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ARTICLE 21
Non-Discrimination

 

1.         Nationals of a Contracting State shall not be subjected in the other Contracting State 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 State in the same circumstances are or may be subjected.

 

2.         The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

 

3.         The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State 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.         Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first mentioned State 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 State are or may be subjected.

 

5.         In this Article the term "taxation" means taxes which are the subject of this Convention.

 

 

ARTICLE 22
Mutual Agreement Procedure

1.         Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic laws of those States, present his case to the competent authority of the Contracting State 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 Convention.

 

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 a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention.

 

3.         The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

 

4.         The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

 

 

ARTICLE 23
Exchange of Information

1.         The competent authorities of the Contracting States shall exchange upon request such information as is necessary for carrying out the provisions of Articles 7, 10, 11, 12 and 20. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities involved in the application of such Articles.

 

2.         In no case shall the provisions of this Article be construed so as to impose on Contracting State the obligation to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State or to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State or 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.

 

 

ARTICLE 24
Diplomatic Agents and Consular Officers

1.         Nothing in this Connection shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

 

2.         Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State which is situated in the other Contracting State or in a third State shall be deemed, for the purposes of this Convention, to be a resident of the sending State if:

            a)         in accordance with international law he is not liable to tax in,

                        the receiving Contracting State in respect of income from

                       sources outside, that State, and

            b)         he is liable in the sending State to the same obligations in

                         relation to tax on his total income as are residents of that

                         State.

 

3.         The Convention shall not apply to international organisations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State, being present in a Contracting State and not treated in either Contracting State as residents in respect of taxes on income.

 

 

ARTICLE 25
Entry Into Force

1.         This Convention shall be ratified and the instruments of ratification shall be exchanged at Berne as soon as possible.

 

2.         The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect:

            (a)        in respect of taxes withheld at the source, on amounts paid

                        or remitted on or after the first day of January next following

                        that in which the exchange of instruments of ratification 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

                         instruments of ratification takes place.

 

 

ARTICLE 26
Termination

            This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to have effect:

            a)         in respect of taxes withheld at the source, on amounts paid

                         or remitted 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.

 

            In witness whereof, the undersigned duly authorized thereto, have signed this Convention.

            Done in duplicate at Bangkok on this 12 February 1996 in the English, German and Thai languages, all texts being equally authentic. In case there is any divergency of interpretation between the German and the Thai texts, the English text shall prevail.

 

 

FOR THE ROYAL GOVERNMENT OF THAILAND:

K. Kasemsri

(H.E. Mr. Kasem S. Kasemsri)

Minister of Foreign Affairs

FOR THE SWISS FEDERAL COUNCIL:

Blaise Codet

(H.E. Mr. Blaise Codet)

Ambassador Extradinary and
Plenipotentiary

 

 

PROTOCOL

            The Royal Government of Thailand and the Swiss Federal Council have agreed at the signing of the Convention between the two States for the avoidance of double taxation with respect to taxes on income upon the following provisions which shall form an integral part of the said Convention:

 

1.         With reference to Article 5

            It is understood that technical services as defined in paragraph 12 of the commentaries on Article 12 of the OECD Model Convention 1977 are covered by sub-paragraph j) of paragraph 2 of Article 5.

            In respect of paragraph 3 of Article 5, it is understood that the maintenance of a stock of goods or merchandise for the purpose of delivery or facilities used for delivery of goods and merchandise do not constitute a permanent establishment as long as the conditions of sub-paragraph b) of paragraph 4 of the same Article are not fulfilled.

            In respect of sub-paragraph c) of paragraph 4 of Article 5, it is understood that the mere fact that such a person 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, does not constitute a permanent establishment less such person is authorized to negotiate any essential element or detail which lead to the order being secured and the contract being concluded, even if the contract is signed by the enterprise and not by such person.

 

2.         With reference to Article 7

            In respect of paragraphs 1 and 2 of Article 7, where an enterprise of a Contracting State, having a permanent establishment in the other Contracting State, sells goods or merchandise or carries on other business activities in that other State, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of that part of the total receipts which is attributable to the actual activity of the permanent establishment for such sales or such other business activities.

            It is understood also that the profits of the enterprise shall be considered to be attributable to the permanent establishment if the enterprise sells goods or merchandise or carries on business of the same or similar kind as the sales or business undertaken by the permanent establishment provided that the permanent establishment has taken a determinant part in these activities.

 

3.         With reference to Article 10

            In respect of paragraph 5 it is understood that as long as Switzerland does not, according to its internal law, levy an additional tax on profits of a permanent establishment remitted from, or disposed out of Switzerland, the tax so charged in Thailand shall be limited at the rate provided for in sub-paragraph a) of paragraph 2 of Article 10.

 

4.         With reference to Article 11

            In respect of paragraph 3 it is understood that

            a)         the competent authorities may specify and agree in letters exchanged on
                        any institution to which the provisions of sub-paragraph a) and b) shall apply
                        and on the mode of application of this provision;

            b)         the Swiss National Bank does not perform activities as described in paragraph 3.

 

5.         With reference to Article 12

            In respect of paragraph 2, sub-paragraph c) it is understood that, as long as Switzerland

            -           does not, according to its internal law, levy a tax at source on royalties paid
                        to non-residents and

            -           for tax credit purposes, in general allows as a deductible expense 50 per cent
                        of the gross amount of the royalties,

 

            royalties paid from a resident of Thailand to a resident of Switzerland shall be taxable in Thailand at a rate not exceeding 10 per cent of such gross amount.

            Done in duplicate at Bangkok this 12 February 1996 in the English, German and Thai languages, all texts being equally authentic. In case there is any divergency of interpretation between the German and Thai texts, the English text shall prevail.

 

FOR THE ROYAL GOVERNMENT OF THAILAND:

K. Kasemsri

(H.E. Mr. Kasem S. Kasemsri)

Minister of Foreign Affairs

FOR THE SWISS FEDERAL COUNCIL:

Blaise Codet

(H.E. Mr. Blaise Codet)

Ambassador Extradinary and
Plenipotentiary

 

 

Last updated: 08.12.2011