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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 derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

(2) Notwithstanding the provisions of Article 7, profits derived by an enterprise of a Contracting State from a voyage of a ship or aircraft where the principal purpose of the voyage is to transport passengers or property between places in the other Contracting State may be taxed in that other State.

(3) The provisions of paragraphs 1 and 2 shall also apply to profits referred to in those paragraphs derived by an enterprise of a Contracting State from the participation in a pool, a joint business or an international operating agency.

(4) In this Article:

  • (a) the term "profits" includes:
    • (i) gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic, and
    • (ii) interest that is incidental to the operation of ships or aircraft in international traffic;
  • (b) the term "operation of ships or aircraft in international traffic" by an enterprise, includes:
    • (i) the charter or rental of ships or aircraft;
    • (ii) the rental of containers and related equipment; and
    • (iii) the alienation of ships, aircraft, containers and related equipment;

by that enterprise provided that such charter, rental or alienation is incidental to the operation by that enterprise of ships or aircraft in international traffic.