Income or profits of an enterprise of a Contracting Party derived in the other Contracting Party from the operation of ships in international traffic may be taxed in the other Contracting Party but the tax so charged shall be reduced by an amount equal to 50 per cent thereof.
Income or profits of an enterprise of a Contracting State from the operation of ships in international traffic may be taxed in the other Contracting State, but the tax imposed in that other State shall be reduced by an amount equal to 50 per cent thereof.
Income or profits. The equivalent to Art 7 of the OECD Convention in the DTA between Australia and Malaysia is yet another variation of the Business Profits Article. It refers to "income or profits" of an enterprise. The use of the term "income or profits" appears to contemplate a broad application of the Article. It may be easier to argue that a capital gain derived by a Malaysian entity from the disposal of shares in an Australian company, falls within the definition of "income or profits" and in the absence of a PE of the non-resident in Australia, Malaysia should retain the right to tax the gain.
