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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 and Air Transport

(1) Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

(2) If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

(3) The term "profits derived from the operation of ships or aircraft in international traffic" includes profits derived from the use or rental of containers and related equipment used in international transport that is incidental to income from the operation of ships or aircraft in international traffic.

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

(5) Nothing contained in the foregoing provisions of this Article shall affect the existing Agreement between the Kingdom of Saudi Arabia and the Republic of India for Avoidance of Double Taxation by reciprocal exemption of taxes on income on the Activities of Air Transport Enterprises signed on 14-11-1991 in respect of Air India and Saudi Arabian Airlines Corporation.