- 1
- Profits from the operation of aircraft in international traffic shall be taxable only in the State in which the place of effective management of the Designated airline is situated.
- 2
- Gains from the alienation of aircraft operated in international traffic or movable property pertaining to the operation of such aircraft, shall be taxable only in the State in which the place of effective management of the Designated Airline is situated.
- 3
- The provisions of this Article shall also apply to income and profits from the participation in a pool, a joint business, a cooperative marketing arrangement or an international operating agency.
- 4
- The provisions of this Article shall also apply to taxes levied on the basis of the gross receipts in respect of the carriage of passengers and cargo in international traffic.
- 5
- The place of effective management of the enterprise of Koninklijke Luchtvaartmaatschappij N.V. (KLM N.V.) shall be deemed to be situated in the Netherlands, as long as the Netherlands has an exclusive taxing right with respect to the enterprise of KLM N.V. under the tax agreement concluded between the Netherlands and France.
- 6
- The provision of paragraph 5 shall also apply in any situation where the air transport activities of the existing KLM N.V. would be continued fully or substantially by another person. This person shall be considered to be a resident of the Netherlands for the purposes of this Convention.
- 7
- Remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft operated in international traffic, shall be taxable only in that State.
- 8
- If an agreement between the Contracting Parties on avoidance of double taxation and the prevention of fiscal evasion on income (hereinafter: “tax agreement”) in which air transport is addressed envisages procedures different from those referred to in paragraph 1-7 of this Article, the provisions of the tax agreement shall be applicable.
