Article 9 Associated Enterprises Where (a) an enterprise of a Contracting State participated directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or 　　(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ form those which would be made between independent enterprises, then any profits which would , but for those conditions 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. 　　Article 10 Dividends 　　1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State. 　　2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that Contracting State, but , if the recipient is the beneficial owner of the dividends and is a company, excluding partnership, the tax so charged shall not exceed: 　　(a) 15 per cent of the gross amount of the dividends if the recipient holds directly at least 25 per cent of the shares of the company paying the dividends, 　　(b) 20 per cent of the gross amount of the dividends in other cases. 　　This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 　　3. The term "dividends" as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the tax laws of the Contracting State of which the company making the distribution is a resident. 4. The provisions if paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected which such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Contracting State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other Contracting State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other Contracting State. Article 11 Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 　　2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the gross amount of the interest in case it is received by any financial institution (including an insurance company). 　　3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to the Government of the other Contracting State shall be exempt of tax in the first-mentioned Contracting State. For the purposes of this paragraph, the term "Government" 　　(a) in the case of Thailand, means the Royal Government of Thailand and shall include: 　　 (i) the Bank of Thailand; 　　 (ii) the local authorities; and 　　 (iii) such financial institutions, the capital of which is wholly owned by the Royal Government of Thailand or any local authority as may be agreed from time to time between the competent authorities of both of the Contracting States; 　　 (b) in the case of China, means the Government of the People's Republic of China and shall include: 　　 (i) the People's Bank of China and Bank of China to the extent that its activity is　carried on within the scope of the normal authority of a central bank; 　　(ii) the local authorities; and 　　(iii) such financial institutions, the capital of which is wholly owned by the Government of the People's Republic of China or any local authority as may be agreed from time to time between the competent authorities of both of the Contracting States. 　　4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or no secured by mortgage, and whether or no carrying a right to participate in the debtor's profits, and in particular, income for government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as similar income treated as income from money lent by the taxation laws of the Contracting State in which the income arises. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 　　5. The provisions of paragraphs l and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article l4, as the case may be, shall apply. 　　6. Interest shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a political subdivision, a local authority or a resident of that Contracting State. Where, however, the perm paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated. 　　7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount Of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial own in the absence Of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the law Of each Contracting State, due regard being had to the other provisions Of this Agreement. Article l2 ROy1ties 　　1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 　　2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall no exceed l5 Per cent of the gross amount of the royalties. 　　3. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of , or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, films or tapes used for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a Permanent establishment situated therein, or performs in that other Contracting State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effective1y connected with such permanent establishment of fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a political subdivision, a local authority or a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation to pay the royalties was incurred, and those royalties are boe by that Permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent estab1ishment or fixed base is situated. 6. Where, by rear of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties having regard to the use, right or information for which they are paid, exceed the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 13 Gains from the Alienation of Property 1. Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State as defined in Article 6 may be taxed in that other Contracting State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other Contracting State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that Contracting State. 4. Gains from the alienation of any property or assets, other than those referred to in paragraphs l, 2 and 3 of this Article, arising in a Contracting State, may be taxed in that Contracting State. Article 14 Independent Personal Services 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that Contacting State except in the following circumstances, when such income may also be taxed in the other Contacting State: (a) if the has a fixed base available to him in the other Contacting 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 Contacting State; or (b) if his stay in the other Contacting State is for a period or periods amounting to or exceeding in the aggregate 183 days within any twelve-month period; in that case, only so much of the income as is derived from his activities performed in that other Contacting State may be taxed in that other Contacting State; or (c) if the remuneration for his activities in the other Contacting State is paid by a resident of that other Contacting State or is borne by a permanent establishment or a fixed base situated in that Contacting State; in that case, only so much of the remuneration as is derived therefrom may be taxed in that other Contacting State. