"AJSH & Co LLP"    is now    "Mercurius & Associates LLP" "AJSH & Co LLP"    is now    "Mercurius & Associates LLP" "AJSH & Co LLP"    is now    "Mercurius & Associates LLP"

Tax treaty between India and Thailand

Tax treaty between India and Thailand Blog

A new income tax treaty was signed between India & Thailand on the ninth of June 2015, which came into force on the thirteenth of October 2015 & this has taken place for the avoidance of double taxation & prevention of fiscal evasion concerning taxes on income.

The treaty is effective from the first of April 2016 in India and from the first of January 2016 in Thailand. When the new tax treaty provisions become effective, the 1985 income tax treaty between the two countries will cease.

Which taxes are covered in this treaty?
The treaty covers Indian income tax, including any surcharges, and covers Thai income tax & petroleum income tax.

Will this convention apply to non-residents living in these countries?
No, the convention shall apply to residents of one or both countries.

Can the treaty be terminated?
The convention can be terminated. However, it shall remain in force indefinitely unless either of the contracting states gives the other state, through diplomatic channels, written notice of termination on or before the thirtieth of June of each year after it entered into force five years ago. In case of termination of the convention, it shall cease to affect —

  • Earned or received income during the calendar year that follows the calendar year at the time notice is provided. The income is received during this period rather than during the calendar year.
  • In Thailand, income earned or received during a “tax year” or an “ac’1we23counting period” beginning on or after the first of January of the calendar year following the calendar year during which the notice was given is taxed.

Is student relief from tax of other contracting states?
Any student or business apprentice who is or was a resident of another Contracting State immediately before visiting a Contracting State and who is in the first-mentioned Contracting State solely for education or training is exempt from tax in the first-mentioned Contracting State on-

  • The grant, allowance, or award for his maintenance, education, or training ;
  • Individuals living outside the first-mentioned contracting state paying for his maintenance, education, and training; and
  • Remuneration from employment in any contracting states provided an amount not over and above Rs. 15,000 is equivalent in Thai currency during any “previous year” or “tax year.” The employment must be directly related to his studies or maintain him.

What shall be the provision for taxation of director fees?

  • A resident of a Contracting State who served on the board of directors of a company in India or Thailand may have to pay taxes in the other contracting state on fees or similar payments.
  • An employee in a top-level managerial position of a company headquartered in either India or Thailand may be liable for taxes on salary, wages, and other similar remuneration derived by a resident of a Contracting State in that capacity.

At AJSH, we assist our clients with various income tax compliances, including income tax assessments, ITR filings, tax advisory, TDS matters other related services by providing them adequate support and guidance from our end. If you have any questions or wish to know more about  Tax treaty between India and Thailand, kindly contact us.


Ready to assist with any of your queries or concerns


Ready to assist with your Queries