Article 8 - Shipping - UAE (United Arab Emirates)

ARTICLE 8 SHIPPING 1. Profits derived by an enterprise of a Contracting State from the operation by that enterprise of ships in international traffic shall be taxable only in that State. 2. For the purposes of this Article, profits from the operation of ships in international traffic shall mean profits derived by an enterprise described in paragraph (1) from the transportation by sea of passengers, mail, livestock or goods and shall include: (a) the charter or rental of ships incidental to such transportation; (b) the rental of containers and related equipment s used in connection with the operation of ships in international traffic; (c) the gains derived from the alienation of ships, containers and related equipment s owned and operated by the enterprise in international traffic. 3. For the purposes of this Article, interest on funds connected with the operation of ships in international traffic shall be regarded as profits derived from the operation of such ships and the provisions of Article 11 shall not apply in relation to such interest. 4. The provisions of paragraphs (1), (2) and (3) shall apply to profits from the participation in a pool, a joint business or an international operating agency.