TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13171

TAXATION

Shipping and Aircraft


Agreement Between the
UNITED STATES OF AMERICA
and GHANA

Effected by Exchange of Notes
Dated at Accra April 24 and
November 12, 2001

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89—497, approved July 8, 1966
(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued
under the authority of the Secretary of State shall be competent
evidence . . . of the treaties, international agreements other than
treaties, and proclamations by the President of such treaties and
international agreements other than treaties, as the case may be,
therein contained, in all the courts of law and equity and of maritime
jurisdiction, and in all the tribunals and public offices of the
United States, and of the several States, without any further proof
or authentication thereof.”

GHANA

Taxation: Shipping and Aircraft

Agreement effected by exchange of notes
Dated at Accra April 24 and
November 12, 2001;
Entered into force November 12, 2001.

EMBASSY OF THE
UNITED STATES OF AMERICA
No. 2001-055
The Embassy of the United States of America presents its
compliments to the Ministry of Foreign Affairs of the Republic of Ghana,
and has the honor to propose that the two governments conclude an
agreement to exempt from income tax, on a reciprocal basis, certain
income derived from the international operation of a ship or ships and
aircraft as follows:
The Government of the United States of America, in accordance
with Sections 872(b) and 883(a) of the U.S. Internal Revenue Code of
1986, agrees to exempt from U.S. federal income tax gross income

derived from the international operation of a ship or ships or aircraft by
individuals who are residents of Ghana (other than U.S. citizens or
residents) and corporations that are organized in Ghana, in each case,
that are engaged in the international operation of a ship or ships or
aircraft. This exemption shall be granted on the basis of equivalent
exemptions granted by Ghana to individual residents of the United States
and to corporations organized in the United States.
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In the case of a Ghanaian corporation, the exemption shall apply
only if the corporation meets the ownership or public trading requirements
of U.S. law. For purposes of such ownership requirements, the
Government of Ghana shall be treated as an individual resident of Ghana.
Gross income derived from the international operation of a ship or
ships or aircraft includes:
(i) Income from the rental on a full (time or voyage) basis of a
ship or ships or aircraft used in international transport;
(ii) Income from the rental on a bareboat basis of a ship or
ships or aircraft used in international transport;
(iii) Income from the rental of containers and related equipment
used in international transport that is incidental to income
from the international operation of a ship or ships or aircraft;
(iv) Gains from the sale or other alienation of a ship or ships or
aircraft used in international transport; and
(v) Income derived by an individual or corporation otherwise
engaged in the international operation of a ship or ships or
aircraft from active participation in a pool, an alliance, joint
venture, international operating agency, or other venture,
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that is itself engaged in the international operation of a ship
or ships or aircraft.
The Embassy, on behalf of the Government of the United States of
America, proposes that if the foregoing is acceptable to the Government
of Ghana, this note and the Ministry's reply note shall constitute an
agreement between the two Governments, which shall enter into force on
the date of the Ministry's reply note and shall have effect with respect to
taxable years beginning on or after January 1, 2001. It shall remain in
force until terminated by either Government giving written notice to the
other Government through diplomatic channels.
The Embassy of the United States of America avails itself of this
opportunity to renew to the Ministry of Foreign Affairs of the Government
of Ghana the assurances of its highest consideration.
Enclosure:
1. Draft reply note
Embassy of the United States of America
Accra, April 24, 2001
SCR.TI/TA/USA
REPUBLIC OF GHANA
MINISTRY OF FOREIGN AFFAIRS
The Ministry of Foreign Affairs of the Republic of Ghana presents its
compliments to the Embassy of the United States of America and has the honour
to acknowledge with thanks the receipt of Note No. 2001-005 of April 24, 2001
proposing an agreement to exempt from Ghanaian tax gross income derived
from the international operation of a ship or ships or aircraft by individual
residents of the United States and by corporations organized in the United
States, in each case, that are engaged in the international operation of a ship or
ships or aircraft. This exemption shall be granted on the basis of equivalent
exemptions granted by the United States to individuals who are residents of
Ghana (other than U.S. citizens or residents) and to corporations that are
organized in Ghana.
The terms of the agreement are as follows:
The Government of Ghana agrees to exempt from Ghanaian tax gross
income derived from the international operations of a ship or ships or aircraft by
individuals who are residents of the United States and corporations that are
organized in the United States, in each case, that are engaged in the
international operation of a ship or ships or aircraft. This exemption is granted
on the basis of equivalent exemptions granted by the United States under the
terms of the Embassy's note of April 24, 2001.
Gross income derived from the international operation of a ship or ships or
aircraft includes:
^ Income from the rental on a full (time or voyage) basis of a ship or
ships or aircraft used in international transport;
^ Income from the rental on a bareboat basis of a ship or ships or
aircraft used in international transport;
^ Income from the rental of containers and related equipment used
in international transport that is incidental to income from the
international operation of a ship or ships or aircraft;
^ Gains from the sale or other alienation of a ship or ships or
aircraft used in international transport; and
^ Income derived by an individual or corporation otherwise engaged
in the international operation of a ship or ships or aircraft from
active participation in a pool, an alliance, joint venture,
international operating agency, or other venture, that is itself
engaged in the international operation of a ship or ships or
aircraft.
The Ministry of Foreign Affairs of the Republic of Ghana confirms that the
Government of Ghana accepts the proposal contained in the Embassy's Note
No. 2001-055 and that the Embassy's note and this note in reply constitute an
agreement between the two Governments, which shall enter into force on the
date of this note and shall have effect with respect to taxable years beginning on
or after January 1, 2001. It shall remain in force until terminated by either
Government giving written notice to the other Government through diplomatic
channels.
The Ministry of Foreign Affairs of the Government of Ghana avails itself of this
opportunity to renew to the Embassy of the United States the assurances of its
highest consideration.
Accra, 12th November, 2001
THE EMBASSY OF THE
UNITED STATES OF AMERICA,
ACCRA.