Aljazair (Algeria)
AGREEMENT BETWEENTHE GOVERNMENT OF THE REPUBLIC OF INDONESIAANDTHE DEMOCRATIC PEOPLE’S REPUBLIC OF ALGERIA FORTHE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL Article 1PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2TAXES COVERED This Agreement shall apply to taxes on income and on capital imposed on behalf of one of the Contracting State, of its political sub pisions or local authorities, irrespective of the manner in which they are levied. There shall be regarded as taxes on income and on capital, all taxes imposed on total income or capital or on elements of income, including taxes on gains from the alienation of movable or immovable property. The existing taxes to which the Agreement shall apply are : (a) in the case of Algeria : (i) tax on global total income (ii) tax on profits of companies (iii) tax on professional activities (iv) net wealth tax (v) “royalties” and taxes on the outcome of prospect, research, exploitation, transport of hydrocarbon by way of pipeline. (hereinafter referred to as “Algerian tax”); (b) in the case of Indonesia:the income tax imposed under the Undang-Undang Pajak Penghasilan 1984 (Law No. 7 of 1983), except the income tax paid under production sharing contracts, contracts of work and other similar contracts, in the oil and gas sector, and the other mining sector.(hereinafter referred to as “Indonesian tax”); The Agreement shall also apply to any identical or substantially similar taxes on income which are imposed after the date of signature of the Agreement in addition to, or in place of, those referred to in paragraph 3. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws. Article 3GENERAL DEFINITIONS For the purposes of this Agreement, unless the context otherwise requires: (a) the term “a Contracting State and the other Contracting State” means Indonesian or Algeria as the context required. (b) (i) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and the adjacent areas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with the provisions of the United Nations Convention on the Law of the Sea, 1982; (ii) the term “Algeria” means the Democratic People’s Republic Algeria used in its geographical sense it means the territory of Algeria including : (a) any region located on the territorial waters of Algeria which in conformity with international law and by virtue of the law of Algeria is the region within which Algeria may have rights on the seabed and the subsoil of the sea and their natural resources, and (b) the seas and airspace over the regions mentioned in paragraph (a) regarding any activity related to exploration or exploitation of natural resources carried out in this region. (c) the term “person” includes an inpidual, a company, and any other body of persons; (d) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (e) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; (f) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (g) the term “competent authority” means: (i) in Indonesia:the Minister of Finance or his authorized representative; (ii) in Algeria :the Minister in charge of Finance or his authorized representative; (h) the term “national” means: (i) any inpidual possessing the nationality of a Contracting State; (ii) any legal person, partnership, and association deriving its status as such from the laws in force in a Contracting State; As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Agreement applies. Article 4RESIDENT For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, or any other criterion of a similar nature. Where by reason of the provisions of paragraph 1 an inpidual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests); (b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has a habitual abode; (c) if he has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State in which he is a national; (d) if he has a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. Where by reason of the provisions of paragraph 1 a person other than an inpidual is a resident of both Contracting States, the competent authorities of the States shall settle the question by mutual agreement on a case by case basis. Article 5PERMANENT ESTABLISHMENT For the