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CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH
FOR THE  AVOIDANCE  OF  DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME

 

 

             The  Government of the Kingdom of Thailand and  the Government of the People's Republic of Bangladesh, 

             Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

             Have agreed as follows:

 

 

Article 1

PERSONAL SCOPE

             This  Convention  shall  apply to persons  who  are residents of one or both of the Contracting States.

 

 

Article 2

TAXES COVERED

1.         The Convention shall apply to taxes  on  income imposed on behalf of a Contracting State or of its  local authorities, irrespective of the manner in which they are levied.

 

2.         There shall be regarded as taxes on income  all taxes imposed on total income, or on elements of  income, including  taxes on gains from the alienation of  movable or  immovable  property, taxes on the  total  amount   of wages  or salaries paid by enterprises, as well as  taxes on capital appreciation.

 

3.         The  taxes  which  are  the  subject  of   this Convention are:

             (a)        In the case of Thailand:

                          -           the income tax; and

                          -           the petroleum income tax;

                         (hereinafter referred to as "Thai tax");

             (b)        In the case of Bangladesh:

                          -           the income tax;

                         (hereinafter referred to as" Bangladesh tax").

 

4.         The Convention shall apply also to any identical or  substantially similar taxes which are  imposed  after the  date of signature of the Convention in addition  to, or  in  place  of, the  existing  taxes.   The  competent authorities  of the Contracting States shall notify  each

other of any significant changes which have been made  in their respective taxation laws within a reasonable period of time after such changes.

 

 

Article 3

GENERAL DEFINITIONS

1.         For the purposes of this Convention, unless the context otherwise requires:

            (a)         the term  "Thailand" means the Kingdom  of Thailand and includes any area
                          adjacent to the  territorial waters of the Kingdom  of Thailand which by Thai
                          legislation and accordance  with  international  law,  has been or may hereafter
                          be designated as  an area within which the right of the Kingdom of Thailand
                          with respect to the seabed and sub-soil  and their natural resources  may be
                          exercised;  

            (b)         the   term  "Bangladesh"  means  all   the territory  of  the  People's  Republic 
                          of Bangladesh  including  the  part  of   the seabed  and its sub-soil thereof, 
                          to  the extent   that  area  in  accordance   with international   law   has  been  
                          or   may hereafter  be designated under  Bangladesh law as an area within
                          which Bangladesh may exercise sovereign rights with respect  to the 

                          exploration and exploitation  of  the natural  resources  of the seabed  or 

                          its sub-soil;

            (c)         the  terms  " a  Contracting  State"   and "the other Contracting State" mean
                          Thailand or Bangladesh as the context requires;

            (d)         the term "person" includes an  individual, a company and any other body

                          of persons; 

            (e)         the term "company"  means   any   body corporate  or any entity which is 

                          treated as a body corporate for tax purposes;

            (f)          the  terms  "enterprise  of  a  Contracting State"   and  "enterprise  of   the   other
                          Contracting  State"  mean  respectively  an enterprise  carried on by a resident 
                          of  a Contracting State and an enterprise carried on  by a resident of the other 
                          Contracting State;

            (g)         the term "tax" means Thai tax or Bangladesh tax as the context requires;

            (h)         the term "nationals" means:

                         (i)         all   individuals   possessing  the nationality of a Contracting State;

                         (ii)        all  legal persons, partnerships and  associations deriving their status
                                       as such  from  the  laws  in  force in a Contracting State;

             (i)         the term "international traffic" means  any transport by a ship or aircraft operated
                          by an  enterprise  of  a  Contracting   State, except   when  the  ship  or  aircraft  
                          is operated solely between places in the other Contracting State; and

             (j)         the term " competent  authority"  means in the  case  of  Thailand,  the  Minister 
                          of Finance  or his authorised  representative, and, in the case of Bangladesh,
                          the National Board  of   Revenue or its authorised representative.

 

2.         As regards  the application  of the Convention by  a  Contracting  State any term  not  defined  therein shall,  unless the context otherwise requires,  have  the meaning  which  it  has  under  the  law  of  that  State concerning the taxes to which the Convention applies. 

 

 

Article 4
RESIDENT

1.         For the purposes of this  Convention, the term "resident  of a Contracting State" means any person  who, under the laws of that State, is liable to tax therein by reason of his domicile,  residence, place of incorporation, place of effective management  or any other criterion  of a  similar  nature.  But this term does not include  any person   who  is liable to tax in that State  in  respect only of income from sources in that State.

