The Taipei Economic and Trade Office in Thailand
(TETO)(1)
and
The Thailand Trade and Economic Office in Taipei
(TTEO)
Desiring to conclude an agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income and Having obtained approval from their
respective authorities, Have agreed as follows:

Article 1
PERSONAL SCOPE
This Agreement shall apply to persons who are residents of one
or both of the territories.

Article 2
TAXES COVERED
1. The existing taxes to which the Agreement shall apply are in
particular:
(a) in the territory in respect of which the taxation laws
administered by the Thai Revenue Department are applied at
the date of signature of this Agreement:
the income tax; and
the petroleum income tax(2);
(b) in the territory in respect of which the taxation laws
administered by the Department of Taxation, Ministry of
Finance, Taipei are applied at the date of signature of this
Agreement:
the individual consolidated income tax; and
the profit-seeking enterprise income tax.
2. The Agreement shall apply also to any identical or
substantially similar taxes which are imposed after the date
of signature of the Agreement in addition to, or in place of,
the existing taxes. The competent authorities of the
territories shall notify each other of significant changes
which have been made in the taxation laws.

Article 3
GENERAL DEFINITIONS
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "territory" means the territory referred to in
subparagraph 1 (a) or 1 (b) of Article 2, as the context
requires;
(b) the term "person" includes an individual, a company and any
other body of persons as well as any entity treated as a
person for tax purposes;
(c) the term "company" means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(d) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of a territory,
except when the ship or aircraft is operated solely between
places in the other territory;
(e) the terms "enterprise of a territory" and "enterprise of the
other territory" mean respectively an enterprise carried on
by a resident of a territory and an enterprise carried on by
a resident of the other territory, as the context requires;
(f) the term "competent authority" means:
(i) in the case of the territory referred to in subparagraph 1
(a) of Article 2, the Director - General of the Revenue
Department or a representative authorised by the Director
- General;
(ii)in the case of the territory referred to in subparagraph 1
(b) of Article 2, the Director - General of the Department
of Taxation, Ministry of Finance or a representative
authorised by the Director - General.
2. As regards the application of this Agreement at any time in a
territory, any term not defined in the Agreement shall,
unless the context otherwise requires, have the meaning which
it has at that time under the laws of that territory
concerning the taxes to which the Agreement applies, any
meaning under the applicable tax laws of that territory
prevailing over a meaning given to the term under other laws
of that territory.

Article 4
RESIDENT
1. For the purposes of this Agreement, a person is a resident of
a territory if, under the laws of that territory, the person
is liable to tax by reason of domicile, residence, place of
management or incorporation or other criterion of a similar
nature.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both territories, then his status
shall be determined as follows:
(a) he shall be deemed to be a resident of the territory where
he has a permanent home available to him; if he has a
permanent home available to him in both territories, he
shall be deemed to be a resident of the territory with which
his personal and economic relations are closer (centre of
vital interests);
(b) if where his centre of vital interests cannot be determined,
or if he has not a permanent home available to him in either
territory, he shall be deemed to be a resident of the
territory in which he has an habitual abode;
(c) if he has an habitual abode in both territories or in
neither of them, the competent authorities of both
territories shall endeavour to settle the question by mutual
agreement.
3. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both territories,
then the competent authorities of both territories shall
endeavour to settle the question by mutual agreement.

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" 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 farm or plantation;
(h) a warehouse, in relation to a person providing storage
facilities for others;
(i) a building site, a construction, installation or assembly
project or supervisory activities in connection therewith,
where such site, project or activities continue for a period
of more than six months;
(j) the furnishing of services including consultancy services by
a resident of a territory through employees or other
personnel, where activities of that nature continue for the
same or a connected project within the other territory for a
period or periods aggregating more than six months within
any twelve-month period.
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 carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
(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 territory on behalf of
an enterprise of the other territory, that enterprise shall
be deemed to have a permanent establishment in the
firstmentioned territory, if such a person:
(a) has and habitually exercises in the first-mentioned
territory 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 territory 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 territory 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 of a territory shall not be deemed to have a
permanent establishment in the other territory merely because
it carries on business in that other territory 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.
6. The fact that a company which is a resident of a territory
controls or is controlled by a company which is a resident of
the other territory, or which carries on business in that
other territory (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.

