China
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA 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 Agreement shall apply to taxes on income imposed on behalf, of a Contracting State or of its 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 gain, from the alienation of movable or immovable property. The existing taxes to which the Agreement shall apply are : in Indonesia : the income tax imposed tinder the income tax law of 1984 (Undang-Undang Pajak Penghasilan 1984, Law Number 7 of 1983 as amended); (hereinafter referred to as “Indonesian tax”); in the People’s Republic of China : the inpidual income tax, the income tax for enterprises with foreign investment and foreign enterprises; the local income tax; (hereinafter referred to as “Chinese tax”). This Agreement shall also apply 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 referred to in paragraph 3. 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. 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 the adjacent areas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with international law; the term “China” comprises the territory of the People’s Republic of China as defined in its laws and the adjacent areas over which the Peoples Republic of China has sovereignty, sovereign rights or jurisdiction in accordance with international law; b. the terms “a Contracting State” and “the other Contracting State” mean Indonesia or China as the context requires; c. the term “tax” means Indonesian tax or Chinese tax, as the context requires; d. the term “person” includes an inpidual, 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 the tax purposes; f. 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; g. 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; h. the term “nationals” means : any inpiduals possessing the nationality of a Contracting State, any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State; i. the term “competent authority” means : in Indonesia : the Minister of Finance or his authorized representatives; in China : the State Administration of Taxation or its authorized representatives. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State concerning the taxes to which this 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 Contracting State, is liable to tax therein by reason of his domicile, residence, place of management, place of head office 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: 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); 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; 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. 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 place of management, a branch; an office; a factory; a workshop; a warehouse in relation to a person providing storage facilities for others; premises used as sales outlet, a farm or plantation; a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. The term “permanent establishment” likewise encompasses : 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 a Contracting State for a period of more than six months; the furnishing of services, including