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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

International Transport

(1) Notwithstanding the provisions of paragraph (7) of this Article, profits derived 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) Where the place of effective management of a shipping enterprise is aboard a ship, then such enterprise shall be deemed to be situated in the Contracting State in which the home harbour of this 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) The provisions of paragraph (1) of this Article, shall also apply to profits arising out of the participation in a pool, a joint business, or an international operating agency.

(4) Under the meaning of paragraph (1) of this Article, profits arising from the operation of ships and aircraft, in international traffic, are profits realized by an enterprise mentioned in the preceding paragraph (1) of this Article, arising from sea and air operations of passengers, mail, ports, goods and merchandise and it shall also include the following:

  • (a) the charter or rental of ships or aircraft for this type of transport;
  • (b) the rental of containers and related equipment used for the operation of ships or aircraft, in international traffic;
  • (c) profits arising from deposits directly linked to operations of ships and aircraft;
  • (d) profits arising from maintenance services provided to a third party person and also profits resulting from the sale of software related to such operations.