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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) The profits derived by an enterprise of a Contracting State from the operation of ships or aircraft engaged in international traffic, shall be taxable only in that Contracting State.

(2) The profits referred to in paragraph (1) of this Article do not include:

  • (a) those derived from providing lodging service;
  • (b) those derived from the use of any other means of transport, unless they are of an incidental nature and are used for commencing or completing an international traffic route.

(3) For the purposes of this Article, profits derived from the operation of ships or aircraft used by a resident of a Contracting State for international traffic, shall comprise those profits arising from the leasing of ships or aircraft upon the basis of a full vessel (by time or journey). Likewise included are profits derived from the leasing of ships and aircraft upon the basis of an empty vessel, provided that it is of an incidental nature, if the same are exploited for international traffic by the leaseholder and the profit is obtained by a resident of a Contracting State engaged in the exploitation of ships or aircraft in international traffic.

(4) The profits referred to in paragraph (1) of this Article shall also include those derived from the use or leasing of containers for international traffic, as long as the use or leasing thereof is incidental regarding the operation of ships and aircraft used in international traffic.

(5) The provisions of paragraph (1) of this Article shall also be applicable to profits arising from the participation in a "pool", a joint business or in an international operating agency, but solely to the part of the profits derived in such manner attributable to each participant in the proportion of their participation in the joint venture.