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CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND
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 the United Kingdom of Great Britain and Northern Ireland;

 

            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
PERSONAL SCOPE

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

 

 

ARTICLE 2
TAXES COVERED

1          The existing taxes which are the subject of this Convention are:

            (a)        in the United Kingdom:

                         (i)         the income tax;

                         (ii)        the corporation tax;

                         (iii)       the capital gains tax;

                         (iv)       the development land tax; and

                         (v)        the petroleum revenue tax;

                                      (hereinafter referred to as “United Kingdom tax”);

            (b)        in Thailand:

                         (i)         the income tax; and

                         (ii)        the petroleum income tax;

                                      (hereinafter referred to as “Thai tax”)

 

2          The  Convention  shall also apply to any tax which is subsequently imposed by either Contracting State in addition to, or in place of, the existing taxes provided that it is agreed by the competent authorities of the Contracting States to be identical or  substantially  similar  to the taxes existing at the date of signature  of  the Convention. The competent authorities of the Contracting  States shall notify each other of any changes which are made in their respective taxation laws.

 

 

ARTICLE 3
GENERAL DEFINITIONS

1          In this Convention, unless the context otherwise requires:

            (a)        the  term “United Kingdom” means Great Britain and

                         Northern Ireland,  including any area outside the territorial

                         sea  of the United Kingdom which in accordance with

                         international law has been or may hereafter be designated,

                         under the laws of the United Kingdom concerning the

                         Continental Shelf, as an area within which the rights of the

                         United Kingdom with respect to the sea bed and sub-soil

                         and their natural resources may be exercised;

            (b)        the term “Thailand” means the Kingdom of Thailand and any

                         area  adjacent to the territorial waters of the Kingdom of

                         Thailand  which  by  Thai  legislation,  and  in accordance

                          with international law, has been or may hereafter be

                         designated as an area  within  which  the  rights of the

                         Kingdom of Thailand with respect to the seabed and sub-

                         soil and their natural resources may be exercised;

            (c)        the term “nationals” means:

                        (i)         in relation to the United Kingdom, citizens of  the

                                     United  Kingdom  and  colonies and British subjects

                                    not possessing that citizenship or the citizenship of

                                    any other commonwealth country or territory, provided 

                                    in all cases  they are partial  within the meaning of the

                                    Immigration Act 1971, and all legal persons,

                                    partnerships, associations  or other entities deriving

                                    their status  as  such  from  the law in force in the

                                    United  Kingdom;

                       (ii)        in  relation  to  Thailand,  all  individuals possessing

                                    the nationality of Thailand and all legal  persons,

                                    partnerships and associations deriving  their status as

                                    such from the law in force in Thailand;

            (d)        the term “tax” means United Kingdom tax or Thai tax, as the

                         context requires;

            (e)        the  terms  “a  Contracting  State” and “the other Contracting

                         State”  mean  the  United  Kingdom or  Thailand, as the

                         context requires;

            (f)          the term “person” comprises an individual, a company and

                          anybody of persons which is treated as an entity for tax

                          purposes;

            (g)         the term “company” means any body corporate or any entity

                          which is treated as a body corporate for tax purposes;

            (h)        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;

            (i)         the term “competent authority” means, in the case of the

                         United Kingdom  the  Commissioners  of Inland Revenue  or

                         their authorized representative, and in the case of Thailand,

                         the Minister of Finance or his authorized representative;

            (j)         the term “international traffic” means any transport by a ship

                         or aircraft operated by an enterprise which has   its   place of

                        effective  management  in  a Contracting State, exceptwhen

                        the ship or air operated solely between places in the other

                        Contracting State;

            (k)        the term “political subdivision”, in relation to the United

                         Kingdom, includes Northern Ireland.

 

2          As  regards  the  application  of this Convention by a Contracting  State  any term not otherwise defined shall, unless the  context  otherwise  requires, have the meaning which it has under  the  laws of that Contracting State relating to the taxes which are the subject of this Convention.

 

 

ARTICLE 4
FISCAL DOMICILE

1          For the purposes of this Convention, the term “resident of  a  Contracting  State”  means,  subject to the provisions of paragraphs (2) and (3) of this Article, any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management, place of incorporation, or any other criterion of a similar nature.

 

2          Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

            (a)        he  shall  be  deemed  to  be  a  resident  of the Contracting

                         State in which he has a permanent home available  to  him.

                         If  he  has  a permanent home available  to  him  in both

                         Contracting States, he shall be deemed to be a resident of

                         the Contracting State with which his personal and economic

                         relations are closer (centre of vital interests);

            (b)        if the Contracting 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 Contracting 

                         State,  he  shall be deemed  to be a resident of the

                         Contracting State in which he has an habitual abode;

            (c)        if  he  has  an habitual abode in both Contracting States or in

                         neither of them, he shall deemed to be a resident  of the

                         Contracting State of which he is a national;

            (d)        if he is a national of both Contracting States or of  neither of

                         them, the competent authorities of the Contracting States

                         shall endeavour to settle the question by mutual agreement.

 

3          Where  by reason of the provisions of paragraph (1) of this  Article a person other than an individual is a resident of both  Contracting  States, then the competent authorities of the Contracting  States  shall  endeavour  to 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 in which the business  in  which the business of the enterprise is wholly or partly carried on.

 

2          The term  "permanent  establishment"  shall  include especially:

            (a)        a place of management;

            (b)        a branch;

            (c)        an office;

            (d)        a factory;

            (e)        a workshop;

            (f)         a  warehouse,  in  relation to a person providing storage

                         facilities for others;

            (g)        a mine, oil well, quarry or other place of extraction of natural

                          resources;

            (h)        a building site or construction or assembly project  which

                          exists for more than six months.

 

3          The term "permanent establishment" shall not be deemed to include:

            (a)        the  use  of  facilities solely for the purpose of storage,

                         display or delivery 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,

                         display or delivery;

            (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

                         thepurpose of purchasing goods or merchandise, or for

                         collecting information, for the enterprise;

            (e)        the maintenance of a fixed place of business solely for  the

                         purpose of advertising, for the supply of information, for

                         scientific research or for similar activities  which  have a

                         preparatory or auxiliary character, for the enterprise.

 

4          An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it carries on the activities of providing the services within that other  Contracting  State  of public  entertainers  or athletes referred to in Article 18.

 

5          A person acting in a Contracting State on behalf of an enterprise of  the other Contracting State-other than a broker, general commission agent or any other agent of an independent status  to  whom  paragraph (6) applies-shall be deemed to be a permanent establishment in the first-mentioned State, but only if:

            (a)        he 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; or

            (b)        he habitually maintains in the first-mentioned State a  stock

                         of goods or merchandise belonging to the enterprise from

                         which he regularly fills orders or makes deliveries on behalf

                         of the enterprise; or

            (c)        he habitually secures orders for the sale of goods or

                         merchandise  in  the  first-mentioned  State exclusively or

                         almost exclusively on behalf of the enterprise itself of or on

                         behalf of the enterprise and other enterprises controlled by it

                        or which have a controlling interest in it.  

 

6          An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely  because it transacts business through a broker, general commission  agent or any other agent of an independent status in the other Contracting State, where such persons are acting in the ordinary  course  of their business. For this purpose, an agent shall not be considered to be an agent of an independent status if it acts as an agent exclusively or almost exclusively for the enterprise  and  carries  on  any of the activities described in paragraph (5) of this Article.

 

7          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.

 

Last updated: 08.12.2011