Article 6
INCOME FROM IMMOVABLE PROPERTY
1. Income derived by a resident of a territory from immovable
property situated in the other territory may be taxed in that
other territory.
2. The term "immovable property" shall have the meaning which it
has under the law of the territory where 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
independent personal services.

Article 7
BUSINESS PROFITS
1. The income or profits of an enterprise of a territory shall
be taxable only in that territory unless the enterprise
carries on business in the other territory through a
permanent establishment situated therein. If the enterprise
carries on business as aforesaid, the income or profits of
the enterprise may be taxed in the other territory but only
so much of them as is attributable to that permanent
establishment.
2. Subject to the provisions of paragraph 3, where an enterprise
of a territory carries on business in the other territory
through a permanent establishment situated therein, there
shall in each territory be attributed to that permanent
establishment the income or 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
of the enterprise which are incurred for the purposes of the
permanent establishment (including executive and general
administrative expenses so incurred), whether incurred in the
territory in which the permanent establishment is situated or
elsewhere. However, no deduction is allowable in respect of
expenses which are not deductible under the laws of the
territory in which the permanent establishment is situated.
4. Insofar as it has been customary in a territory to determine
the profits to be attributed to a permanent establishment on
the basis of a certain percentage of the gross receipt of the
enterprise or of the permanent establishment or on the basis
of an apportionment of the total profits of the enterprise to
its various parts, nothing in paragraph 2 of this Article
shall preclude that territory from determining the profits to
be taxed by such a method as may be customary; the method
adopted shall, however, be such that the result shall be in
accordance with the principles contained in this Article.
5. No income or 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.
6. For the purposes of the preceding paragraphs, the income or
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.
7. Where income or profits include items of income which are
dealt with separately in other Articles of this Agreement,
then the provisions of those Articles shall not be affected
by the provisions of this Article.

Article 8
SHIPPING AND AIR TRANSPORT
1. Income or profits derived by an enterprise of a territory
from the operation of aircraft in international traffic shall
be taxable only in that territory.
2. Income or profits derived by an enterprise of a territory
from the operation of ships in international traffic may be
taxed in the other territory, but the tax imposed in that
other territory shall be reduced by an amount equal to 50 per
cent thereof.
3. The provisions of paragraphs 1 and 2 shall also apply to
income or profits from the participation in a pool, a joint
business or an international operating agency.
4. Paragraphs 1 and 2 shall also apply to income or profits from
the rental of ships or aircraft on a time, voyage or bareboat
basis, and income or profits from the rental of containers
and related equipment, which is incidental to the
international operation of ships or aircraft.

Article 9
ASSOCIATED ENTERPRISES
Where
(a) an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory, 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 income or 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 income or profits of that enterprise and
taxed accordingly.

Article 10
DIVIDENDS
1. Dividends paid by a company which is a resident of a
territory to a resident of the other territory may be taxed
in that other territory. However, such dividends may also be
taxed in the territory of which the company paying the
dividends is a resident and according to the laws of that
territory, but if the recipient is the beneficial owner of
the dividends, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of the dividends if the
beneficial owner directly holds at least 25 per cent of the
capital of the company paying the dividends;
(b) 10 per cent of the gross amount of the dividends in all
other cases.
2. The term "dividends" as used in this Article means income
from shares, mining shares, founders' shares or other rights,
not being debt-claims, participating in profits, as well as
income from other corporate rights which is subjected to the
same taxation treatment as income from shares by the laws
applicable in the territory where the company making the
distribution is a resident.
3. The provisions of paragraph 1 shall not apply if the
beneficial owner of the dividends, being a resident of a
territory, carries on business in the other territory,
through a permanent establishment situated therein, or
performs in that other territory independent personal
services from a fixed base situated therein, and the holding
in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base. In
such case the provisions of Article 7 or Article 14, as the
case may be, shall apply.
4. Where a company which is a resident of a territory derives
income or profits from the other territory, that other
territory may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a
resident of that other territory or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base
situated in that other territory, nor subject the company's
undistributed profits to a tax on the company's undistributed
profits, even if the dividends paid or the undistributed
profits consist wholly or partly of income or profits arising
in such other territory. Nothing in this paragraph shall be
construed as preventing a territory from imposing income tax,
according to the laws of that territory, on the disposal of
profits made by a permanent establishment situated therein,
but the tax charged shall in no case exceed the tax charged
on dividends in the territory in accordance with provisions
of paragraph 1 (a) of this Article.

