Thailand Law Library

by Thailand Lawyer

Income or profits which a resident of the United States derives from the operation of aircraft in international traffic shall be taxable only in the United States.

Income or profits which a resident of Thailand derives from the operation of aircraft in international traffic shall be taxable only in Thailand.

The amount of tax imposed by Thailand on income or profits derived by a resident of the United States from the operation of ships in international traffic shall be reduced to 50 percent of the amount which would have been imposed in the absence of this Convention.

The amount of tax imposed by the United States on income or profits derived by a resident of Thailand from the operation of ships in international traffic shall be reduced to 50 percent of the amount which would have been imposed in the absence of this Convention.

For the purposes of this Article, income or profits from the operation of ships or aircraft in international traffic include income or profits derived from the rental of ships or aircraft if such rental profits are incidental to other income or profits described in paragraphs 1 and 2.

Income or profits of an enterprise of a Contracting State from the use, maintenance, or rental of containers (including trailers, barges, and related equipment for the transport of containers) that are incidental to income from the operation of ships or aircraft in international traffic shall be treated for purposes of paragraphs 1 and 2 as income from the operation of ships or aircraft in international traffic.

The provisions of paragraphs 1, 2 and 4 shall also apply to income or profits from participation in a pool, a joint business, or an international operating agency.

Where

1. an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
2. the same persons participate directly or indirectly in the management, control, or
3. capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which, but for those conditions would have accrued to one of the enterprises, but by reason of those conditions have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

Where a Contracting State includes in the profits of an enterprise of that State, and taxes accordingly, profits on which an enterprise of the other Contracting State has been charged to tax in that other State, and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall, if it agrees that action of the first-mentioned Contracting State was correct, make an appropriate adjustment to the amount of the tax charged therein on those profits.

In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.