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ARTICLE 8

Sea and Air Traffic

(1) Notwithstanding the provisions of Article 7, profits derived from the operation of ships or aircraft in international traffic, by a resident of a Contracting State, shall be taxable only in that State.

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

(3) In this Article:

  • (a) the term "profits" means:
    • (i) profits, net profits, gross income and income derived from the operation of ships or aircraft in international traffic;
    • (ii) interest on amounts derived directly from activities that are incidental to the operation of ships or aircraft in international traffic;
    • (iii) sale of tickets on behalf of an enterprise.
  • (b) the term "operation of ships or aircraft" in international traffic for a person includes:
    • (i) charter or leasing of ships or aircraft;
    • (ii) leasing of containers and related equipment;
    • (iii) alienation of ships or aircraft, containers and related equipment.

by that person in such a manner that such charter, leasing or alienation are related to the operation of ships or aircraft in international traffic.