AGREEMENT
BETWEEN
THE KINGDOM OF THAILAND
AND
AUSTRALIA
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME The Kingdom of Thailand and Australia, Desiring to conclude an Agreement 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 Agreement shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2
TAXES COVERED 1. The existing taxes to which this Agreement applies are-
(a) in the case of Thailand:
(i) the income tax : and
(ii) the petroleum income tax:
(b) in the case of Australia: the income tax and the resource rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources imposed under the federal law of the Commonwealth of Australia.
2. This Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the contracting states shall notify each other of any substantial changes which have been made in their respective laws relating to the taxes to which this Agreement applies. ARTICLE 3
GENERAL DEFINITIONS
1. In this Agreement, 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 in accordance with international law, has been
or may hereafter be designated as an area within which the rights of the
Kingdom of Thailand with respect to the seabed and subsoil and their
natural resources may be exercised;
(b) the term "Australia", when used in a geographical sense, excludes all
external territories other than:
(i) the Territory of Norfolk Island;
(ii) the Territory of Christmas Island;
(iii) the Territory of Cocos (Keeling) Islands;
(iv) the Territory of Ashmore and Cartier Islands;
(v) the Territory of Heard Island and McDonald slands; and
(vi) the Coral Sea Islands Territory, and includes any area adjacent to
the territorial limits of Australia or of the said Territories in respect of
which there is for the time being in force, consistently with international
law, a law of Australia dealing with the exploitation of any of the natural
resources of the seabed and subsoil of the continental shelf;
(c) the terms "Contracting State" , "one of the Contracting States" and "the other
Contracting State" mean, as the context requires, Thailand or Australia;
(d) the term "person" includes an individual, an estate, a company and any other
body of persons which is treated as an entity for tax purposes;
(e) the term "company" means any body corporate or any entity which is treated
as a body corporate or company under the taxation laws of the respective Contracting States;
(f) the terms "enterprise of one of the Contracting States" and "enterprise of the other Contracting State" mean an enterprise carried on by a resident of Australia or an enterprise carried on by a resident of Thailand, as the context requires;
(g) the term "tax" means Australian tax or Thai tax as the context requires;
(h) the term "Australian tax" means tax imposed by Australia, being tax to which this Agreement applies by virtue of Article 2;
(i) the term "Thai tax" means tax imposed by Thailand, being tax to which this Agreement applies by virtue of Article 2;
(j) the term "competent authority" means, in the case of Australia, the Commissioner of Taxation or the authorized representative of the Commissioner, and in the case of Thailand, the Minister of Finance or the authorized representative of the Minister.
2. In this Agreement, in relation to the taxes to which this Agreement applies by virtue of Article 2, the term "Australian tax" does not include any penalty or interest imposed under the law of Australia and the term "Thai tax" does not include any surcharge for late payment or any penalty imposed under the law of Thailand.
3. In the application of this Agreement by a Contracting State, any term not defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State from time to time in force relating to the taxes to which this Agreement applies.
4. Where under this Agreement income is relieved from tax in one of the Contracting States and, under the law in force in the other Contracting State a person, in respect of the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other State and not by reference to the full amount thereof, then the relief to be allowed under this Agreement in the first - mentioned State shall apply only to so much of the income as is remitted to or received in the other State. ARTICLE 4
RESIDENCE
1. For the purposes of this Agreement, a person is a resident of one of the Contracting States:
(a) in the case of Australia, if the person is a resident of Australia for
the purposes of Australian tax; and
(b) in the case of Thailand, if the person is a resident of Thailand for
the purposes of Thai tax.
2. A person is not a resident of a Contracting State for the purposes of this Agreement if the person is liable to tax in that State in respect only of income from a source in that State.
3. Where by reason of the preceding provisions, an individual is a resident of both Contracting States, the status of the person shall be determined in accordance with the following rules, applied in the order in which they are set out:
(a) the person shall be deemed to be a resident solely of the Contracting
State in which a permanent home is available to the person;
(b) if a permanent home is available to the person in both Contracting States,
or in neither of them, the person shall be deemed to be a resident solely
of the Contracting State in which the person has an habitual abode;
(c) if the person has an habitual abode in both Contracting States, or in neither
of them, the person shall be deemed to be a resident solely of the Contracting
State with which the person's personal and economic relations are the closer.
4. For the purposes of the last preceding paragraph, an individuals citizenship or nationality of a Contracting State shall be a factor in determining the degree of the persons personal and economic relations with that Contracting State.
5. Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, it shall be deemed to be a resident solely of the Contracting State in which it is incorporated, created or organized. ARTICLE 5
PERMANENT ESTABLISHMENT
1. For the purposes of this Agreement, 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" shall include 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 building site, a construction project, an installation project, an
assembly project, or supervisory activities in connection therewith
where such site, project or activities or any two or more of them
continues or continue for more than 6 months:
(h) a warehouse in relation to a person providing storage facilities for others:
(i) the furnishing of services, including consultancy services, by a resident
of one of the Contracting States through employees or other personnel,
provided activities of that nature continue (for the same or a connected project)
within the other Contracting State for a period or periods aggregating more than
183 days within any 12 month period;
(j) an agricultural, pastoral or forestry property.
3. An enterprise shall not be deemed to have a permanent establishment merely by reason of:
(a) the use of facilities solely for the purpose of storage, display or delivery
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, display or delivery;
(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 for collecting information, for the enterprise; or
(e) the maintenance of a fixed place of business solely for the purpose of activities which have a preparatory or auxiliary character for the enterprise, such as advertising or scientific research.
4. An enterprise shall be deemed to have a permanent establishment in one of the Contracting States and to carry on business through that permanent establishment if substantial equipment is being used in that State by, for or under contract with the enterprise.
5. A person acting in one of the Contracting States on behalf of an enterprise of the other Contracting State other than a broker, general commission agent or any other agent of an independent status to whom paragraph 6 applies-shall be deemed to be a permanent establishment of that enterprise in the first mentioned State if the person:
(a) has, and habitually exercises in that State, an authority to conclude contracts on behalf of the enterprise, unless the person' s activities are limited to the purchase of goods or merchandise for the enterprise:
(b) in so acting, manufactures or processes in that State for the enterprise goods or
merchandise belonging to the enterprise:
(c) habitually maintains in the first mentioned State a stock of goods or merchandise belonging to the enterprise from which the person regularly fills orders on behalf of the enterprise; or
(d) 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.
6. An enterprise of one of the Contracting States shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, where that person is acting in the ordinary course of the persons business. For this purpose, an agent shall not be considered to be an agent of an independent status if the agent carries on in that other State an activity described in paragraph 5 wholly or almost wholly for the enterprise or for the enterprise and any one or more enterprises which are controlled by it or have a controlling interest in it.
7. The fact that a company which is a resident of one of the Contracting States 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 make either company a permanent establishment of the other.
8. The principles set forth in paragraphs 1 to 7 inclusive shall be applied in determining for the purposes of paragraph 5 of Article 11 and paragraph 6 of Article 12 whether there is a permanent establishment outside both Contracting States, and whether an enterprise, not being and enterprise of one of the Contracting States, has a permanent establishment in one of the Contracting States. | 
