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 thereunder 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.  The  competent  authorities  shall  through  consultation  develop appropriate  conditions,  methods,  and  techniques concerning the matters in respect of which such exchanges of information shall be made, including, where appropriate, exchanges of information regarding tax avoidance.

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 (ordre public).

ARTICLE 27
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

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

ARTICLE 28
ENTRY INTO FORCE

1.         This  Convention  shall  be  ratified  and  the  instruments  of ratification shall be exchanged at Stockholm as soon as possible.

2.         Upon the exchange of instruments of ratification this Convention shall enter into force in both contracting States and its provisions shall have effect :

            a)         in respect of taxes withheld at the source, on amounts paid

                         or remitted to non-residents on or after the first day of

                         January next following the exchange of instruments of

                         ratification ;

            b)         in  respect  of  other  taxes  on income, for taxable years or

                         accounting periods beginning on or after the first day of

                         January next following the exchange of instruments of

                         ratification.

3.         The Agreement between Thailand and Sweden for the avoidance of double taxation  with  respect  to  taxes  on income and capital signed at Bangkok on October 20, 1961, shall terminate and cease to have effect :

            a)         in respect of taxes to which this Convention applies as from

                         the time when the provisions of this Convention begin to

                         have effect;

            b)          in respect of taxes on capital

                         (i)         in Thailand, for taxes the payment of which is required

                                      in or  after  the second calendar year next following

                                      the exchange of instruments of ratification of this

                                      Convention ;

                         (ii)        in  Sweden,  for taxes which are assessed in or after

                                      the  second  calendar  year  next  following  the 

                                      exchange of instruments of ratification of this

                                     Convention.

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 the source, on amounts

                          paid or remitted  to non-residents on or after the first day of

                          January next following the submission of such notice;

            b)          in respect of other taxes on income, for taxable years or

                          accounting periods  beginning  on  or  after the first day of

                          January next following the submission of such notice.

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

            DONE at Bangkok, this nineteenth day of October, 1988, in duplicate in the English language.

PROTOCOL

            At  the  time  of  signing  the  Convention between the Government of Thailand and the Government of Sweden for the Avoidance of Double Taxation and the  prevention  of  Fiscal  Evasion  with  respect  to  Taxes  on Income, the undersigned  have  agreed that the following provisions shall from an integral part of the Convention :

1.         Nothing in this Convention shall be construed as preventing Thailand from  imposing  income  tax, according to the laws of Thailand, on the profits remitted from or disposed out of Thailand by a permanent establishment situated therein.

2.         With reference to the provisions of paragraphs 5 and 6 of Article 5, the  term "almost wholly", as used in relation to the activities of a person, who  habitually  secures  orders in a Contracting State for or on behalf of an enterprise of the other Contracting State or for or on behalf of the enterprise and other enterprises which are controlled by it or have a controlling interest in it, shall be interpreted according to the following rules :

            (1)        Where a person has been habitually securing orders in the way  mentioned above for one year he shall considered to have secured orders almost wholly on behalf of the enterprise or enterprises in question during this year if

                        a)         75 per cent or more of the commissions received by him or accrued  to 
                                    him during this year are attributable to orders secured for or on behalf of
                                    such enterprises, or

                        b)         75  per  cent  or  more of the gross amount of the total contract sums of all
                                    orders secured by him during this year  are attributable to orders secured
                                    for or on behalf of such  enterprise or enterprises.

            (2)        Where a person has been habitually securing orders in the way  mentioned above for two years he shall be considered to have secured orders almost wholly on behalf of the enterprise or enterprises in question during the second year if

                        a)         the  yearly average for the two years of the commissions received by him
                                    or accrued to him for securing orders on behalf of such enterprise or
                                    enterprises amounts to for or  75 per cent or more of the yearly average

                                    for these two years of the total commissions received by him or accrued to

                                    him, or

                        b)         the yearly average for these two years of the gross amounts  of  the 
                                    aggregate contract sums of orders secured by him for or on behalf of
                                    such  enterprise  or  enterprises amounts  to 75 per cent or more of the
                                    yearly average for these two years of the gross amounts of the total

                                    contract sums of all orders secured by him, or

                        c)          75 per cent or more of the commissions received by him or during the
                                    second year are attributable to orders  secured  for  or  on behalf of such
                                    enterprise or  enterprises, or

                        d)         75  per  cent  or  more of the gross amount of the total contract  sums 
                                    of  all  orders secured by him during the   second  year are attributable to
                                    orders secured for or on   behalf of such enterprise or enterprises.

            (3)        Where a person has been habitually securing orders in the way mentioned above for three or more years he shall be considered to have secured orders  almost  wholly  on behalf of the enterprise or enterprises in question during the last year if

                        a)         the  yearly  average  for  the  last  three  years of the commissions 

                                     received by  him or accrued to him for securing   orders for or on behalf 

                                     of such enterprise or enterprises to 75 per cent or more of the yearly

                                     average  for these three  years  of the total commissions received by

                                     him or accrued to him, or

                        b)         the  yearly average for the last three years of the gross  amounts of the
                                    aggregate contract sums of orders secured by him for or on behalf of
                                    such enterprise or enterprises amounts to 75 per cent or more of the
                                    yearly average for  the last three years of the gross amounts of the total
                                    contract sums of all orders secured by him, or

                        c)         75 per cent or more of the commissions received by him or accrued to
                                    him during the last year or the year preceding the last year are attributable
                                    to orders secured for or on behalf of such enterprise or enterprises, or

                        d)         75  per  cent  or  more  of the gross amount of the total contract sums of
                                    all orders secured by him during the last year  or  during  the  year 
                                    preceding  the  last year are attributable  to  orders  secured for or on
                                    behalf of such enterprise or enterprises.

            (4)        The  term  "commissions"  as  used  in  this paragraph means compensations of any kind for the services of securing orders.

            (5)        For the purpose of calculating the average under (2) and (3), these  rules  shall  also  apply  to  the commissions and the  contract sums of orders secured during the two taxable years or accounting periods immediately preceding the taxable year or accounting  period  for which the relevant provisions of this Convention begin to have effect.

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

            DONE at Bangkok, this nineteenth day of October, 1988, in duplicate in the English language.

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