background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 8

Shipping and Air Transport

(1) Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(2) If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

(3) Profits of an enterprise of a Contracting State from the use, maintenance or rental of containers (including trailer and related equipment for the transport of containers) used for the transport of goods or merchandise shall be taxable only in that State, except insofar as those containers or trailers and related equipment are used for transport solely between places within the other Contracting State.

(4) For the purposes of this Article profits from the operation of ships or aircraft in international traffic include profits from the rental of ships or aircrafts on a full (time or voyage) basis and on a bare-boat basis operated in international traffic.

(5) The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.