Section Code: 0014 - 0015
U.S. – THAILAND TAX TREATY 1998
Convention between the government of the United States of America 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.
Article 14: Branch Tax
A corporation which is a resident of a Contracting State may, as provided in paragraphs 2 and 3, be subject in the other Contracting State to a tax in addition to the tax allowable under the other provisions of this convention.
In the case of the United States, such tax may be imposed only on:
- the "dividend equivalent amount" of the business profits of the corporation which are effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States and which are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this convention; and
- the excess, if any, of interest deductible in the United States in computing the profits of the corporation that are subject to tax in the United States and are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this Convention over the interest paid by or from the permanent establishment or trade or business in the United States.
Notwithstanding any provision of this Convention, a company which is a resident of the United States and which has a permanent establishment in Thailand shall remain subject to taxes on disposal of profits out of Thailand in accordance with the provisions of Thai law.
The taxes described in paragraphs 2 and 3 of this Article shall not be imposed at a rate exceeding:
- the rate specified in paragraph 2 (a) of Article 10 (Dividends) for the taxes described in subparagraph (a) of paragraph 2 and paragraph 3 of this Article; and
- the appropriate rate specified in paragraph 2 of Article 11 (Interest) for the tax described in subparagraph (b) of paragraph 2 of this Article.
Article 15: Independent Personal Services
Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State:
- if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or
- if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 90 days in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State; or
- if the remuneration for his activities in the other Contracting State is paid by a resident of that Contracting State or is borne by a permanent establishment or a fixed base situated in that Contracting State and exceeds in the fiscal year 10,000 United States dollars or its equivalent in Thai currency, not including expenses reimbursed to him or borne on his behalf.
The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.