The income and capital tax treaty between Ireland and Thailand entered into force on 11 March 2015. The treaty, signed 4 November 2013, is the first of its kind between the two countries.
The treaty covers Irish income tax, corporation tax and capital gains tax, and covers Thai income tax and petroleum income tax.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services within a Contracting State through employees or other engaged personnel for the same or connected project for a period or periods aggregating more than 6 months within any 12-month period.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
In regard to dividends, the credit shall take into account the tax payable by the dividend paying company in respect of the profits out of which such dividend is paid, provided certain control thresholds are met.
For Irish companies receiving dividends, the threshold is at least 5% direct or indirect control of the voting power of the Thai company paying the dividends. For Thai companies receiving dividends, the threshold is at least 25% direct or indirect control of the voting power of the Irish company paying the dividends.
The treaty applies from 1 January 2016.
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