CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND
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 United Kingdom of Great Britain and Northern Ireland;
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
PERSONAL SCOPE
This Convention shall apply to persons who are residents of one or both of the Contracting States.
ARTICLE 2
TAXES COVERED
1 The existing taxes which are the subject of this Convention are:
(a) in the United Kingdom:
(i) the income tax;
(ii) the corporation tax;
(iii) the capital gains tax;
(iv) the development land tax; and
(v) the petroleum revenue tax;
(hereinafter referred to as “United Kingdom tax”);
(b) in Thailand:
(i) the income tax; and
(ii) the petroleum income tax;
(hereinafter referred to as “Thai tax”)
2 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.
ARTICLE 3
GENERAL DEFINITIONS
1 In this Convention, unless the context otherwise requires:
(a) the term “United Kingdom” means Great Britain and
Northern Ireland, including any area outside the territorial
sea of the United Kingdom which in accordance with
international law has been or may hereafter be designated,
under the laws of the United Kingdom concerning the
Continental Shelf, as an area within which the rights of the
United Kingdom with respect to the sea bed and sub-soil
and their natural resources may be exercised;
(b) the term “Thailand” means the Kingdom of Thailand and 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 seabed and sub-
soil and their natural resources may be exercised;
(c) the term “nationals” means:
(i) 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 partial 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;
(ii) 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;
(d) the term “tax” means United Kingdom tax or Thai tax, as the
context requires;
(e) the terms “a Contracting State” and “the other Contracting
State” mean the United Kingdom or Thailand, as the
context requires;
(f) the term “person” comprises an individual, a company and
anybody of persons which is treated as an entity for tax
purposes;
(g) the term “company” means any body corporate or any entity
which is treated as a body corporate for tax purposes;
(h) 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;
(i) the term “competent authority” means, in the case of the
United Kingdom the Commissioners of Inland Revenue or
their authorized representative, and in the case of Thailand,
the Minister of Finance or his authorized representative;
(j) the term “international traffic” means any transport by a ship
or aircraft operated by an enterprise which has its place of
effective management in a Contracting State, exceptwhen
the ship or air operated solely between places in the other
Contracting State;
(k) the term “political subdivision”, in relation to the United
Kingdom, includes Northern Ireland.
2 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.
ARTICLE 4
FISCAL DOMICILE
1 For the purposes of this Convention, the term “resident of a Contracting State” means, subject to the provisions of paragraphs (2) and (3) of this Article, any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management, place of incorporation, or any other criterion of a similar nature.
2 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:
(a) 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);
(b) 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;
(c) if he has an habitual abode in both Contracting States or in
neither of them, he shall deemed to be a resident of the
Contracting State of which he is a national;
(d) 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.
3 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.
ARTICLE 5
PERMANENT ESTABLISHMENT
1 For the purposes of this Convention, the term “permanent establishment” means a fixed place of business in which the business in which the business of the enterprise is wholly or partly carried on.
2 The term "permanent establishment" shall include especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a warehouse, in relation to a person providing storage
facilities for others;
(g) a mine, oil well, quarry or other place of extraction of natural
resources;
(h) a building site or construction or assembly project which
exists for more than six months.
3 The term "permanent establishment" shall not be deemed 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
thepurpose of purchasing goods or merchandise, or for
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 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.
5 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:
(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; or
(b) 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
(c) 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 of or on
behalf of the enterprise and other enterprises controlled by it
or which 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 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.
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. | 
