Australia
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPULIC OF INDONESIA AND THE GOVERNMENT OF AUSTRALIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION Of FISCAL EVASION WITM RESPECT TO TAXES ON INCOME Article 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED The existing taxes to which this Agreement shall apply are : (i) in Indonesia : the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983); (ii) in Australia : the income tax, and the resources rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources, imposed under the federal law of Australia. This Agreement shall also apply to any identical or substantially similar taxes which are imposed under the federal law of Australia or the law of Indonesia after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in the laws of their respective States relating to the taxes to which this Agreement applies within a reasonable period of time after those changes. Article 3 GENERAL DEFINITIONS In this Agreement, unless the context otherwise requires : (a) the term “Indonesia” means the territory under the sovereignty of the Republic of Indonesia and such parts of the continental shelf and the adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights as well as other rights in accordance with the 1982 United Nations Convention on the Law of the Sea; (b) the term “Australia”, when used in a geographical sense, includes all external territories other than: (i) the Territory of Norfolk Island; (ii) the Territory of Christmas Island; (iii) the Territory of Cocos (Keeling) Island; (iv) the Territory of Ashmore and Cartier Islands; (v) the Territory of Heard Island and McDonald Islands;and (vi) the Coral Sea Islands Territory. and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the seabed and subsoil of the continental shelf; (c) the terms “Contracting State”, “one of the Contracting States” and “other Contracting State” mean, as the context requires, Australia or Indonesia, the Governments of which have concluded this Agreement; (d) the term “person” includes an Inpidual, a company and any other body of persons; (e) the term “company” means any entity which is treated as a company or body corporate for tax purposes; (f) the terms “enterprise of one of the Contracting States” and “enterprise of the other Contracting State” mean an enterprise carried on by a resident of Australia or an enterprise carried on by a resident of Indonesia, as the context requires; (g) the term “tax” means Australian tax or Indonesian tax, as the context requires, but does not include any penalty or interest imposed under the law of either Contracting State relating to its tax; (h) the term “Australian tax” means tax imposed by Australia, being tax to which this Agreement applies by virtue of Article 2; (i) the term “Indonesian tax” means tax imposed by Indonesia, being tax to which this Agreement applies by virtue of Article 2; (j) the term “competent authority” means, in the case of Australia, the Commissioner of Taxation or an authorised representative of the Commissioner and, in the case of Indonesia, the Minister of Finance or an authorised representative of the Minister. The references in paragraph 4 of Article 10, paragraph 4 of Article 11, paragraph 4 of Article 12 and paragraph 3 of Article 22 to a permanent establishment or fixed base situated in one of the Contracting States include references to an enterprise’s sales and other business activities referred to in subparagraphs 1(b) and (c) of Article 7 and to an inpidual’s activities referred to in subparagraph 1(b) of Article 14. In the application of this Agreement by one of the Contracting States, any term not defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has under the laws of that State relating to the taxes to which this Agreement applies in force at the time of the application. Article 4 RESIDENCE For the purposes of this Agreement, a person is a resident of one of the Contracting States if the person is a resident of that Contracting State under the law of that State relating to its tax. A person is not a resident of one of the Contracting states for the purposes of this Agreement if the person is liable to tax in that State in respect only of income from sources in that State. Where by reason of the preceding provisions of this Article a person, being an inpidual, is a resident of both Contracting States, then the status of the person shall be determined in accordance with the following rules: (a) the person shall be deemed to be a resident solely of the Contracting State in which a permanent home available to the person; (b) if a permanent home is available to the person in both Contracting States, or in neither of them, the person shall be deemed to be a resident solely of the Contracting State in which the person has an habitual abode; (c) if the person has an habitual abode in both Contracting States or in neither of them, the person shall be deemed to be a resident solely of the Contracting State with which the person’s economic and personal relations are closer. Where by reason of the provisions of paragraph 1 a person other than an inpidual is a resident of both Contracting States, then it shall be deemed to be a resident solely of the Contracting State in