Section Code: 0002 - 0003
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 2: Taxes Covered
The existing taxes to which this Convention shall apply are:
- in the United States: the Federal income taxes imposed by the Internal Revenue Code, but excluding the social security taxes, (hereinafter referred to as "United States tax");
- in Thailand: the income tax and the petroleum income tax (hereinafter referred to as “Thai tax”).
The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws and of any official published material concerning the application of the Convention, including explanations, regulations, rulings, or judicial decisions.
Article 3: General Definitions
For the purposes of this Convention, unless the context otherwise requires:
- the term "person" includes an individual, an estate, a trust, a partnership, a company, and any other body of persons;
- the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;
- 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;
- the term "international traffic" means any transport by a ship or aircraft except when such transport is solely between places in the other Contracting State;
- the term "competent authority" means:
- in the case of the United States: the Secretary of the Treasury or his delegate; and
- in the case of Thailand: the Minister of Finance or his authorized representative;
- the term "United States" means the United States of America and, where used in a geographic sense, includes any area outside the territorial sea of the United States which, in accordance with international law and the laws of the United States, has been or may hereafter be designated as an area within which the United States may exercise rights with respect to the exploration and exploitation of the natural resources of the seabed or its subsoil; the term "United States" does not include Puerto Rico, the Virgin Islands, Guam, or any other United States possession or territory;
- 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 subsoil and their natural resources may be exercised;
- the terms "a Contracting State" and "the other Contracting State" mean the United States or Thailand, as the context requires;
- the term "tax" means United States tax or Thai tax, as the context requires;
- the term "nationals" means:
- all individuals possessing the nationality or citizenship of a Contracting State; and
- all legal persons, partnerships, associations and any other entities deriving their status as such from the laws in force in a Contracting State.
As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, or the competent authorities agree to a common meaning, have the meaning which it has under the laws of that State concerning the taxes to which the Convention applies.