ARTICLE 21 Income not Expressly Mentioned Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing Articles of the Convention may be taxed in the State where the income arises. CHAPTER IV METHODS FOR ELIMINATON OF DOUBLE TAXATION ARTICLE 22 Elimination of Double Taxation Double taxation shall be avoided in the following manner: 1. In the case of Thailand: Pakistan tax payable in respect of income from sources within Pakistan shall be allowed as credit against Thai tax payable in respect of that income. The credit shall not, however, exceed that part of the Thai tax as computed before the credit is given which is appropriate to such item of income. 2. In the case of Pakistan: Subject to the provisions of the tax laws in Pakistan regarding the allowance as a credit against Pakistan tax of tax payable in a country outside Pakistan, Thai tax payable, whether directly or by deduction, by a person resident in Pakistan, in respect of income from sources within Thailand (including income which accrues or arises in Thailand but is deemed under the provisions of the law of Pakistan to accrue or arise in Pakistan) shall be allowed as a credit against any Pakistan tax payable in respect of that income. 3. For the purposes of paragraphs 1 and 2, the term Thai tax payable or Pakistan tax payable shall be deemed to include the amount of Thai tax or Pakistan tax which would have been paid if the Thai tax or Pakistan tax had not been exempted or reduced in accordance with the special incentive laws designed to promote economic development in Thailand or in Pakistan, effective on the date of signature of this Convention, or which may be introduced hereafter in modification of, or in addition to the existing laws. 4. For the purposes of this Article, profits, income or gains of a resident of a Contracting State which are taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State. CHAPTER V SPECIAL PROVISIONS ARTICLE 23 Non-Discrimination 1. The nationals 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 ot which nationals of that other State in the same circumstances are or may be subjected. 2. Stateless persons resident in one of the Contracting States 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. 3. 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. 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 Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements ot which other similar enterprises of that first--mentioned State are or may be subjected. 5. Nothing in this Article shall be construed: (a) as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs, rebates and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents; (b) as affecting any provision in the law of Pakistan which grants rebates of tax to companies which fulfill specific requirements regarding the declaration and payments of dividends. 6. In this Article, the term taxation means taxes which are the subject of this Convention. ARTICLE 24 Mutual Agreement Procedure 1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting State of which he is a national. This case must be presented within two years from the first notification of the action giving rise to taxation not in accordance with the Convention. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the national laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable, in order to reach agreement, to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. ARTICLE 25 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 in sofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. 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. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on one of the Contracting States the obligation: (a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; (b) to supply particulars which are 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; (d) to supply information, the disclosure of which would be contrary to its sovereignty, security or public policy. |