Belanda (Netherlands)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS 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 Kingdom of the Netherlands, DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, HAVE AGREED AS FOLLOWS: CHAPTER I SCOPE OF THE AGREEMENT Article 1PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the two States. Article 2TAXES COVERED 1. This Agreement shall apply to taxes on income imposed on behalf of each of the two States or of its political subdivisions or local authorities, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. 3. The existing taxes to which the Agreement shall apply, are, in particular: (a) in the case of the Netherlands: – de inkomstenbelasting (income tax); – de loonbelasting (wages tax); – de vennootschapsbelasting (company tax) including the Government share in the net profits of the exploitation of natural resources levied pursuant to the Mining Act of 1810 (Mijnwet 1810) with respect to concessions issued from 1967, or pursuant to the Netherlands Continental Shelf Mining Act of 1965 (Mijnwet Continentaal Plat 1965); – de dividendbelasting (dividend tax); (hereinafter referred to as “Netherlands tax”); (b) in the case of Indonesia: – the income tax. (hereinafter referred to as “Indonesian tax”). 4. The Agreement shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to, or in place of, the existing taxes. The competent authorities of the two States shall notify to each other any substantial changes which have been made in their respective taxation laws. CHAPTER II DEFINITIONS Article 3GENERAL DEFINITIONS 1. In this Agreement, unless the context otherwise requires: (a) the terms “one of the two States” and “the other State” mean Indonesia or the Netherlands, as the context requires; the term “the two States” means Indonesia and the Netherlands; (b) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws, and parts of the continental shelf and adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with international law; (c) the term “the Netherlands” comprises the part of the Kingdom of the Netherlands that is situated in Europe and the part of the seabed and its sub-soil under the North Sea, over which the Kingdom of the Netherlands has sovereign rights in accordance with international law; (d) the term “person” comprises an individual, a company and any other 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 terms “enterprise of one of the two States” and “enterprise of the other State” mean respectively an enterprise carried on by a resident of one of the two States and an enterprise carried on by a resident of the other State; (g) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of one of the two States, except when the ship or aircraft is operated solely between places in the other State; (h) the term “nationals” means 1. all individuals possessing the nationality of one of the two States; 2. all legal persons, partnerships and associations deriving their status as such from the laws in force in one of the two States; (i) the term “competent authority” means: 1. in Indonesia, the Minister of Finance or his duly authorized representative. 2. in the Netherlands, the Minister of Finance or his duly authorized representative; 2. As regards the application of the Agreement at any time by one of the two States, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purpose of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4FISCAL DOMICILE 1. For the purposes of this Agreement, the term “resident of one of the two States” means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. 2. For the purposes of this Agreement an individual, who is a member of a diplomatic or consular mission of one of the two States in the other State or in a third State and who is a national of the sending State, shall be deemed to be a resident of the sending State if he is submitted therein to the same obligations in respect of taxes on income as are residents of that State. 3. Where by reason of the provisions of paragraph 1 an individual is a resident of both States, then this case shall be determined in accordance with the following rules: (a) he shall be deemed to be a resident of the 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 State with which his personal and economic relations are closest (centre of vital interests); (b) if the 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