(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) For the purposes of this Article, profits from the operation of ships or aircraft in international traffic or boats engaged in inland waterways transport shall include profits from:

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

provided that the chartering, use or rental is incidental to the operation of ships or aircraft in international traffic or boats engaged in inland waterways transport.

(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 of which the operator of the ship or boat is a resident. If the operator of the ship or boat is an individual and by reason of the provisions of paragraph (1) of Article 4 this individual is a resident of both Contracting States, then no recourse shall be given to the availability of a permanent home, to the centre of vital interests and to a habitual abode.

(5) The provisions of paragraph (1) and (2) shall also apply to profits from the participation in a pool, a joint business or an international operating agency.