Article 11
INTEREST
1. Interest arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
However, such interest may also be taxed in the territory in
which it arises and according to the laws of that territory,
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.
2. 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, as well as income assimilated to income
from money lent by the taxation law of the territory where
the income arises. Penalty charges for late payment shall not
be regarded as interest for the purpose of this article.
3. Notwithstanding the provisions of paragraph 1, interest
arising in a territory and derived by the authority of the
other territory including local authorities thereof, a
political subdivision, the Central Bank or any financial
institution controlled by that authority, the capital of
which is wholly owned by the authority of the other
territory, as may be agreed upon from time to time between
the competent authorities of both territories, shall be
exempt from tax in the first-mentioned territory.
4. The provisions of paragraph 1 shall not apply if the
beneficial owner of the interest, being a resident of a
territory, carries on business in the other territory,
through a permanent establishment situated therein, or
performs in that other territory 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.
5. Interest shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the interest, whether he is a resident of a
territory or not, has in a territory 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
that territory.
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 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 territory, due regard
being had to the other provisions of this Agreement.

Article 12
ROYALTIES
1. Royalties arising in a territory and paid to a resident of
the other territory may be taxed in that other territory.
However, such royalties may also be taxed in the territory in
which they arise and according to the laws of that territory,
but if the recipient is the beneficial owner of the
royalties, the tax so charged shall not exceed 10 per cent of
the gross amount of the royalties.
2. 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 cinematograph 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.
3. The provisions of paragraph 1 shall not apply if the
beneficial owner of the royalties, being a resident of a
territory, carries on business in the other territory,
through a permanent establishment situated therein, or
performs in that other territory 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.
4. Royalties shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the royalties, whether he is a resident of a
territory or not, has in a territory a permanent
establishment or a fixed base in connection with which the
liability 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 that
territory.
5. 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 territory, due regard being had to the other provisions
of this Agreement.

Article 13
CAPITAL GAINS
1. Gains derived by a resident of a territory from the
alienation of immovable property referred to in Article 6 and
situated in the other territory may be taxed in that other
territory.
2. Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of a territory has in the other territory or of
movable property pertaining to a fixed base available to a
resident of a territory in the other territory 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
fixed base, may be taxed in that other territory.
3. Gains derived by an enterprise of a territory 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
territory where the alienator 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 territory where the
alienator is a resident.

Article 14
INDEPENDENT PERSONAL SERVICES
1. Income derived by a resident of a territory in respect of
professional services or other activities of an independent
character shall be taxable only in that territory except in
the following circumstances, when such income may also be
taxed in the other territory:
(a) if he has a fixed base available to him in the other
territory for the purpose of performing his activities, for
a period or periods amounting to or exceeding in the
aggregate 183 days within any twelve-month period; in that
case, only so much of the income as is attributable to that
fixed base may be taxed in that other territory; or
(b) if his stay in the other territory is for a period or
periods amounting to or exceeding in the aggregate 183 days
within any twelve-month period; in that case, only so much
of the income as is derived from his activities performed in
that other territory may be taxed in that other territory;
or
(c) if the remuneration for his activities in the other
territory is paid by a resident of that territory or is
borne by a permanent establishment or a fixed base situated
in that territory; in that case, only so much of the
remuneration as is derived therefrom may be taxed in that
territory.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, dentists, lawyers, engineers, architects and
accountants.

