Bulgaria
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF BULGARIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH 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 This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, 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. The existing taxes to which the Agreement shall apply are : (a) in Bulgaria: (i) the tax on total income; and (ii) the tax on profit, (hereinafter referred to as “Bulgarian tax ) (b) In Indonesia : the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983). (hereinafter referred to as “Indonesian tax” ) This Agreement shall also apply to any identical or substantially similar taxes, which are imposed after the date of signature of this Agreement in addition to, or in place of, those referred to in paragraph 1 of this Article. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws within a reasonable period of time after such changes. In case any doubt arises in determining whether such taxes are identical or substantially similar the competent authorities of the Contracting States may consult each other, due regard being had to the provisions of Article 24 (Mutual agreement procedure). Article 3 GENERAL DEFINITIONS For the purpose of this Agreement, unless the context otherwise requires: (a) (i) the term “Bulgaria” means the Republic of Bulgaria, and, when used in a geographical sense, means the territory over which it exercises its State sovereignty and jurisdiction, as well as the continental shelf and the exclusive economic zone over which it exercises sovereign rights according to international law; (ii) 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 sovereign rights or jurisdiction in accordance with international law; (b) the term “person” means an inpidual, a legal person, including company, and any other body of persons treated as an entity for tax purposes; (c) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (d) 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; (e) 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; (f) the term “competent authority” means: (i) in Bulgaria, the Minister of Finance or his authorized representative; (ii) in Indonesia, the Minister of Finance or his authorized representative; (g) the terms “a Contracting State” and “the other Contracting State” mean Bulgaria or Indonesia, as the context requires; the term “the Contracting States” means Bulgaria and Indonesia. 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 purpose 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 nationality, domicile, residence, place of head office or registration, 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 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, the competent authorities of the States shall settle the question by mutual agreement, taking into consideration in which State the place of effective management of such person is situated. Article 5 PERMANENT ESTABLISHMENT For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term “permanent establishment” includes especially: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop or shop; (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, including ships, installations or other facilities for exploration or exploitation of natural resources. The term permanent establishment likewise encompasses; (a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue in one