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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

PROTOCOL

At the moment of signing the Agreement between the Kingdom of Thailand and the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed that the following provisions shall form an integral part of the Agreement.

(1) Ad Article 4:

It is understood that the term "resident of a Contracting State" used in the first sentence of paragraph (1) includes that State itself, any political subdivisions, local authorities or local governments thereof as well as any financial institution of, and controlled by, that State, political subdivision, local authorities or local governments.

(2) Ad Article 7:

  • (1) Subject to provisions of Article 23 of this Agreement, any other provisions shall not affect the right of the Government of a Contracting State, its political subdivisions, local authorities or local governments to apply its own laws related to the taxation of income derived from the petroleum and natural resources. Such activities will be taxed according to the law of that State.
  • (2) With reference to paragraphs (1), (5), (6) and (7), it is understood that the term "profits" refers to income or profits.
  • (3) The provisions of paragraph (3) are applicable irrespective of the limitation provided by the internal laws if the expenses so incurred are directly incidental to the business of the permanent establishment and are deductible expenses under the General Accepted Accounting Principles (GAAP).

(3) Ad Article 8, 10 and 11:

  • (1) It is agreed that if under any Convention or Agreement or Protocol to a Convention or Agreement signed after the signature of this Agreement between Thailand and any member or the State of the Co-operation Council of the Gulf Arab States, or a third State, Thailand accords, as regards to the provisions of paragraph (2) of Article 8, paragraph (2) of Article 10 and paragraph (2) of Article 11, a treatment more favorable than that accorded to residents of the United Arab Emirates under this Agreement, then as from the date on which the relevant Thai Convention or Agreement or Protocol enters into force the same favorable treatment shall automatically apply to residents of the United Arab Emirates Under this Agreement.
  • (2) In case that Thai law has been amended after the signature of this Agreement to a lesser rate, such rate shall be applied to the residents of the United Arab Emirates.

(4) With reference to Article 12, the term "Royalties" does not include payments made to the Government of the Contracting States under the concession of mine or quarries or exploitation of natural resources.

(5) It is understood that non-profits organizations of a Contracting State shall be exempted from taxes from the other Contracting State. The determination of the non-profit organization shall be in accordance with the domestic law of the other Contracting State.

FOR THE GOVERNMENT OF THE KINGDOM OF THAILAND:

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES: