CONVENTION
BETWEEN
THE KINGDOM OF THAILAND
AND
THE REPUBLIC OF AUSTRIA
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTIONOF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
The Kingdom of Thailand and the Republic of Austria,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital,
Have agreed as follows:
CHAPTER I
SCOPE OF THE CONVENTION ARTICLE 1
PERSONAL SCOPE
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 and on capital 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 and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.
3. The existing taxes to which the Convention shall apply are:
(a) in the case of Thailand:
(i) the income tax;
(ii) the petroleum income tax; and
(iii) the local development tax;
(hereinafter referred to as “thai tax”);
(b) in the case of Austria:
(i) the income tax (die Einkommensteuer);
(ii) the corporation tax (die Korperschaftsteuer);
(iii) the directors tax (die Aufsichtsratsabgabe);
(iv) the capital tax (die Vermogensteuer);
(v) the tax on property eluding death duties (die abgabevon Vermogen,
die der Erbschaftssteuer);
(vi) the tax on commercial and industrial enterprises, including the tax levied
on the sum of wages (die gewerbesteuer einschlieBlich der
Lohnsummensteuer);
(vii) the land tax (die Grundsteuer);
(viii) the tax on agricultural and forestry enterprises (die Abgabe von land-und
forstwirtschagtlichen Betrieben);
(ix) the contributions from agricultural and forestry enterprises to the fund
for the ewualisation of family burdens (die Beitrage von land-und
forstwirtschaftlichen Betrieben zum ausgleichsfonds fur Familienbeihilfen);
(x) the tax on the value of vacant plots (die Abgabe vom Bodenwert bei
unbebauten Grundstucken);
(hereinafter referred to as “austrian tax”).
4. The Convention shall also apply to any identical or substantially similar taxes on income or on capital which are imposed after the date of signature of this convention in addition to, or in place of the existing taxes. The competent authorities of the contracting States shall notify each other of important changes which have been made in their respective taxation laws.
CHAPTER II
DEFINITIONS ARTICLE 3
GENERAL DEFINITION
1. For the purpose of this Convention, unless the context otherwise requires:
(a) the term “Thailand” means the Kingdom of Thailand and includes any area
adjacent to the territorial waters of the Kingdom of Thailand which by Thai
legislation, and in accordance with 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 sub-soil and their
natural resources may be exercised;
(b) the term “Austria” means the Republic of Austria;
(c) the terms “a Contracting State” and “the other contracting State” mean Thailand
or Austria, as the context requires;
(d) the term “person” includes an individual, an estate, a company and any other
body of persons which is treated as an entity for tax purposes;
(e) the term “company” means any body corporate or an entity which is treated
as a body corporate under the taxation laws of the respective contracting
States;
(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 Austrian tax as the context requires;
(h) the term “national” means:
(i) any individual possessing the nationality of a Contracting State;
(ii) any legal person, partnership, asociation and any other entity deriving its
status as such from the laws in force in a Contracting State;
(i) the term “international traffic” means any transport by a ship or aircraft
operated by an enterprise of a Contracting State, except where the ship or
aircraft is operated solely between places in the other Contracting State;
(j) the term “competent authority” means, in the case of Thailand, the Minister
of Finance or his authorised representative and, in the case of Austria,
the Federal Minister of Finance.
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, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.
2. Where by reason of the provisions of paragraph 1 an individual is 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 in which he has an
habitual abode;
(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 national;
(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, then the competent authorities of the contracting States shall endeavour to settle the question by mutual agreement.
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;
(g) a building site, a construction, assembly or installation project or supervisory
activities in connection therewith or the furnishing of services, including
consultancy services, by a resident of one of the Contracting States through
employees or other personnel, provided that such site, project or activities
of that nature continue within the other Contracting State for a period or
periods aggregating more than six months in any twelve months period.
3. 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
advertising, for the supply of information, for scientific research, or for similar
activities which have a preparatory or auxiliary character, for the enterprise.
4. A person (other than a broker, general commission agent or any other agent of an independent status to whom paragraph 5 applies) acting in a Contracting State on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment in the first-mentioned State, if:
(a) 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;
(b) he 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
(c) he 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.
5. 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 other Contracting State through a broker, general commission agent or any other agent of an independent status, 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 carries on in that other State an activity described in paragraph 4 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. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other State if it collects premiums in the territory of that State or insures risks situated therein through an employee or through a representative who is not an agent of independent status within the meaning of paragraph 5.
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 Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
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