- 1
- Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
- 2
- If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
- 3
- For the purposes of this Convention, profits derived by an enterprise of one of the States from the operation of ships or aircraft in international traffic shall include profits from:
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- a)the rental of ships or aircraft operated in international traffic;
- b)the use or rental of containers (including trailers and related equipment for the transport of containers) used in international traffic; and
- c)the rental of ships, aircraft or containers (including trailers and related equipment for the transport of containers or the maintenance thereof) provided that such profits are incidental to profits referred to in paragraph 1, or subparagraphs a) or b) of this paragraph.
- 4
- The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.