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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 Traffic

(1) Notwithstanding the provisions of Article 7 of this Convention, profits derived by an enterprise 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 the enterprise is on board a ship, the enterprise shall be considered to have been situated in the Contracting State in which the port of the ship is located. In the absence of such port, the enterprise shall be considered as existing in the Contracting State where the owner of the ship is a resident.

(3) The provisions of paragraph (1) of this Article shall apply to the profits of the accession in an association, common partnership or international operator of ships or aircraft.

(4) For the purpose of Article 1, the profits derived from the operation of ships or aircraft in international traffic shall include the profits generated by the enterprise included in paragraph (1) of this Article as well as the profits of maritime and airtime transport for passengers, post and port services, and goods. They shall also include:

  • (a) renting or leasing ships or aircraft for such transport;
  • (b) renting containers or equipments required to be used in the operation of ships and aircraft in international transport;
  • (c) profits generated by deposits that are linked directly to the operation of the ships or aircraft;
  • (d) profits generated by maintenance services provided to a third party;
  • (e) profits, including extraordinary profits, generated by airtime transport company are exempted from the due taxes on revenues, movable capitals, commercial and industrial profits, or capital companies in either Contracting States.

(5)

  • (a) The maritime transport companies owned by UAE are Emirates Gulf Airways or any company operated by UAE or its municipalities.
  • (b) The maritime transport companies owned by Sudan Republic are Sudan Airways or any company operated by Sudan Republic or its municipalities.