Amerika Serikat (United States Of America)
CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of Indonesia and the Government of the United States of America, desiring to conclude a convention for the avoidance of double taxation of income and the prevention of fiscal evasion, have agreed as follows: Article 1PERSONAL SCOPE This Convention is applicable to persons who are residents of one or both of the Contracting States. Article 2TAXES COVERED 1. The existing taxes which are the subject of this Convention are: a. In the case of Indonesia, the income tax (pajak penghasilan 1984), and to the extent provided in such income tax, the company tax (pajak perseroan 1925), and the tax on interest dividends, and royalties (pajak atas bunga, dividen dan royalty 1970). b. In the case of the United States, the income taxes imposed by the Internal Revenue Code (but excluding the accumulated earnings tax, the personal holding company tax, and social security taxes). 2. The Convention shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to or in place of, the existing taxes. Article 3GENERAL DEFINITIONS 1. For purposes of this Convention only, unless the context otherwise requires: (a) the term “Indonesia” comprises the territory of the Republic of Indonesia and the adjacent seas which the Republic of Indonesia has sovereignty, sovereign rights or jurisdictions in accordance with the provisions of the 1982 United Nations Convention on the Law of the Sea. (b) The term “United States” means the United States of America. When used in a geographical sense, the term “United States” means the States thereof, the District of Columbia and those parts of the continental shelf and adjacent seas over which the United States has sovereignty, sovereign rights or other rights in accordance with international law. (c) the term “one of the Contracting States” of “the other Contracting State” means Indonesia or the United States, as the context requires. (d) the term “person” includes an individual, a partnership, a company, an estate, a trust, or any body of persons. (e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes. (f) the term “competent authority”‘ means: (i) in the case of Indonesia, the Minister of Finance or his authorized representative, and (ii) in the case of the United States, the Secretary of the Treasury or his authorized representative. (g) the term “Indonesian tax” means tax imposed by Indonesia to which this Convention applies by virtue of Article 2 (Taxes Covered) and the term “United States tax” means tax imposed by the United States to which this Convention applies by virtue of Article 2 (Taxes Covered). (h) the term “international traffic” means any transport by a ship or aircraft, except where such transport is solely between places in the other Contracting State. 2. Any other term used in this Convention and not defined in this Convention shall, unless the context otherwise requires, have the meaning which it has under the laws of the Contracting State whose tax is being determined. Notwithstanding the preceding sentence, if the meaning of such a term under the laws of one of the Contracting States is different from the meaning of the term under the laws of the other Contracting State, or if the meaning of such a term is not readily determinable under the laws of one of the Contracting States, the competent authorities of the Contracting States may, in order to prevent double taxation or to further any other purpose of this Convention, establish a common meaning of the term for the purposes of the Convention. Article 4FISCAL RESIDENCE 1. In this Convention, 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 incorporation, place of management or any other criterion of a similar nature. For purposes of United States tax, in the case of a partnership, estate, or trust, the term applies only to the extent that the income derived by such person is subject to United States tax as the income of a resident, either in its hands or in the hands of its partners or beneficiaries. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States: (a) he shall be deemed to be a resident of that Contracting State in which he maintains his permanent home. If he has a permanent home in both Contracting States or in neither of the Contracting States, he shall be deemed to be a resident of that Contracting State with which his personal and economic relations are closest (center of vital interests); (b) if the Contracting State in which he has his center of vital interests cannot be determined, he shall be deemed to be a resident of that Contracting State in which he has a habitual abode; (c) if he has an habitual abode in both Contracting States or in neither of the Contracting States, he shall be deemed to be a resident of the Contracting State of which he is a citizen; and (d) if he is a citizen of both Contracting States or of neither Contracting State, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. For purposes of this paragraph, a permanent home is the place where an individual dwells with his family. An individual who is deemed to be a resident of one of the Contracting States and not a resident of the other Contracting State by reason of the provisions of paragraph 2 shall be deemed to be a resident only of the first-mentioned Contracting State for all purposes of this Convention, including Article 28 (General Rules of Taxation). 4. Where by reason of the provisions