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 this Agreement may be taxed in the Contracting State where the income arises. CHARTER IV
METHODS FOR ELIMINATION OF DOUBLE TAXATION
ARTICLE 22
LIMITATION OF RELIEF Where this Agreement provides (with or without other conditions) that income from sources in a Contracting State shall be exempt from tax, or taxed at a reduced rate in that Contracting State and under the laws in force in the other Contracting State the said income is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the exemption or reduction of tax to be allowed under this Agreement in the first-mentioned Contracting State shall apply to so much of the income as is remitted to or received in that other Contracting State. ARTICLE 23
ELIMINATION OF DOUBLE TAXATION 1. The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective Contracting States except where the express provisions to the contrary are made in this Agreement. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Articles. 2 In the case of Malaysia, subject to the laws of Malaysia regarding the allowance as a credit against Malaysian tax ot tax payable in any country other than Malaysia, Thai tax payable in respect of income derived from Thailand shall be allowed as a credit against Malaysian tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of Thailand to a company which is a resident of Malaysia and which owns not less than 15 per cent of the voting shares of the company paying the dividend, the credit shall take into account Thai tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Malaysian tax, as computed before the credit is given, which is appropriate to such item of income. 3. For the purposes of paragraph 2, the term "Thai tax payable" shall be deemed to include the amount of Thai tax which would have been paid if the Thai tax had not been exempted or reduced in accordance with (a) the special incentive laws designed to promote economic development in Thailand so far as they are in force on the date of signature of this Agreement; or (b) any other provisions which may subsequently be introduced in Thailand in modification of, or in addition to, the existing special incentive laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character. 4. In the case of Thailand, Malaysian tax payable in respect of income derived from Malaysia shall be allowed as a 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. Where such income is a dividend paid by a company which is a resident of Malaysia to a company which is a resident of Thailand and which owns not less than 15 per cent of the voting shares of the company paying the dividend, the credit shall take into account Malaysian tax payable by that company in respect of its income out of which the dividend is paid. 5. For the purposes of paragraph 4, the term "Malaysian tax payable" shall be deemed to include Malaysian tax which would, under the laws of Malaysia and in accordance with this Agreement, have been payable on (a) any income derived from sources in Malaysia had the income not been exempted from Malaysia tax in accordance with (i) sections 21,22 and 26 of the Investment Incentives Act, 1968 of Malaysia so far as they were in force on the date of signature of this Agreement; or (ii) any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, the Investment Incentives laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character; and (b) approved industrial royalties to which paragraph 3 of Article 12 applies had those royalties not been exempted from Malaysian tax in accordance with that paragraph. CHAPTER V
SPECIAL PROVISIONS
ARTICLE 24
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 to which nationals of that other Contracting State in the same circumstances are or may be subjected. 2. The taxation on a permanent establishment which an enterprise of a Contracting State had in the other Contracting State shall not be less favourably levied in that other Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. 3. 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 to which other similar enterprises of that first-mentioned Contracting State are or may be subjected. 4. Nothing in this Article shall be construed as obliging: (a) a Contracting State to grant to individuals who are resident of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents; (b) Malaysia to grant to nationals of Thailand not resident in Malaysia those personal allowances, reliefs and reductions for taxation purposes which are by law available on the date of signature of this Agreement only to nationals of Malaysia who are not resident in Malaysia. 5. In this Article, the term "taxation" means taxes which are the subject of this Agreement. ARITCLE 25
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 Agreement, he may, notwithstanding the remedies provided by the taxation laws of those Contracting States, present his case to the competent authority of the Contracting State of which he is a resident. 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 Agreement. 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 Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement. 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. | 
