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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

International Traffic

(1) Profits derived by an enterprise of a Contracting State from the operation of ships and aircraft in international traffic by the enterprise of the Contracting State shall be taxable only in that Contracting State in which the place of effective management of the enterprise is situated.

(2) Profits referred to in paragraph (1) of this Article shall not include profits derived from offering lodging facilities or carrying out transportation activities that do not include the use of ships or aircraft in international traffic.

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

(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.