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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 22

Maritime Activities

Notwithstanding any other provision of this Convention:

(1) A person who is a resident of a Contracting State and who carries on seafaring activities in the other Contracting State, for the exploration or use of the sea bed, its sub-seasoil and their natural resources situated in the other Contracting State, shall be deemed to perform such activity in that other State through a permanent establishment or a fixed base situated therein, subject to paragraphs (2) and (3) of this Article.

(2) The provisions of paragraph (1) of this Article shall not apply where such activities are carried on during a period or periods not exceeding a total of 30 days during any twelve-month period.

However, for the application of this paragraph:

  • (a) the activities performed by an enterprise associated with another enterprise shall be deemed to be performed by the enterprise to which it is associated provided that the activities in question are fundamentally identical to those performed by the last-mentioned enterprise;
  • (b) the two enterprises shall be deemed to be associated if one of them is placed directly or indirectly under the control of the other, or if both of them are placed directly or indirectly under the control of one or several third parties.

(3) Any profits that a resident of a Contracting State derives from the transportation of supplies to places where activities like the exploration or the use of the seabed, its sub-seasoil and their natural resources or the operation of tug boats or similar ships are performed, then such profits shall only be taxable in the State in which the place of effective management of the enterprise is situated.

(4) Subject to the provisions of paragraph (5) of this Article, any remuneration that a resident of a Contracting State derives in respect of employment connected with the exploration or the exploitation of the seabed, its sub-seasoil and their natural resources situated in the territory of the other State, shall be taxable only in that other State provided that the recipient of such remuneration carries on such activity for a period exceeding the aggregate 30 days in any twelve-month period.

(5) Any remuneration derived by a resident of a State from employment exercised aboard a ship or aircraft used for the transportation of supplies to places where activities concerning the exploration or the exploitation of the seabed, its sub-seasoil and their natural resources are performed or remuneration derived in respect of employment exercised aboard a tug boat or such similar ship pertaining to such activities, shall be taxable in that State in which the person benefiting from the profits in respect of remuneration derived from the operation of the ship or aircraft is a resident.