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Article 11
INTEREST


1.             Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.            

2.             However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, 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)           15 per cent of the gross amount of the interest in other cases.            

3.             Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to a resident of the other Contracting State in respect of a loan made or guaranteed by:

                a)           in the case of Thailand:

                                (i)           the Government of Thailand;

                                (ii)          any political subdivision or local authority;

                                (iii)         the Bank of Thailand;

                                (iv)          the Export-Import Bank of Thailand;

                                (v)           the Government Savings Bank;

                                (vi)          the Government Housing Bank;

                                (vii)         any institutions as may be agreed from time to time
                                                 between the Contracting States;

                b)           in the case of Slovenia:

                                ( i )           the Government of the Republic of Slovenia;

                                (ii)            any political subdivision or local authority;

                                (iii)           Central Bank of Slovenia;

                                (iv)           Slovene Export Company;

                                (v)            any institutions as may be agreed from time to time
                                                  between the Contracting States;

                shall be exempt from the tax in the first-mentioned State.            

4.             The term "interest" as used 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 the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the Contracting State in which the income arises.  Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.            

5.             The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of 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 therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt claim in respect of which the interest is paid is e?ffectively connected with such permanent establishment or fixed base.  In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.            

6.             Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State.  Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such 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 beneficial owner 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 would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.            

 

Article 12
ROYALTIES


1.             Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.            

2.             However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed:

                a)           10 per cent of the gross amount of the royalties for the use of,
                               or the right to use, any copyright of literary or artistic work including
                               motion pictures, live broadcasting, film, tape or other means of
                               the use or reproduction in connection with radio and television
                               broadcasting, and for the use of, or the right to use industrial,
                               commercial, or scientific equipment;

                b)           15 per cent of the gross amount of the royalties in all other cases.            

3.             The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including motion pictures, live broadcasting, film, tape or other means of the use or reproduction in connection with radio and television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience.            

4.             The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of 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 therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base.In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.            

5.             Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such 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 beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last?mentioned amount.             In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.            

 

Article 13
CAPITAL GAINS


1.             Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.            

2.             Gains from the alienation of movable 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 of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of per?forming independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.            

3.             Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.            

4.             Gains derived by a resident of a Contracting State from the alienation of shares or comparable interests in a company, the assets of which consists wholly or principally of real property in the other Contracting State of a kind referred to in Article 6, may be taxed in that other State.            

5.             Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 of this Article, shall be taxable only in the Contracting State of which the alienator is a resident.            

 

Article 14
INDEPENDENT PERSONAL SERVICES


1.             Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State:

                a)           if he has a fixed base available to him in the other Contracting
                               State for the purpose of performing his activities; or

                b)           if his stay in the other Contracting State is for a period or periods
                               amounting to or exceeding in the aggregate 183 days in any
                               twelve month period commencing or ending in the fiscal year
                               concerned; in that case only so much of the income as is derived
                               from his activities performed in that other State may be taxed in
                               that other State.            

2.             The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.            

 

Article 15
DEPENDENT PERSONAL SERVICES


1.             Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.            

2.             Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first?mentioned State if:

                a)           the recipient is present in the other State for a period or periods
                               not exceeding in the aggregate 183 days in any twelve month
                               period commencing or ending in the fiscal year concerned, and

                b)           the remuneration is paid by, or on behalf of, an employer who is
                               not a resident of the other State, and

                c)           the remuneration is not borne by a permanent establishment or
                               a fixed base which the employer has in the other State.            

3.             Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State.            

 

Last updated: 08.12.2011