ARTICLE 11
DIVIDENDS 1 (a) A dividend paid by a company which is a resident of the United Kingdom
to a resident of Thailand may be taxed in Thailand. (b) Where, under paragraph (2) of this Article, a resident of Thailand is entitled
to a tax credit in respect of that dividend, tax may also be charged in the
United Kingdom and according to the laws of the United Kingdom on the
aggregate of the amount or value of the dividend and the amount of the
tax credit at a rate not exceeding 15 per cent. (c) Except as provided in sub-paragraph (b) of this paragraph, a dividend paid
by a company which is a resident of the United Kingdom to a resident of Thailand who is subject to tax in Thailand in respect of that dividend shall be exempt from any tax in the United Kingdom which is chargeable on dividends. 2 A resident of Thailand who receives a dividend from a company which is a resident of the United Kingdom and who is subject to tax in Thailand on that dividend shall be entitled to the tax credit in respect of that dividend which an individual resident in the United Kingdom would have been entitled to had he received that dividend and to the payment of any excess of that tax credit over his liability to United Kingdom tax. However, this paragraph shall not apply where the recipient of the dividend is a company which either alone or together with one or more associated companies directly or indirectly controls at least 10 per cent of the voting power in the company paying the dividend; for this purpose, two companies shall be deemed to be associated if one is directly or indirectly controlled by the other, or both are directly or indirectly controlled by a third company. 3 A dividend paid by a company which is a resident of Thailand to a resident of the United Kingdom may be taxed in the United Kingdom. The dividend may also be taxed in Thailand but where the recipient of the dividend is subject to tax thereon in the United Kingdom the Thai tax so charged shall not exceed: (a) 15 per cent of the gross amount of the dividend if the company paying the dividend engages in an industrial undertaking and the recipient of the dividend is a company which is a resident of the United Kingdom and controls at least 25 per cent of the voting power of the company paying the dividend; (b) 20 per cent of the gross amount of the dividend if the company paying the dividend engages in an industrial undertaking or if the recipient of the dividend is a company which is a resident of the United Kingdom and controls at least 25 per cent of the voting power of the company paying the dividend. 4 For the purposes of paragraph (3) of this Article, the term industrial undertaking means: (a) any undertaking engaged in: (i) manufacturing, assembling and processing; (ii) construction, civil engineering and ship building; (iii) mining, exploration for and exploitation of natural resources; (iv) production of electricity, hydraulic power, gas or the supply of water; or (v) agriculture, forestry and fishery and the carrying on of a plantation; (b) any other undertaking within the scope of the laws of Thailand relating to the promotion of industrial investment; (c) any other undertaking declared to be an industrial undertaking for the purposes of this Article by the competent authority of Thailand. 5 The preceding paragraphs of this Article shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 6 The provisions of paragraphs (1) and (2) or, as the case may be, paragraph (3) of this Article shall not apply if the recipient of the dividend, being a resident of a Contracting State, has in the other Contracting State of which the company paying the dividend is a resident, a permanent establishment with which the holding by virtue of which the dividend is paid is effectively connected. In such a case the provisions of Article 8 shall apply. 7 Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on a dividend paid by the company to persons who are not residents of that other State, or subject the undistributed profits of the company to a tax on undistributed profits, even if the dividend paid or the undistributed profits consist wholly or partly of profits or income arising in that other State. 8 As used in this Article the term "dividend" means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights treated in the same manner as income from shares by the taxation law of the State of which the company making the distribution is a resident and any other item treated as a distribution under that law. ARTICLE 12
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 Such interest may also be taxed in the Contracting State in which it arises, and according to the law of that State, but where the interest is paid to a resident of the other Contracting State who is subject to tax in that other State in respect of it, the tax so charged in the State in which the interest arises shall not exceed: (a) 10 per cent of the gross amount of the interest, if the interest is derived by a bank or any other financial institution (including an insurance company) which is a resident of the other state; (b) 25 per cent of the gross amount of the interest, in all other cases. 3 Notwithstanding the provisions of paragraph (2) of this Article, interest arising in a Contracting State and paid to the Government of the other Contracting State, a political subdivision or a local authority thereof, the Central Bank of that other Contracting State, or any agency (other than an agency with share capital) wholly owned by that Government, political subdivision or local authority shall be exempt from tax in the first-mentioned Contracting State. The competent authorities of the Contracting States may determine by mutual agreement any other governmental institution to which this paragraph shall apply. 