ARTICLE 14

Branch Tax

1. A corporation which is a resident of a Contracting State may, as provided in paragraphs 2 and 3, be subject in the other Contracting State to a tax in addition to the tax allowable under the other provisions of this convention.

2. In the case of the United States, such tax may be imposed only on:

a) the "dividend equivalent amount" of the business profits of the corporation which are effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States and which are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this convention; and

b) the excess, if any, of interest deductible in the United States in computing the profits of the corporation that are subject to tax in the United States and are either attributable to a permanent establishment in the United States or subject to tax in the United States under Article 6 (Income from Immovable (Real) Property) or Article 13 (Gains) of this Convention over the interest paid by or from the permanent establishment or trade or business in the United States.

3. Notwithstanding any provision of this Convention, a company which is a resident of the United States and which has a permanent establishment in Thailand shall remain subject to taxes on disposal of profits out of Thailand in accordance with the provisions of Thai law.

4. The taxes described in paragraphs 2 and 3 of this Article shall not be imposed at a rate exceeding:

a) the rate specified in paragraph 2 (a) of Article 10 (Dividends) for the taxes described in subparagraph (a) of paragraph 2 and paragraph 3 of this Article; and

b) the appropriate rate specified in paragraph 2 of Article 11 (Interest) for the tax described in subparagraph (b) of paragraph 2 of this Article.