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ARTICLE 21
Other Income

1.         Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

 

2.         However, if such income is derived by a resident of a Contracting State from sources in the other Contracting State, such income may also be taxed in the State in which it arises, and according to the laws of the State. However, in the case of income from an estate or trust derived from sources in Canada by a resident of Thailand who is the beneficial owner thereof, the tax charged in Canada shall not exceed 15 per cent of the gross amount of the income.

 

 

TAXATION CHAPTER IV
METHODS FOR PREVENTION OF DOUBLE

ARTICLE 22
Elimination of Double Taxation

1.         In the case of Canada, double taxation shall be avoided as follows:

            (a)        Subject to the existing provisions of the law of Canada

                         regarding the deduction from tax payable in Canada of tax

                         paid in a territory outside Canada and to any subsequent

                         modification of those provisions--which shall not affect the

                        general principle hereof---and unless a greater deduction or

                        relief is provided under the laws of Canada, tax payable in

                        Thailand on profits, income or gains arising in Thailand shall

                        be deducted from any Canadian tax payable in respect of

                        such profits, income or gains.

            (b)        Subject to the existing provisions of the law of Canada

                         regarding the determination of the exempt surplus of a

                         foreign affiliate and to any subsequent modification of those

                         provisions---which shall not affect the general principle

                         hereof---for the purpose of computing Canadian tax, a

                         company resident in Canada shall be allowed to deduct in

                         computing its taxable income any dividend received by it out 

                         of the exempt surplus of a foreign affiliate resident in

                         Thailand.

 

2.         In the case of Thailand, double taxation shall be avoided as follows:

The amount of tax payable in Canada, under the laws of Canada and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of Thailand in respect of income from sources within Canada, which has been subjected to tax in Canada, shall be allowed as a credit against Thai tax payable in respect of such income, but in an amount not exceeding that proportion of Thai tax which such income bears to the entire income chargeable to Thai tax. For the purpose of determining such entire income, a loss incurred in any country shall not be taken into account.

 

3.         For the purposes of paragraph 1 (a), the term “tax payable in Thailand” shall be deemed to include any amount which would have been payable as Thai tax for any year but for an exemption or reduction of tax granted with a view to promoting industrial, commercial, scientific, educational or other development in Thailand, for that year or any part thereof under:

            (a)        the provisions of the Special Incentive Laws designed to

                         promote economic development in Thailand so far as they

                         were in force on, and have not been modified since, the date

                         of signature of this Convention, or have been modified only in

                         minor respects so as not to affect their general character; or

            (b)        any other provision which may subsequently be made

                         granting an exemption or reduction of tax which is agreed by

                         the competent authorities of the Contracting State to be of a

                         substantially similar character, if it has not been

                         modified thereafter or has been modified only in minor

                         respects so as not to affect its general character.

 

Provided that relief from Canadian tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption form or reduction of Thai tax was first granted in respect of that source.

 

Provided further that any deduction from Canadian tax granted in accordance with the provision of this paragraph in respect of dividends or interest paid to an individual shall not exceed 15 per cent of the gross amount thereof; and in respect of dividends paid to a company, other than a company referred to in paragraph 3 of Article 10, or in respect of interest paid to a company shall not exceed 20 per cent of the gross amount thereof.

 

4.         For the purposes of this Article, profits, income or gains of a resident of a Contracting State which are taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other State.

 

 

CHAPTER V
SPECIAL PROVISIONS

ARTICLE 23
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 State in the same circumstances are or may be subjected.

 

2.         The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

 

3.         Nothing in this Article shall be construed as obliging a Contracting State to grant to residents 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.

 

4.         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 State to any taxation or any requirements connected there with which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of a third State, are or may be subjected.

 

5.         In this Article, the term “taxation” means taxes which are the subject of this Convention.

 

 

ARTICLE 24
Mutual Agreement Procedure

1.         Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Conventions, he may, irrespective of the remedies provided by the domestic law of those States, address to the competent authority of the Contracting State of which he is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within two years from the first notification of the action which gives rise to taxation not in accordance with the Convention.

 

2.         The competent authority referred to in paragraph 1 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 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. In particular, the competent authorities of the Contracting States may consult together to endeavour to agree:

            (a)        to the same attribution of profits to a resident of a Contracting

                         State and its permanent establishment situated in the other

                         Contracting State;

 

            (b)        to the same allocation of income between a resident of a

                         Contracting State and any associated person provided for in

                         Article 9.

 

4.         The competent authorities of the Contracting States may consult together for the elimination of double taxation in cases not provided for in the Convention.

 

 

ARTICLE 25
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. The exchange of information is not restricted by Article 1. 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 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 or the 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).

   

 

Last updated: 08.12.2011