CONVENTION

BETWEEN

The GOVERNMENT OF The KINGDOM THAILAND

and

……………..

FOR

THE AVOIDANCE OF DOUBLE TAXATION

AND

THE PREVENTION OF fiscal EVASION

WITH RESPECT to TAXES ON INCOME

 The Government of the Kingdom of Thailand and the Government of…….……………

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

  have agreed as follows :

 Article 1

PERSONS COVERED

 This Convention shall apply to persona who are residents of one or both of the Contracting States.

Article 2

TAXES COVERED

1. This Convention shall apply to taxes on income imposed on behalf' of a Contracting State or of its local authorities, irrespective of the mailer in which they' are levied.

 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.  

3. The existing taxes to which the Convention shall apply are in particular:     

 (a) In the case of Thailand:

- the income tax; and

- the petroleum income tax;  

(hereinafter referred to as ''Thai tax'');

 (b)   In the case     of…………….:

(hereinafter referred to as " ......tax'')  

 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their respective taxation laws.

Article 3

GENERAL DEFINITIONS

 1. For the purposes of this Convention, unless the context otherwise requires:

(a) the term "Thailand'' means the territory of the Kingdom of           Thailand including its internal waters, its territorial seas, and any maritime areas over which the Kingdom of Thailand has sovereign rights or jurisdiction under national law;    

(b) the term "………….." means……………………………..;

(c) the terms "a Contracting State'' and "the other Contracting State'' mean Thailand or ....,as the context requires;

(d) the term "person'' includes an individual, a company and any other   body of persons as well as any entity treated as a taxable unit under the taxation laws in force in either Contracting State;

(e) the teen "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;  

(f) the terms "enterprise of a contracting State'' and enterprise of the other Contracting State'' mean respectively an enterprise carried on by a resident of a contracting State and an enterprise carried on by a resident of the other Contracting State;

(g) the term ''tax'' means Thai tax or………… tax as the context requires;

(h) the term "national'' means:

(i) any individual possessing the nationality of a contracting State;

(ii) any legal person, partnership, association and any other entity deriving its status as, such from the laws in force in a Contracting State;

the term "international traffic'' means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting Stat; and

(i) the term ''competent authority" means in the case of Thailand, the Minister of Finance or his authorized representative, and, in the case of........................... . 

 2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.

 Article 4

RESIDENT

 1. For the purposes of this Convention, the term "resident of a Contacting State'' means any person who, tender the laws of that State, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature, and also includes that State and any local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode;  

(c) if he has an habitual abode in both States or in neither of them, he shall     be deemed to be a resident of  the State of   which he is a national; 

(d) if he is a national of both States or of neither of them, the competent authorities  of the Contracting States shall endeavor to settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, it shall be deemed to be a resident of the Contracting State in which it is incorporated. If the person under the foregoing criterion is still a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. If the State in which its place of effective management is situated cannot be determined, then the competent authorities of the Contracting States shall settle the question by mutual agreement.

 Article 5

PERMANENT ESTABLISHMENT

 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of   an enterprise is wholly or partly carried on.

 2. The term "permanent establishment" includes especially:  

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(e) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;    

(g) a warehouse, in relation to a person providing storage facilities or others.

 3. The term "permanent establishment'' shall also include:  

(a) a building site a construction, installation or assembly project or supervisory activities in connection therewith, where such site, project or activities continue for a period or periods aggregating more than ................     months;

(b) the furnishing of services including consultancy services by a resident of one of the Contracting States through employees or other personnel, where activities of that nature continue for the same or a connected project within the other Contracting State for a period or periods aggregating more than..................... months within any twelve-month period.

 4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information for the enterprise;

(e) the maintenance of a fixed place of business solely for the put-pose of advertising, for the supply of information, for scientific research or for singular activities which leave a preparatory or auxiliary character, for the enterprise.

 5. Notwithstanding the provisions of paragraphs l and 2, where a person- other than an agent of an independent status to whom paragraph 6 applies- is acting in a Contracting State, on behalf of the enterprise of the other Contracting State, the enterprise shall be deemed to have a permanent establishment in the first-mentioned State, if such a person:

(a) has and habitually exercises in the first-mentioned State, an authority to conclude contracts on behalf of the enterprise; unless his activities are limited to the purchase of goods or merchandise for the enterprise;

(b) has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly delivers on behalf of the enterprise; or

(c) has no such authority, but habitually secures orders in the first-mentioned State wholly or almost wholly for the enterprise or for the enterprise and   other enterprises which are controlled by it or have a controlling interest in it.

6. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reassurance, be deemed to have a permanent establishment in the other State if it collects premiums in the territory of that other State or insures risks situated therein through an employee or through a representative who is not an agent of an independent status within the meaning of paragraphs 7.

 7. An enterprise of a Contracting State shall not be deemed to have

a permanent establishment in the other Contracting State merely because it carries on business in that other State thorough a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise or on behalf of that enterprise and other enterprises, which are controlled by it or have a controlling interest in it, he will not be considered an agent of independent status within the meaning of this paragraph. 

 8. The-fact that a company which is a resident of a Contracting State controls or, is controlled by a company which is a resident of the other Contracting State, or which carries on business in

that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE property

 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

 2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable     properly, livestock and equipment used in agriculture, forestry and fishery, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and lights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

 Article   7

BUSINESS PROFITS

 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed         in the other State but only so much of them as is attributable to that permanent establishment.

 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing Wholly independently with the enterprise of which it is a permanent establishment.

 3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

 4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of a certain percentage of the gross receipt of the enterprise or of the permanent establishment or on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such a method as may be customary; the method adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.

 5. If the information available to the taxation authority of a Contracting State is inadequate to determine the profits to be attributed to the permanent establishment of an enterprise, nothing in this Article shall affect the application of any law of that State relating to the determination of the tax liability of a person provided that law shall be applied so far as the information available to the taxation authority permits consistently with the principles of this Article.

 6. No profits shall be attributed to a permanent establishment by reasons of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.                                                                          

 7. For the purposes of the preceding paragraphs, profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary

 8. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8

SHAPPING AND AIR TRANSPORT

 1. Income or profits derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxable only in that Contracting State.

 2. Income or profits derived by 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.

 3. The provisions of paragraphs 1 and 2 shall also apply to income or profits from the participation in a pool, a joint business or an international operating agency. 

Article 9

ASSOCIATED ENTERPRISES

1. Where

(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or

(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;

 and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any income or profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the income or profits of that enterprise and taxed accordingly.

 2. Where a Contracting State includes in the profits of an enterprise of that State, and taxes accordingly, profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits in accordance with the taxation laws of that other State. In determining such adjustment, due regard shall be had to the other provisions of the Convention and the competent authorities of the Contracting States may, if necessary, consult each other.

Article 10

DIVIDENDS

 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed...........per cent of the gross amount of the dividends.                                                       

 This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.  

 3. The term "dividends'' as used in this Article means income from shares, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of   the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, thorough a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article l4, as the case may be, shall apply. 

5. where a company which is a resident of a Contracting State derives income or profits from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of income or profits arising in such other State.

 6. Nothing in this Convention shall be construed as preventing a Contracting State from imposing tax on the disposal of profits out of a Contracting State in accordance with the provisions of its domestic law.   

 Article 11

Interest

 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) ...........per cent of the gross amount of the interest if it is received by any financial institution (including an insurance company);    

(b) .............per cent of the gross amount of the interest in other cases.

 3. Notwithstanding the provisions of paragraphs 1 and 2, interest arising in a Contracting State and paid to the Government of the other Contracting State shall be exempt from tax in the first-mentioned State.  

 For the purposes of this paragraph, the term "Government''

(a) in the case of Thailand, means the Government of the Kingdom of Thailand and shall include:

(i) the Bank of Thailand;

(ii) the Export-import Bank of Thailand;

(iii) the Government Saving Bank;

(iv) the Government Housing Bank;  

(v) any Ministry or Department thereof;

(vi) any local authority;

(vii) any body of corporate wholly owned by the Government of the Kingdom of Thailand; and

(viii) any institutions as may be agreed from time to time between the Contracting States;  

(b) in the case of……………….. means…………………..

 4. The term "interest" as used in this Article means income, from debt-claims of every Kind, whether or not securely by mortgage, and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the Contracting State in which the income arises.

