Belgia (Belgium)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME CHAPTER I SCOPE OF THE AGREEMENT 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 This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subpisions or local authorities, irrespective of the manner in which they are levied. There shall be regarded as taxes on income all taxes imposed on total income or on 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.l amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. The existing taxes to which the Agreement shall apply are in particular: (a) in the case of Indonesia: the income tax imposed under the “Undang-undang Pajak Penghasilan 1984” (Law No. 7 of 1983 as amended); (hereinafter referred to as “Indonesian tax”) (b) in the case of Belgium: (i) the inpidual income tax; (ii) the corporate income tax; (iii) the income tax on legal entities; (iv) the income tax on non-residents; (v) the special levy assimilated to the inpidual income tax; (vi) the supplementary crisis tax, including the prepayments, the surcharges on these taxes and prepayments, and the supplements to the inpidual income tax; (hereinafter referred to as “Belgian tax”) The Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of substantial changes which have been made in their respective taxation laws. CHAPTER II DEFINITIONS Article 3 GENERAL DEFINITIONS For the purposes of this Agreement, unless the context otherwise requires: (a) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and part of the continental shelf and adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with international law; (b) the term “Belgium” means the territory of the Kingdom of Belgium, including the territorial sea and any other area in the sea and in the air within which the Kingdom of Belgium, in accordance with international law, exercises sovereign rights or its jurisdiction; (c) the terms “a Contracting State” and “the other Contracting State” mean Belgium or Indonesia as the context requires; (d) the term “tax” means Belgian tax or Indonesian tax, as the context requires; (e) the term “person” includes an inpidual, a company and any other body of persons; (f) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes in the Contracting State of which it is a resident; (g) 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; (h) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term “competent authority” means: (i) in the case of Indonesia, the Minister of Finance or his duly authorized representative, and (ii) in the case of Belgium, the Minister of Finance or his duly authorized representative; (j) the term “nationals” means: (i) all inpiduals possessing the nationality of a Contracting State; (ii) all legal persons, partnerships and associations deriving their 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 4 RESIDENT 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. However this term does not include any person who is liable to tax in a Contracting State in respect only of income from sources in that State. 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 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 closer (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 shall be deemed to be a resident of the State in which he has an habitual abode; (c) if he has an habitual abode in both States or in 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, then it shall be deemed to be a resident of the State in which its place of effective management is situated. Article 5 PERMANENT ESTABLISHMENT For the purposes of this Agreement the term “permanent establishment” means a fixed place