ARTICLE 8
International Traffic
(1) Profits derived by a resident of a Contracting State from the operation of ships or aircraft, motor or rail transport facilities in international traffic, shall be taxed only in that State in which the fixed place of effective management of the enterprise is located.
(2) Profits derived from the operation of ships on inland waterways can only be taxed in the Contracting State in which the place of effective management of the enterprise is located.
(3) For the purpose of this Article, profits derived by a resident of a Contracting State from the operation of ships or aircraft, motor or rail transport facilities in international traffic, shall include:
- (a) income from the occasional chartering of empty ocean going vessels, aircraft or ships used on inland waterways, and
- (b) income from the use or leasing of containers (including trailers and the related equipment, that serve the transport of containers),
to the extent that the chartering, use or leasing ocean going vessels or aircraft in international traffic or ships used in inland.
(4) If the place of effective management of an enterprise is engaged in ocean navigation or the navigation of inland waterways is located on board a ship, it is deemed to be located in the Contracting State in which the home harbour is located; if there is no home harbour, in the Contracting State in which the ship's operator is domiciled.
(5) The provisions of paragraphs (1) and (2) of this Article shall also apply to profits from participation in a pool, joint venture or international operating agency.