ARTICLE 11
INTEREST 1. Interest arising in a Contracting State, being interest to which a resident of the other Contracting State is beneficially entitled, may be taxed in that other State. 2. That interest may be taxed in the Contracting State in which it arises, and according to the laws of that State, but the tax so charged shall not exceed: (a) 10 per cent of the gross amount of the interest if it is received by any financial institution (including an insurance company); (b) 10 per cent of the gross amount of the interest if the interest is beneficially owned by a resident of the other Contracting State and is paid with respect to indebtedness arising as a consequence of a sale on credit by a resident of that other State of any equipment, merchandise or services, except where the sale was between persons not dealing with each other at arms length; and (c) 15 percent of the gross amount of the interest in all other cases. 3. Notwithstanding the provisions of paragraph 2, interest derived from the investment of official reserves by the Government of a Contracting State, a bank performing central banking functions in a Contracting State or the Export-Import Bank of Thailand, shall be exempt from tax in the other Contracting State. 4. The term "interest" in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and in particular, interest from government securities and income from bonds or debentures, including premiums and prizes attaching to such bonds or debentures, as well as all other income assimilated to income from money lent by the laws, relating to tax, of the Contracting State in which the income arises, but does not include any income which is treated as a dividend under Article 10. 5. The provisions of paragraphs 1 and 2 shall not apply if the person beneficially entitled to the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated in that other State, or performs in that other State independent personal services from a fixed base situated in that other State, and the debt-claim in respect of which the interest is paid is effectively connected with (a) such permanent establishment or fixed base; or (b) business activities referred to under (b) of paragraph 1 of Article 7.In that case the provisions of Article 7 or 15, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State when the payer is a person who is a resident of that State for the purposes of its tax. Where, however, the person paying the interest, whether the person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the debt-claim on which the interest is paid was incurred, and that interest is deductible in determining the income, profits or gains attributable to that permanent establishment or fixed base, then the interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the person beneficially entitled to the interest, or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which might have been expected to have been agreed upon in the absence of that relationship by the payer and the person beneficially entitled, the provisions of this Article shall apply only to the last-mentioned amount. In that case the excess part of the amount of the interest paid shall remain taxable according to the laws, relating to tax, of each Contracting State, subject to the other provisions of this Agreement. ARTICLE 12
ROYALTIES 1. Royalties arising in a Contracting State, being royalties to which a resident of the other Contracting State is beneficially entitled, may be taxed in that other State. 2. Those royalties may be taxed in the Contracting State in which they arise, and according to the laws of that State, but the tax so charged shall not exceed: (a) 10 per cent of the gross amount of the royalties described in subparagraphs (a)(i), (b), (e), (f), and (g) of paragraph 3; (b) 15 per cent of the gross amount of the royalties described in subparagraph (a)(ii), (c) and (d) of paragraph 3. In relation to subparagraph (h) of paragraph 3, the rate shall not exceed those specified in subparagraph (a) or (b) above, whichever applies to the property or right in respect of which the forbearance relates. 3. The term "royalties" in this Article means payments of any kind, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for: (a) the use of, or the right to use: (i) any copyright; or (ii) patent, trademark, design or model, plan, secret formula or process, or other like property or right; or (b) the use of, or the right to use, any industrial, scientific or commercial equipment; or (c) the supply of scientific, technical, industrial or commercial knowledge or information; or (d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or any such knowledge or information as is mentioned in subparagraph (c); or (e) the use of, or the right to use, any: (i) motion picture film; or (ii) film or videotape or any other recording for use in connection with television; or (iii) tape or any other recording for use in connection with radio broadcasting; or (f) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by: (i) satellite; or (ii) cable, optic fibre or similar technology; or (g) the use in connection with television or radio broadcasting, or the right to use in connection with television or radio broadcasting, visual images or sounds, or both, transmitted by: (i) satellite; or (ii) cable, optic fibre or similar technology; or (h) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph. 4. The provisions of paragraphs 1 and 2 shall not apply if the person beneficially entitled to the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated in that other State, or performs in that other State independent personal services from a fixed base situated in that other State, and the right or property in respect of which the royalties are paid is effectively connected with: (a) such permanent establishment or fixed base; or (b) business activities referred to under (b) of paragraph 1 of Article 7. In that case the provisions of Article 7 or 15, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State when the payer is a person who is a resident of that State for the purposes of its tax. Where, however, the person paying the royalties, whether the person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and the royalties are deductible in determining the income, profits or gains attributable to that permanent establishment or fixed base, then the royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the person beneficially entitled to the royalties, or between both of them and some other person, the amount of the royalties, having regard to what they are paid for, exceeds the amount which might have been expected to have been agreed upon in the absence of that relationship by the payer and the person beneficially entitled, the provisions of this Article shall apply only to the last-mentioned amount. In that case the excess part of the amount of the royalties paid shall remain taxable according to the laws, relating to tax, of each Contracting State, subject to the other provisions of this Agreement. ARTICLE 13
ALIENATION OF PROPERTY 1. Income, profits or gains derived by a resident of a Contracting State from the alienation of immovable property (as defined in paragraph 2 of Article 6) situated in the other Contracting State may be taxed in that other State. 2. Income, profits or gains from the alienation of property, other than immovable 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 pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including income, profits or gains from the alienation of that permanent establishment (alone or with the whole enterprise) or of that fixed base, may be taxed in that other State. 3. Income, profits or gains from the alienation of ships or aircraft operated in international traffic, or of property (other than immovable property) pertaining to the operation of those ships or aircraft, shall be taxable only in the Contracting State in which the enterprise alienating such ships, aircraft or other property is a resident. 4. Nothing in this Agreement affects the application of the laws of a Contracting State relating to the taxation of gains of a capital nature derived from the alienation of any property other than that to which any of the preceding paragraphs of this Article apply. 5. For the purposes of this Article, the situation of immovable property shall be determined in accordance with paragraph 4 of Article 6. ARTICLE 14
BRANCH TAX 1 Nothing in this Agreement shall be construed as preventing Thailand from imposing tax on the disposal of profits, out of Thailand, that were not exempt from tax in Thailand in accordance with the provisions of this Agreement. 2. However, the rate of tax on such disposal of profits shall not exceed 15 per cent of the gross amount of the disposal. ARTICLE 15
INDEPENDENT PERSONAL SERVICES 1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or other independent activities shall be taxable only in that State unless such services are performed in the other Contracting State and: (a) the individual is present in the other State for a period or periods exceeding in the aggregate 183 days in any 12 month period commencing or ending in the year of income concerned; or (b) a fixed base is regularly available to the individual in the other State for the purpose of performing the individual's activities. If the provisions of subparagraphs (a) or (b) are satisfied, the income may be taxed in that other State but only so much of it as is attributable to activities performed during such period or periods or from that fixed base. 2. The term "professional services" includes services performed in the exercise of independent scientific, literary, artistic, educational or teaching activities as well as in the performance of the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. | 
