background image
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

Shipping, Inland Waterways Transport 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 in international traffic 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, boats or aircraft in international traffic shall include profits from the occasional:

  • (a) rental of ships, boats or aircraft on a bare-boat basis and
  • (b) use or rental of containers (including trailers and ancillary equipment used for transporting the containers),

if these activities pertain to the operation of ships, boats or aircraft in international traffic.

(4) If the place of effective management of a shipping enterprise or of an inland waterways transport enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, 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.