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 Contracting State.

2.         However, such interest may be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the recipient of the interest is a company the tax so charged shall not exceed:

            a)         10 per cent of the gross amount of the interest if it is received

                         by any financial institution (including an insurance company);

            b)         in all other cases, 25 per cent of the gross amount of the

                         interest.

3.         Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to the Government of the other Contracting State shall be exempt from tax of the first-mentioned Contracting State.

4.         For the purposes of paragraph 3, the term “Government” means

            a)         in the case of Finland, the Government of Finland and shall

                         include the Bank of Finland and any institution wholly owned

                         by the Government of Finland, as may be agreed from time to

                         time between the Governments of the two Contracting

                         States;

            b)         in the case of Thailand, the Royal Government of Thailand

                        and shall include:

                        (i)         the Bank of Thailand;

                        (ii)        the local authorities; and

                        (iii)       such institutions, the capital of which is wholly owned

                                     by the Royal Government of Thailand or any local

                                     authorities, as may be agreed from time to time

                                     between the Governments of the two Contracting

                                     States.

5.         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 and prices attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the Contracting State in which the income arises.  Penalty charges for late payment shall not be regarded as interest for the purpose of this Article

6.         The provisions of paragraphs 1 and 2 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 such permanent establishment or fixed base.  In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

7.         Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a statutory body, 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.

8.         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 this Convention.

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 be taxed in the Contracting State in which they arise, and according to the laws of that Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

The competent authorities of the Contracting States  shall by mutual agreement settle the mode of application of this limitation.

3.         The term “royalties” as used in this Article means payments of any kind received as a consideration for the alienation or the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience.

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 such permanent establishment or fixed base.  In such case the provisions of Article 7 of Article 14, as the case may be,  shall apply.

5.            Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a statutory body, a local authority or a resident of that State.  Where, however, 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.

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 this Convention.

ARTICLE 13

Capital Gains

1.         Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in paragraph 2 of Article 6 and situated in the other Contracting State may be taxed in that other State.

2.         Gains derived by a resident of a Contracting State from the alienation of shares or other corporate rights referred to in paragraph 4 of Article 6 may be taxed in the Contracting State in which the immovable property held by the company is situated.

3.         Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

4.         Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State.

5.         Gains from the alienation of any property or assets other than those referred to in the preceding paragraphs of this Article, shall be taxable only in the Contracting State of which the alienator is a resident.

6.            Notwithstanding the provisions of paragraph 5, the gains or income from the sale or other transfer of shares or other securities other than those referred to in paragraph 2 may be taxed according to the law of each Contracting State.

ARTICLE 14

Independent Personal Services

1.         Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless such activities were performed in the other Contracting State.  Income in respect of professional services or independent activities performed within that other State may be taxed by the other State.

2.            Notwithstanding the provisions of paragraph 1, income derived by a resident of a Contracting State in respect of professional services or other independent activities performed in the other Contracting State shall not be taxable in the other State if:

            a)         the recipient is present in the other State for a period or

                         periods not exceeding in the aggregate 90 days within any 

                         twelve-month period,

            b)         the recipient does not maintain a fixed base in the other

                         State, and

            c)         the income is not borne by an enterprise or a permanent

                         establishment situated in that other State.

3.         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.

ARTICLE 15

Dependent Personal Services

1.         Subject to the provisions of Article 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State.  If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.

2.            Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

            a)         the recipient is present in the other State for a period or

                        periods not exceeding in the aggregate 183 days within any

                        twelve-month period, and

            b)         the remuneration is paid by an employer who is not a

                         resident of the other State, and

            c)         the remuneration is not borne by an enterprise of the other

                        State or by a permanent establishment or a fixed base which

                        the employer has in the other State.

3.            Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State.