ARTICLE 6
INCOME FROM IMMOVABLE PROPERTY 1. Income from immovable property may be taxed in the Contracting State in which such property is situated. 2. The term immovable property shall be defined in accordance with the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of professional services. ARTICLE 7
BUSINESS PROFITS 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment. 2. Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses so incurred whether in the State in which the permanent establishment is situated or elsewhere. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8
SHIPPING AND AIR TRANSPORT 1. Profits from the operation of aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 2. Profits from the operation of ships in international traffic by an enterprise having a place of effective management in a Contracting State may be taxed in the other Contracting State, but the tax imposed in that other State shall be reduced by 50 per cent thereof. 3. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident. 4. The provisions of paragraphs 1 and 2 shall likewise apply in respect of participations in a pool or a joint business by enterprise engaged in shipping or air transport. ARTICLE 9
ASSOCIATED ENTERPRISES Where a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in themanagement, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. ARTICLE 10
DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the law of that State, but, if the recipient of the dividends is a company, excluding partnership, which holds directly at least 25 per cent of the capital of the former company, the tax so charged shall not exceed: a) 15 per cent if the company paying the dividends engages in an industrial undertaking, b) 20 per cent in other cases. 3. In this Article: a) the term dividends as used in this Article means income from shares, jouissance shares, mining shares, founders or other rights, not being debt-claims, participating in profits, as well as income form other corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident; b) the term industrial undertaking means: 1. any undertaking engaged in i) manufacturing, assembling and processing, ii) construction, civil engineering and ship- building, iii) production of electricity, hydraulic power, gas or the supply of water, or iv) agriculture, forestry and fishery and the carrying on of a plantation, and 2. Any other undertaking entitled to the privileges accorded under the laws of Thailand on the promotion of industrial investment, and 3. Any other undertaking which may be declared to be an industrial undertaking for the purpose of this Article by the competent authority of Thailand. 4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the dividends, being a resident of a Contracting State, has in the other Contracting State, of which the company paying the dividends is a resident, a permanent establishment with which the holding by virtue of which the dividends are paid is effectively connected; provided that under the law of that other State the dividends are taxed as part of the profits of the permanent establishment. In such a case, the provisions of Article 7 shall apply. 5. When the prepayment (precompte) is paid in respect of dividends paid by a company which is a resident of France to a resident of Thailand, such resident shall be entitled to the refund of that prepayment subject to the deduction of the withholding tax with respect to the refunded amount in accordance with the internal law and paragraph 2 of this Article. 6. Where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, it may be subjected therein to any withholding tax on the profits, of such permanent establishment as provided by the laws of that other Contracting State at a rate not exceeding 25 per cent. | 
