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.