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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

Sea and Air Transport

(1) Profits derived by an enterprise 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) If the place of effective management of a shipping enterprise is aboard a ship, then such 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 it shall be deemed to be situated in the Contracting State of which the operator of the ship is a resident.

(3) The provisions of paragraph (1) of this Article shall also apply to profits arising out of the participation in a pool, a joint business, or an international operating agency but shall be confined only to the parts of profits thus realized which is due to each shareholder in proportion to his share in the joint enterprise.

(4) Under the provisions of this Article, profits of the enterprise of a Contracting State arising from the operation of ships or aircraft in international traffic shall include, among other things, profits arising from the use and letting of containers, provided such an activity is accessory to the benefits to which the provisions of paragraph (1) of this Article are applicable.