CONVENTION
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE FRENCH REPUBLIC
FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the French Republic 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:
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 imposed on behalf of each Contracting State or of its 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 as well as taxes on capital appreciation.
3. The existing taxes which are the subject of the present Convention are:
a) in France:
(i) the income tax; and
(ii) the corporation tax;
including any withholding tax, prepayment
(precompte) or advance payment with respect to the
aforesaid taxes;
(hereinafter referred to as “French tax”)
b) in Thailand:
(i) the income tax; and
(ii) the petroleum income tax;
(hereinafter referred to as “Thai tax”).
4. The Convention shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any significant changes which have been made in their respective taxation laws.
5. If by reason of changes made in the taxation law of either of Contracting State, it seems desirable to amend any article of the Convention without affecting the general principles thereof the necessary amendments may be made by mutual consent by means of an exchange of diplomatic notes or in any other manner in accordance with their constitutional procedures.
ARTICLE 3
GENERAL DEFINITIONS
1. In this Convention,
a) the term “France” means European and Overseas
Departments (Guadeloupe, Guiana, Martinique and
Reunion) of the French Republic, and any area adjacent to
the territorial waters of these Departments which by French
legislation, and in accordance with international law, has
been or may hereafter be designated as an area within
which the rights of France with respect to the seabed and
sub-soil and their natural resources may be exercised;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;
b) the term “a Contracting State” means France or Thailand, as
the context requires; the term “Contracting States” means
France and Thailand;
c) the term “person” comprises an individual, a company and
any other body of persons;
d) the term “company” means any body corporate or any group
of persons which is treated as a body corporate for tax
purposes;
e) 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;
f) the term “competent authority “ means:
- in the case of France, the Minister of Economy and
Finance or his authorised representative;
- in the case of Thailand, the Minister of Finance or his
authorised representative.
2. As regards the application of the Convention by a Contracting State any term not otherwise defined, unless the context otherwise requires, shall have the meaning which it has under the laws of that contracting State relating to the taxes which are the subject of the Convention.
ARTICLE 4
FISCAL DOMICILE
1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of registration or management or any other criterion of a similar nature.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then this case 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 closest (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 be 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
Statesshall 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.
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 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 mine, quarry or other place of extraction of natural
resources;
g) a building site or construction or assembly project only if it
exists for more than
(i) 6 months, in the case of installation or setting up of
plant equipment or machinery including auxiliary
construction as is necessary for such installation;
(ii) 3 months in all other cases.
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 the
purpose 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. Notwithstanding the provisions of paragraph 3, a person acting in a Contracting State on behalf of an enterprise of the other Contracting State other than an agent of an independent status to whom paragraph 5 applies - shall be deemed to be a permanent establishment in the first - mentioned State, if
a) he has, and habitually exercises in that Contracting State, an
authority to conclude contracts for or 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 that Contracting State a stock of
goods or merchandise belonging to the enterprise from
which he regularly delivers goods or merchandise for or on
behalf of the enterprise; or
c) he habitually secures orders in that Contracting State, wholly
for the enterprise itself, 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 State through a broker, general commission agent or any other agent of an independent status, if such persons are acting in the ordinary course of their business. A broker or agent shall be treated as not being of an independent status if he carries on in that other State an activity described in paragraph 4 wholly or almost wholly for enterprises which are controlled by or have a controlling interest in it.
6. 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 for either company a permanent establishment of the other. | 