5. The provisions of paragraphs l and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contacting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and tile debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

 6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that state. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in collection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.   

 Article 12

ROYALTIES

 1. Royalties arising in a Contracting State and paid to a resident the other Contracting State may be taxed in that other State.

 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed.......per cent of the gross amount of the royalties.

 3. The term ''royalties'' as used in this Article means payments of any kind received as a consideration for the alienation of or the use of, or the right to use, any copyright of literary, artistic or scientific work including software, motion pictures, live broadcasting, film, tape or other means of the use or reproduction in connection with radio and television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial, managerial, technical or scientific experience.

 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on bossiness in the other Contracting State in which the royalties, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such cases the provisions of Article 14, as the case may be shall apply

 5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the royalties whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred and such royalties are borne by such permanent establishment or fixed base,   then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some oilier person, the amount of the royalties, having regard to the use, right and information for which they are paid, exceeds the an-fount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 13

CAPITAL GMNS

 1. Gains derived by a resident of a Contracting State ' from the alienation of irremovable property referred to in Article 6 and sit-plated in the other Contracting State may be taxed in that other State.

 2. Gains from the alienation of' movable property forming part of the bossiness property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting. State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State.

 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such Ships or aircraft, shall be taxable only in that State.

4.   Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 of this Article and paragraph 3 of Article 12, shall be taxable only in the Contracting State of which

the alienator is a resident. Nothing in this paragraph shall prevent either Contracting State from taxing the gains or income from the sale or transfer of   shares or other securities.

 Article 14

INDEPENDENT PERSONAL SERVICES

 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State:

(a) if he has a fixed base available to him in the other Contracting State for the purpose of perforating his activities; or  

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate.......days within any twelve-month period; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State; or

(c) if the remuneration for his activities in the other Contracting State is paid by a resident of that Contracting State or is borne by a permanent establishment or a fixed base situated in that Contracting State; in that case, only so much of the remuneration as is derived there from may be taxed   in that other State.

 2. The term "professional services'' includes especially independent scientific, literary, artistic, educational. or teaching activities as well as the independent activities of physicians, dentists, lawyers, engineers, architects and accountants.

   Article 15

DEPENDENT PERSONAL SERVICES

 1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration   derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.

 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment. exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

(a) the recipient is present in the other State for a period periods not exceeding in the aggregate........ days within twelve-month period, and

 (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and

(c) the remuneration is not borne by a permanent establishment or a fixed base in the other State.

 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, by a resident of a Contracting State shall be taxable only in that State.

Article 16

DIRECTORS' FEES

 Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as, or on behalf of, a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

 Article 17

ARTISTES AND SPORTSPERSONS

 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed ill that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accuses not to the entertainer or sportsperson himself but to anther person, that income may, notwithstanding the provision of Article 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised

 3. The provisions of paragraphs 1 and 2 of this Article shall not apply to income derived from activities performed in a Contracting State by an entertainer or a sportsperson, or provided by a resident of a Contracting State if the visit to that Contracting State, or the resident providing the activities, as the case may be, is substantially supported by public fund of the other Contracting State, including any local authority or statutory body thereof. In such a case the income shall be taxable only in the State of which the entertainer, sportsperson or the enterprise is a resident.

Article 18

PENSIONS

 1. subject to the provisions of paragraph 2 of Article l9, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

 2. Notwithstanding the provisions of paragraph 1, pensions and other payments made under a public scheme which is part of the social security system of a Contracting State or local authorities thereof shall be taxable only in that State.

Article 19

GOVERNMENTAL SERVICES

 1. (a) Remuneration, other than a pension, paid by a Contracting State or a local authority thereof' to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

(i) is a national of that state; or

(ii) did not become a resident of   that State solely for the purpose of rendering the services.

 2. (a) Any pension paid by, or out of funds created by, a Contracting State or a local authority thereof to an individual in respect of   services rendered to that State or authority shall be taxable only in that State.

(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

 3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof.

