US Thailand Double Taxation Treaty
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ARTICLE
28
Exchange of Information
1.
The competent authorities of the Contracting States shall exchange such
information as is necessary for carrying out the provisions of this Convention
or of the domestic laws of the Contracting States concerning taxes covered
by the Convention insofar as the taxation thereunder is not contrary to
the Convention. The exchange of information is not restricted by Article
1 (General Scope). Any information received by a Contracting State shall
be treated as secret in the same manner as information obtained under
the domestic laws of that State and shall be disclosed only to persons
or authorities (including courts and administrative bodies) involved in
the assessment, collection, or administration of, the enforcement or prosecution
in respect of, or the determination of appeals in relation to, the taxes
covered by the Convention. Such persons or authorities shall use the information
only for such purposes. They may disclose the information in public court
proceedings or in judicial decisions.
2.
In no case shall the provisions of paragraph 1 be construed so as to impose
on a Contracting State the obligation:
(a) |
to
carry out administrative measures at variance with the laws and
administrative practice of that or of the other Contracting State; |
(b) |
to
supply information which is not obtainable under the laws or in
the normal course of the administration of that or of the other
Contracting State; |
(c) |
to
supply information which would disclose any trade, business, industrial,
commercial, or professional secret or trade process, or information
the disclosure of which would be contrary to public policy (ordre
public). |
3.
Subject to the provisions of paragraph 2 of Article 31 (Termination),
if information is requested by a Contracting State in accordance with
this Article, the other Contracting State shall obtain the information
to which the request relates in the same manner and to the same extent
as if the tax of the first-mentioned State were the tax of that other
State and were being imposed by that other State. The application of this
paragraph shall be suspended until such time as the Government of the
United States receives from the Government of Thailand a diplomatic note
indicating that Thailand is prepared and able to implement the provisions
of this paragraph.
4.
For the purposes of this Article, the Convention shall apply, notwithstanding
the provisions of Article 2 (Taxes Covered) to all taxes imposed:
(a) |
in
the case of the United States, under the Internal Revenue Code;
and |
(b) |
in
the case of Thailand, under the Revenue Code, and under the Petroleum
Income Tax Act. |
ARTICLE
29
Diplomatic Agents and Consular Officers
Nothing
in this Convention shall affect the fiscal privileges of diplomatic agents
or consular officers under the general rules of international law or under
the provisions of special agreements.
ARTICLE
30
Entry Into Force
1.
This Convention shall be subject to ratification in accordance with the
applicable procedures of each Contracting State and instruments of ratification
shall be exchanged at Washington as soon as possible.
2.
The Convention shall enter into force upon the exchange of instruments
of ratification and its provisions shall have effect:
(a) |
in
respect of taxes withheld at source, for amounts paid or credited
on or after the first day of the sixth month next following the
date on which the Convention enters into force; |
(b) |
in
respect of other taxes, for taxable periods beginning on or after
the first day of January next following the date on which the Convention
enters into force. |
ARTICLE
31
Termination
1.
This Convention shall remain in force until terminated by a Contracting
State. Either Contracting State may terminate the Convention at any time
after 5 years from the date on which the Convention enters into force,
provided that at least 6 months prior notice of termination has been given
through diplomatic channels. In such event, the Convention shall cease
to have effect:
(a) |
in
respect of taxes withheld at source, for amounts paid or credited
on or after the first day of January next following the expiration
of the 6 months period; |
(b) |
in
respect of other taxes, for taxable periods beginning on or after
the first day of January next following the expiration of the 6
months period. |
2.
Notwithstanding paragraph 1, this Convention shall terminate on January
1 of the 6th year following the year in which the Convention enters into
force, unless the Government of the United States has received from the
Government of Thailand by June 30, of the 5th year following entry into
force, a diplomatic note of the character described in the last sentence
of paragraph 3 of Article 28 (Exchange of Information).
Done
at Bangkok in duplicate, on this 26th day of November, 1996, in the English
language.
FOR
THE GOVERNMENT
OF THE KINGDOM OF THAILAND: |
FOR
THE GOVERNMENT
OF THE UNITED STATES OF AMERICA: |
|
|
EMBASSY
OF THE UNITED STATES OF AMERICA
Bangkok, November 26, 1996
No. 1107
His Excellency
Amnuay Viravan,
Deputy Prime Minister and,
Minister of Foreign Affairs,
of the Kingdom of Thailand.
