SCHEDULE
SCHEDULE
CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE KINGDOM OF THAILAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the United Kingdom of Great Britain and Northern Ireland; and the Government of the Kingdom of Thailand;
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:
Personal scope
This Convention shall apply to persons who are residents of one or both of the Contracting States.
Taxes covered
The existing taxes which are the subject of this Convention are:
in the United Kingdom:
the income tax;
the corporation tax;
the capital gains tax;
the development land tax; and
the petroleum revenue tax;
(hereinafter referred to as “United Kingdom tax”);
in Thailand:
the income tax; and
the petroleum income tax;
(hereinafter referred to as “Thai tax”).
The Convention shall also apply to any tax which is subsequently imposed by either Contracting State in addition to, or in place of, the existing taxes provided that it is agreed by the competent authorities of the Contracting States to be identical or substantially similar to the taxes existing at the date of signature of the Convention. The competent authorities of the Contracting States shall notify each other of any changes which are made in their respective taxation laws.
General definitions
In this Convention, unless the context otherwise requires:
the term “United Kingdom” means
the term “Thailand” means
the term “nationals” means:
in relation to the United Kingdom, citizens of the United Kingdom and Colonies and British subjects not possessing that citizenship or the citizenship of any other Commonwealth country or territory, provided in all cases they are patrial within the meaning of the Immigration Act 1971, and all legal persons, partnerships, associations or other entities deriving their status as such from the law in force in the United Kingdom;
in relation to Thailand, all individuals possessing the nationality of Thailand and all legal persons, partnerships and associations deriving their status as such from the law in force in Thailand;
the term “tax” means
the terms “a Contracting State” and “the other Contracting State” means
the term “person”
the term “company” means
the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean
the term “competent authority” means,
the term “international traffic” means
the term “political subdivision”,
As regards the application of this Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Convention.
Fiscal domicile
For the purposes of this Convention, the term “resident of a Contracting State” means,
Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:
he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
if the Contracting 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 Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;
if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall endeavour to settle the question by mutual agreement.
Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall endeavour to settle the question by mutual agreement.
Permanent establishment
For the purposes of this Convention, the term “permanent establishment” means
The term “permanent establishment” shall include especially:
a place of management;
a branch;
an office;
a factory;
a workshop;
a warehouse, in relation to a person providing storage facilities for others;
a mine, oil well, quarry or other place of extraction of natural resources;
a building site or construction or assembly project which exists for more than six months.
The term “permanent establishment” shall not be deemed to include:
the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;
the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.
An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it carries on the activities of providing the services within that other Contracting State of public entertainers or athletes referred to in Article 18.
A person acting in a Contracting State on behalf of an enterprise of the other Contracting State—other than a broker, general commission agent or any other agent of an independent status to whom paragraph (6) applies—shall be deemed to be a permanent establishment in the first-mentioned State, but only if:
he 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; or
he habitually maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders or makes deliveries on behalf of the enterprise; or
he habitually secures orders for the sale of goods or merchandise in the first-mentioned State exclusively or almost exclusively on behalf of the enterprise itself or on behalf of the enterprise and other enterprises controlled by it or which have a controlling interest in it.
An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it transacts business through a broker, general commission agent or any other agent of an independent status in the other Contracting State, where such persons are acting in the ordinary course of their business. For this purpose, an agent shall not be considered to be an agent of an independent status if it acts as an agent exclusively or almost exclusively for the enterprise and carries on any of the activities described in paragraph (5) of this Article.
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.
Limitation of relief
Where under any provision of this Convention income arising in one of the Contracting States is relieved from tax in that Contracting State and, under the law in force in the other Contracting State a person, in respect of the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting...