Common use of SHIPPING AND AIR TRANSPORT Clause in Contracts

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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. 4. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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 in which the operator of the ship is a resident. 43. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 4. Interest on funds connected with the operations of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft, and the provisions of Article 11 shall not apply in relation to such interest. 5. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits from the rental on a bareboat basis of ships or aircraft; and (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers), used for the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation of ships or aircraft in international traffic.

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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. 43. The provisions of paragraph 1 of this Article shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency. 4. Interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft, and the provisions of Article 11 shall not apply in relation to such interest. 5. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall mean profits derived from the transportation by sea or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of the ships or aircraft, including profits from: (a) the sale of tickets for such transportation on behalf of other enterprises; (b) the incidental lease of ships or aircraft used in such transportation; (c) the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) in connection with such transportation; and (d) any other activity directly connected with such transportation.

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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. 43. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 4. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits from the rental on a bareboat basis of ships or aircraft; and (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers), used for the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is an ancillary activity of an enterprise engaged in the operation of ships or aircraft in international traffic.

SHIPPING AND AIR TRANSPORT. 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in the that Contracting State in which the place of effective management of the enterprise is situatedState. 2. Notwithstanding the provisions of Article 2, an enterprise of a Contracting State shall be exempt in respect of its carrying on the operation of ships or aircraft in international traffic from, in the case of an enterprise of Denmark, the enterprise tax of Japan and, in the case of an enterprise of Japan, any tax similar to the enterprise tax of Japan which is imposed after the date of signature of this Convention in Denmark. 3. For the purposes of this Article, profits of an enterprise from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic;aircraft; and (cb) profits derived from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used in international traffic that for the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is incidental to income from the operation of ships or aircraft in international traffic. 3. If traffic carried on by 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 residententerprise. 4. The provisions of paragraph 1 the preceding paragraphs of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

SHIPPING AND AIR TRANSPORT. 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in the that Contracting State in which the place of effective management of the enterprise is situatedState. 2. Notwithstanding the provisions of Article 2, an enterprise of a Contracting State shall be exempt in respect of its carrying on the operation of ships or aircraft in international traffic from, in the case of an enterprise of Latvia, the enterprise tax of Japan and, in the case of an enterprise of Japan, any tax similar to the enterprise tax of Japan which is imposed after the date of signature of this Convention in Latvia. 3. For the purposes of this Article, profits of an enterprise from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic;aircraft; and (cb) profits derived from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used in international traffic that for the transport of goods or merchandise, where such rental or such use, maintenance or rental, as the case may be, is incidental to income from the operation of ships or aircraft in international traffic. 3. If traffic carried on by 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 residententerprise. 4. The provisions of paragraph 1 the preceding paragraphs of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

SHIPPING AND AIR TRANSPORT. 1. Profits of a resident of a Contracting State 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 situatedthat State. 2. Profits referred to in paragraph 1 shall not include profits from land transportation. 3. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) by a resident of a Contracting State include profits derived from the rental of ships or aircraft on a full (time or voyage) basis basis. They also include profits from the rental of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of if such ships or aircraft used are operated in international traffic that is incidental to income from by the operation lessee and are derived by a resident of ships or aircraft a Contracting State engaged in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 34. If For the place purposes of effective management this Article and notwithstanding the provisions of Article 12, profits of a shipping enterprise is aboard resident of a shipContracting State from the use or rental of containers (including trailers, then it barges and related equipment for the transport of containers) used in international traffic shall be deemed taxable only in that State where such use or rental is incidental to be situated the operation of ships or aircraft 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 residentinternational traffic. 45. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) a. profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) b. profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) c. profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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. 4. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

SHIPPING AND AIR TRANSPORT. 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. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include: (a) profits derived from the rental on a full (time or voyage) basis of ships or aircraft used in international traffic; (b) profits derived from the rental on a bareboat basis of ships or aircraft used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic; (c) profits derived from the use, maintenance or rental of containers and related equipment used in international traffic that is incidental to income from the operation of ships or aircraft in international traffic. 3. 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: 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 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.