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) Profits from the operation of boats engaged in inland waterways transport shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
(3) If the place of effective management of a shipping enterprise or of an inland waterways transport 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 the ship or boat is situated, or, if there is no such home harbor, in the Contracting State of which the operator of the ship or boat is a resident.
(4) The preceding provisions shall also apply:
- (a) if the operation of ships or aircraft is accomplished with chartered or leased vehicles;
- (b) to agencies, and to their activities directly related to the operation of ships or aircraft or with transfer services; and
- (c) for holdings of ship or aircraft enterprises in a pool, a joint operating organization, or an international operational body.
(5) Where an enterprise within the meaning of this Article which is operated in the form of a partnership has its place of effective management in a Contracting State while one of the partners is a resident of the other State, that other State may tax that partner for the income from his holding in that partnership, but shall grant a relief from its taxes within the scope of Article 24 for the taxes levied in the first-mentioned State.