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, dentists, lawyers, engineers, architects and accountants. Article 15 Dependent Personal Services 1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contacting State in respect of an employment shall be taxable only in that Contacting State unless the employment is exercised in the other Contacting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contacting State. 2. Notwithstanding the provisions of paragraph 1 of this Article, remuneration derived by a resident of a Contacting State in respect of an employment exercised in the other Contacting State shall be taxable only in the first-mentioned Contacting State if: (a) the recipient is present in the other Contacting State for a period or periods not exceeding in the aggregate 183 days within any twelve-month period, and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contacting State, and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other Contacting State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contacting State shall be taxable only in that Contacting State. Article 16 Directors' Fees 1. Directors' Fees and other similar payment derived by a resident of a Contacting State in his capacity as a member of the board of directors of a company which is a resident of the other Contacting State may be taxed in that other Contacting State. 2. Salaries, wages and other similar remuneration derived by a resident of a Contacting State in his capacity as an official in a top-level managerial position of a company which is a resident of the other Contacting State may be taxed in that other Contacting State. Article 17 Artistes and Athletes 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contacting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, form his personal activities as such exercised in the other Contacting State, may be taxed in that other Contacting State. 2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contacting State in which the activities of the entertainer or athlete are exercised. 3. The provisions of paragraphs 1 and 2 of this Article shall not apply to remuneration or profits, salaries, wages and similar income derived from activities performed in a Contacting State by an entertainer or an athlete if the visit to that Contacting State is substantially supported by public funds of the other Contacting State, including any political subdivision, local authority or statutory bode thereof. 4. Notwithstanding the provisions of Article 7, where the activities mentioned in paragraph 1 of this Article are provided in a Contacting State by an enterprise of the other Contacting State, the profits derived from providing these activities by such an enterprise may be taxed in the first-mentioned Contacting State unless the enterprise is substantially supported from the public funds of the other Contacting State, including any political subdivision, local authority or statutory bady thereof, in connection with the provisions of such activities. Article 18 Pensions 1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contacting State in consideration of past employment shall be taxable only in that Contacting State. 2. Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration derived by a resident of a Contacting State may be taxed in the other Contacting State if such payment are borne by an enterprise of that other Contacting State or by a permanent establishment situated therein. Article 19 Government Service 1. (a) Remuneration, other than a pension, paid by a Contacting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that Contacting State or political subdivision or local authority shall be taxable only in that Contacting State. (c) However, such remuneration shall be taxable only in other Contacting State if the services are rendered in that other Contacting State and individual is a resident of that other Contacting State who: (i) is a national of that other Contacting State; or (ii) did not become a resident of that other Contacting State solely for the purpose of rendering the services. 2.(a) Any pension paid by, or out of funds created by, a Contacting State or a political subdivision or a local authority thereof to an individual in respect to services rendered to that Contacting State or political subdivision or local authority shall be taxable only in that Contacting State. (b) However, such pension shall be taxable only in the other Contacting State if the individual is a resident of, and a national of, that other Contacting State. 3. The provisions of Articles 15, 16, 17 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by the Government of a Contacting State or a political subdivision or a local authority thereof. Article 20 Students and Trainees An individual who, immediately before visiting a Contacting State, was a resident of the other Contacting State and whose visit to the first-mentioned Contacting State is solely for the purpose of: (a) studying at a university or other recognized educational institution; or (b) securing training to qualify him to practice a profession or trade; or (c) studying or carrying out research as a recipient of a grant, allowance or award from a governmental, religious, charitable, scientific, literary or educational organization; (i) remittances from abroad for the purposes of his maintenance, education, study, research or training; 　　(ii) the grant, allowance or award; and 　　(iii) income from personal services rendered in that Contacting State provided the income constitutes earnings reasonable necessary for his maintenance and education. 　　Article 21 Professors, Teachers and Researchers 　　1. An individual who is a resident of a Contacting State immediately before making a visit to the other Contacting State, and who, at the invitation of any university, college, school or other similar educational institution which is recognized by the competent authority in that other Contacting State, visits that other Contacting State for a period not exceeding 3 years solely for the purpose of teaching or research or both at such educational institution shall be exempt from tax in that other Contacting State on any remuneration for such teaching or research. 　　