News No.   :  21/2007

Date             :  14 June 2007

Subject        : Double Tax Treaty Negotiations between Thailand and Estonia
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                        A Thai delegation led by Mr.Satit Rungkasiri, Deputy Director-General of the Revenue Department and an Estonian delegation from Ministry of Finance held second round negotiations on the Convention between Thailand and Estonia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income in Tallinn, Estonia during 21-25 May 2007.  The negotiations resulted in the successful agreement of all articles.   The treaty will greatly benefit taxpayers of both countries as it will help relieve double taxation, provide tax certainty as well as facilitate investment.  The treaty also provides reduction of tax rates in the source country for income such as interest and royalties.

                         Estonia is Thailand’s major trading partner within the Baltic region with Thailand having a favourable trade balance since 2002.  Estonia’s major industries include wood products, electronics, fibre optic cables telecommunications business, biotechnology and tourism.  In the past Estonia did not draw much interest among Thai private investors due to Estonia’s low purchase capability and lack of business information.  Therefore, the treaty will support the government’s policy to reduce tax burden costs and build investor confidence further attracting more investment flows between the two countries