MenuClose

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).

 

 

Last updated: 08.12.2011