The Government of the Kingdom of Thailand and the Government of the State of Bahrain,
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 :
This Convention shall apply to persons who are residents of one or both of the Contracting States.
1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner 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");
any tax imposed on total income or on elements of income, including taxes on
(hereinafter referred to as "Bahraini 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.
1. For the purposes of this Convention, unless the context otherwise requires :
(a) the term " Thailand" means the Kingdom of Thailand and includes
(b) the term "Bahrain" means the territory of the State of Bahrain including
(c) the terms " a Contracting State" and " the other Contracting State" mean
(d) the term "person" includes an individual, an undivided estate, a company
(e) the term "company" means any body corporate or any entity constituted or
(f) the terms "enterprise of a Contracting State" and "enterprise of the other
(g) the term "tax" means Thai tax or Bahraini tax as the context requires;
(h) the term "national" means :
(i) in the case of Thailand :
(aa) any individual possessing the nationality of Thailand; and
(bb) any legal person, partnership, association and any other entity
(ii) in the case of Bahrain :
(aa) any individual possessing Bahraini nationality under the laws of
(bb) any company, a body of persons or any other entity capable of
(i) the term "international traffic" means any transport by a ship or aircraft operated
(j) the term "competent authority" means, in the case of Thailand, the Minister 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.
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under 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. But this term 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
(b) if the State in which he has his centre of vital interests cannot be determined,
(c) if he has an habitual abode in both States or in neither of them, he shall be
(d) if he is a national of both States or of neither of them, the competent authorities
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting State, 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.
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;
(f) a mine, an oil or gas well, a quarry or any other place of extraction
(g) a farm or plantation or other place where agricultural, forestry plantation
(h) a warehouse, in relation to a person providing storage facilities for others;
(i) a building site, a construction, installation or assembly project or supervisory
(j) the furnishing of services including consultancy services by a resident of
3. 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
(b) the maintenance of a stock of goods or merchandise belonging to the
(c) the maintenance of a stock of goods or merchandise belonging to the
(d) the maintenance of a fixed place of business solely for the purpose of
(e) the maintenance of a fixed place of business solely for the purpose of
4. Notwithstanding the provisions of paragraphs 1 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 Contracting State, if such a person :
(a) has and habitually exercises in the first-mentioned State, an authority to
(b) has no such authority, but habitually maintains in the first - mentioned State
(c) has no such authority, but habitually secures orders in the first-mentioned
5. 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 through 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.
6. 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.