Exchange of Notes

EXCHANGE OF NOTES

Most favoured nation understanding regarding granting by the United States of a tax sparing credit:

It is understood that if the United States hereafter alters its policy regarding the provision of a tax sparing credit, or if the United States reaches an agreement on the provision of a tax sparing credit with any other country, the United States will agree to reopen negotiations with Thailand with a view to the conclusion of a Protocol which would provide a similar tax sparing credit to Thailand.

Most favoured nation understanding regarding Thai taxation of shipping profits:

It is understood that if Thailand agrees in a treaty or other agreement with any other country to (1) a rate of tax on income or profits derived by residents of such other country on the operation of ships that is lower than the rate specified in paragraph 2 of Article 8 (Shipping and air transport), or (2) treatment for the rental or use of containers in international traffic that is more favorable than the treatment specified in paragraph 8 of Article 7 (Business profits) or paragraph 4 of Article 8 (Shipping and air transport), then Thailand will agree to reopen negotiations with the United States with a view to the conclusion of a Protocol which would extend such lower rate or more favorable treatment to residents of the United States.

Understanding regarding the creditability of the Thailand petroleum income tax:

It is understood that the use of the term “conditions” in paragraph 1 of Article 25 (Relief from double taxation) is intended to make clear that U.S. rules regarding “dual capacity” taxpayers apply in determining the extent to which the Thailand petroleum income tax will be considered an income tax under Article 25.