Excellency:
I
have the honor to present my compliments to Your Excellency and have the
honor to refer to the 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 signed by our two governments on November 26,
1996.
I
have the further honor, on behalf of the Government of the United States
of America, to convey the following understandings relating to the Convention:
It is understood that if the United States
hereafter alters its policy regarding the provision of a tax sparing credit,
or if the United States reaches an agreement on the provision of a tax
sparing credit with any other country, the United States will agree to
reopen negotiations with Thailand with a view to the conclusion of a Protocol
which would provide a similar tax sparing credit to Thailand.
It is understood that if Thailand agrees
in a treaty or other agreement with any other country to (1) a rate of
tax on income or profits derived by residents of such other country on
the operation of ships that is lower than the rate specified in paragraph
2 of Article 8 (Shipping and Air Transport), or (2) treatment for the
rental or use of containers in international traffic that is more favorable
than the treatment specified in paragraph 8 of Article 7 (Business Profits)
or paragraph 4 of Article 8 (Shipping and Air Transport), then Thailand
will agree to reopen negotiations with the United States with a view to
the conclusion of a Protocol which would extend such lower rate or more
favorable treatment to residents of the United States.
It is understood that the use of the term
"conditions" in paragraph 1 of Article 25 (Relief from Double
Taxation) is intended to make clear that U.S. rules regarding "dual
capacity" taxpayers apply in determining the extent to which the
Thailand petroleum income tax will be considered an income tax under Article
25.
I would appreciate confirmation that the
Government of the Kingdom of Thailand shares these understandings.
Accept, Excellency, the renewed assurances
of my highest consideration.
William H. Itoh
No.
0504/4970
MINISTRY OF FOREIGN AFFAIRS,
SARANROM PALACE
26 November
B.E. 2539 (1996)
His
Excellency
William H. Itoh
Ambassador Extraordinary and Plenipotentiary
of the United States of America
Bangkok
Excellency,
I
have the honour to present my compliments to Your Excellency and have
the honour to acknowledge receipt of Your Excellency's Note No. 1107 dated
26 November 1996 which reads as follows:
"I have the honor to present my compliments
to Your Excellency and have the honor to refer to the 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 signed by our two Governments
on November 26, 1996.
"I have the further honor, on behalf
of the Government of the United States of America, to convey the following
understandings relating to the Convention:
It is understood that if the United States
hereafter alters its policy regarding the provision of a tax sparing credit,
or if the United States reaches an agreement on the provision of a tax
sparing credit with any other country, the United States will agree to
reopen negotiations with Thailand with a view to the conclusion of a Protocol
which would provide a similar tax sparing credit to Thailand.
It is understood that if Thailand agrees
in a treaty or other agreement with any other country to (1) a rate of
tax on income or profits derived by residents of such other country on
the operation of ships that is lower than the rate specified in paragraph
2 of Article 8 (Shipping and Air Transport), or (2) treatment for the
rental or use of containers in international traffic that is more favorable
than the treatment specified in paragraph 8 of Article 7 (Business Profits)
or paragraph 4 of Article 8 (Shipping and Air Transport), then Thailand
will agree to reopen negotiations with the United States with a view to
the conclusion of a Protocol which would extend such lower rate or more
favorable treatment to residents of the United States.
It is understood that the use of the term
"conditions" in paragraph 1 or Article 25 (Relief from Double
Taxation) is intended to make clear that U.S. rules regarding "dual
capacity" taxpayers apply in determining the extent to which the
Thailand petroleum income tax will be considered an income tax under Article
25.
I would appreciate confirmation that the
Government of the Kingdom of Thailand shares these understandings.
Accept, Excellency, the renewed assurances
of my highest consideration."
In reply, I have the honour to confirm that
the Government of the Kingdom of Thailand shares the same understandings
contained in your Excellency's Note under reference.
Accept, Excellency, the renewed assurances
of my highest consideration.
Amnuay
Viravan
Deputy Prime Minister and
Minister of Foreign Affairs
|