ARTICLE 20

Offshore Activities

(1) The provisions of this Article apply notwithstanding the other provisions of the Convention.

*(2) Profits which a person resident in one Contracting State derives from activities in connection with exploration or exploitation of the seabed and marine subsoil and the natural resources thereof in the zone adjacent to the territorial sea of the other Contracting State over which that State exercises sovereign rights in accordance with international law, may, subject to the provisions of paragraphs (3) and (4), be taxed in the other State. In determining such profits, the provisions of Article 7, paragraph (2), shall apply analogously. However, if the activities are carried on for no more than 30 days within a 12-month period, the profits shall be taxable only in the first-mentioned State.

(3) If an enterprise carries on activities and another enterprise carries on activities and the two sets of activities are so closely linked that they are considered to be one and the same activity, and if one of the enterprises is directly or indirectly controlled by the other or if both are directly or indirectly controlled by one or more third parties, the activities of both enterprises shall be taken into account in determining the time period mentioned in paragraph (2).

(4) Profits which a resident of a Contracting State derives from the conveyance of supplies or personnel to a site or between sites at which activities are being carried on in connection with exploration or exploitation of the seabed and marine subsoil and the natural resources thereof in a zone as described above adjacent to a Contracting State or which he derives from the operation of tugboats or other vessels that provide auxiliary services shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(5)

• (a) Subject to the provisions of sub-paragraph (b), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment in connection with exploration or exploitation of the seabed and marine subsoil and the natural resources thereof in a zone as described above adjacent to the other Contracting State shall be taxable in the other State if the services are performed offshore in the other State, provided the offshore employment is exercised for more than 30 days during a 12-month period.
• (b) Salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft engaged in conveying supplies or personnel to a site or between sites at which activities are being carried on in connection with exploration or exploitation of the seabed and marine subsoil and the natural resources thereof in a zone as described above adjacent to a Contracting State or in respect of an employment exercised aboard a tugboat or other vessel providing auxiliary services shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(6) Gains derived by a resident of a Contracting State from the alienation of:

• (a) Exploration or exploitation rights or
• (b) Property situated in the other Contracting State and used in connection with offshore activities as described in paragraph (2) which are carried on in the other State, or
• (c) Shares in a company whose worth or the larger portion of whose worth is directly or indirectly related to such rights or property or the combination of such rights and property may be taxed in the other State.

For the purposes of this paragraph, "exploration and exploitation rights" mean rights to property arising from the exploration or exploitation of the seabed and marine subsoil and the natural resources thereof in another Contracting State, including rights to title or usufruct in respect of such property.