4 The term interest as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and other debt-claims of every kind as well as other income assimilated to income from money lent by the taxation law of the state in which the income arises. 5 The provisions of paragraphs (1) and (2) of this Article shall not apply if the recipient of the interest, being a resident of a Contracting State, has in the other Contracting State in which the interest arises a permanent establishment with which the debt claim from which the interest arises is effectively connected. In such case, the provisions of Article 8 shall apply. 6 Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, 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 in connection with which the indebtedness on which the interest is paid was incurred, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 7 Where, owing to a special relationship between the payer and the recipient of the interest or between both of them and some other person, the amount of the interest paid exceeds, for whatever reason, the amount which would have been paid in the absence of such relationship, the provisions of this Article shall apply to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 13
ROYALTIES 1 Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2 Such royalties may also be taxed in the Contracting State in which they arise, and according to the law of that State, but where the royalties are paid to a resident of the other Contracting State who is subject to tax in that other State, in respect of them, the tax so charged in the State in which the royalties arise shall not exceed: (a) 5 per cent of the gross amount of such payments if they are made as consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work; (b) 15 per cent of the gross amount of such payments if they are made as consideration for the use of, or the right to use, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience, or for the use of, or the right to use, cinematograph films or tapes for radio or television broadcasting. 3 The term royalties as used in this Article means payment of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, information concerning industrial, commercial or scientific experience. 4 The provisions of paragraphs (1) and (2) of this Article shall not apply if the recipient of the royalties, being a resident of a Contracting State, has in the other Contracting State in which the royalties arise a permanent establishment with which the right or property giving rise to the royalties is effectively connected. In such a case, the provisions of Article 8 shall apply. 5 Royalties shall be deemed to arise in a Contracting State where the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties was incurred and the royalties are borne by that permanent establishment, then the royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 6 Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties paid exceeds, for whatever reason, the amount which would have been paid in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. 7 The provisions of this Article shall likewise apply to gains from the alienation of any right or property giving rise to such right or property is alienated by a resident of a Contracting State for exclusive use in the other Contracting State and the payment for such right or property is borne by an enterprise of that State or by a permanent establishment situated therein. ARTICLE 14
CAPITAL GAINS 1 Capital gains from the alienation of immovable property, as defined in paragraph (2) of Article 7, may be taxed in the Contracting State in which such property is situated. 2 Capital gains from the alienation of movable property forming part of the business 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 professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State. 3 Notwithstanding the provisions of paragraph (2) of this Article, capital gains derived by a resident of a Contracting State from the alienation of ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in that Contracting State. 4 Capital gains from the alienation of any property other than those mentioned in paragraphs (1) and (2) of this Article shall be taxable only in the Contracting State of which the alienator is a resident. 5 The provisions of paragraph (4) of this Article shall not affect the right of a Contracting State to levy, according to its own law, a tax on capital gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property. ARTICLE 15
INDEPENDENT PERSONAL SERVICES 1 Where a resident of a Contracting State derives income from the other Contracting State in respect of professional services or other independent activities of a similar character he shall be subject to tax in that other State but only in respect of such part of that income as is attributable to his services in that State. In determining the income attributable to such services, there shall be allowed as a deduction expenses incurred in the performance of those services including reasonable administrative and general expenses so incurred, whether in the State in which the services are performed or elsewhere. 2 The term professional includes especially independent scientific, literary, artistic, educational and teaching activities as well as the independent activities of physicians, lawyers, engineers architects, dentists and accountants. | 
