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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

Sea and Air Traffic

(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) For the purposes of this Convention, "profits from the operation of ships or aircraft in international traffic" shall also include profits from:

  • (a) the occasional rental of ships or aircraft;
  • (b) the use, maintenance or rental of containers used for the transport of goods or merchandise (including trailers and ancillary equipment used for transporting the containers);

if these activities are part of the operation of ships or aircraft in international traffic.

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

(4) 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.