2. This Article shall only apply to income from research if such research is undertaken by the individual for the public interest and not primarily for the benefit of some other private person or persons. 　　Article 22 Income Not Expressly Mentioned 　　Items of income of a resident of a Contracting State which are no expressly mentioned in the foregoing Articles of this Agreement may be taxed in the contracting State where the income arises. 　　Article 23 Elimination of Double Taxation 　　1. The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective Contracting States except where express provisions to the contrary are made in this Agreement. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 　　2. In the case of Thailand, Chinese tax payable in respect of income derived from China shall be allowed as a credit against Thai tax payable in respect of that income. The credit shall not, however, exceed that part of the Thai tax, as computed before the credit is given, which is appropriate to such item of income. For the purpose of this paragraph, the term "Chinese tax payable" shall be deemed to include the amount of Chinese tax which would have been paid if the Chinese tax had not been exempted or reduced in accordance with the special incentive laws designed to promote economic development in China, effective on the date of signature of this Agreement, or which may be introduced hereafter in modification of , or in addition to, the existing laws. 　　3. In the case of China, Thai tax payable in respect of income derived from Thailand shall be allowed as a credit against Chinese tax payable in respect Of that income. Where such income is a dividend paid by a company which is a resident of Thailand to a company which is a resident of China and which owns not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account Thai tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Chinese tax, as computed before the credit is given, which is appropriate to such item of income. For the purpose of this paragraph, the term "Thai tax payable" shall be deemed to include the amount of Thai tax which would have been paid if the Thai tax had not been exempted or reduced in accordance with the special incentive law designed to promote economic development in Thailand, effective on the date of signature of this Agreement, or which may be introduced hereafter in modification of, or in addition to, the existing law. 　 Article 24 Non-Discrimination 　1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other Contracting State in the same circumstances are or may be subjected. 　 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall no be less favourably levied in that other Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. 　 3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned Contracting State are or may be subjected. 4. The provisions of this Article shall no be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 5. In this Article the term "taxation" means taxes which are the subject of this Agreement. 　 Article 25 Mutual Agreement Procedure 　1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, notwithstanding the remedies provided by the domestic laws of those Contracting States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to the avoidance of taxation not in accordance with the Agreement. 　　3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement. 　 4. The competent authorities of the Contracting States may communicate with each other directly for the purposes of reaching an agreement in the sense of the preceding paragraphs. 　　Article 26 Exchange of information 　　1. The competent authorities of the Contracting States exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. Any information received by a Contracting States shall be treated as secret in the same manner as information obtained under the domestic laws of the Contracting States and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. 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 States the obligation: 　　(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting States; 　　(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 States; 　　(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). 　　Article 27 Diplomatic Agents and Consular Officials 　　Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officials under the general rules of international law or under the provision of special agreements. 　　Article 28 Entry into Force 　　1. This Agreement shall enter into force on the thirtieth day after the date on which diplomatic notes indicating the completion of internal legal procedures necessary in each country for the entry into force of this Agreement have been exchanged. 　　2. This Agreement shall have effect: 　　(a) in respect of taxes withheld at the source, on amounts paid or remitted on or after the first day of January next following that in which the exchange of diplomatic notes takes place; 　　(b) in respect of other taxes on income, for taxable years of accounting periods beginning on or after the first day of January nest following that in which the exchange of diplomatic notes takes place. 　　Article 29 Termination 　　This Agreement shall remain in force indefinitely, but either of the Contracting States may, on or before 30th June in any calendar year beginning after expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination. 　　In such the Agreement shall cease to have effect: 　　(a) in respect of taxes withheld at the source, on amounts paid or remitted on or after the first day of January next following that in which the notice is given; 　　(b) in respect of other taxes on income, for taxable years or accounting periods beginning on or after the first day of January next following that in which the notice is given. 　　IN WITNESS WHEREOF, the undersigned duly authorized thereto, have signed this Agreement. 　　DONE in duplicate at Bangkok on this 27th day of October, one thousand nine hundred and eighty-six Year of the Christian Era, each in the Chinese, Thai an English languages, all texts being equally authoritative, except in the case of doubt when the English text shall prevail. For the Government of the People's For the Government of the Kingdom Republic of China of Thailand