non residents from the alienation of shares or rights in a company, the assets of which consist mainly of immovable property situated in that State, in accordance with its domestic legislation.”

Paragraph 8 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 9Amended on 17 July 2008, by replacing Serbia and Montenegro with Serbia as a country indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 9 read as follows:“9. Serbia and Montenegroreserves the right to extend the scope of the provision to cover gains from the alienation of road transport vehicles operated in international traffic.”

Paragraph 9 was added on 15 July 2005 by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005.

Paragraph 10Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 11Replaced on 15 July 2014 when paragraph 11 was deleted and a new paragraph 11 was added by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 11 read as follows:“11. Israelreserves its right to insert a provision according to which where a person, who was a resident of a Contracting State, has become a resident of the other Contracting State, this Article shall not prevent the first-mentioned State from taxing under its domestic law the capital gains on the property of that person at the time of change of residence. In the case of the alienation of property dealt with in paragraphs 1, 2, 3 and 4 made after the change of residence, double taxation will be eliminated by the first-mentioned Contracting State. In the case of the alienation of property dealt with in paragraph 5 made after the change of residence, double taxation will be eliminated by the other Contracting State.”

Paragraph 11 was added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.