CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE REPUBLIC OF SLOVENIA
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 Slovenia, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,
have agreed as follows:
Article 1
PERSONS COVERED
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 political subdivisions or 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 Thailand:
(i) the income tax; and
(ii) the petroleum income tax;
(hereinafter referred to as "Thai tax").
b) in Slovenia:
(i) the tax on profits of legal persons; and
(ii) the tax on income of individuals, including wages
and salaries, income from agricultural activities,
income from business, capital gains and income from
immovable and movable property;
(hereinafter referred to as "Slovenian 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 Slovenia means the Republic of Slovenia and,
when used in a geographical sense, the territory of Slovenia,
including the sea area, sea bed and sub-soil adjacent to the
territorial sea, over which Slovenia may exercise its sovereign
rights and jurisdiction in accordance with its domestic
legislation and international law;
b) the term Thailand means the Kingdom of Thailand and
includes its 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;
c) the terms "a Contracting State" and "the other Contracting State"
mean Slovenia or Thailand 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 Slovenian tax as the
context requires;
h) the term "international traffic" means any transport by a ship or
aircraft operated by an enterprise of a Contracting State, except
when the ship or aircraft is operated solely between places in
the other Contracting State;
i) the term "competent authority" means:
(i) in the case of Slovenia: the Ministry of Finance of the
Republic of Slovenia or its authorised representative;
(ii) in the case of Thailand: the Minister of Finance or his
authorised representative.
j) 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.
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.
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 (registration), place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof.This term, however, 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 na?tional;
d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall endeavour
to 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, the competent authorities of the Contracting States shall settle the question by mutual agreement and determine the mode of application of the agreement to such person.
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; and
g) a warehouse, in relation to a person providing storage
facilities for others.
3. The term permanent establishment shall also include:
a) a building site, a construction, installation or assembly project
or supervisory activities in connection therewith, where such site,
project or activities continue for a period or periods aggregating
more than 6 months;
b) the furnishing of services including consultancy services by
an enterprise of one of the Contracting States through employees
or other personnel, 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, display
or delivery 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, display or
delivery;
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 carrying on, for the enterprise, any other activity of a
preparatory or auxiliary character;
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, where a person ? other than an agent of an independent status to whom paragraph 6 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 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 delivers 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. 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 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, unless the transactions are at arm's length.
7. 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.
