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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 Traffic

(1) Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contacting State.

(2) For the purposes of this Convention, the profits derived from the operation of ships or aircraft in international transportation shall include:

  • (a) profits from the dry lease of ships or aircraft;
  • (b) profits derived from the lease, maintenance or letting of containers, trailers and other associated equipment used for the transportation of containers, provided that they are used for the shipping of goods or merchandise.

For the purposes of this paragraph, the lease, maintenance and letting should be during the operation of ships or aircraft in international traffic.

(3) The provisions of paragraph (1) shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

(4) 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 harbor of the ship is situated. If there is no such home harbor, 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.