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ฉบับพิเศษ ประจำ�ปี 2564

The Development of Taxing Profits from

International Trade through Permanent

Establishment to the Current Attempt to Tax

International E-Commerce

Dr. Supitcha Siriwattana Seetasit
Vice Presiding Judge of the Central Tax Court

Ms. Orakarn Pipatnoraseth

Judge of the Central Tax Court

Abstract

Before the introduction of technologies and internet, multinational enterprises

mostly carried on their businesses through various types of establishments situated in
their partner countries, for example, office, branch, factory, place of management,

workshop business or it’s representative. Due to this, many issues have arisen regarding
double taxation on profits derived from international transactions, i.e., the enterprises
had tax liabilities both in their resident countries and sourced countries on the same

amount of profits. The issue of double taxation was, therefore, became a major barrier
to the international trade. To avoid or mitigate double taxation problems and improve
certainty of tax liabilities for multinational enterprises’ international dealings, the

Organization for Economic Co-operation and Development (OECD) and the United
Nation (UN) have developed their own double taxation convention models for their
member and non-member countries. These models are intended to be a guideline for

countries to negotiate and conclude their tax or double taxation treaties.

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