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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.


International Traffic

(1) The profits of the enterprise of a Contracting State 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 located. These profits shall also include those derived from other activities including, in particular, from the operation and rental of containers used for international transport of goods, provided such activities are limited to the operation of ships and aircraft in international traffic, by the enterprise.

(2) Where 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 harbor of this ship is situated, or, if there is no such home harbor, 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.

(4) The provisions of this article do not include the profits realized by an enterprise of a Contracting State in respect of sales commissions (made in the other Contracting State) from securities of air or sea transport belonging to other enterprises.