Article 15
DEPENDENT PERSONAL SERVICES
1. Subject to the provisions of Articles 16, 17, 18, 19 and 20,
salaries, wages and other similar remuneration derived by a
resident of a territory in respect of an employment shall be
taxable only in that territory unless the employment is
exercised in the other territory. If the employment is so
exercised, such remuneration as is derived therefrom may be
taxed in that other territory.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of a territory in respect of an
employment exercised in the other territory shall be taxable
only in the first-mentioned territory if:
(a) the recipient is present in the other territory for a period
or periods not exceeding in the aggregate 183 days within
any twelve-month period, and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other territory, and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other
territory.
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 territory shall be taxable only in that
territory.

Article 16
DIRECTORS' FEES
Directors' fees and other similar payments derived by a resident
of a territory in his capacity as a member of the board of
directors of a company which is a resident of the other
territory may be taxed in that other territory.

Article 17
ARTISTES AND SPORTSMEN
1. Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a territory as an entertainer, such
as a theatre, motion picture, radio or television artiste, or
a musician, or as a sportsman, from his personal activities
as such exercised in the other territory, may be taxed in
that other territory.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsman in his capacity as such accrues
not to the entertainer or sportsman himself but to another
person, that income may, notwithstanding the provisions of
Articles 7, 14 and 15, be taxed in the territory where the
activities of the entertainer or sportsman are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply to
remuneration or profits, salaries, wages and other similar
income derived from activities performed in the other
territory by an entertainer or a sportsman if the visit to
that other territory is substantially supported by public
funds as recognized by the competent authorities in both
territories.
4. Notwithstanding the provisions of Article 7, where the
activities mentioned in paragraph 1 are provided in a
territory by an enterprise of the other territory, the
profits derived from providing these activities by such an
enterprise may be taxed in the first-mentioned territory
unless the enterprise is substantially supported by public
funds as recognized by the competent authorities in both
territories.

Article 18
PENSIONS
Pensions and other similar remuneration for past employment
arising in a territory shall be taxable only in that territory.

Article 19
STUDENTS
An individual who, immediately before visiting a territory was a
resident of the other territory and whose visit to the
first-mentioned territory is solely for the purpose of:
(a) studying at a university or other recognized educational
institution; or
(b) securing training to qualify him to practise a profession or
trade; or
(c) studying or carrying out research as a recipient of a grant,
allowance or award from relevant authorities or from a
religious, charitable, scientific, literary or educational
organization;
shall be exempt from tax in that territory on:
(i) remittances from abroad for the purposes of his maintenance,
education, study, research or training; and
(ii) the grant, allowance or award.

Article 20
PROFESSORS, TEACHERS AND RESEARCHERS
1. An individual who is a resident of a territory immediately
before making a visit to the other territory and who, at the
invitation of any university, college, school or other
similar educational institution which is recognized by
relevant authorities in that other territory, visits that
other territory for a period not exceeding two years solely
for the purpose of teaching or research or both at such
educational institution shall be exempt from tax in that
other territory on any remuneration for such teaching or
research.
2. This Article shall only apply to income from research if such
research is undertaken by the individual for the public
interest and not primarily for the benefit of some other
private person or persons.

Article 21
OTHER INCOME
Items of income of a resident of a territory which are not
expressly mentioned in the foregoing Articles of this Agreement
may be taxed in the territory where the income arises.

