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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 9

Shipping, Road and Air Transport

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

(2) For the purposes of this Article profits from the operation of ships or aircraft in international traffic include:

  • (a) profits from the rental on a bareboat basis of ships or aircraft;
  • (b) profits from the use, maintenance or rental of containers, including trailers and related equipment for the transport of containers, used for the transport of goods or merchandise.

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

(4) The provisions of paragraph 1 shall also apply to profits derived from:

  • (1) the participation in a pool, a joint business or an international operating agency;
  • (2) selling of tickets on behalf of another enterprise;
  • (3) income from selling of technical engineering to a third party;
  • (4) income deriving from bank deposits, bonds, shares, stacks and other debentures.

(5) Activities referred to in paragraphs 2 and 4 are supplementary or incidental to the operation of ships, aircraft or road transport vehicles in international traffic.