ARTICLE 26
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, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this 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 a satisfactory 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.

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 purposes of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 27
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.

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 28
Diplomatic Agents and Consular Officials

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

ARTICLE 29
Entry Into Force

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

2.         The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect:

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

                         or remitted on or after the first day of January next following

                         that in which the exchange of instruments of ratification takes

                         place;

            (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 that in which the exchange of

                         instruments of ratification takes place.

ARTICLE 30
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 on or after the first day of January next following

                         that in which the notice is given;

            (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 that in which the notice is given.

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

            Done in duplicate at Bangkok on this 22nd day of January, one thousand nine hundred and ninety-six Year of the Christian Era, each in the Thai, Hebrew and English languages, all texts being equally authoritative, except in the case of doubt when the English text shall prevail.

PROTOCOL

            At the signing of the Convention between the Government of the State of Israel and the Government of the Kingdom of Thailand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall form an integral part of the Convention.

1.         With reference to paragraph 3 and 4 of Article 5, it is understood that the use of facilities for delivery shall be deemed to constitute a permanent establishment if they are used principally as a sales outlet.

2.         With reference to paragraphs 1, 2, 5, 6 and 7 of Article 7 it is understood that the term "profits" refers to income or profits.

3.         It is understood that in a case where payments for software are included within Article 12 their taxation shall be determined in accordance with the provisions of paragraph 2 of Article 12. However, in the event that Thailand passes legislation in accordance with which software is not protected under copyright law, the competent authorities of the Contracting States may consult together in order to determine the appropriate tax treatment of payments for software.

4.         With reference to subparagraph (c) of paragraph 1 of Article 14, it is understood that the competent authorities may by mutual agreement agree to increase the monetary limitation in order to take into account the effect of inflation from time to time.

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