Article 22
ELIMINATION OF DOUBLE TAXATION
1. In the territory represented by the Thailand Trade and
Economic Office in Taipei (TTEO), double taxation shall be
eliminated as follows:
Subject to the laws applicable in the territory represented
by TTEO regarding the allowance as a credit against the tax
payable in the territory represented by the Taipei Economic
and Trade Office in Thailand (TETO), where a resident of the
territory represented by TTEO derives income from the
territory represented by TETO which may be taxed in the
territory represented by TETO in accordance with the
provisions of this Agreement, the amount of tax payable in
the territory represented by TETO in respect of that income
shall be allowed as a credit against the tax imposed in the
territory represented by TTEO on that resident. The credit so
allowed against the tax payable in the territory represented
by TTEO shall not exceed the amount of tax which, computed at
the applicable domestic tax rate, is increased in consequence
of inclusion of its income derived from the territory
represented by TETO.
2. In the territory represented by TETO, double taxation shall
be eliminated as follows:
Subject to the laws applicable in the territory represented
by TETO regarding the allowance as a credit against the tax
payable in the territory represented by TTEO, where a
resident of the territory represented by TETO derives income
from the territory represented by TTEO which may be taxed in
the territory represented by TTEO in accordance with the
provisions of this Agreement, the amount of tax payable in
the territory represented by TTEO in respect of that income
shall be allowed as a credit against the tax imposed in the
territory represented by TETO on that resident. The credit so
allowed against the tax payable in the territory represented
by TETO shall not exceed the amount of tax which, computed at
the applicable domestic tax rate, is increased in consequence
of inclusion of its income derived from the territory
represented by TTEO.
3. For the purpose of paragraph 1, the term "the tax payable in
the territory represented by TETO" shall be deemed to include
the amount of tax in the territory represented by TETO which
would have been paid under the laws of the territory
represented by TETO if the tax in the territory represented
by TETO had not been exempted or reduced in accordance with:
(a) the provisions of Articles 6, 7, 8 and 8-1 of the Statute
for Upgrading Industries in the territory represented by
TETO, as effective on the date of signature of this
Agreement or as modified only in minor aspects after the
date of signature of this Agreement;
(b) any other special incentive measures designed to promote
economic development in the territory represented by TETO
which may be introduced hereafter in modification of, or in
addition to, the existing laws, as may be agreed between the
competent authorities of both territories.
4. For the purposes of paragraph 2, the term "the tax payable in
the territory represented by TTEO" shall be deemed to include
the amount of tax in the territory represented by TTEO which
would have been paid under the laws of the territory
represented by TTEO if the tax in the territory represented
by TTEO had not been exempted or reduced in accordance with:
(a) the provisions of the sections 31, 33, 34 and 35 of the
Investment Promotion Act in the territory represented by
TTEO, as effective on the date of signature of this
Agreement or as modified only in minor aspects after the
date of signature of this Agreement;
(b) any other special incentive measures designed to promote
economic development in the territory represented by TTEO
which may be introduced hereafter in modification of, or in
addition to, the existing laws, as may be agreed between the
competent authorities of both territories.
5. The provisions of paragraphs 3 and 4 shall apply in a period
of five years from the date on which this Agreement enters
into force. These provisions shall apply to a resident of the
territory represented by TETO approved by its authority and
to a resident of the territory represented by TTEO. The
period of application may be extended by mutual agreement
between the competent authorities of both territories.

Article 23
NON-DISCRIMINATION
1. Nationals of a territory shall not be subjected in the other
territory 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
territory in the same circumstances are or may be subjected.
2. The term "national" means:
(i) any individual possessing the nationality of a territory;
(ii) any legal person, partnership and association deriving its
status as such from the laws in force in a territory.
3. The taxation on a permanent establishment which an enterprise
of a territory has in the other territory shall not be less
favourably levied in that other territory than the taxation
levied on enterprises of that other territory carrying on the
same activities. This provision shall not be construed as
obliging a territory to grant to residents of the other
territory 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. Except where the provisions of Article 9, paragraph 6 of
Article 11, or paragraph 5 of Article 12 apply, interest,
royalties and other disbursements paid by an enterprise of a
territory to a resident of the other territory shall, for the
purpose of determining the taxable profits of such
enterprise, be deductible under the same conditions as if
they had been paid to a resident of the first-mentioned
territory.
5. Enterprises of a territory, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by one or
more residents of the other territory shall not be subjected
in the first-mentioned territory to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned
territory are or may be subjected.
6. In this Article the term "taxation" means taxes which are the
subject of this Agreement.