 

2.         Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting  States, then his status shall be determined as follows:

             (a)        he  shall  be deemed to be a resident of the State  in  which  he has  a  permanent
                          home available to him; if he has a permanent home available to him in both States,
                          he shall be deemed  to be a resident of the  State  with which  his personal and 
                          economic  relations are closer (centre of vital interests);

             (b)        if  the State in which he has his centre  of vital interests cannot be determined,
                          or  if he has not a permanent home available to him in either State, he shall be
                          deemed to be   resident  of  the State in which he  has  an habitual abode;

             (c)        if he has an habitual  abode in both  States or in neither of them, he shall be
                          deemed to be a resident of the State of which he is  a national;

             (d)        if he is  a  national  of both States or  of neither  of them, the competent  authorities
                          of the Contracting States shall endeavour to settle the question by mutual agreement.

 

3.         Where by reason of  the provisions of  paragraph 1 a person is a resident of both Contracting States, then the competent authorities of the Contracting State  shall determine  by mutual agreement the Contracting  State  of which  that person shall be deemed to be a  resident  for the purposes of this Convention.

 

 

Article 5
PERMANENT ESTABLISHMENT

1.         For the purposes of  this Convention,  the  term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly  or partly carried on.

 

2.         The  term  "permanent   establishment"  includes especially:

             (a)        a place of management;

             (b)        a branch;

             (c)        an office;

             (d)        a factory;

             (e)        a workshop;

             (f)        a mine, an oil or gas well, a quarry  or any other    place   of  extraction 
                          of  natural  resources;

             (g)        a   warehouse,  in  relation   to  a  person providing storage facilities for others;

             (h)        a building site or construction or installation or    project   constitutes  
                          a    permanent establishment only if it lasts more than 183 days. 

 

3.         Notwithstanding  the  preceding  provisions  of this Article, the term "permanent establishment" shall be deemed not to include:

             (a)        the  use of  facilities  solely  for  the purpose of storage or display of goods
                          or merchandise belonging to the enterprise;

             (b)        the  maintenance   of  a  stock of  goods  or   merchandise   belonging to
                          the enterprise  solely  for  the  purpose  of storage or display;

             (c)        the  maintenance  of  a  stock  of  goods or merchandise belonging to the
                          enterprise  solely  for  the  purpose  of processing by another enterprise;

             (d)        the  maintenance   of  a fixed place   of business   solely  for  the  purpose  
                          of purchasing  goods or merchandise,  or  of collecting    information,   
                          for     the enterprise; 

             (e)        the  maintenance   of   a   fixed   place of  business  solely for the  purpose 
                          of advertising,    for   the    supply of information,  for scientific research  or
                          for  similar  activities  which  have   a preparatory  or auxiliary character, 
                          for the enterprise;

             (f)        the  maintenance  of  a  fixed  place  of business  solely for any  combination 
                          of activities mentioned in sub-paragraphs(a) to   (e),  provided  that   the   overall
                          activity  of the fixed place of  business resulting  from this combination is of 
                          a preparatory or auxiliary character.

 

4.         Notwithstanding  the  provisions of  paragraphs 1  and  2,  where a person - other than an  agent  of  an independent  status  to  whom paragraph 5  applies  -  is acting   in  a  Contracting  State   on  behalf  of   the enterprise of the other Contracting State, the enterprise shall be deemed to have a permanent establishment in  the first-mentioned Contracting State, if such a person:

             (a)        has  and   habitually   exercises  in the first-mentioned  State,  an  authority to
                          conclude   contracts  on  behalf   of the enterprise, unless  his  activities   are
                          limited to  the  purchase  of  goods  or merchandise for the enterprise;

             (b)        has no  such  authority, but   habitually maintains in the  first-mentioned State
                          a stock of goods or merchandise belonging to the enterprise from  which  he
                          regularly fills orders or makes deliveries on behalf of the enterprise; or

             (c)        has  no  such   authority, but  habitually secures  orders   in  the  first-mentioned
                          State  wholly  or  almost wholly  for  the enterprise  or  for   the  enterprise  and
                          other enterprises  which  are   controlled by it  or  have a controlling interest  in  it.

 

5.         An  enterprise shall not be deemed  to  have  a permanent  establishment  in a Contracting  State  merely because  it carries on business in that State  through  a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in  the  ordinary  course of  their  business  and  their activities  do not involve securing of orders within  the meaning of sub-paragraph (c) of paragraph 4.

 

6.         The  fact that a company which is a resident of a Contracting State controls or is controlled by a  company which  is a resident of the other Contracting  State,  or which  carries on business in that other  State  (whether through  a permanent establishment or  otherwise),  shall not  of  itself  constitute either  company  a  permanent establishment of the other.

 

 

Last updated: 08.12.2011