Article 10 Dividends
     1. Dividends paid by a company which is a resident of one of the States to a resident of the other State may be taxed in that other State.
     2. However, such dividends may be taxed in the State of which the company paying the dividends is a resident but the tax so charged shall not exceed 25 percent of the gross amount of the dividends.
     3. Notwithstanding the provisions of paragraph 2,
A. Netherlands tax on dividends paid by a company which is a resident of the Netherlands to a company the capital of which is wholly or partly divided into shares and which is a resident of Thailand and holds directly at least 25 per cent of the capital of the company paying the dividends, shall not exceed 5 per cent of the gross amount of the dividends;
B. Thai tax on dividends paid by a company which is a resident of Thailand to a company the capital of which is wholly or partly divided into shares and which is a resident of the Netherlands and holds directly at least 25 per cent of the capital of the company paying the dividends, shall not exceed 10 per cent: Provided that
a) if the maximum Thai tax rate on company profits for the accounting period within which the dividends are distributed is not more than 30 per cent, the Thai tax on such dividends shall not exceed
(i) 15 per cent of the gross amount of the dividends, if the company paying the dividends engages in an industrial undertaking;
(ii) 20 per cent of the gross amount of the dividends, in all other cases;
b) if the maximum Thai tax rate on company profits for the accounting period in which the dividends are distributed is more than 30 per cent, but not more than 40 per cent, the Thai tax on such dividends shall not exceed 15 per cent of the gross amount of the dividends, if the company paying the dividends does not engage in an industrial undertaking.
     4. The competent authorities of the States shall settle the mode of application of paragraphs 2 and 3
     5. The term "dividends" as used in this Article means income from shares, "jouissance" rights founders shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company making that distribution is a resident.
     6. The term "industrial undertaking" as used in this Article means
a) any undertaking engaged in
1. manufacturing, assembling and processing,
2. construction, civil engineering and ship building,
3. mining and exploration for and exploitation of natural resources,
4. production of electricity, hydraulic power, gas or the supply of water, or
5. agriculture, forestry and fishery and the carrying on of a plantation, and
b) any other undertaking entitled to the privileges accorded under the laws of Thailand on the promotion of industrial investment, and
c) any other undertaking which may be declared to be an "industrial undertaking" for the purpose of this Article by the competent authority of Thailand.
     7. The provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the dividends, being a resident of one of the States, has in the other State, of which the company paying the dividends is a resident, a permanent establishment with which the holding by virtue of which the dividends are paid is effectively connected. In such a case, the provisions of Article 7 shall apply, provided that under the law of that other State the dividends are taxed as part of the profits of that permanent establishment.
     8. Where a company which is a resident of one of the States derives, profits or income from the other State, that other State may not impose any tax on the dividends paid by the company to persons who are not residents of that other State, or subject the company's undistributed profits to the tax on undistributed profits, even if the dividends paid or the undistributed profit consist wholly or partly of profits or income arising in such other State.