Article 9 - Shipping - Romania (Old - Effective upto 15-12-2013)

Article 9 - Shipping - 1. Profits derived by an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph (1), such profits may also be taxed in the other Contracting State if the shipping activities connected with the operation of ships in international traffic are carried on in that other State, but the tax so charged shall not exceed 2.50 per cent of the gross amount payable in respect of operation of ships in that other State. 3. The provisions of paragraphs (1) and (2) shall also apply to profits from the participation in a pool, a joint business or an international operating agency engaged in the operation of ships. 4. For the purposes of this Article, the gross amount payable in respect of operation of ships in a Contracting State shall mean the aggregate of the following amounts, namely : (a) the gross amount payable on account of carriage of passengers, livestock, mail or goods shipped at a port or ports in that Contracting State ; (b) interest arising in that Contracting State on funds connected with the operation of ships in international traffic ; and (c) the gross amount payable in that State on account of the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) in connection with the transport of goods or merchandise in international traffic. The provisions of Article 12 shall not apply in relation to interest referred to in (b) above. 5. In determining the income of an enterprise of a Contracting State for the purposes of taxation in the other Contracting State, no deduction shall be allowed in respect of any loss or depreciation allowance admissible to that enterprise for any earlier previous year or calendar year, as the case may be.