Article 2 - Avoidance of Double Taxation - Ethiopia

Article 2 1. Under this Agreement income derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall, on the principle of reciprocity, be exempt from tax in the other Contracting State. 2. Paragraph 1 shall also apply in respect of participations in a pool, a joint venture or in any other similar arrangement regarding air transport. 3. For the purpose of paragraph 1, interest on funds directly connected with the operation of aircraft shall be regarded as income from the operation of such aircraft. 4. For the purpose of this Article, the term tax shall mean income-taxes, and any other taxes, dues and levies on income which are imposed or may hereafter be imposed on behalf of each Contracting State or of its political sub-divisions or local authorities, irrespective of the manner in which they are imposed.