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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  recipient  is   the beneficial owner of the interest 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 :

            (a)        The Bank of Thailand shall be exempt  from Bangladesh  tax

                        with respect  to  interest arising in Bangladesh;

            (b)        The  Bangladesh Bank shall be exempt  from Thai tax with

                        respect to interest  arising in Thailand; 

            (c)        the  Government  of  a  Contracting  State shall  be  exempt

                        from tax  in  the  other Contracting State with respect to

                        interest arising in that other State;

            (d)        interest  arising in a  Contracting  State and paid in respect of

                         a loan made by  the Government of the other Contracting

                         State, the Bank of Thailand, the Bangladesh Bank, as   the 

                         case  may  be,  or  any   agency including  a financial

                        institution  wholly owned by the Government of the other State

                        as may be agreed from time to time between the  competent 

                        authorities  of  the   two Contracting States, shall  be  exempt 

                         from tax in the other Contracting 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. 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    effectively   connected   with    such    permanent establishment or fixed base.  In such cases 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 or 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 recipient is  the  beneficial owner of the royalties,  the  tax  so charged shall not exceed 15 per cent of the gross  amount of the royalties.

 

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 cinematography films, or films or tapes used for radio  or 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 cases  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 or 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 obligation  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  performing  independent  personal  services, including  such  gains  from the  alienation  of  such  a permanent   establishment  (alone  or  with   the   whole enterprise) or of such a 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 Contracting State of which the enterprise is a resident.

 

4.         Gains  from the alienation of any  property  or assets,  other than those referred to in paragraphs 1,  2 and  3  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.  However, in the following circumstances such income may be taxed in the other Contracting State:

           (a)        if he has a fixed base regularly available to him in the other

                        Contracting State  for the purpose of performing his  activities;

                        in  that case, only so much of the  income as is attributable to

                        that fixed base  may be taxed in that other Contracting  State; 

                        or

           (b)        if he is present in the other  Contracting State for a period or

                        periods amounting to or  exceeding  in the aggregate  183 

                        days within any twelve month period  commencing or ending

                        in the fiscal year concerned, as the  case may be, of that

                        State;  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

                        within  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