Canada's treaties - Article 13

The article can be titled 'Gains', 'Capital Gains' or even 'Alienation of Property'.  The purpose is the same.  To determine the tax of gains on non-business property under the treaty.

In the Canada-Finland treaty, immovable property is normally taxed first in the country where it is situated then in the country of residence.  In the Canada-US and Canada-Austrailia treaties the article refers to real property.  The idea is the same - if it belongs to the land of the country then the country should be able to tax it.  The treaties will also define what real or immovable property includes (such as shares in a corporation or a partnership interest where the property is principally immovable property).

Ships and aircraft usually have a separate paragraph that should be read for each treaty.  Other gains, though, are normally taxed in the country of residence.  The wording, such as the Canada-Gabon treaty, is that they "shall" be taxed in the country of residence - which doesn't allow the source country to withhold any tax (of course, you will normally have to file something with that source country to verify that you can use the treaty provisions.

There is often an additional paragraph to check.  Particularly in Canada's newer treaties (or updated protocols).  For instance, in the Canada-Gabon treaty, if the property has been treated as a gain for tax purposes when exiting the country (such as certain property when leaving Canada) the new country of residence may treat certain of those properties to be purchased for the fair market value when entering the new country.

All of the gains can be very involved and details need to be reviewed before any decision can be made where the gain should be taxed.