Article 24
MUTUAL AGREEMENT PROCEDURE
1. Where a resident of a territory considers that the actions of
one or both of the territories result or will result for him
in taxation not in accordance with the provisions of this
Agreement, he may, irrespective of the remedies provided by
the laws applicable in those territories, present his case to
the competent authority of the territory of which he is a
resident. The case must be presented within three years from
the first notification of the action resulting in taxation
not in accordance with the provisions of the Agreement.
2. The competent authority 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
territory, with a view to the avoidance of taxation which is
not in accordance with this Agreement.
3. The competent authorities of the territories shall endeavour
to resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the
Agreement. They may also consult together for the elimination
of double taxation in cases not provided for in the
Agreement.
4. The competent authorities of the territories may communicate
with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs.

Article 25
EXCHANGE OF INFORMATION
1. The competent authorities of the territories shall exchange
such information as is necessary for carrying out the
provisions of this Agreement or of the laws applicable in the
territories concerning taxes covered by the Agreement,
insofar as the taxation thereunder is not contrary to the
Agreement. Any information so exchanged shall be treated as
secret and shall not be disclosed to any persons or
authorities other than those concerned with the assessment or
collection of the taxes which are the subject of this
Agreement.
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on the competent authority of a territory the
obligation:
(a) to carry out administrative measures at variance with the
laws applicable in, or administrative practice of that or of
the other territory;
(b)to supply information which is not obtainable under the laws
applicable in, or in the normal course of the administration
of that or of the other territory;
(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 (order public).

Article 26
ENTRY INTO FORCE
1. This Agreement shall enter into force upon an exchange of
notes by the duly authorized representatives of the Taipei
Economic and Trade Office in Thailand and the Thailand Trade
and Economic Office in Taipei confirming that both sides have
completed all internal legal procedures necessary to give
effect to this Agreement.
2. The provisions of this Agreement shall have effect:
(a) in respect of taxes withheld at the source, on amounts paid,
remitted or credited on or after the first day of January
next following that in which the exchange of notes takes
place;
(b) in respect of other taxes on income, for taxable years or
accounting periods beginning on or after the first day of
January next following that in which the exchange of notes
takes place.

Article 27
TERMINATION
This Agreement shall remain in force indefinitely, but the
Taipei Economic and Trade Office in Thailand and the Thailand
Trade and Economic Office in Taipei may, on or before 30th June
in any calendar year beginning after the expiration of a period
of five years from the date of its entry into force, give to the
other written notice of termination.
In such event, the Agreement shall cease to have effect:
(a) in respect of taxes withheld at the source, on amounts paid,
remitted or credited on or after the first day of January
next following that in which the notice is given;
(b) in respect of other taxes on income, for taxable years or
accounting periods beginning on or after the first day of
January next following that in which the notice is given.

Done in duplicate at Taipei on this ninth day of July, one
thousand nine hundred and ninety nine Year of the Christian Era,
each in the Thai, Chinese and English languages, all texts being
equally authoritative, except in the case of discrepancy then
the English text shall prevail.

FOR THE TAIPEI ECONOMIC FOR THE THAILAND TRADE
AND TRADE OFFICE IN AND ECONOMIC OFFICE IN TAIPEI
THAILAND

HUANG HSIENT-YUNG JULLAPONG JONSRICHAI
REPRESENTATIVE EXECUTIVE DIRECTOR


1 According to the protocol of the Agreement, the name “Taipei
Economic and Trade Office in Thailand ”, as appeared in the
Agreement, shall be replaced by “ Taipei Economic and
Cultural Office in Thailand ”.
2 According to the protocol of the Agreement, the application of
the Agreement to the petroleum income tax imposed under the
Petroleum Income Tax Act shall be suspended until such time as
the Taipei Economic and Cultural Office in Thailand receives
from the Thailand Trade and Economic Office in Taipei an
official note indicating otherwise.