Direct Tax Avoidance Agreements

                                                                                                                              UAE

ARTICLE 13 - Capital gains - 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in paragraph (2) of Article 6 and situated in the other Contracting State may be taxed in that other State.

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 together with the whole enterprise) or of such fixed base may be taxed in that other State.

13.Gains from the alienation of shares of the capital stock 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.

4. Gains from the alienation of shares other than those mentioned in paragraph 3 in a company which is a resident of a Contracting State may be taxed in that State.

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 above shall be taxable only in the ContractingState of which the alienator is a resident.

(Kindly Note: Above paragraph comes into force with effect from 1st day of April, 2008)

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Note :

1. Has been substituted vide Notification No. 282/2007 dated 28/11/2007 Income tax before it was read as, "Gains from the alienation of any property other than that mentioned in paragraphs (1) and (2) shall be taxable only in the Contracting State of which the alienator is a resident." (w.e.f. 1st day of April, 2008)