Article 20

STUDENTS

An individual who is or was immediately before visiting a Contracting State a resident of the other Contracting State and whose visit to the first-mentioned Contracting State is solely for the purpose of:  

(a) studying at a university or other recognized educational institution; or

(b) securing training to qualify him to practice a profession or trade; or

(c) studying or carrying out research as a recipient of a grant, allowance or award from a governmental, religious, charitable, scientific, literary or educational organization;  

 shall be exempt from tax in the first-mentioned State on:      

(i) remittances from abroad for the purposes of his maintenance, education, study, research or training;  

(ii) the grant, allowance or award; and

(iii) income from personal services rendered in that State provided the income constitutes earnings reasonably necessary for his maintenance and education.

Article 21

PROFESSORS, teachers  AND RESEARCHERS

 1. An individual who is or immediately before visiting a Contracting State a resident of the other Contracting State, and who, at the invitations of any university, college, school or other similar educational institutions which is recognised by the competent authority in the first-mentioned Contracting State, visits that first-mentioned Contracting State for a period not exceeding two years solely for the purpose of teaching or researching or both at such educational institution shall be exempt from tax in the first-mentioned Contracting State on any remuneration   for such teaching or research.          

 2. The provisions of paragraph 1 shall not apply to income from researching if such research is undertaken by the individual primarily for the private benefit of a specific person or persons.

Article 22

OTHER INCOME

1. Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

 2. The provisions of paragraph 1 shall not apply to income if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and a right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

 3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles, and arising in the other Contracting State may be taxed in that other State.

Article 23

ELIMINATION OF DOUBLE TAXATION

 1. When income or profits are subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article.

 2. Tax payable in a Contracting State in respect of income or profits derived in that State shall be allowed as a credit against any tax payable in the other Contracting State in respect of that income or profits. The credit shall not, however, exceed that part of the tax payable in the other Contracting State as computed before the credit is given, which is appropriate to such item of income or profits.

 3. For the purpose of allowance as a credit in a Contracting State the tax paid in the other Contracting State shall be deemed to include the tax which is otherwise payable in that other State but has been reduced or waived in accordance with special incentive laws designed to promote economic development in that other State.

 Article 24

NON - discrimination

 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

 3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.   

 4. The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, relief's and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents

 5. The provisions of this Article shall only apply to the taxes which are the subject of this Convention.

 Article 25

MUTUAL agreement PROCEDURE

 1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Conventions, he may, irrespective of the remedies provided by the domestic laws of those States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Convention.

 2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement, with the competent authority of the other Contracting State with a view to the avoidance of taxation which is not in accordance with the convention.

 3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.                                                                                                                                         

4. The competent authorities of the Contracting States may communicate with each other directly for the purposes of reaching an agreement in the sense of the preceding paragraphs.

Article 26

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation there under is not contrary to the Convention. Any information received by a Contracting State shall be treated as  

 secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.  

 2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:  

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other

Contracting State;

(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that     or of the other Contracting State;

(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public).   

 Article 27

MIMBERS OF diplomatic MISSIONS

AND consular POSTS

 Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

 Article 28

ENTRY INTO FORCE

 1. Each Contracting State shall notify to the other the completion of the procedures required by its law for the entering into force of this Convention. The Convention shall enter into force on the date of the latter of these notifications.

2. The provisions of this Convention shall have effect:  

(a) in respect of taxes withheld at source, on amounts of income derived on or after the first day of January in the calendar year next following the year in which the Convention enters into force; and

(b) in respect of other taxes on income, on such taxes chargeable for any tax year or accounting period, beginning on or after the first day of January in the calendar year next following the year in which the convention enters into force.

Article 29

TERMINATION

 This Convention shall remain in force indefinitely, but either of the Contracting States may, on or before 30th June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination.

 In such event the Convention shall cease to have effect:  

(a) in respect of taxes withheld at source, on amounts of income derived on or after in first day of January in the calendar year next following the year in which the notice is given; and

(b) in respect of other taxes on income, on such taxes chargeable for any tax year or accounting period beginning on or after the

 first day of January in the calendar year next following the year in which the notice is given.

 IN WITNESS WHEREOF, the undersigned duly authorized thereto, have signed this Convention.

Done in duplicate   cafe at………………..on this………….day of…………,                                 two thousand and…………….. Year of the Christian Era, in the English             language.

 For the Government of                                                       For the Government of

the Kingdom of Thailand                                                     …………………….....