Article 8 - Air Transport - Italy

Article 8 AIR TRANSPORT 1. Income derived from the operation of aircraft in international traffic by an enterprise of one of the Contracting States shall not be taxed in the other Contracting State. 2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 3. For the purposes of this Article :- (a) interest of funds connected with the operation of aircraft in international traffic shall be regarded as income from the operation of such aircraft; and (b) the term operation of aircraft shall mean business of transportation by air of persons, livestock, goods or mail, carried on by the owners or lessees or charterers of aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of aircraft and any other activity directly connected with such transportation.