The country of residence does not tax the income which according to the DTA is taxed in the source country. Each DTA may prescribe different methods of elimination of double taxation of a person by the resident country: The focus of a DTA is the elimination of double taxation. Some Articles of the DTA clearly do not allow the source country to exercise taxing rights on income such as income from international air transport and business profits provided that the business is not carried through a permanent establishment in the source country. In many cases the tax rates within the DTA are lower in comparison to the domestic tax rates in order to reduce tax impediments to cross border trade and investment. Then the source country can tax such income at a rate not exceeding the rate prescribed within the agreement. The DTA also prescribes a tax rate level on investment income namely, dividends, interest and royalties. If the source country has taxing rights, the income will be subject to tax according to the domestic laws of that country. It provides whether the source or resident country is entitled to tax certain income. In general the DTA does not stipulate any specific item of income and tax rate. Other indirect taxes such as value added tax and specific business tax are not covered by the DTA. (2) Taxes Covered The DTA applies to only income taxes, namely personal income tax, corporate income tax and petroleum income tax.
#Namely revenue code
A juristic person who is incorporated under the Civil and Commercial Code of Thailand. An individual who stays in Thailand for a period or periods exceeding in the aggregate 180 days in a tax year In order to be classified as a Thai resident and be entitled to treaty benefits, a person must be one of the following: (1) Persons Covered The DTA applies to persons who are residents of the Contracting States. In general a DTA comprises 4 major parts: So far Thailand has concluded DTAs with 56 countries (as of May2006). The Thai DTA network continues to be expanded and updated. Thailand first concluded the double tax agreement (DTA) with Sweden in 1963.
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