CONVENTION
BETWEEN
THE KINGDOM OF THAILAND
AND
THE REPUBLIC OF KOREA
FOR THE AVOIDANCE OF DOUBLE TAXATION
WITH RESPECT TO TAXES ON INCOME The Kingdom of Thailand and the Republic of Korea, Desiring to conclude a Convention for the Avoidance of Double Taxation with respect to Taxes on Income. HAVE AGREED AS FOLLOWS: ARTICLE 1
Taxes Covered 1. The taxes which are the subject of the present Convention are: (a) In the case of Korea, the income tax and the corporation tax (hereinafter referred to as Korean Tax) (b) in the case of Thailand, the income tax and petroleum income tax (hereinafter referred to as Thai Tax) 2. The present Convention shall also apply to taxes, whether national or local, substantially similar to those covered by paragraph (1) of this Article which are subsequently imposed in addition to, or in place of, existing taxes after the date of signature of the present Convention. ARTICLE 2
General Definitions 1. In the present Convention, unless the context otherwise requires: (a) The term "Korea" meams the Republic of Korea; (b) The term "Thailand" means the Kingdom of Thailand; (c) The term "one of the Contracting States" and "the other Contracting State" mean Korea or Thailand, as the context requires; (d) The term "person" comprises an individual, a corporation and any other body of individuals or persons; (e) The term "corporation" means any entity which is treated as a body corporate for tax purposes under the relevant laws of either Contracting State including any group or body of persons which is taxed in a substantially same manner as a body corporate; (f) The term "tax" means Korean tax or Thai tax, as the content requires; (g) The term "competent authority" means; (i) in Korea, the Minister of Finance or his authorized representative; (ii) in Thailand, the Minister of Finance or his authorized representative; (h) The term "state" means any national State, whether or not one of the Contracting States. 2. As regards the application of the present Convention by one of the Contracting state, any term not expressly 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 the present Convention ARTICLE 3
Fiscal Domicile 1. For the purposes of the present Convention: (a) The term "resident of one of the Contracting States" means an individual who is a resident of the Contracting State for the purposes of tax of that Contracting State; (b) the term"corporation of one of the Contracting States" means a corporation which is registered or created under the law of that Contracting State or has its head or main office in that Contracting State. 2. Where by reason of the provisions of paragraph (1) (a) of this Articb an individual is a resident of both Contracting States, then this case 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 relation are closet (centre of vital interests); (b) If the Contracting State in which he has his centre of vital interests can no be determined, or if he does not have 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 State or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; (d) If he is a national of both Contracting State or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. ARTICLE 4
General Rules of Taxation 1. A resident or corporation of one of the Contracting States shall be taxable by the other Contracting State only on income derived from sources within that other Contracting State. 2. A resident or corporation of one of the Contracting States may be taxed by the other Contracting State on income taxable under paragraph (1) only in accordance with the limitations set forth in the present Convention. Any income to which the previsions of the present Convention are not expressly applicable shall be taxable by each of the Contracting States in accordance with its own law. The provisions of the present Convention shall not be construed to restrict in any manner any exclusion, exemption deduction,credit or other allowance now or hereafter accorded (a) by the laws of one of the Contracting States or (b) by any other agreement between the Contracting States in the determination of the tax imposed by that state. 3. The laws in force in either Contracting State continue to govern the taxation of income in the respective Contracting State except where provisions to the contrary are made in this Convention. ARTICLE 5
Elimination of Double Taxation 1. Korea shall allow to a resident or corporation of Korea as a credit against Korean tax the appropriate amount of tax payable to Thailand in accordance with the provisions of the laws of Korea regarding credit for foreign tax. 2. The amount of Korean tax payable, under the laws of Korea and in accordance with the provisions of the present Convention, whether directly or by deduction, by the resident or corporation of Thailand in respect of income from sources within Korea which has been subjected to tax both in Korea and Thailand, shall be allowed as a credit against Thai tax payable in respect of such income, but in an amount not exceeding that proportion of Thai tax which such income bears to the entire income chargeable to Thai tax. For the purpose of determining such entire income, a loss incurred in any country shall not be taken into account. | 
