Recent Supreme Court decisions on royalties

Over the course of 2013, the Supreme Court of Thailand (SC) issued three decisions that dealt with the definition of royalties. These decisions are seen as key in differentiating between a payment for general services and a royalty payment.
Where there is an applicable tax treaty (and there is no permanent establishment), Thai withholding tax usually is not imposed on payments for general services. Conversely, a royalty payment will always be subject to a withholding tax (albeit at a more benefi…