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CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM  OF  THAILAND
AND
THE GOVERNMENT OF THE REPUBLIC OF UZBEKISTAN
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 Republic of Uzbekistan,

 

                 Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promote economic cooperation between the two countries,

 

                 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.             This  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 amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

 

3.             The existing taxes to which the Convention shall apply are in particular :

                 (a)            In  the  case  of  Thailand :

                                  (i)                the income tax; and

                                  (ii)               the petroleum income tax ;

                                                     (hereinafter referred to as “Thai tax”);

                 (b)            In the case of the Republic of Uzbekistan :

                                  (i)                the tax on income (profit) of legal persons;

                                  (ii)               the tax on income of individuals;

                                                     (hereinafter referred to as “ Uzbekistan 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  significant changes which have been made in their respective taxation laws.

 

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 maritime  area   adjacent  to  the  territorial  sea   of   the Kingdom  of  Thailand which  by  Thai  legislation,  and   in  accordance   with the  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 sea-bed  and subsoil and their natural resources may be exercised;

                 (b)           the term “Uzbekistan” means the Republic of Uzbekistan, and by the use in the geographical sense includes its territory, the territorial waters and air space over them where the Republic of Uzbekistan may exercise sovereign right and jurisdiction including rights  to  use the subsoil

and natural resources in accordance with international law and the laws of the Republic of Uzbekistan;

                 (c)           the terms “ a  Contracting State”   and  “ the  other Contracting State” mean Thailand  or Uzbekistan   as  the context  requires;

                 (d)           the term “person” includes an individual, a company and any other body of persons as well as any entity treated as a taxable unit under the taxation laws  in force  in  either Contracting State;

                 (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 Uzbekistan tax as the context requires;

                 (h)            the term “national”  means :

                                 (i)              any  individual  possessing  the  nationality  of a Contracting State;

                                 (ii)             any  legal  person,   partnership,    association and any other entity deriving its status as such from the laws in force in a Contracting

                                                    State;

                  (i)            the term “international traffic” means any transport by a ship,  aircraft and  railway  or  road  vehicle   operated  by  an enterprise  of  a  Contracting   State, except  when  the ship, aircraft and railway or road vehicle 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  authorized representative, and, in the case of Uzbekistan, the Chairman of the State Tax Committee or his authorized 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. The meaning of a term under the taxation law of that State shall have priority over the meaning provided for such term in other branches of law of that State.

 

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 management or any other criterion of a similar nature; and this term shall also include the State itself and its local authority.  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  a 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  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 Contracting States,  it shall be deemed to be a resident of the State in which it is  incorporated; if the person under the foregoing criterion is still a resident of both Contracting States, then the competent authorities of the Contracting States shall settle the question by mutual agreement.

 

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 farm or plantation ;

                 (h)             a warehouse, in relation to a person providing storage facilities for others.

 

3.             The term “permanent establishment”  also includes:

                 (a)              a  building site, a construction, installation or assembly project or supervisory activities in connection  therewith,  but only  where  such  site,  project  or activities  continue  for a  period of more than  6 months ;

                 (b)             the  furnishing  of   services   including     consultancy  services by a resident of one of the Contracting States through   employees   

or   other   personnel,    but only  where  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 6 months within   any twelve-month period.

 

4.                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 subparagraphs (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.

 

5.                Notwithstanding the provisions of paragraphs 1, 2 and 3 of this Article,  where a person - other than an agent of an independent status to whom paragraph 7 of this Article 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.

 

6.               Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance,  be deemed to have a permanent establishment in the other State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status within the meaning of paragraph 7 of this Article.

 

7.             An enterprise of a Contracting State 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, provided that such persons are acting in the ordinary course of their business.  However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise or on behalf of that enterprise and other enterprises, which are controlled by it or have a controlling interest in it, he will not be considered an agent of independent status within the meaning of this paragraph.

 

8.             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