ARTICLE 8
Maritime, Inland Water, and Air Transport
(1) Profits derived 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) Profits derived by an enterprise of a Contracting State from the operation of boats in inland water transportation shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
(3) For the purposes of this Article, profits from the operation of ships or aircraft in international traffic or profits from boats used in inland water transportation shall also include:
- (a) income from renting ships or aircrafts; and
- (b) Profits from the use, maintenance or rental of containers (including trailers and related equipment for the transportation of containers) used for the transport of goods or merchandise;
provided that such rental, use, or maintenance, as the case may be, is incidental to the operation of ships or aircraft in international traffic.
(4) If the place of effective management of an enterprise engaged in sea or inland water transportation is aboard a ship or boat, then the place of effective management of the enterprise shall be deemed to be situated in the Contracting State in which the home harbor of the ship or boat is situated. If there is no such home harbor, then the place of effective management of the enterprise shall be deemed to be situated in the Contracting State of which the operator of the ship or boat is a resident.
(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.