ARTICLE 21 Students and business apprentices
1. An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other Contracting State solely as a student at a recognised university, college, school or cultural establishment in that other Contracting State, or as a business apprentice shall be exempt from tax in that other State on (a) all remittances from abroad for the purpose of his maintenance, education or training, and (b) any remuneration for personal services rendered in that other State supplementing the resources available to him for such purposes. 2. An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State for a period not exceeding two years solely for the purpose of study, research or training as a recipient of a grant, allowance or award from a scientific, educational, cultural, religious or charitable organization or under a teachnical assistance programme entered into by the Government of a Contracting State shall be exempt from tax in that other State on: a) the amount of such grant, allowance or award, and b) all remittances from abroad for the purpose of his maintenance, education or training, and c) any remuneration for personal services rendered in that other State provided such services are in connection with his study, research or training or are incidental thereto. 3. An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State and who is temporarily present in that other State for a period not exceeding twelve months solely as enterprise of that other State for the purpose of acquiring technical, professional or business experience shall be exempt from tax in that other State on: a) all remittances from abroad for the purpose of his maintenance, education or training, and b) any reasonable remuneration for personal services rendered in that other State, provided such services are in connection with his studies or training or are incidental thereto. CHAPTER IV METHOD FOR ELIMINATION OF DOUBLE TAXATION
ARTICLE 22 Credit method 1. It is agreed that double taxation shall be avoided in the following manner: (a) In the case of a resident of Thailand : Thailand , in determining Thai tax in the case of its resident may, regardless of any other provision of this Convention, include in the basis upon which such tax is imposed all items of income. Thailand shall, however, deduct from the tax so calculated the Italian tax on dividends and interest in respect of which the rate of Italian tax is subject to limitations under Articles 10 and 11, on all other items of income which in accordance with the provisions of this Convention may be taxed in Italy, and on all income not mentioned in this Convention which according to the laws of Thailand arises in Italy. The deduction shall not, however, exceed that proportion of Thai tax which such items of net income bear to the entire net income chargeable to Thai tax. For the purpose of determining such entire net income, a loss incurred in any country shall not be taken into account. b) In the case of a resident of Italy : If a a resident of Italy owns items of income that are taxable in Thailand, Italy, in determining its income taxes specified in Article 2 of this Convention, may include in the basis upon which such taxes are imposed the mentioned items of income, unless express provisions of this Convention otherwise provide. In that case, Italy shall deduct from the taxes so calculated the Thai tax paid in Thailand, but the amount of deduction cannot exceed that proportion of Italian tax which the items of income bear to the entire income. However, no deduction shall be granted if the item of income is subjected to tax in Italy by a final withholding tax at request of the recipient of income, under Italian laws. CHAPTER V SPECIAL PROVISIONS
ARTICLE 23 Non-discrimination 1. The 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. In particular, nationals of a Contracting State who are taxable in the other Contracting State shall, if they are residents of that other Contracting State, receive any personal allowances, reliefs and reductions for taxation purposes on account of civil status which that other Contracting State grants to its residents. 2. The term "nationals" means: a) all individuals possessing the nationality of a Contracting State; b) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State. 3. The taxation on 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. 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 Contracting 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 that first-mentioned State are or may be subjected. 5. In the Article the term "taxation" means taxes of every kind and description. ARTICLE 24 Mutual agreement procedure 1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those State, present his case to the competent authority of the Contracting State of which he is a resident. The claim must be lodged within two years froms the date the assessment or of the withholding of tax at the source whichever is the later. 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 Contracting State. with a view to the avoidance of taxation not in accordance with the Convention. 3. The competent authorities of the Contracting State 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 State may communicate with each other directly for the purposes of reaching an agreement in the sense of the preceding paragraphs. ARTICLE 25 Exchange of information 1. The competent authorities of the Contracting State exchange such information as is necessary for the carrying out of this Convention and of the domestic laws of the contracting State concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons or authorities other than these concerned with the assessment or collection of the taxes which are the subject of the Convention. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on one of the contracting State the obligation: a) to carry administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; b) to supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; 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 (ordre public). |