background image
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.


Sea and Air Traffic

(1) Profits from the operation, in international traffic, of ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(2) This provision does not refer to clearly separate activities, such as the independent operation of a hotel or a shipbuilding yard of a shipping enterprise having its place of effective management in the other State.

(3) Where the place of effective management of a shipping enterprise is aboard a ship, operated in international traffic, then such enterprise shall be deemed to be situated in the Contracting State in which the home harbor of this ship or boat is situated, or, if there is no such home harbor, in the Contracting State of which the operator of the ship is a resident.

(4) 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.