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ARTICLE 21
PROFESSORS, TEACHERS AND RESEARCHERS


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

 

2.         This Article shall only apply to income from research if such research is undertaken by the individual for the public interest and not primarily for the benefit of some other private person or persons.

 

 

ARTICLE 22
OTHER INCOME

            Items of income of a resident of a Contracting State not dealt with in the foregoing Articles may be taxed in the other contracting State but only if it arises in that other State. If it does not so arise it shall be taxable only in the State of which the recipient is a resident.

 

 

CHAPTER IV
TAXATION OF CAPITAL

ARTICLE 23
CAPITAL

1.         Capital represented by immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.

 

2.         Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise, or by movable property pertaining to a fixed base used for the performance of professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.

 

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

 

4.         All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

 

 

CHAPTER V
METHODS FOR ELIMINATION OF DOUBLE TAXATION

ARTICLE 24
ELIMINATION OF DOUBLE TAXATION

1.         The laws in force in either of the Contracting States shall continue to govern the taxation of income or capital in the respective Contracting States except where express provisions to the contrary are made in this Convention.

 

2.         In the case of Thailand, double taxation shall be avoided as follows:

            (a)        Where a resident of Thailand owns capital which, in accordance with the
                         provisions of this Convention, may be taxed in Austria, Thailand shall exempt
                         such capital from tax.

            (b)        Where a resident of Thailand derives income which, in accordance with the
                         provisions of this convention, may be taxed in Austria, Thailand shall allow as
                         a deduction from Thai tax on the income of that resident, an amount equal to
                         the tax paid in Austria. Such deduction shall not, however, exceed appropriate
                         to the income derived from Austria.

 

3.         In the case of Austria, double taxation shall be avoided as follows:

            (a)        Where a resident of Austria owns capital which, in accordance with the
                         provisions of this Convention, may be taxed in Thailand, Austria shall exempt
                         such capital from tax.

            (b)        Where a resident of Austria derives income which, in accordance  with the
                         provisions of this convention, may be taxed in Thailand, Austria shall, subject

                         to the provisions of subparagraphs (c) and (d) of this paragraph exempt such

                         income from tax but  may, in calculating tax on the remaining income of that

                         resident, apply the rate of tax which would have been applicable if the

                         exempted income had not been so exempted.

            (c)        Where a resident of Austria derives income which, in accordance with the

                         provisions of paragraph 2 of Article 8, paragraph 2 of Article 10, paragraphs

                         2 and 3 of Article 11, paragraph 2 of Article 12 and paragraph 4 of Article 13

                         may be taxes in Thailand, Austria shall allow as a deduction from Austrian

                         tax on the income of that resident an amount equal to the tax paid in Thailand.

                         such deduction shall not, however, exceed that   part of Austrian tax, as

                         computed before the deduction is given, which is appropriate to the income

                         derived from Thailand. For the application of this subparagraph the tax paid

                         in Thailand on dividends, interest or royalties shall be deemed to have been

                         paid at a rate of 25 per cent of the gross amount of the income.

            (d)        Notwithstanding the provisions of subparagraph (c), dividends paid by a

                         company which is a resident of Thailand to a company which is a resident

                         of Austria which holds directly at least 25 per cent of the capital of the paying

                         company shall be exempt from tax in Austria.

 

 

CHAPTER VI
SPECIAL PROVISIONS

ARTICLE 25
NON-DISCRIMINATION

1.         National s 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. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

 

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. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

 

3.         Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State,  shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

 

4.         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.

 

5.         The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

 

Last updated: 08.12.2011