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

(4) In this Article:

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