Thailand, RI sign taxation treaty

Thailand, RI sign taxation treaty

BANGKOK (DPA): Thailand and Indonesia signed a double taxation
pact on Friday and agreed to pursue measures to boost economic
cooperation between the two Southeast Asian nations.

The agreement on avoidance of double taxation and prevention
of fiscal evasion of taxes was co-signed by Thai Foreign Minister
Surakiat Sathirathai and his Indonesian counterpart Alwi Shihab
in Bangkok during the fourth joint commission of economic and
technical cooperation between the two countries.

The joint commission also agreed to set up a sub-committee to
pursue trade options between the two member states of the
Association of Southeast Asian Nations (ASEAN).

"We have agreed that the government of Thailand will give
priority to the Indonesian aircraft industry, if renewal of
aircraft for rain making or fire fighting are needed," said Alwi
Shihab.

The ministers also agreed to pursue possibilities of counter-
trade as one means of boosting cooperation.

"For instance, when our Ministry of Agriculture wants an
aircraft for rain-making, Thailand will consider Indonesian
aircraft, and if Thailand still has financial difficulties,
Indonesia will consider counter purchases, either agricultural
products or other products," said Surakiat.

Thailand and Indonesia are founding members of ASEAN, which
has already put in place an ASEAN Free Trade Area (AFTA) to boost
sub-regional trade.