*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) For the purposes of this Article and notwithstanding the provisions of Article 12, profits from the operation of ships or aircraft in international traffic also include:
- (a) profits from the rental on a bare-boat basis of ships or aircraft, and
- (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,
where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation of ships or aircraft in international traffic.
(4) Interest arising in a Contracting State and derived from funds formed as an integral part of the carrying on of the business of operating the ships or aircraft in international traffic in that Contracting State, shall be regarded as profits from the operation of such ships or aircraft in international traffic, and the provisions of Article 11 shall not apply in relation to such interest.
(5) The provisions of paragraph (1) shall also apply to profits from the participation in a pool, a joint business or an international operating agency.