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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) Notwithstanding the provisions of Article 7, profits of an enterprise of a Contracting State from the operation of ships, boats or aircraft in international traffic shall be taxable only in that State.

(2) Notwithstanding the provisions of Article 7, profits of an enterprise of a Contracting State from the incidental use, maintenance or rental of containers, including barges and related equipment for the transport of containers used for the transport of goods or merchandise shall be taxable only in that State, except where such containers are used for the transport of goods or merchandise solely between places within the other Contracting State.

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

(4) For the purposes of paragraph (1):

  • (a) the term "profits" includes:
    • (i) profits, net profits, gross receipts and revenues derived directly from the operation of ships, boats or aircraft in international traffic; and
    • (ii) interest on sums generated directly from the operation of ships, boats or aircraft in international traffic provided that such interest is incidental to the operation;
  • by the person operating the ships, boats or aircraft;
  • (b) the term "operation of ships, boats or aircraft" includes:
    • (i) the charter or rental of ships, boats or aircraft;
    • (ii) the rental of containers and related equipment; and
    • (iii) the alienation of ships, boats, aircraft or containers and related equipment;
  • by that person provided that such charter, rental or alienation is incidental to the operation by that person of ships, boats or aircraft in international traffic.