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 beneficial owner of the interest is a resident of the other Contracting State the tax so charged shall not exceed: a) 10 percent of the gross amount of the interest if the interest is beneficially owned by any financial institution (including an insurance company); b) 10 percent of the gross amount of the interest if the interest is beneficially owned by a resident of the other Contracting State and is paid with respect to indebtedness arising as a consequence of a sale on credit by a resident of that other State of any equipment, merchandise or services, except where the sale was between persons not dealing with each other at arm's length; and c) 15 percent of the gross amount of the interest in all other cases. 3. otwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to the Government of the other Contracting State, or to a resident of that other State with respect to debt obligations guaranteed or insured by that Government, shall be exempt from tax in the first-mentioned Contracting State. For the purposes of this paragraph, the term "Government" means: a) in the case of Thailand, the Government of Thailand and shall include: i) he Bank of Thailand; ii) he Export-Import Bank of Thailand; iii) he local authorities; iv) uch financial institutions, the capital of which is wholly owned by the Government of Thailand or any local authority as may be agreed from time to time between the competent authorities of both of the Contracting States; and b) in the case of the United States, the Government of the United States and shall include: i) the Federal Reserve Banks; ii) the Export-Import Bank; iii) the Overseas Private Investment Corporation; iv) the states and local authorities; and v) such financial institutions, the capital of which is wholly owned by the Government of the United States or any state or local authority as may be agreed from time to time between the competent authorities of both of the Contracting States. 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 or prizes attaching to such securities, bonds or debentures, as well as all other income that is treated as income from money lent by the taxation law of the Contracting State in which the income arises. However, the term, "interest" does not include income dealt with in Article 10 (Dividends). 5. The provisions of paragraphs 1, 2 and 3 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 (a) such permanent establishment or fixed base, or with (b) business activities referred to under subparagraphs (b) and (c) of paragraph 1 of Article 7 (Business Profits). In such cases the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), 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, 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 the Convention. 8. The provisions of paragraphs 1, 2 and 3 shall not apply to an excess inclusion with respect to a residual interest in a United States Real Estate Mortgage Investment Conduit. 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 beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 percent of the gross amount of the royalties described in subparagraph (a) of paragraph 3; b) 8 percent of the gross amount of the royalties described in subparagraph (b) of paragraph 3; and c) 15 percent of the gross amount of the royalties described in subparagraph (c) of paragraph 3. 3. The term "royalties" as used in this Article means payments of any kind received as a consideration: a) for the use of or the right to use any copyright of literary, artistic or scientific work, including software, and motion pictures and works on film, tape or other means of reproduction for use in connection with radio or television broadcasting; b) for the use of or the right to use industrial, commercial or scientific equipment; or c) for the use of or the right to use any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience. The term "royalties" also includes gains derived from the alienation of any such right or property which are contingent on the productivity, use or disposition thereof. 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 (a) such permanent establishment or fixed base, or with (b) business activities referred to under subparagraph (c) of paragraph 1 of Article 7 (Business Profits). In such case the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply. 5. a) Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when 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 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 the State in which the permanent establishment or fixed base is situated. b) Where subparagraph (a) does not operate to treat royalties as being from sources in one of the Contracting States and the royalties relate to the use of or the right to use in one of the Contracting States any property or right described in paragraph 3, the royalties shall be deemed to arise in that State. 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 the Convention. ARTICLE 13
Gains 1. Except as otherwise provided in this Convention, each Contracting State may tax gains from the alienation of property in accordance with the provisions of its domestic law. 2. Notwithstanding the provisions of paragraph 1, gains from the alienation of ships, aircraft or containers used or operated by an enterprise of a Contracting State in international traffic or movable property pertaining to the use or operation of such ships, aircraft or containers shall be taxable only in the Contracting State of which the enterprise is a resident. ARTICLE 14
Branch Tax 1. A corporation which is a resident of a Contracting State may, as provided in paragraphs 2 and 3, be subject in the other Contracting State to a tax in addition to the tax allowable under the other provisions of this Convention. 2. In the case of the United States, such tax may be imposed only on: a) the "dividend equivalent amount" of the business profits of the corporation which are effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States and which are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this Convention; and b) the excess, if any, of interest deductible in the United States in computing the profits of the corporation that are subject to tax in the United States and are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this Convention over the interest paid by or from the permanent establishment or trade or business in the United States. 3. Notwithstanding any provision of this Convention, a company which is a resident of the United States and which has a permanent establishment in Thailand shall remain subject to taxes on disposal of profits out of Thailand in accordance with the provisions of Thai law. 4. The taxes described in paragraphs 2 and 3 of this Article shall not be imposed at a rate exceeding: a) the rate specified in paragraph 2(a) of Article 10 (Dividends) for the taxes described in subparagraph (a) of paragraph 2 and paragraph 3 of this Article; and b) the appropriate rate specified in paragraph 2 of Article 11 (Interest) for the tax described in subparagraph (b) of paragraph 2 of this Article. ARTICLE 15
Independent Personal Services 1. Income derived by an individual who is 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 except in the following circumstances, when such income may also 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 his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 90 days in the fiscal year concerned; 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; or c) if the remuneration for his activities in the other Contracting State is paid by a resident of that Contracting State or is borne by a permanent establishment or a fixed base situated in that Contracting State and exceeds in the fiscal year 10,000 United States dollars or its equivalent in Thai currency, not including expenses reimbursed to him or borne on his behalf. 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. | 
